What is low cost country sourcing? (LCCS)
Is a strategy in which a firm sources material parts, products and services

from countries with lower labour and production costs in order to cut operating expenses.
Is China still suitable for LCCS?

Yes, China is very suitable for LLCS As

1> there is a surplus of labor force: in China there are 1,3 billion people and china's labor force is 800,7 million people (in 2007)! Due to the fact the Party prevents formation of labour unions, the power of the labour force is low and they labor cost can still compete with new comers like Vietnam and India. Furthermore the so called migrant workers, coming from the Chinese inner land where there is a lot of unemployment, keep the wages low.

2> China logistics and transportation system is grown up and very reliable. China has now efficient shipping capabilities and a dozen of large harbours.

3> China has low costs of raw material.

4> China's factories are very flexible. (People are the most adaptable machines)

china sourcing service:

we start our first article with the topic how to source?

There are several options to source for quality products in china:

1. By Internet


2. By trade fairs


3. By using a sourcing agent or office


4. By physical audits

Internet sourcing has have seen an enormous growth the last 10 years: Companies like Alibaba and Global souring have seen an enormous growth in pagehits and soin new clients and visitors.

The main advantage of internet sourcing is the low initial costs for the purchaser, He or she can find products from his lazy chair in his or her office. He can compare easily prices of different suppliers within a short period. He can see and compare the different suppliers profiles and their product portfolio. He doesnot need to go to China. So he can mak a advantage/disadvantage lsit at a very low cost, he can judge already the communication skills of the factory

It sounds easy and very easy sourcing from these business to business sites, These sites have usually an excellent search function and you can find your products also in their catogarised but there are many drawbacks

One of these drawback is that you cannot have control over the actual supplier:
Is it really a supplier or a middle man or trader, so actually not the owner of the factory you deal with? (sometimes traders can have advantages, but later more on that)