Sourcing products globally has never been simpler. With the internet, improved global distribution channels, simplified import processes and communications, businesses have infinite sourcing options. Many business experts would say that without globally sourcing products companies are giving a competitive advantage to their rivals. Whilst all the above may be true, reality is in many cases that whilst accessibility to global markets has become easier, the opposite is the case, most not having a robust or clear sourcing strategy. Such things are often overlooked and simply seen as part of the buyer’s job to seek and source their products. Often, the underlying risks, hidden costs, buying models and associated supply chain costs are never fully considered. This, in turn, results in sub-optimal sourcing decisions and eroded benefits to the business.
Direct sourcing strategy benefits.
Our experienced team can help guide your business from the earliest of stages. From analysing your product ranges, through to understanding your supplier base, creating the sourcing models required to implement an efficient and effective sourcing strategy to an aligned supplier base. Whether you are looking to explore the global sourcing options for the first time or engage with an external sourcing partner, we can help you develop your strategy. Maybe even establish your own sourcing offices and presence in the Far East.
A clear strategy is essential to optimise the huge potential benefits of global sourcing.
The benefits that drive businesses to a global sourcing / direct import strategy are very clear.
♦ Significantly increased margin on products.
♦ Access to a vast choice of products and suppliers.
♦ Competitive advantage through establishing the right sourcing partners.
A word of caution.
Whilst the benefits of establishing your direct imports strategy are compelling and the roles and process simple to define, it is vital that the preparations are made to manage the impact of such a strategy. It is about building a global supply chain with integrated KPI’s. For global sourcing to truly impact on sales and bottom line profit, sourcing, buying and logistics must work as one. Without such an aligned strategy the risks to a business are well known and commonly experienced.
£ Increased cash tied up in stock, More inventory cost of working capital.
£ As the importer you take more risks including higher potential markdown exposure.
£ Increased lead times, response to changes in demand.
£ Quality management, customer returns, safety and ethical risks.
£ Investment in infrastructure,
£ Language barriers, culture, ethics.
Direct importing has huge potential benefits but it is not risk free.
Building your strategy.
Whatever level of direct sourcing strategy, or review of your existing strategy, that you are considering, we can help. Over the years we have supported some of the largest retailers in Europe establish their sourcing strategies. Determining their sourcing models and implementing the direct import systems and processes. We can help you establish the right strategy, approach and scale for your business. Whether it be a phased approach, identifying sourcing models to transition existing products to directly sourcing, finding and selecting sourcing agents, or to a full migration to your own sourcing offices in the Far East.
Give us a call to find out more about how we can help you.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.