Global Sourcing Specialists –
Would They Be Useful To Me?
Why should a firm use global sourcing specialists for their
international procurement? Because they want to reduce costs, ensure
quality, shorten sourcing lead times and mitigate risks. Most
organizations don’t have the in-house resources or skills to implement
all these successfully.
What can global sourcing specialists do for me?
Most global third-party procurement agents or strategic sourcing companies can achieve a 20% or more reduction in overall cost. Using experts they can also negotiate on your behalf, manage quality and ensure on-time delivery. Some companies provide other services including design of new products and packaging and sourcing the manufacturers.
Choose the right organization for your needs.
Proven sourcing skills are the base requirement for choosing global sourcing specialists. They can pre-qualify suppliers, develop the relationship for you and ensure that the goods or services you require are provided in the right place at the right time for the right price. Most firms have expertise in supplier management and managing risk across borders.
Price Negotiations
Negotiation on base price and packaging and transportation costs is one of the key roles of global sourcing specialists. They provide clients with the lowest possible pricing based on long term established relationships and volume buying power without using middlemen.
Look for established firms that source direct from many countries and where they utilize in-house local language speakers as buyers in the negotiations.
Sourcing a Manufacturer
Selecting the most suitable manufacturer for your new product requires the use of global sourcing specialists with a track record in locating and identifying reliable, transparent and capable factories in the best territories. You need to be confident of lower costs, assured quality and best speed to market for new products.
Quality Control
The top class firms in this field monitor and ensure that all the suppliers and factories that they partner with meet all government regulations and trade restrictions and that they comply with international codes of conduct. They should provide quality documentation where certification is required must conduct on-site quality audits as specified by the client.
Value Added Services
Providing prototypes and final samples for approval is another service that is available from global sourcing specialists. They can provide packaging design and manufacture, apply for trademarks and get legal approvals.
Regular communication between you, the client, and the global sourcing specialists that you are using is vital. A formalized tracking and reporting system should be established, included in their costs.
Using a carefully selected service provider, with checked references and testimonials, will ensure that the goods or services are delivered as per your exact specifications with minimum hassle
Firms should use global sourcing specialists for their international procurement because of the following reasons:
- Expertise: Global sourcing specialists have expertise in identifying and evaluating potential suppliers, negotiating contracts, managing logistics, and ensuring compliance with local laws and regulations.
- Cost savings: Sourcing materials or products from overseas can often be more cost-effective than sourcing domestically, but it requires careful management to ensure that the cost savings are realized. Global sourcing specialists can help firms find the most cost-effective suppliers while ensuring quality and compliance.
- Risk mitigation: Global sourcing involves inherent risks, such as supplier reliability, political instability, currency fluctuations, and supply chain disruptions. Global sourcing specialists can help firms identify and mitigate these risks to minimize their impact on the business.
- Access to global markets: Sourcing materials or products from overseas can give firms access to new markets and customers, but it requires knowledge of local cultures, customs, and regulations. Global sourcing specialists can help firms navigate these complexities and expand their global reach.
- Efficiency: Managing international procurement requires significant time and resources. By hiring global sourcing specialists, firms can free up internal resources and focus on their core competencies.
In summary, firms should use global sourcing specialists for their international procurement to leverage their expertise, achieve cost savings, mitigate risks, access global markets, and improve efficiency.
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