However, if you want to start an international manufacturing or distribution company, you have to have a global sourcing policy. It might sound like I’m promoting capitalism here, but in fact, I’m against outsourcing. The U.S. has been using outsourcing for years and it still isn’t going away. However, the economic downturn we’ve experienced has made it more difficult for companies to gain international clients. Now is the time to re-evaluate the use of outsourcing globally.
Take my Global Sourcing and Open Innovation Quiz. Before you start a new project, you should first develop a strategy for sourcing. This is especially important if you’re starting a company with no experience. You need to know exactly who you’re going to deal with. You also need to consider where you are on the supply chain and which countries you prefer to do business with.
The main benefit of sourcing globally is that you can offer your services or products to a much more global marketplace. You don’t have to fight over a limited pool of potential clients within your domestic market. Take my Global Sourcing and Open Innovation Quiz for example. Once I understand what’s happening throughout the global sourcing arena, I can plan my company strategies accordingly.
There are pros and cons to all of the different types of sourcing. For example, the major advantage of global sourcing is that it can lower costs for you and streamline processes for you and your company. It can help you identify potential customers and partners and then provide them with products and services that are relevant to their needs and wants. But then there are some downsides to global sourcing that you need to be aware of.
How do I take my global sourcing challenge? First, you need to learn about all of the different types of suppliers available to you. You’ll need to spend a lot of time on research. When you choose a supplier that meets all of your requirements, make sure you conduct a thorough review. This should involve a deep analysis of how your chosen supplier interacts with its own and other buyers and sellers, how they manage their inventories, how their costs and risks affect their production and pricing, and what kind of quality standards they maintain. You may even want to extend your analysis to include a look at your supplier’s ability to comply with your country and international laws.
There is also an opportunity to take a closer look at your global sourcing options through the eyes of your competitors. To do this, you’ll first need to contact each of your existing suppliers to learn more about their experience in global sourcing, as well as their overall level of satisfaction with their business. Then you can take the information you gather and create a draft of a global sourcing performance report, which you can submit to your suppliers for peer review. This can be a powerful tool that gives you a unique window into the businesses of your competitors, helping you gain a competitive advantage.
Once you know how to take my global sourcing challenge, you’ll find that you’re ready to dive in. Your goal will be to provide your customers and sellers with high-quality products and services at prices that they can afford. By streamlining processes, reducing your risk factors, improving your relationships, and staying on top of all of the changes in the global marketplace, you’ll be able to stay competitive and build a thriving business that will help grow your company into profitable territory.