Manufacturers of white goods are increasingly finding it difficult to remain competitive and profitable in today’s crowded marketplace and challenging economic climate.
Partnering with UK suppliers of precision machined components is no longer the only option, and business leaders are starting to ask “where can I source castings, forgings and other key components at a more affordable price?” The answer lies in global sourcing, and here we take a closer look at how white goods manufacturers can reap the benefits of this new trend.
What Is Global Sourcing?
Global sourcing means purchasing services, products or materials from suppliers or manufacturers located abroad rather than in the UK. Although domestic sourcing of these items allows for better production control and more rapid logistics, there are many advantages beyond this to sourcing from overseas.
Cost-Saving – A Major Advantage
The savings in costs are the key advantage of opting for a global sourcing strategy within the white goods manufacturing industry. Many overseas suppliers are able to offer service a more competitive prices and goods and components can be purchased at a significantly lower cost than that charged by similar businesses within the UK. For any company with a tight budget, this is an ideal way of maximising the bottom line.
Benefiting From Specialist Knowledge And Advanced Technology
Within the white goods industry, being able to access cutting edge technology and the latest knowledge couldn’t be more important. Often, this is more accessible in overseas markets than in the domestic UK marketplace.
Overseas companies are increasingly investing more in utilising the most up to date advances and in the latest research precisely so they can become more competitive on a global scale. UK white goods manufacturers can harness those advances and that knowledge and use it to their own advantage.
Taking Advantage Of Manufacturing Capabilities
In the domestic market, there are limited manufacturing capabilities, however overseas there is a much wider talent pool, a smaller skills gap and a wider range of capabilities to choose from. When white goods manufacturers look abroad, they open up their horizons considerably to a huge amount of potential suppliers and a broader spectrum of high quality products. All of these allow for a greater competitive edge when compared to rivals in the white goods marketplace.
Handling The Challenges Of Global Sourcing
Although global sourcing offers a host of benefits for white goods manufacturers, it also presents a number of unique challenges. There are increased risks when it comes to dealing with overseas suppliers, including: different regulations and rules surrounding international markets, customs requirements, language and cultural barriers, currency fluctuations, more complex logistics and even quality risks. It’s therefore imperative to partner with a skilled and experienced global sourcing company such as Darian Global Sourcing.
With years of expertise within the global sourcing field, we can help your white goods manufacturing company to overcome the obstacles that present themselves when procuring from overseas, and help your business to increase its competitiveness and profitability within the domestic marketplace.
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