Top 6 Global Sourcing Destinations

Date: October 13, 2014

Top 6 Global Sourcing Destinations

Low Cost Sourcing Destination Options  

Global sourcing is one of the fastest growing trends in supply-chain management. The convergence of globalization, technology, and business strategy influences global companies’ supply chains, providing them with several options for sourcing suppliers, exporters, and traders in their respective industries.

Aside from products, global sourcing solutions also tap the services and skills being offered by different countries. One of the core reasons why this trend is being adopted is the cost efficiencies that they could gain, as well as product differentiation driven by the competencies and export quality of each country.

While the list of global sourcing destinations for products is quite long, we’ll be giving you an overview of six low-cost countries to help you find reliable suppliers and manufacturers of your products.


China is the world’s largest global sourcing location for sourcing suppliers, manufacturers, and wholesalers of various items, from clothing, footwear, consumer electronics and furniture, to medical devices. As the largest country in Asia and also one of the United States' primary trading partners, its strength is in manufacturing most consumer goods at relatively low cost while offering buyers an abundant selection of suppliers. Key cities to check: Shanghai, Guangzhou, Shenzhen, Beijing, Dongguan, Dalian, Ningbo, Kunming, Qingdao, etc.


India is a sourcing destination for services which require IT skills or manpower. It is also a sourcing destination for industrial products. It is considered one of the LCCS or low-cost country sourcing because of its low labor costs. Business Standard said that Prime Minister Nanendra Modi plans to launch a manufacturing policy that could help transform the country to compete against China. The northern part of India is a hub for manufacturers in consumer electronics and cars; the southern cities specialize in steel, sponge iron, and clothing, and the western region in automobiles.


Brazil is quite similar to China’s complex segmentation of consumer-goods manufacturing hubs. The country is one of the sourcing destination countries for leather goods, textiles, and fashion items, including clothing, footwear and accessories. It’s known as the fourth largest exporter of cotton fiber in the world, according to Ethical Fashion Forum.


While China, India, and Brazil remain the three most popular manufacturing hubs in the world, Mexico is also catching up and exploring other options to be one of the destinations. Boston Consulting Group has published a study showing that the country’s operational costs (average electricity cost and natural gases) are lower than those in China—making Mexico a possible competitor for years to come, according to Business Insider.


Vietnam is known as the furniture sourcing destination. As one of the United States’ trading partners, it ranks second (next to China) in the US Furniture Import Countries, according to Furniture Today. Besides furniture, global companies also take advantage of the low cost of labor, and thus Vietnam is becoming a hub for garment factories. In April 2014, Japanese brand Uniqlo moved some of its apparel production bases to the country, according to The Wall Street Journal.


Bangladesh is also one of the up-and-coming low-cost souring countries for garments, textiles, and jute products. As of this writing, there are more than 5,000 garment factories, as noted in McKinsey’s report. The research company also named it as the “next hot spot in apparel sourcing.” Some of the key cities to check out: Dakah and Chittagong cities.

Apart from the low labor cost, global sourcing solutions are prevalent in these countries because of economic stability and government support in developing key cities through improved infrastructure and import initiatives to attract investments.


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