Whether you’re starting your own new business or working as part of an existing firm, sourcing globally can be the difference between success and failure. It’s not only about finding suppliers in different countries to lower your costs – it’s also about taking advantage of their unique expertise and knowledge of different industries. In this guide to procurement consulting firms, you’ll learn how to locate the best global suppliers available and have them compete to provide the highest quality product at the lowest possible price point.
What are procurement consulting firms?
You’ve decided that you need products from overseas. You might want these products for your own business or maybe you want to sell them in your store. Whichever it is, it’s likely that you don’t know where to start. A sourcing company can help. These companies deal with procuring goods and services from foreign countries, which is called global sourcing. Many companies turn to a global sourcing company for help because of how complicated foreign trade laws can be, not to mention figuring out where and how to procure goods such as electronics and apparel without running into pitfalls like intellectual property infringement and counterfeit claims—not exactly good customer service experiences!
Why do I need help in procuring products?
You want your products, and you want them for as little money as possible. However, it’s easy to make mistakes along the way that result in lots of extra costs. When you buy directly from Chinese manufacturers, there are many opportunities for error—and expense. Your communications with your suppliers can be inefficient or confusing (making delays and cost overruns more likely), your quality assurance processes can be spotty or unenforced, and it’s easy to get scammed into paying higher-than-necessary prices by low-quality suppliers. By outsourcing procurement companies, however, you can cut through these issues and spend less time doing work that others know how to do better than you do.
Where can I find help with global sourcing?
There are many global sourcing companies that you can use to make global purchases on behalf of your company. From procurement consulting firms to online B2B supply marketplaces, there are plenty of avenues for procuring products and services from suppliers located in China and other parts of Asia. While companies have a variety of options for purchasing goods outside their borders, there are some things you should know before embarking on your global sourcing quest. Here’s a guide that will walk you through some important questions and considerations when it comes to buying products from suppliers overseas.
How can they help me procure products?
Global sourcing companies have a lot of experience with procuring products on behalf of their clients. They have relationships with factories in many different countries, including mainland China. Most importantly, they are experts at finding opportunities to reduce costs without sacrificing quality. It’s difficult for individuals or small businesses (who don’t specialize in procurement) to build up those kinds of relationships. That makes it worthwhile for manufacturers, who need an advantage in today’s increasingly competitive global economy, to seek out procurement consulting firms when they’re looking for ways to procure products at a lower cost than their competitors’ prices. These companies also have value if you’ve decided that direct sourcing isn’t right for your business and you want help negotiating deals.
What types of companies should consider procuring from China?
Procurement companies in USA have a lot to offer smaller companies who are looking for suppliers overseas. These firms can take over some of your procurement tasks, saving you time and money. This is especially important if you’re a small business that is just starting out or has little experience in sourcing overseas. With these firms on your side, you can be sure that your manufacturing process will run smoothly while reducing costs as well as increasing profit margins. They also know what production quality standards are needed by foreign markets and they can act as translators should you need any documentation written in Chinese or another language so all customs issues are taken care of. You don’t want delays at customs which would be costly in terms of time and resources like shipping costs, warehousing charges, etc.
The Challenges with Procuring from China
While procuring your products can save you a significant amount of money on production, there are some clear challenges that entrepreneurs need to know about before they enter into business with their Chinese partners. In our experience working with manufacturing and e-commerce businesses, we have seen everything from damaged inventory, a complete lack of communication, and poorly made products. These issues are often caused by a lack of transparency on both sides as well as cultural differences in approach and values. To protect yourself and to make sure your new relationship is successful, here are some key things you should know about procurement