Buying Agents in a Globalized World – All Commodities
Outsourced manufacturing has become an integral part of most global businesses. To operate in an increasingly competitive global market, a sourcing strategy that involves buying locally combined with sourcing from low cost countries has assumed great importance. A number of companies have been able to successfully lower manufacturing costs by moving their production operations to manufacturers with the help of a sourcing company, as well as finding accredited & certified suppliers. This has helped them withstand competition, survive and reap profits even in the event of an economic slowdown. Procurement savings have influenced bottom-line results of companies significantly. Further, companies have been able to boost their revenues by reinvesting these savings while they carve a substantial market for their products when they extend highly competitive pricing to their clients.
Coverage in 12 Chinese cities within all industries. 11 Countries in Asia
The hype surrounding shifting spend volumes to low cost countries is long gone. The dust has settled and companies are beginning to consider the pros and cons of hiring a sourcing agent for their business needs. A number of savvy consulting firms have led to increased interest among organizations looking for sourcing options. However, it is important to consider criteria such as quality, logistic risks, and intellectual property among others. The all-important first steps to shift volumes will determine success of the procurement strategy. The focus has now shifted from low cost country sourcing to best cost country sourcing.
Important Criteria for Considering Sourcing Agent in Asia
- Over 5 years experience in sourcing operations
- Staff of more than 20 people to mitigate risk of service failure
- Experience with your company’s categories and industry
- Staff well-trained in QC, Audits, and Negotiation
- Documented Sourcing Process and training regime
- Integration with your business unit
- Language and management skills
- Client credentials
Our largest market & operations from this region is currently services & solutions from Mexico
Mexico remains a significant and growing manufacturing destination for many US based industrial companies. Low cost labor and a favorable business environment combine to allow companies to pursue low cost operations near-shore to the US without the long, complex, and expensive supply chains required in countries like China and India.
Despite many procurement related investments, many companies have found it difficult to develop and deploy an effective indirect procurement strategy in Mexico. Our experience in Mexico can help your company to:
- Reduce the erosion of labor cost advantages by shoring up purchasing governance toward reducing inventory shrinkage, reducing conflicts of interests, and improving control of business capital.
- Deploy standard purchasing processes and systems thereby improving process governance.
- Eliminate issues arising from lacking data visibility, access, and integrity.
- Increase location specific purchasing expertise.
- Reduce the operational complexities for companies operating in Mexico that purchase a significant portion of their indirect material requirements from US based suppliers.
Eastern European operations are spread over Czech Republic, Poland, Slovakia, Hungary, Bulgaria, Romania, Ex-Yugoslavia, and Baltic States. Eastern Europe is going through a reconstruction phase both politically and economically. Predominantly, these are industrial economies with prominence of manufacturing and services sectors but still with an important agricultural sector in some countries. It is important to understand the economy of this region for Eastern Europe procurement.
This European state is EU (European Union) integrated and follows a relatively conservative market economy. Its strategic location, trained human resource, and thoroughly developed infrastructure encourage the export industries.
Exports and Resources – Exports of Czech Republic include machineries, motor vehicles, iron and steel, electrical appliances, chemicals, and furniture. In 2012 this nation achieved exports worth US $136 billion. Germany, Poland, Slovakia, Austria, France, Italy, Russia, Netherlands, UK, USA and Russia are the principal trading partners.
Natural resources of this county includes coal, kaolin, graphite, and timber; while its agricultural products include wheat, hops, sugar beet, potato, and fruit. Metallurgy, manufacturing, motor vehicles, and glass are the notable industries.
Poland since 1990 is undergoing a phase of economic liberalization. This nation’s economy is dominated by services and industries sector contributing 62 percent and 34 percent respectively towards GDP.
Exports and Resources – Automobiles, aircrafts, manufactured home equipments, processed food and coal are the principal exports. This country recorded exports worth US $160 billion in 2012. Czech Republic, Germany, Italy, France, and United Kingdom are the premier trading partners.
Farm products comprise fruits, vegetable, potato, wheat, poultry, dairy and pork. Natural resources include coal, sulfur, coal, silver, copper, lead, amber and natural gas. Iron and steel, shipbuilding, machine manufacturing, chemicals, beverages, glass, textiles and food processing are the leading industries of this East European nation.
Slovakia, alike its other East European counterparts is dominated by industries and related services. Services sector accounts for more than 69 percent of GDP followed by 27 percent by industrial segment. Slovakia after becoming a part of EU (European Union) in 2004 experienced significant growth in electronics and automotive segments.
Exports and Resources – The notable exports of Slovakia include machineries, automobiles, chemicals, base metals, electrical gadgets, and minerals. Mineral resources comprise coal, manganese ore, copper, and iron ore. Grains, hops, potato, fruit, and sugar beet are the main agricultural products. Poultry, pigs, and cattle are other prominent resources of Slovakia.
This East European country achieved an export of US $55 billion annually. Czech Republic, Germany, Poland and France are the principal trading partners of this nation.
This industrialized economy is dominated by the services sector which accounts for more than 64 percent of GDP. The contribution of industrial segment is almost 31 percent.
Exports and Resources – Metallurgy, automobiles, chemical, textile, steel, iron, fuel and processed foods are the leading exports of this nation. All these items are exported. An estimate of US $112 billion of exports was recorded. This nation is rich in coal, bauxite, and natural gas. Farm products of this country include corn, wheat, sugar beet, potato, and sunflower seed. Dairy products, cattle, pig, and poultry are other prominent farm related activities.
Germany is the principal trading partner of Hungary while other trading countries include Austria, Poland, Slovakia, France, Italy, Romania, and UK are the main trading partners.
For our Asian & American partners, we have a wide network of Made in America products in most industries, highest of standard & innovative products.
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