Global Sourcing

When a company begins looking for a manufacturer for a new business it seems like it would be easier to look locally so that you can see where the product is being build without much travel. The difference in price may quickly become an issue though if you choose domestic sourcing. This is why so many companies have their products made abroad, especially in Asia. Not only are companies in Asia less expensive but they tend to be efficient since many have been in the manufacturing business for a number of years with the same products.

Global sourcing can appear like it would be difficult and it is certainly not right for every company, but once you start looking there will be numerous factories to choose from. One of the best ways to get started is to network within your commodity. Go to trade shows and join networking groups that have a similar focus. You may also ask your freight forwarder or speak to someone already involved in shipping cargo internationally. While it is not always part of their global shipping services, they may be able to pass along some factory contacts or at least company names to help you source your material. After you find what you are looking for you may also want to check their record with the listings in that country. Many local governments will keep a list of their businesses to ensure fair trade.

Global sourcing may seem intimidating at first, but if you do a little research and take care to find a reputable source, it can be a great way to get your materials made just as efficiently but with a cheaper price tag and good ocean freight rates.