Developing a costing framework that is transparent and works across the global sourcing organisation to capture total cost of ownership is key to enabling supplier price benchmarking, mitigating margin risk across the supply chain and delivering profitable sourcing.
Building and improving a reliable supplier matrix that supports business and category objectives is a critical tool in driving a sustainable sourcing strategy.
For businesses to achieve strategic sourcing objectives there needs to be a clear and concise strategy that is agile, sustainable and lean that will maximise category value and margin, limits global supply risk safeguarding product demand objectives, and meet social compliance, environmental and product quality goals.
Delivering strategic sourcing improvement doesn’t just come from finding new suppliers, it starts internally with understanding the business strategy and direction, market intelligence on competitors, customer direction and historical analytics.
Amongst experienced sourcing professionals, there is always a stigma about using a Chinese Trading Company, with the preference been to go directly to the source manufacturing unit.
Define a low-cost country sourcing plan that delivers cost reduction and meets quality objectives. Business typically gain a 10-35% cost savings through low-cost country sourcing.
Is this Chinese Vendor a Trading Company or Factory…they say they have 50 Workers? Basic guidelines to sourcing a new sewing vendors from a Canton Fair.
Attending the Canton Fair to source new vendors capable of delivering brand innovation and competitive pricing is a time-consuming task, but one that may be necessary to build a robust supplier matrix.