Global sourcing companies offer services ranging from product sourcing to manufacturing to delivery and logistics, saving you time and money so you can focus on your business in other areas. However, with so many options out there, it can be difficult to know where to start when it comes to finding the right global sourcing company that will benefit your business the most. Here are 7 tips for hiring a global sourcing company that will benefit your business in the long run.
Buyers want a quick and easy experience when buying from local suppliers. They also appreciate not having to pay extra fees or taxes because their goods are being shipped right next door!
1) Don’t go too cheap
It may seem like money is all you have to spend when hiring, but if you’re being presented with someone who can perform at a lower price, that doesn’t mean you need to take it. In fact, if they’re able to deliver at a lower cost than their competitors, then that should be reason enough to hire them.
A great way to know if they are working efficiently and saving your business money is by speaking with past clients. If they cannot provide referrals or past work product samples then chances are there is something shady going on behind closed doors. Don’t work with them!
2) Beware of hidden costs
A smart buyer will never pay anything up front, so if someone is asking you to do that, run. As an international business, you have some extra hoops to jump through and it’s likely that any company asking you to hand over cash won’t be around for long.
Instead of having your money disappear down a black hole, make sure you only work with companies that have multiple years of experience and have glowing reviews from past clients.
Also check their references! It may seem like extra work upfront but making sure that your company does not fall victim to unscrupulous people is always worth it in the end.
Even experienced businesses can slip up so make sure that they are reputable as well as transparent with their prices and communication style before entering into any contracts or agreements.
3) Good For The Community
When you hire a global sourcing company, not only are you helping to keep your business running at peak performance, but you’re also helping other organizations in your community stay afloat and take care of those in need.
Communities need trustworthy businesses that contribute to their well-being, and by hiring a reliable supplier to help manage your product needs you are doing just that. By giving back through partnerships with local and international communities, businesses can boost their standing within their communities and be respected members of them.
4) Get an estimate based on your product specifications
Before you hire a global sourcing company, make sure you know what your project will cost. Although some companies provide estimates without much information, it’s best to provide complete specifications of your project in order to give vendors an accurate idea of what you’re looking for. It will also help ensure that you receive competitive bids from global sourcing companies.
When you prepare your request for proposal (RFP), make sure it includes: description of project or product desired, materials and/or labor needed, time frames involved (if any), desired shipping method(s) and quantity required.
Remember to consider any additional factors such as duties/taxes and shipping costs—these could potentially change things significantly so factor them into your bidding process as well.
5) Know where they are located
Many companies make basic mistakes when hiring global sourcing companies. Make sure you don’t fall into those traps. You should make sure you research your company properly and focus on finding a company that is reliable, has extensive experience, professional and one that offers you options to help save money and time.
Avoid signing with multiple companies at once; in fact, even if it means you spend more initially on sourcing products – or just won’t launch as quickly – find one good supplier who can provide all of your business needs before looking elsewhere.
6) More Revenue
Local sourcing doesn’t just help save money; it can also help you generate more. The Chinese and Indian markets are particularly price-sensitive, meaning that companies that can offer lower prices than competitors will often win out in those places.
A good global sourcing company in the USA will have vetted out suppliers that can offer a high level of quality and won’t charge you exorbitant markups, making it easier to compete internationally and bring in more revenue. Plus, reducing your reliance on large shipping carriers can allow you to reduce your overall costs by avoiding larger delivery fees or tariffs on large shipments.
7) Reduced Supply Chain Costs
The amount of money companies spend on logistics every year is staggering. According to some estimates, supply chain costs account for 20% to 30% of your organization’s total cost of goods sold (COGS). Using global sourcing services can help you cut those costs by giving you access to competitive, lower-cost manufacturing around the world.
A global sourcing company like Midtown Manhattan can not only open up new markets in international markets, but they can also enhance your existing supply chain by lowering your logistics costs and improving inventory management. How? By creating an efficient system that streamlines communication and shipping between manufacturers and distributors all over the world.
Inventory costs can also be reduced with global sourcing services. When you outsource manufacturing, it’s easy to store finished goods in warehouses close to your distribution facilities or at your manufacturing facility. This reduces shipping costs, delivery times and supply chain complexity.
When outsourcing overseas, it’s important to know that your company is working with experienced professionals who know how to navigate complex international supply chains. Choose carefully when hiring a global sourcing company—because in some cases, what you get is what you pay for. The more you can get your suppliers and their capabilities before signing on, the better.
If they can’t point to relevant examples or have no proven track record, then don’t work with them! If a company wants to work with you but doesn’t have any real experience, you might want to look elsewhere—particularly if other companies that already understand your business are also vying for your business. Over time and through positive experiences, good firms will flourish and bad ones will fall by the wayside.
To learn more about how a global sourcing company can support your business as well as others in your community, contact us today. We would love to hear from you!