Product sourcing is a vital part of the world’s economy. Its use continues to grow, and an increasing number of businesses cannot compete without it. In fact, it has become so integrated into how business is done that many of those sourcing products are barely aware they are doing it.However, this does not mean that those sourcing parts of their production do not need to be informed and exercise caution to make sure things are done correctly and in the most efficient manner possible. Things still can and often do go wrong. Countries like China and India obviously have very different cultures, and other factors such as unfamiliar legal systems can also cause unwanted surprises. For these reasons, a sourcing strategy is always advisable. Ideas to include strategic sourcing require planning and constant refinement to ensure they are working as they should and in the most efficient way possible. By researching and implementing a sourcing strategy, every business can increase their productivity and efficiency.
Sourcing from India fast became a popular phrase as soon as the Indian economy started following policies of liberalization in 1990s. The practice enabled foreign companies to exploit the efficiency and advantages that India offers. Apart from manufacturing, the metalwork, electrical, hydraulic and plastic industries are among the major product sourcing industries in India. Additionally, the call center, business process outsourcing and software development industries in the country are fine examples of the service sourcing sector. However, there are problems with Indian sourcing too. The following is a look at some of the pros and cons of sourcing from India […] Read More →
Thanks to technology and the work of early pioneers, international sourcing has become more accessible than ever before. However, this does not mean it is free from peril as well as promise. From political and currency instability to quality control and intellectual property, there are various factors any international sourcing strategy must take into consideration for the company to be successful. International sourcing is about a lot more than just finding the lowest production costs. Any company focused only on the bottom line will likely miss out of the most important opportunities and may do more harm through sourcing than […] Read More →
Strategic sourcing is a business process that seeks to improve the sourcing process by continually examining and re-evaluating purchasing activities. While sourcing is talked about a lot in business, strategic sourcing is one of the most important aspects of sourcing any business will face and must be thought of as much more than talk. It offers both promise and peril, but the competitive nature of today’s world makes facing it inevitable. Thus, every business needs to understand the process and how to go about it. Advantages of strategic sourcing Everyone in business knows how tough international competition is and how […] Read More →
Language is often an issue when doing business overseas. While the vast majority of manufacturers in China and other Asian nations that do business overseas have one or more English speaking staffers, steps still should be taken to ensure language differences do not cause any problems. With English the dominant language of international business, it is generally assumed that business negotiations will be carried out in English. However, English ability overseas varies greatly with each nation. For example, while many in Singapore speak English at a native-speaker level, the English level of the average person in China is much lower. […] Read More →