Now that your business has expanded regionally, it has started to grow tremendously, something is ringing in your mind that you should take the next step and expand globally. Look at the products you use mostly in your house, that radio on the desk, that T-shirt you like wearing, you must have come across the words Made in China, Made in Japan, or Made in Italy.
This shows how businesses have grown globally as a result of the economy. These tags on the products you use are aimed at ensuring that, the country of origin is gratified, additionally, you may be wondering what the factors behind these tags are. How was it possible to source that Radio or T-shirt across the water in Chin? Or why is it that China is the most popularly known for making Radios? Well, it’s possible but without a souring agent like Leelinesourcing, it might remain an uphill to most businesses.Although a lot of considerations have to be put in mind, the following are 7 key points that businesses should consider when sourcing products and goods from around the world.
1. Product quality
This is the most crucial aspect to think about when sourcing products and goods. If the quality of the products and goods is poor or is below the standard, the cost will automatically be irrelevant. It is advisable that the buyer and supplier to clearly identify the quality and specification standards so that both parties are satisfied. Remember if the quality of the product is poor, it will be much difficult to sort out with a vendor because of the different cultures involved, time difference and geographies than if you dealing with a local supplier.
2. Logistics capability
It will be zero work if the products and goods are of good quality but you cannot be able to receive them. What mode of transportation are you able to use, locally and globally? It is obvious that to receive the products and goods, they must be transported either through the airport or seaport. Now the question is, are you able to access a reliable transportation means in your country? Does the sourcing agent have a sound transportation means to the airport or seaport?
As you think about all these factors, you must not forget the seasonal fluctuations and weather changes. Considering that just recently there was the hurricane that hit along the Gulf Coast. These weather changes have derailed the way businesses are conducted globally. Therefore it is advisable to ensure you are flexible with your sourcing agents so that there can be an alternative transportation infrastructure in case the intended one fails as a result of seasonal fluctuations and weather.
3. Trade protocols
This is also another important factor to consider as it can either make or break successful sourcing of products and goods. It is good to note that government rules can boost or weaken the ease of conducting business globally.Think about the times when there were quota constraints with trading in textile products from China although the restrictions were done away with in January 2005 thus making China stand as the topmost country with about 50% of the world trade share of textiles. Businesses should carefully asses all trade regulations prior to making sourcing decisions.
Every country has its own culture. The culture in China is different from the culture in India, Mexico, UAE as well as America and other Caribbean countries. Cultural differences can make the whole sourcing process be complex thus making shipping to be interrupted as well as placing improper orders.Communication hitches negatively disrupt and frustrate business agreements, thus negatively impacting the sourcing experience between the buyer and supplier.It is good to ensure you understand the cross-cultural differences between you and your sourcing agent so that global sourcing can be achieved successfully.
The list is not comprehensive as there are more other factors that must be considered before making around the globe sourcing decisions. Once businesses are aware of these factors and are well informed, the global market can turn to be a profitable business environment.Failure to put them into consideration can turn to be a nightmare for both parties involved.