Marketers of today are willing to get products and services at a low cost while reaching out to the proper segment of manufacturers and suppliers. In this case, Asia is the smart choice as Asia-based manufacturing industries are cost-effective in absolute terms. There has been a huge growth in Asia Procurement activities from the past few years. Despite cost-effectiveness, marketers also have to face various obstacles while sourcing in Asia. There are distance issues and cultural differences, which can pose a serious threat to an organization’s key business activities.
Things Needed to be Considered Before Sourcing in Asia
No doubt, planning and implementation of a strategy are very much different. Most of the companies create an excellent plan but when it comes to implementation, they fail miserably. The planning phase requires rigorous brainstorming from the part of a company. Organizations need to take care of the following aspects before initiating their sourcing activities in any Asian nation:
- CONSISTENT PHYSICAL PRESENCE: Organizations need to visit their sourcing destination very frequently in order to get an idea of how the work is proceeding. Western nations’ approach to work-flow is very different from the Eastern countries. In Western countries, the task is assigned and scheduled during business meetings. During Asia sourcing activities, marketers have to stay on track with the regular work processes while simultaneously developing a personal relationship with the suppliers and manufacturers.
- VERIFYING COMMUNICATION: Almost all Asian manufacturers can speak English and have good communication skills. It is not language that hinders an organization’s sourcing activities but its interpretation. English and non-English speakers are very different in their work approach. This doesn’t mean organizations should not trust suppliers and manufacturers but it is necessary from the part of marketers to verify the information collected.
- CHOOSING APT MANUFACTURERS: Sourcing enables marketers to choose from a wide range of manufacturers and suppliers. During Asia procurement, it is necessary from the part of organizations to choose the apt manufacturers and suppliers, who are best suited to the job role. No doubt, businesses prefer manufacturers who have the required experience and expertise in making suitable products.
How Sourcing in Asia Can Boost Organizational Revenues
Organizations of today are trying all means to stay alive in the perfectly competitive global markets. Most companies are looking forward to Asia as a preferred sourcing hub as it is from here they can get products and services at a low cost without compromising on quality standards. The costs of raw materials and labor are much low in the developing nations of Asia that are further enabling marketers to lower the prices of products and services and thereby, generating increasing returns to scale.
Sourcing enables an organization to make the most of the production procedure. Asia Sourcing is a growing trend as marketers are able to get quality products and services at a low cost. So, Asia can be a good strategic choice if you are looking to source your key business activities.
