If China is front and center of your sourcing strategy, make sure you are associating with a sourcing partner that has a strong presence in Chinese marketplaces. It is wise to choose a consulting firm which has delivered Chinese sourcing solutions to other businesses. Depending on your core requirements, they can come up with flexible time and cost-effective sourcing strategies that give you the desired results.
The followings are some key strategies for China sourcing.
1. Building a supplier list– Sourcing agents are informed about your specific requirements and they identify the potential list of suppliers, who can deliver what you need, within your budgets and delivery timelines. Reputation is another factor that is kept in consideration when it comes to suppliers, as it signifies reliability and punctuality.
2. Aiming for profitability– Once the task of identifying the right supplier is completed, sourcing agents focus on sealing the deal. Focus must always be laid on protecting the investments of businesses, while finding a long-term, sustainable sourcing solution. Creating and building upon the relationships with profitable suppliers will ensure good outcomes from your global sourcing ambitions. The Chinese economy has witnessed significant growth in recent times, and so have the opportunities for product sourcing. Sourcing consultant services eliminate the usual communication, geographical, cultural and linguistic barriers that are faced by most businesses.
3. Maintaining integrity– It is quite important to ensure that the manufacturing processes are going in a way that adheres to your standards and expectations. Sourcing agents and project managers must monitor the entire supply chain process with precision. Factory visits are important, and as a client you can seek information from sourcing managers regarding the status of your processes. To meet deadlines is important, but so are the frequent, systematic quality checks.
4. Dispersion of budgets– While contemplating sourcing strategies it is important to determine how your sourcing budget is to be allocated. Consulting with China sourcing service providers will help you get a clear idea about where your investment is going, and how it is being utilized across various steps of the supply chain. Sourcing agents must proactively monitor and plan out the dispersion of budgets, and find newer ways to raise cost-efficiency. Business owners might have to shell out a bit more than estimates, due to the various challenges that might arise during ongoing manufacturing processes.
5. Long-term sustainability– Sourcing must not be approached as a quick fix, but rather as a long-term plan for generating sustainability. This involves continually finding ways to procure raw materials and labor resources at improved costs, and formulating strategies to maximize profitability. Only then can you stand to gain from sourcing products in China, or from any other emerging markets in Southeast Asian, African, Middle Eastern and Eastern European countries. Five years down the line, it is important to see a picture of profitability for your business, by implementing the right set of sourcing strategies.