China and India are expected to continue as the top sourcing hubs in retail and consumer sector globally in the coming years, even as concerns over rising cost, quality and environmental issues may impact their advantage, a latest report says.

According to report 'Global Sourcing: Shifting Strategies, cost, quality and the environment would play an increasingly important role as companies seek to achieve new heights of performance and competitive advantage from the global sourcing programmes.

"Our feeling is that China will continue to be the leader in terms of sourcing activities for many years to come, however, concern over rising costs, carbon footprint and other issues may cause companies to step up purchases in other countries over time," the PwC report stated.

China is the number one destination for global sourcing activities with 83 per cent of companies interviewed for the survey naming it as the top sourcing nation, while India follows at the second place with 58 per cent.

"Global sourcing is experiencing robust growth with increased globalisation. While cost is still the key driver of global sourcing activities, mature companies are shifting focus to gain greater efficiency in competitive market, with focus on better quality products and collaborative supplier relationships," PwC India retail and consumer leader N V Sivakumar said.

For success, companies need to adapt their organisation structure and processes to manage the supply chain risks, minimise impact on environment, as well as measure and maximise cost savings, Sivakumar added.

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