So, you achieved the vision which your company had seen, you made your company one of the successful ventures in country ABC. Now what? A businessman will say, he is satisfied and now this business he set up locally will give him profits for his entire life. A great businessman, however, would say, not its time to execute phase 2, to expand this company I have built to foreign lands.
So, if you are also one of those great businessmen who aim for the sky and are planning to expand their business abroad, here are a few things to consider before finally going forward with the thought.
1. Calculate Total Costs
Don’t make the mistake of only considering per unit cost while calculating the expenses of sourcing. Rather you need to consider things like shipment charges, taxations, customs duty etc. which will be required to be paid by you if you are planning on sourcing your products abroad. Also, keep a margin of a few extra dollars being spent due to factors unseen.
2. Take Special Care of Quality
Quality is one of the most important aspects which will help you expand globally. You as well as your buyer should mutually decide ones on the quality of product you will supply and he will receive. Maintaining quality should be the topmost priority in your sourcing as it, in the end, is to be sold to customers who if dissatisfied will not buy your product and hence you dream of going global would be shattered. Also make sure agents such as Leeline, sourcing agent in China, conduct quality checks through each stage and in the end, aim towards buyer and hence indirectly customer satisfaction.
3. Hire a reliable logistics provider
You can only make your presence global if your products are able to reach in the destined country smoothly as well as on time. For ensuring this enter into a contract with a reliable logistic supplier who will take responsibility for timely delivery. You can also talk with your sourcing agents to help you figure out a plan for quick transport of your products and in case something goes wrong then you also should plan for an option B.
4. Know About Local Regulations
Before directly starting or entering into business with a sourcing agent talk to him about the trade regulations prevailing in the nation. Complete all the required formalities before you finally start exporting products. You can also consult a local attorney to help you with the paperwork so that foreign government cannot hamper or block your business from expanding.
5. Market Response
As you start your business one of the critical aspects is to notify and keep track of market conditions in a foreign land. This means you as well as your supplier should be ready in case the demand for your product increases. You should be able to supply more units while the market is hot, or else you will lose to competition and hence on your revenue. Similarly, if your product is good however it isn’t receiving an appropriate response, it is may be time to take it up a notch and tweak your product a little so that it becomes what your customer base wants.
6. Communication is the key
The last factor which comes into play here is the fact that you and your supplier should be always connected with each other. You should set up a system to keep real-time tracking of your consignments and similarly there should be a system on supplier’s end to give you regular updates on what is going on in the nation abroad. This will help you be prepared for any unseen events and will ensure that the supply chain process goes on smoothly.
So, these were the top 6 tips which we believe are key to sourcing globally. Should have any more tips feel free to mention them in the comment section below.