Sourcing is of great help to businesses, which are willing to implement cost-cutting measures. Sourcing activities mainly incorporate scrutinizing high-volume purchases while simultaneously emphasizing on nurturing long-term relationships with a distinguished segment of suppliers. South Africa sourcing has gained preference among top-notch businesses as the country boasts of having plentiful valuable resources in the form of gold, diamond and platinum.
Why Marketers are Preferring South Africa as a Prime Sourcing Destination?
South Africa is a global leader in the export of gold, platinum and diamonds. The country’s skilled labor and infrastructure owe much to the favorable scenario. Though South Africa is in the league of developed nations with US and UK, there are many factors, which are hindering its growth. South Africa procurement has been a favorable option especially to clients and businesses of developed countries. In order to stay competitive in the global market, most businesses in developed countries source their activities to other countries. There are many advantages of sourcing as it leads to effective cost management techniques, supply stability and risk management.
Research conducted highlights the fact that USA, UK and Germany hold the top ranks when it comes to key purchasers of South African exports relating to products and services. Then there are various websites, which comes handy to marketers as these sites give sourcing information before finalizing any sourcing destination. Apart from valuable minerals in the form of platinum, gold and diamond, the country also has an abundance of less valuable minerals like coal, iron ore, chromium, manganese, uranium and tin.
Besides these, South Africa also boasts of possessing non-metallic resources like phosphates, salt and natural gas. South Africa sourcing is not only limited to these metallic and non-metallic resources but also the country has a value for the agricultural sector. The nation produces agricultural products in the form of corn, sugarcane, wheat, vegetables and fruits by a substantial amount. The trend of urbanization in this African nation gave rise to a number of industries relating to textile, automobile assembly, chemicals, fertilizers and food-processing.
What are the Factors the Businesses have to Consider Before Sourcing their Activities in South Africa?
Before taking any decision relating to sourcing in South Africa, the businesses must take into consideration the law and compliance structure of this country. The economic and political issues of South Africa also must be assessed in a particular context. It is of utmost need for businesses to scrutinize the facilities of the suppliers in South Africa while blending order and inventory management in the right proportion.
Moreover, marketers who are willing to source their activities in South Africa must have a clear framework regarding the infrastructure of the nation. The upsurge of Business to Business (B2B) marketing activities have ushered the sourcing services of this African nation largely. The country is keeping pace with the rapid technological advancement of the present times. It is the service sector, which contributes to about sixty-five percent of South Africa’s GDP.
In the global context, where all businesses are trying to outdo each other, the marketers are considering South Africa procurement as a viable strategic decision to reach organizational goals. If the firms take the above factors into consideration, it will not be very difficult to unlock the floodgates of success.
