Benefits of Sourcing Products from a Globally Connected Team: An Introduction to B2B Raw Ingredient Buyers and Global Sourcing
Global sourcing is a business strategy that involves sourcing raw ingredients and materials from suppliers located around the world. North American B2B ingredient buyers are accustomed to purchasing these materials from domestic suppliers in order to produce goods and services for their customers. As a result of the supply chain challenges of the early 2020’s global sourcing has become increasingly popular. Large manufacturers have learned that through the sourcing of ingredients from suppliers located in different countries, they can access a wider variety of products, reduce production costs, leverage competitive advantages, and lower their supply risk. For newcomers, global sourcing also comes with its own set of challenges, such as language and cultural barriers, difficulty in managing quality control, and longer lead times. In order to successfully source from a global network of suppliers, companies often exhaust time and resources that spread them too thin. Establishing relationships with reliable suppliers in their native language, managing the logistics details of the supply chain, and developing a global team of experts is a big ask for strapped procurement departments. Tradelink specializes in supplier validation, QA, logistics, and project management to give our customers access to ingredients across our global network. In conclusion, while global sourcing is a business strategy that can provide many benefits to B2B manufacturers, CPG companies, and distributors, it also comes with its share of difficulties. Having a partner who can be your boots on the ground around the world, sharing real-time information, and guaranteeing quality and on-time delivery is critical in locating, validating, and receiving secure international supplies.
Unlock the Benefits of Global Sourcing: Access Wider Variety, Lower Costs, and Increased Efficiency
Most people don’t give much thought to the amount of farming, cleaning, and ingredient manufacturing that occurs all over the planet. Crop selection, farming and processing practices that were established hundreds of years ago are still being used today in places like India, South America, and Southeast Asia. When you travel to these locations, meet the people who grow what we eat and see the quality they are able to achieve, you begin to realize how exciting and fascinating the global supply of commodities is. Having access to this global market can help companies create a product that is more competitive in their domestic market by lowering production costs and securing the supply of difficult-to-find ingredients that are negatively affected by weather-related and political events. By sourcing from countries with lower labor costs, buyers can reduce their production costs and increase their profits. Finally, global sourcing can help buyers increase their efficiency. By sourcing from multiple countries, buyers can reduce their lead times and get their products to market faster. This can help them stay ahead of their competitors and increase their market share.
Navigating the Challenges of Global Sourcing for Maximum Benefits
When importing food products, there are a few challenges that must be taken into consideration:
- Language and cultural barriers can be a major obstacle when working with suppliers from different countries. This can lead to miscommunication and misunderstandings that cause delays and other issues.
- Managing quality control can be difficult when working with international suppliers whose version of quality is different than yours. It can be difficult to ensure that the products meet the same standards as those sourced domestically.
- Risk of supply chain disruption due to political or economic instability in the countries where the suppliers are located. These challenges can be daunting, but there are strategies that can be implemented to help mitigate the risks associated with global sourcing.
- Food quality and import/export documentation take years of experience to execute and understand. As materials move around through various countries in containers on boats, trucks, and trains, it’s important to understand the details and requirements of that transportation.
Establishing in-person and long-term relationships with reliable suppliers is key to successful global sourcing. It is important to ensure that the suppliers have a good track record and that they are able to meet the quality standards required. If they are not able to form them on their own, food companies are smart to utilize Tradelink’s experienced global team of experts to help to ensure that the language and cultural barriers are addressed, the quality control is managed effectively and the movement of the product happens seamlessly.