1. NEW AREAS

Lack of knowledge of geographical potential and alternative markets.

2. COST EFFECTIVE SOURCES

A company when faced with cost pressures might need to completely re-evaluate and investigate its supplier base.

3. NEW FACILITIES

Many companies find that when they build new plants in different parts of the world that they source from their trusted and cost effective supplier from their existing plants. Often the on costs are significant, with any change only occurring after a long period. Hence, substantial cost disadvantages.