Elksourcing

The primary goal of companies when employing global sourcing strategies is to reduce cost. Sourcing companies will take charge of identifying and screening of suppliers, management of supplier relationships and other important tasks. But before you make use of global sourcing companies or services, there are some important factors to consider. Lead Time While importing products from other countries may help cut costs, you also have to consider the lead time for global purchases. Global purchases generally have longer lead time compared to domestic purchases. You have to consider sea freight, air freight, and not to mention the time it takes to get clearance from customs. This is why using local sourcing services familiar with the nation’s customs and regulations will be essential to reduce the risk of unnecessary delays. Transportation Related to lead time is transportation. Global sourcing will most likely require you to use different modes of transportation. You may…

The major and initial issue in choosing a Chinese manufacturer is determining whether the manufacturer is “real” or not. Chinese companies are masters of disguise. They use the Internet and sourcing websites to make themselves look much better than they are. But they can also hide the reality even on site. So you have to develop an efficient system for breaking through the façade to get to reality as quickly as possible. The general procedure I follow and the one you should follow as well is as follows. First, you or your representatives have to visit the factory personally. It is shocking how much variation there is in manufacturing systems even within developed areas such as Dongguan, Guangzhou and Zhuhai. Factories making a virtually identical product can range from those using primitive hand techniques from the 1930s all the way to those that use state of the art German or Japanese automated equipment….