What do you need to consider before making the decision to change suppliers (especially if it is offshore)?
The Scenario :
You have identified the perfect product online and have told your existing supplier they are too expensive and to never call you again! You place your order and find the cost quoted online has just doubled.
What do you do? To avoid to above scenario from happening with your business, consider all additional expenses outside of the original quote, especially if your product is currently sourced locally.
Additionally, follow these 5 tips to ensure you have a realistic initial quote.
- Get your specification absolutely correct so the supplier quotes for what you want
- Get multiple quotations from different manufacturers
- Work with manufacturers rather than agents
- Always allow some “slippage” in the total cost - around 10%
Global sourcing can be very cost effective for your business, if you approach it intelligently. However, the process can be time consuming. Moreover, fostering a relationship with suppliers overseas costs not only money, but also time and energy. Most likely a lower priced, higher quality manufacturer does exist, but make sure you don’t jump ship on a current relationship solely because the grass appears greener on the other side.
If you would like help assessing your supplier options, the professionals at Mawson Global can give you peace of mind.