Globalization is here, and barring a major catastrophe, it’s here to stay.
Not everything any community needs can be made by that community, and international sourcing, as shown by the economic successes in Asia, can be extraordinarily profitable. Some countries are just better at making things than others. France makes better wine than Scotland, Germany makes better beer than Italy, and Sweden makes better pharmaceuticals than Libya.
Any company that grows enough must consider expanding beyond political borders. Those borders will not show up on a photograph of the Earth, but disregarding them has very real consequences.
Here is a Check List of things you should be aware of before entering an international sourcing contract:
- Will I be able to speak to the supplier and their employees in English?
- Is the transaction legal in both countries?
- Do I need a binding contract to “seal the deal”.
- Is the product you’re contracting for worth the cost savings?
- Can the supplier provide repeatable quality?
- Are the quality certifications that the supplier holds legitimate?
- Are the workers in the country you’re buying from working under humane conditions and of proper working age?
- What extra fees, duties, taxes, or excises will be involved in this deal?
- Will the supplier require a down payment on tooling or manufacturing cost, or both?
- Will the supplier require that I pay all cost before I receive the manufactured goods?
- Will the supplier handle logistics?
- Will this deal save me money consistently, over time?
- Is this deal sustainable on both ends?
- Will this deal bankrupt my supplier?
The beauty of international sourcing is that when done properly, it creates wealth for all parties involved. If you meet all of the conditions above, not only will your company benefit directly from the trade, but it will be able to generate massive good will with the public.
A good place to start is with Tricord International. We are a global sourcing company that deals largely with Asia, securing deals for growing businesses the world over.
Contact us today and see how we can help you with your Global Sourcing.