If you’re running a company of any size, it’s likely that you outsource at least some of your operations. This saves time and money while providing access to more qualified professionals than you could possibly hire in-house, all while giving you a broader perspective on the marketplace and keeping your workers from getting bored by doing the same tasks over and over again. Global sourcing benefits businesses in many ways – here are just 9 of them!
1) Lower prices
When you shop globally, you can buy raw materials and services for much less than you’d pay at home. In other words, overseas suppliers are able to make quality products and offer excellent service at prices we wouldn’t be able to match. You can use that extra cash on R&D or just return it to your investors.
2) Higher quality control
Getting your products made in a foreign country can make it easier to keep a closer eye on quality. If an item is being produced in another country, you’ll have more freedom to walk around and take as many photos as you need to check up on production. You can also ask specific questions about quality control if there are problems or delays. This kind of oversight might not be possible at home if you outsource domestically.
3) Greater access to new markets
Are you looking to increase your employee skills? To help train your staff and keep them up-to-date on what they need to know? Investing in global sourcing can help you do just that. You will be able to get more information about importing from other countries for a lower cost, so that you don’t have to spend as much money on training your own employees. This can also be a good way of building job satisfaction by letting employees travel or learn new things while working for you.
4) Employee skill development
When you hire employees with experience in international trade, you aren’t just getting their professional services—you’re also acquiring a new team member who can train your other staff members. Whether your company wants to move into foreign markets or maintain its present business operations, tapping into a global network of trade partners and export/import professionals is a great way to ensure that your internal staff are trained for future success.
5) Better efficiency
Because a company hires a global sourcing firm to conduct its outsourced business, it automatically gains access to a network of experts across all areas of sourcing. This access allows companies to benefit from second opinions when in doubt and overcome possible implementation issues before they arise. By implementing other companies’ best practices, businesses also discover new opportunities for process improvement and cost savings.
6) Faster turnaround times
When importing goods from overseas, you will pay less for international shipping. This is because companies are willing to ship a container of goods rather than individual packages. Shipping rates can vary depending on where your products are manufactured, and what shipping route they take to reach you. However, there are various discounts on shipping available if you utilize global sourcing services. If you take help from China sourcing company, they can help you improving turnaround times.
7) Less expensive shipping costs
It might seem strange that a company would save money on shipping costs when it purchases products from other countries, but in fact, when you use global sourcing services to purchase items from other countries, you often end up saving a significant amount of money on shipping. This is because rather than purchasing products locally or trying to transport them across long distances by plane or boat, you can simply have your items shipped over short distances by truck.
8) Innovative products from all over the world
If you are planning to source products from anywhere in the world, you would have an array of innovative ideas and designs to choose from. It will add variety to your existing product range or give a boost to your product offering. Plus it’s not only about innovative products, but also about innovations in supply chain that can help improve business efficiency and profitability through better overall control over raw materials, production processes, quality management and distribution channels. Here, you can also take help from reputed procurement consulting firms and they can assist in innovations in the industry.
9) Ability to complete jobs quickly on tight deadlines
If you’re needing a specific product or service on a short deadline, then it makes sense to go global with your sourcing and hire someone who can deliver fast. Every time you lose out on a project because you took too long is another opportunity gone forever.