When some engineering companies first think about the possibility of global sourcing, they often don’t have the greatest expectations. They feel that to benefit from extremely low prices they’ll have to compromise on quality. They often fail to imagine the many benefits which global outsourcing can bring to their business.
As a result, many companies attempt to source products and components globally themselves which can lead to a host of issues. The language barrier is just one problem to be encountered along with differences in business cultures and the challenge of handling multiple currencies. Add to that the fact that it’s impossible to judge the quality of a product from the other side of the world until you have it in your possession and you can see that there are some major difficulties to be addressed in order to make sure that you’re really getting good value for money.
Let’s take a look at some of the challenges which face companies when attempting to move into global sourcing independently.
The Challenge of Overseas Product Sourcing
Typically, companies find that trying to globally source products themselves is more complicated than buying products domestically. Many of the problems that companies face are highly unique in nature and can come as a surprise (or a shock) to businesses who simply thought they would be getting a great low-cost deal.
Firstly, the same rules may not apply overseas as in the UK or Germany. Industrial or technical standards may not be the same as those in the UK and may fall below those required. There may also be export or import restrictions like quotas and tariffs to be dealt with. The documentation requirements when taking goods across borders can be complicated while the current exchange rates can fluctuate wildly, meaning that you may not be getting such a good value deal as you thought.
Depending on where you are obtaining your components, you could find that an unstable political or economic climate causes you unforeseen problems and, should there be a dispute with the supplier, it can be very difficult to resolve. The language barrier can be prohibitive, especially when discussing technical issues, and can cause communication delays or confusion with orders.
How Can Global Sourcing Work For Companies?
Despite these potential pitfalls, it is still possible for engineering companies to make global sourcing work for them. The key is to use a reliable and trustworthy global sourcing company with years of experience in the industry. Darian has been sourcing high-quality, technically challenging engineering components for more than three decades and can be relied upon to use an accredited network of global partners to source components of consistently high quality and at the best value prices. By relying on Darian, engineering companies can reap all the benefits of global sourcing without any of the risks associated with going it alone. Even better, it all comes at no direct cost.
Contact Darian today to discuss your global sourcing requirements.