'India destination No 2 for global sourcing'

New Delhi: In the coming years, China, followed by India will be a top destination for sourcing for the retail and the consumer sectors. As per PricewaterhouseCoopers survey, with focus on better quality products and collaborative supplier relationships, mature companies are shifting focus to gain greater efficiency in the competitive market.

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The survey titled 'Global Sourcing: Shifting Strategies' pointed out that China is still the number one destination for global sourcing for 83 percent of respondents. India followed with 58 percent. Mexico, Brazil, Malaysia, Canada, Chile, Italy and Bangladesh were also cited.

"Global sourcing is experiencing robust growth with increased globalisation. For success, companies need to adapt their organisational structure and processes to manage the supply chain risks, minimise impact on environment, as well as measure and maximise cost savings," said N.V. Sivakumar, India retail and consumer leader, PricewaterhouseCoopers India.

Moreover, the report notes that the practice of global sourcing in the retail and consumer sector is thriving. However, many companies are not particularly clear on their cost savings or confident of product safety and other key risks.

The survey done among 60 retail and consumer goods' companies in Australia, Canada, China, France, Germany, India, the UK and the U.S. found that one-quarter of respondents did not know what their actual savings were.

Among survey respondents the more common costs measured were the ones that are easier to track � transportation and logistics, customs and warehousing.

The survey also picked up that product quality is the single greatest risk to global sourcing, cited by 68 percent of the survey sample. However, less than half said they were confident of managing the risks associated with product safety, despite the potentially damaging repercussions of a product failure or product recall.