The activity of global sourcing service renders several advantages that include a bigger resource market and lower costs. It is one of the major activities that have taken the business world by a sweep. In this article, we will learn about the ways of making maximum use of global sourcing.
Meaning of Global Sourcing
The practice of sourcing goods and services from the international market and across political boundaries is known as global sourcing.
Making Most of Global Sourcing:
Procure from a country with low cost of labor and strong control over quality
Studies have proved that organizations save at least thirty-five percent cost by sourcing. Initially, China was the only country that provided high quality products and services at the lowest possible price. However, now-a-days, other countries like, India, Vietnam and Bangladesh have emerged as low cost suppliers. You can successfully source from abroad, if you do a proper homework on the quality you want, the timeline that suits your strategy and the expense you can afford.
Source from a nation where you can reach easily
Whenever you enter a business partnership, you have to visit the place from where you are sourcing products from China for your company. You can visit to verify, if the supplier complies with local regulations or not, to check on the type of workforce or even to learn about the entry of competitors. Most importantly, you want to check, if the product is being made as per your specifications or not.
Source from a country where you can trust the integrity of the people
When you source products or services from a country, you should inform the global sourcing service provider about your inhibitions and anxiety. It might take a lot of time to come across a country with, which you can happily do business. But, it is always better to deal with people you trust. It is no use conducting business with a supplier, if you cannot trust his words or actions. Search for a supplier and supplier country from where you can source goods or services without any worries.
Source from a country the language of which you understand
It is important that the country from which you source goods and services speaks a language that you understand. How would you otherwise, make your deals? Companies providing global sourcing service cater to this problem by providing an interpreter who understands the language of the country from where you want to source.
Source from an economy the laws of which you can adhere to
If you think that the policies and laws of a country are too complicated for you to be able to conduct business dealings, avoid sourcing from it. The economic policies may not allow you a smooth business dealing with the country. Procure from a nation, which provides legal protection to foreign business operations and which has clearly stated laws.
Now, that you know about the various ways to make global sourcing service a success, approach an agency that can help you with your procurement requirements.