Global sourcing can offer huge benefits to manufacturing businesses, particularly when achieved in conjunction with an experienced global sourcing company like Darian. Production costs can be slashed whilst the quality of the products themselves remains high, which of course can have a very positive affect on a company’s bottom line.
However, unfortunately many manufacturing companies are shying away from global sourcing and are therefore missing out on some huge opportunities. Here we take a look at possible reasons why.
Concerns over language barriers
It can be tempting to stick to English-speaking countries only when it comes to product sourcing, to avoid language barriers. However, global sourcing companies can help with all aspects of this, including the preparation of price lists and catalogues in other languages as well as helping with advertisements and other correspondence.
Although production abroad can produce certain transit challenges, many of these risks can be mitigated. For example, there are now many types of business insurances on offer, with products transported by sea being covered by marine insurance for instance.
Worries over product quality and business transparency
Maintaining a high quality of product is essential and it’s easy to think that quality can only be achieved using domestic suppliers. However, nowadays manufacturing excellence can be found all over the world, and at Darian we know exactly which suppliers to choose and in which country to keep your manufacturing costs low and quality high.
Financial uncertainty around manufacturing abroad
For companies that have never manufactured abroad before, the financial side of the process can be incredibly daunting. Issues like taxes, tariffs and import duties will need to be clarified as will policies, procedures and rules specific to that country. Darian has over 30 years’ experience in this area so will be pleased to offer advice that exactly suits your needs.
Questions around currency and payments
Obviously when working with suppliers abroad, companies will need to take into account currency and exchange rate implications. Many manufacturing companies only work with suppliers that deal in Stirling, but again this can mean missing out, despite exchange rate fluctuations. Again, Darian can advise on this and work with you to solve any payment issues as they arise.
Frequent market changes
It isn’t always easy to anticipate changes in demand and supply conditions overseas and many manufacturing companies find this off-putting. However, such change can mean new opportunities and bring new suppliers into the market, making global sourcing incredibly dynamic. Frequent market changes can certainly be positive, and should be viewed with optimism rather than simply as an insurmountable challenge.
How Darian can help
Established in 1986, Darian is a world-leading specialist in low cost, high quality product sourcing across multiple engineering and manufacturing industries. For more than three decades, we have worked with a huge number of companies to reduce their production costs and grow their market share – and there’s very little we haven’t seen before.
To discuss any aspect of global sourcing and purchasing for your company, speak to our expert team now on +44 (0)1858 433096 or use our contact page.
Boost your competitiveness today.