As low-cost country resources are being valued at 1/3rd to 1/5th of their Western counterparts, it comes as no surprise that global, international sourcing service is emerging as an important business strategy. As explained in Thomas Friedman’s acclaimed book, “The World is Flat”, the world has shrunk due to the impact of technological competition. The pressure to do more with less has forced companies to become more agile. They are increasingly alert to changes in the macroeconomic positions of economies across the world as well. Unfortunately, most companies lack process maturity to manage globally distributed teams and enjoy cost savings. Instead of depending on local resources, it is more justifiable to look for a global source of production factors. It helps to work with global sourcing services providers, who can prove to be your trusted partners committed to service excellence.
What Companies Need
- Continuous intelligence about trends in key supply markets
- Globally integrated organizational structures so best practices are shared and purchasing power leveraged vis-à-vis suppliers
- Systems that allow global visibility into the company’s spend
How Asia Sourcing Services Help
- Lower Total Costs – With entry barriers and vendor risks reduced, your company can fight the challenges of managing a geographically distributed workforce.
- Transparency – Global sourcing service providers will help you with projects of any size and scope with complete transparency on budget, vendors, and logistics.
- Product Localization – add experienced buying resources to work on your localization programme so your products are manufactured at the best costs locally.
Global sourcing companies are ready to help you address the challenges you might face with your global, international sourcing programme. You can benefit from faster savings realisation while you gain access to the unique products and services you require from low cost companies.
India Procurement – Key Driver for Competitiveness
Undeniably, India is a prominent global source of trained human resources and raw materials. There is no disputing the fact that sourcing globally has risen steadily over the years. In fact, most companies have reported up to 35% cost savings upon choosing LCC suppliers. While looking for cost reduction opportunities and identifying newer sources of supply, companies are increasingly choosing India as a potential source country.
The graph displays categories being sourced in India now and in three years
Companies that are sourcing from India are focusing on the categories where India has historically been strong such as IT off-shoring services but increasingly also in a wide set of industrial categories where India has recently invested in developing some strong capabilities. These include automotive components, industrial equipment, electrical and electronic equipment, plastics, and rubber components.
Choose Global Sourcing Services Providers with Care
- Does the global sourcing service provider have a global footprint that allows it to cover the key sourcing markets?
- Can they manage the entire sourcing process including market intelligence, feasibility analysis, supplier qualification and selection, and procurement operations?
- Will the company understand your requirements and effectively integrate its services with your business unit?
These are the main questions that you will need to find answers to before you decide on a global sourcing service provider. An accessible global source is the primary requisite to this issue. Compete effectively in the global market and expand your business with the support of a qualified sourcing services provider. Procurement savings can directly contribute to your business’s bottom line, take advantage today.
Frequently Asked Questions (FAQ)
Global Sourcing Service
- What is global sourcing? – Global sourcing is the practice of procuring goods and services from international suppliers to leverage cost advantages, better quality, and diverse manufacturing capabilities across different markets.
- Why is global sourcing important for businesses today? – Global sourcing helps companies reduce production costs, access specialized skills, diversify suppliers, and stay competitive by sourcing high-quality products at the best possible prices worldwide.
- What industries benefit most from global sourcing? – Industries like manufacturing, retail, automotive, textiles, electronics, and consumer goods benefit significantly from global sourcing due to access to a wide supplier base and competitive pricing.
- What services does Dragon Sourcing provide for global sourcing? – Dragon Sourcing offers end-to-end global sourcing services including market research, supplier identification and audits, price benchmarking, negotiation support, quality control, and logistics coordination.
- How does Dragon Sourcing ensure supplier quality internationally? – Our experienced local teams conduct thorough supplier audits, factory inspections, product testing, and compliance checks to ensure suppliers meet your quality and certification requirements.
- Can Dragon Sourcing help reduce risks in global sourcing? – Yes! We help diversify your supplier base, monitor market and geopolitical risks, and implement compliance and quality control measures to minimize supply chain disruptions.
- How does Dragon Sourcing manage communication with overseas suppliers? – Our multi-lingual local sourcing experts handle negotiations, resolve misunderstandings quickly, and ensure clear communication across different time zones and cultures.
- How do I start a global sourcing project with Dragon Sourcing? – Simply contact us with your product requirements and sourcing goals. Our team will design a tailored sourcing strategy and guide you through every step.
- Does Dragon Sourcing cover emerging and mature markets? – Yes! We have extensive experience sourcing from both emerging markets like China, India, Vietnam, and mature markets in Europe and North America, depending on your needs.
- Why choose Dragon Sourcing for global sourcing services? – Dragon Sourcing combines deep local market knowledge, a transparent and commission-free approach, and proven expertise to help you achieve cost savings, quality assurance, and sustainable sourcing from around the world.