Three Simple Tips for Successful Global Sourcing
The notion of global sourcing refers to marketing products and services from a certain location to all over the world, crossing geopolitical boundaries. The purpose of global sourcing is to improve product delivery and service quality, as well as to minimize the costs associated with raw material and skilled labor.
In addition to cost-effectiveness, two other notable benefits of global sourcing include a faster market reaching time and a broader resource pool. Nonetheless, not all business owners know how to use this concept in their best interest. Here you will find an easy-to-apply, efficient and safe strategy that will help you achieve your global sourcing goals:
1. Focus on Affordable Countries
This is a very important aspect. No matter if you are a start-up entrepreneur of you have been running a business for decades, you need to find affordable countries, where top-notch quality control services are couples with low costs for labor. These affordable countries should deliver about 30% cost savings.
China was (and still is) considered one of the best countries for large corporations, due to the low pricing and high quality. Other countries known for their cost-effectiveness are India and Korea, as the prices in China have slowly started to rise.
2. Easy Access
Another essential aspect is to choose a country where you can easily go to, in case you want to go a routine checkup. It is highly recommended to choose a country to which you can travel quickly and comfortable, one that is friendly not towards its visitors but also towards foreign investors. You should feel welcome whenever you travel to that particular country, be it for business or for pleasure. It is a known fact that every business owner should perform spot checks on the supplier's facility from time to time, to make sure that everything is going according to plan and that the rules and regulation of the country in question are fully respected.
3. Become Familiar with the Country You Have Chosen
You must become familiar with the country you have chosen - know the traditions and customs, start to learn the language and the legal system, as well as the regulations that apply there. It is vital to know the language of that particular country, so you can replace your interpreter if he or she is unable to help you.
Also, it is highly recommended to have an employee who always watches your best interests and is always looking for deals that are in your advantage. If you feel like you simply cannot learn the language, at least hire a professional translator or interpreter on whom you can rely 24/7, otherwise you might lose great business opportunities.
Conclusion
To sum it all up, global sourcing is a serious business segment that requires all your effort and consideration. Communication and great business skills play a vital role for the success of every business that relies on global sourcing to reduce the production costs, without having to make any compromise in terms of labor quality or product quality.
In addition to cost-effectiveness, two other notable benefits of global sourcing include a faster market reaching time and a broader resource pool. Nonetheless, not all business owners know how to use this concept in their best interest. Here you will find an easy-to-apply, efficient and safe strategy that will help you achieve your global sourcing goals:
1. Focus on Affordable Countries
This is a very important aspect. No matter if you are a start-up entrepreneur of you have been running a business for decades, you need to find affordable countries, where top-notch quality control services are couples with low costs for labor. These affordable countries should deliver about 30% cost savings.
China was (and still is) considered one of the best countries for large corporations, due to the low pricing and high quality. Other countries known for their cost-effectiveness are India and Korea, as the prices in China have slowly started to rise.
2. Easy Access
Another essential aspect is to choose a country where you can easily go to, in case you want to go a routine checkup. It is highly recommended to choose a country to which you can travel quickly and comfortable, one that is friendly not towards its visitors but also towards foreign investors. You should feel welcome whenever you travel to that particular country, be it for business or for pleasure. It is a known fact that every business owner should perform spot checks on the supplier's facility from time to time, to make sure that everything is going according to plan and that the rules and regulation of the country in question are fully respected.
3. Become Familiar with the Country You Have Chosen
You must become familiar with the country you have chosen - know the traditions and customs, start to learn the language and the legal system, as well as the regulations that apply there. It is vital to know the language of that particular country, so you can replace your interpreter if he or she is unable to help you.
Also, it is highly recommended to have an employee who always watches your best interests and is always looking for deals that are in your advantage. If you feel like you simply cannot learn the language, at least hire a professional translator or interpreter on whom you can rely 24/7, otherwise you might lose great business opportunities.
Conclusion
To sum it all up, global sourcing is a serious business segment that requires all your effort and consideration. Communication and great business skills play a vital role for the success of every business that relies on global sourcing to reduce the production costs, without having to make any compromise in terms of labor quality or product quality.
