For large and small businesses alike, global procurement can be a source of frustration, confusion, and discouragement. Global procurement involves the acquiring and buying of goods, services, and works from an external or outside source. When dealing with domestic procurement, the process is generally fluid and systematic due to legal guidelines and regulations, yet global procurement involves various international challenges and separate legalities to contend with.
3 Beneficial Challenges of Global Procurement
1) Managing Your Risk
One of the most prevalent issues with global procurement is assessing the risk factor of the business relationship, location, and market. For example, a few major risk factors in a global procurement deal are supplier failure, natural disasters that may impede flow of goods, and commodity price unpredictability.
Therefore, it is imperative for businesses to accurately and appropriately asses risks when involving themselves in an international procurement relationship. By analyzing any risks up front, either by using internal resources or by utilizing a risk assessment company, the business can make educated decisions about choosing international vendors or a business could use the risk assessment to their advantage when negotiating terms.
In short, preparing for the inevitable via risk-factor awareness could help advert a poisonous business association, save critical time in the event of a disaster, or reduce costs of procurement dealings.
2) Manage Your Reputation
Scandal is one of the worst calamities to befall a public business, especially a trauma that stems from a third-party, such as a vendor, merchant, or wholesaler.
Quality control is not just the distributors responsibility, but should also be actively incorporated into procedure at the business end of the chain of distribution. When getting involved with a vendor make sure to research their history and become as intimately familiar with their facilities, procedures, and attention to quality control, as is possible. This may determine which vendors a business associates with.
3) Manage Your Social-Media Technology
Per Gerard Chick, chief knowledge officer at Optimum Procurement, technology will begin to change procurement in fundamental ways. While some businesses may view this as a challenge or a hurdle to overcome, advances in technology can make procurement dealings transparent, fluid, and expedient.
By building online networks, investing in software, and incorporating technological upgrades and advances into the fabric of a procurement system, businesses will experience an increase in accuracy, visibility, the ability to assess analytics, and, by harnessing technology as support, it will free time to devote to other matters.
Tricord International LLC provides global sourcing resources to corporate purchasing managers and buyers, mainly focusing on made to print manufactured parts. Offering valued product, trained on-sight inspectors, and high-quality counsel and service, Tricord International LLC will provide the level of support necessary for success.
For more information regarding our services or to speak with a representative directly, please feel free to contact us.