As commerce and trade have become truly global over the past half-decade or so, keeping your supply chain contained within the country where you’re located has become less and less common.
Since it’s become easier to source products more economically from other countries, more companies – small businesses, mid-size companies, and mega corporations – have embraced global sourcing.
While this can result in cost savings and greater choice of materials, it also requires more intensive logistical management – and this is often where a company can run into limitations.
However, by understanding global supply chain management and outsourcing where necessary, you can help increase your product’s chances of success.
Coordinating all the moving parts of the supply chain becomes more challenging when parts of the supply chain are handled internationally. Outsourcing supply chain management to a firm experienced with dealing in other countries can be a huge help.
The success of your product depends on the quality, demand, and price of your product. Here’s how a global supply chain affects all three.
Product quality can be at risk when you have a global supply chain because you can’t always monitor what’s happening in other countries. Here’s where outsourcing your supply chain management can be a huge benefit. Pivot International provides full support at all stages of the supply chain including product manufacturing through our Manufacturing Resource Planning system so you’re guaranteed a resulting product that’s top quality.
A global supply chain allows you to meet product demand in emerging markets. Once you’ve done the market research and know where the highest demand is for your product, sourcing materials globally can help you deliver it efficiently and economically. Partnering with a foreign vendor, or sometimes multiple foreign vendors, will help make selling your product in a new country much easier.
When you source materials globally, you have the opportunity to save costs without jeopardizing quality – as long as you have good quality control mechanisms in place. By saving money on materials and at other stages in the supply chain, you have more flexibility with what you choose for an end market price.
Whether you’re looking to go global with your entire supply chain or just specific parts like materials sourcing and product distribution, carefully consider how this will impact your product’s success. A global manufacturing and distribution firm can help you effectively tap into international markets. Pivot International offers global manufacturing, supply chain management, and market research services to help you set up and manage your global supply chain. To learn more, contact us today.