{"id":1851,"date":"2020-11-16T15:36:09","date_gmt":"2020-11-16T20:36:09","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/?p=1851"},"modified":"2023-11-30T11:09:18","modified_gmt":"2023-11-30T15:09:18","slug":"first-steps-international-sourcing","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/first-steps-international-sourcing\/","title":{"rendered":"The First Steps of International Sourcing"},"content":{"rendered":"

Special thanks to\u00a0<\/em>Source One Management Services<\/em>\u00a0for this guest post<\/em><\/p>\n

For companies large and small, there\u2019s no doubt\u00a0international sourcing<\/a> boasts major benefits. Market expansion, reduced costs, exposure to new technologies and workforces\u00a0are just a few of the benefits. Whether you source for a niche provider or a major global player, the beginning steps to expanding supply chain operations are the same. The name of the game is due diligence \u2013 assessing costs, regulations, resources, quality, various capabilities, and location and engaging the suppliers through initial conversations.<\/p>\n

In any sourcing event, it\u2019s crucial to know what you are looking for \u2013 not only in a product or material, but also in a supplier. Of course, when we source, we are in search of high-quality products. However, we should also be in pursuit of locating a high-quality, strategic business partner when researching and identifying appropriate suppliers to potentially bring into our supply chain. In international sourcing, supplier identification may take more time and effort than it would in your company\u2019s home country due to varying cultural considerations, business standards, core competencies, flexibility, and pricing.<\/p>\n

Depending on the items that are being sourced, you may be fortunate enough to narrow your extensive research efforts into specific geographical regions or a \u201chot spot\u201d for that particular commodity. For example, when sourcing raw materials such as textiles internationally, China (and other Asian countries) are traditionally notorious for being a \u201chot spot\u201d for low-cost textiles. Though it can be helpful to be able to narrow the search for a suitable supplier, a challenge that comes with supplier identification involves the extensive amount of time that you must allocate to performing research in order to find a supplier that can meet your company\u2019s needs.<\/p>\n

In addition to the importance of performing in-depth research of international companies that may be a good fit for your company\u2019s needs, it is also crucial to develop and maintain a list of these suppliers. This list should include the supplier\u2019s name, company address, phone number, company website, and any other pertinent information that might come in handy when it comes time to reach out to those suppliers. The more suppliers you add to the list, the better chance you will have at locating your next international business partner. A large part of the research phase comes from studying the supplier\u2019s website or reviews to get a better understanding of their capabilities and overall business. After the research is complete and the long list of suppliers is developed, it is time to begin engaging with these companies.<\/p>\n

One of the first challenges of international sourcing that come to mind is the high probability of encountering a language barrier. One way to test the waters with a language barrier is to simply give the supplier a phone call and ask if a representative speaks your language. If you are able to locate someone to who you can speak, continue the phone conversation! If not, it might be worth the effort to attempt to obtain a representative\u2019s email address.<\/p>\n

With an email address, you can at least send the supplier an email to introduce yourself and give an overview of the products or services you are seeking, and they will be able to translate the email to better understand the purpose of your inquiry. Depending on the geographical region, some suppliers are more responsive via email than they are over the phone when a language barrier is present. If you find yourself emailing the supplier as the first engagement, be cautious with regard to how you phrase the message so you avoid offending the supplier or leaving them uninterested in your business opportunity. As a best practice, it is important to engage the supplier over the phone so that messages are not misunderstood and so that the relationship is off to a positive and effective start.<\/p>\n

Another concern with contacting international suppliers involves supplier responsiveness and differences in time zones. For companies located in the United States calling suppliers in Europe or Asia, it is safe to assume a minimum of a five-hour time difference. Due to being in different time zones, it is important \u2013 and sometimes challenging \u2013 to manage slower response rates as well as receiving calls and emails at all hours of the day. If you are very interested in getting in touch with a supplier, be sure to follow up with them consistently until you are able to connect with a representative. When you are connected with a representative, be sure to have a list of questions to ask them about their company as it relates to the product or material you are sourcing.<\/p>\n

In addition to thoroughly researching the area in which you are sourcing, it is important to assess the quality standards in that region. This can be done during the initial research phase or by asking the supplier when you get them on the phone. Standards of quality is not actually as uniform across the globe as we might think. Dependent on the economy and resources in the country you are sourcing products or materials in, the quality may be very different from what you would find in your company\u2019s home country. With sourcing internationally, it is much more difficult to keep an eye on a supplier\u2019s quality management practices, work conditions and perceptions of quality. Establishing and maintaining great communication and clearly defined quality and service expectations with a supplier is going to be crucial in order to maintain an agreed-upon standard of quality. Keep in mind, though, that determining if the potential supplier\u2019s perception of quality matches what you are looking for is something you want to do during the early researching stages of the sourcing process.<\/p>\n

International sourcing can certainly be intimidating, especially for a company new to it. Researching suppliers everywhere and anywhere can aid in not only personal knowledge but also in establishing a long list of suppliers that could potentially handle the job. Once the long list is built, you will steadily shorten it as you engage in conversations with these suppliers. Whether it be language barriers, varying opinions of quality standards, price competitiveness, or any of the other various challenges of international sourcing, many companies are open to taking risks in order to enhance their competitiveness in the market.<\/p>\n

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