Dealing with suppliers in low cost countries is not appropriate for all buyers, nor for all purchase categories. Generally, you will need the support or infrastructure to identify, qualify and monitor the supply base, as well as tend to the continuing stream of shipments. This suggests that higher volumes, with continuing shipments, are the ones to address first. As experience and sophistication grows, many purchase categories may be seen to be appropriate.

With the selection of the appropriate low cost countries, and their better export suppliers, significant cost savings, cycle time reductions, and even quality improvements are possible. In a number of instances, higher technology components or devices may be preferable to purchase in these countries. Generally, buyers who continue to utilize low cost country suppliers experience total cost savings that, even after compensating for risk, longer transit times, and infrastructure to manage the buy, are quite significant.