Mistakes of Global Sourcing

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Global Sourcing Mistakes

By http://www.dragonsourcing.com


What is Global Sourcing ?

 Global sourcing is very important in the modern

trade and commerce.

 It helps to cut the operational cost of the business.  It is a practice that involves sourcing goods and products from low cost country.

 Low cost material and skilled labor are the most important factors of global sourcing.  China is one of the active participants of this sourcing strategy.


Mistakes in Global Sourcing

Procuring raw materials and finished products from the developing economies is always a good idea as there is enough chance of incurring huge profits by selling these products. A professional sourcing consultant can be of huge help in this regard. Some mistakes are often incurred in global sourcing. The mistakes are….  Don’t Give More focus on Price

 No background check  No Idea about the cost


Don’t Give More focus on Price

 Don’t source the product simple based on

the price factor.  Give more focus on value, than price.  Quality is the main factor on a product.  This factor cannot be ignored.


No background check

 Don’t choose the supplier

by simply seeing the

website.  Websites are cheap and easy to create.  Also the information on the website may not be true.

 Always verify the business background.


No Idea about the cost

 Always have clear idea about the shipping and

operational cost.  It may be very risky understanding this cost.

to

source

without

 These two costs are most important in sourcing.


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