Global sourcing practices sourcing services and goods globally for businesses across the world. Many benefits are availed through global sourcing like time-saving, low costs and a huge resource pool. You can take advantage of global efficiencies like affordable raw materials, skilled labor and economic factors such as low trade tariffs and tax breaks. So what to do to make this work for yourself? Read on to know about the ways and strategies which can help you.
Sourcing somewhere with great quality control but low labor costs – Generally, sourcing products from China allows companies to enjoy a cost savings of 10-35%. There was a time when some particular countries were considered the best for acceptable quality and lowest pricing. However, the transportation to and from the places turned out to be more expensive, making it necessary for people to actually check and calculate the costs very carefully. Nowadays companies are trusting other destinations for alternative and affordable suppliers. This trend especially has become popular since the pricing is rising on a global basis. However, if you want to succeed in this you have to do homework in advance.
Sourcing somewhere where plane rides can be taken with ease and comfort – After entering into relationship with some supplier who is far away, there often arises the need to visit them to check if the local regulations and laws are being complied to or not, monitoring the work force and checking the specifications given by you for your products. Since you already have enough to do, your market should be one that is not too hard or expensive to visit.
Sourcing somewhere with familiar language – Finding a good interpreter can be hard to you and conducting meetings through another person may be even harder. You would always have to depend on another person and you will not be able to afford the absence of even a few minutes. Global sourcing thus should be preferably from a place where you are familiar with the language and would not have to depend on somebody else to conduct important meetings with your clients.
Sourcing somewhere where the laws can be respected – Do you think some country appears to be complicated? Have you been reading in the news lately about their latest policies which can prove to be detrimental to businesses? Then do not take your business there. Whatever you hear may not be true but still it is not worth it. Besides the uncertainty will affect your confidence.
Sourcing somewhere you will be able to trust – When you want to do business you have to be in good terms with that person and unless you trust and know them it will not be possible. So try to know a person before you go into a relationship business-wise. The relationship can only be continued if you respect and trust your supplier.
Global sourcing can be an easy and affordable thing to do, provided you do your homework properly. Doing the proper research and considering all pros and cons will ensure that you are associated with the business partner that will benefit you the most.