• Elksourcing:Things to Consider during Global Sourcing

    Global sourcing products requires careful consideration, it’s a tough decision for any organization. You must determine whether it’s best to gain cost advantages at the expense of some control of your organization’s core activities, or if globally sourcing would be too costly to be practical. Below are key things you need to consider during global sourcing. 1. Monetary Risk  Although the use of foreign suppliers can save costs due to factors such as lower costs of labor and proximity to raw materials, there are also risks that can impact costs including:  Unanticipated and rising shipping costs.  Cost of delays or loss of goods in transit.  Rising costs of transactions, such as documentation fees, contract management fees and third-party supplier audit fees.  Costs related to time zone differences, extra time for storage or transport delays, e.g. approval is given in one country, but the time difference or traditional days off mean…

  • Elksourcing:Things to Consider before You Start Global Sourcing

    The world of business has become a global marketplace nowadays. To be effective in today’s competitive landscape, businesses often have factory partners across the globe. It’s an exciting time, but it can also be a challenging time for businesses just getting started in global sourcing of products.    1. Find a Global Sourcing Partner Entrepreneurs have a streak of independence. That’s why they are in business for themselves. But a good business person will also know when to seek expertise from a partner. Global sourcing is one of those times when it’s wise to seek out a good partner because there are many unknowns. A sourcing company will steer you toward opportunities and away from pitfalls. It’s better to benefit from someone else’s experience than to make mistakes by trial and error. 2. Don’t Make Decisions on Price Alone Lower prices are a primary reason to seek out global factory partners, but…

  • Elksourcing:How to Start Global Sourcing?

    Global sourcing is a trend for many businesses, this is basically a practice of getting services across geopolitical boundaries. But, since there are so many options to choose from, you have to do the whole process intelligently, if keen on making profits. How to Start Global Sourcing? 1. Learning how to do business in another country-It is never too late to know the unknown! First of all, know the culture and the ways of the country you want to outsource from. Knowing the laws of the country and adhering by it will you an extra benefit if you want to sell to them. Buying from that country will give you a head-start about learning how to trade, before you proceed with the sales afterwards.  2. Access to cheaper wages-Your labor-intensive manufacturing process is going to be very cheap if you do that in a third-world country. The wages are lower in…

  • Elksourcing:Five Mistakes to Avoid in Global Sourcing

    During my sourcing work life, I’ve seen so many importer make mistakes when they do global sourcing, briefly as shown in the following: Mistake 1 – No Defined Strategy No matter where you’re sourcing from, you need a well-defined strategy. Without one, it can cause chaos for your business. For example, if you expand into an overseas market without a strategy, the cost of the product could be too high or the wrong product altogether, which leads to little to no sales. This leads quickly to a sinking business before it even leaves the harbor. When sourcing globally, consider the following tactics to create a well-rounded strategy: (1) Identify suppliers (2) Vet and validate suppliers (3) Insure payment capabilities (4) Review quality control processes and metrics (5) Determine sourcing method Mistake 2 – No Defined Standards  What’re your business standards when it comes to products or materials? Know the answer to…

    Shopify Tutorial 2021-04-11
  • Elksourcing:Key Steps to Start Global Sourcing

    Global sourcing is not as difficult as you may think, especially when you have the right partner. The process is fairly straightforward, but if you have never worked with a partner in China or had experience producing a product overseas, it can seem overwhelming. So, where do you start? Step 1:  Product Assessment – Assess what you are trying to manufacture. If it is an established part or component, you likely have access to dimensional drawings, samples, and a list of processes needed to create that product. Your intentions may be simply price or supply chain driven, which may lead you to seek a partner who can review the available resources and offer real cost savings solutions or additional capacity. Alternately, if your product is something still in development, evaluate if you are going to need guidance to bring the product fully to market and if there is any conceptual work still…

    Shopify Tutorial 2021-04-10
  • Elksourcing:Top 7 Tips about Global Sourcing

    As you may know, global sourcing can offer enormous financial benefits to your supply chain. But, as you’d expect, typical savings of between 40% and 70% don’t come with a snap of the fingers. A few new processes must be considered, and a few new skills must be learned to ensure you stay on track and realize the full benefit of global sourcing. 1. Quality, Quality and Quality! Studies show that at the front and center of people’s concerns when looking into global sourcing surround the issue of quality. And rightly so.  The concept of “quality fade” is the deliberate and slow degradation of quality that happens when manufacturers replace materials with cheaper alternatives to reduce cost and increase profits. Fortunately, there’s a simple weapon for the discerning supply chain manager to tackle quality-orientated issues when sourcing globally. And that is the third party inspection. To sign a “golden sample” and give to the…

    Shopify Tutorial 2021-04-05
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