9 Global Sourcing Benefits That Will Blow Your Mind
Global sourcing can be an incredibly beneficial option, whether you’re looking to save money or just find new ways to grow your business. However, with all the benefits that come from global sourcing, there are some common misconceptions as well—misconceptions that could ultimately hurt your bottom line. To keep from running into these situations,
Here are nine key benefits of global sourcing that will blow your mind.
#1 It increases your product mix
Global sourcing will give you access to a wide variety of products and materials. When your product mix is large, it allows you to appeal to various consumer tastes as well as cater to various industries. This can bring in more sales, allowing you to make more money! And if you have too many products and too little cash flow, then global sourcing will allow you to spread out your overhead expenses over a wider base so that they are easier to handle.
#2 It reduces labor costs
Bringing your production work to a global sourcing company in USA can help you reduce labor costs significantly. This is because companies in countries like China have a cheap labor force and hence you get to save money on salaries, benefit packages, and other perks for your employees. This allows you to easily maintain a leaner staff, and invest that extra money back into your business for growth.
#3 It lowers manufacturing costs
The raw materials used for production in foreign countries are less expensive than those used domestically. Shipping is cheaper, and labor costs abroad are lower. By partnering with a global sourcing company, you can cut costs throughout your entire supply chain—from raw materials to packaging and shipping. This will ultimately bring down your manufacturing costs so that you can pass on savings to consumers.
#4 It offers more product variety
Along with potential savings in cost, when you order goods from a global sourcing company, you also gain access to a broader selection of merchandise. To ensure that your business has as much variety as possible, use a global sourcing company that offers everything under one roof!
#5 It boosts employee morale
Getting products in bulk from global sourcing companies gives you a great deal of power and control over your employees. When you get to decide when they get raises, company perks, bonuses and whether or not they get to go on that week-long vacation with their families, you can create a culture of employee loyalty. Employees who feel appreciated tend to be more productive, so show them some love by providing all these things through bulk purchasing.
#6 It expands your customer base
If you’re producing a product or service that can be sold in various countries, then sourcing internationally may allow you to tap into new markets and customers. The best part? You’ll get to reach out to them while simultaneously improving your own website traffic and SEO rankings. What’s not to love about that?
#7 You can scale production up or down easily
When you outsource production, you hand over all logistics to a sourcing company that knows how to keep costs low and quality high. In effect, you can get exactly what you want when you want it. With domestic production, though, there are storage costs and inventory issues that will slow down your ability to scale up or down quickly.
#8 You can build a reputation for a quality product, fast
Today’s consumers are smart, and they’re looking for businesses that give them value in return for their money. The same principle applies to products. If you buy low-quality goods overseas and resell them back in your home country, you run into several problems: One is that, as consumers become more aware of where their goods come from, they will shy away from companies known to rely on cheap foreign labor.
#9 It doesn’t break the bank
If you’re currently paying top dollar for your sourcing, with a sourcing company in US, you can have most of that money back in your pocket. Think about it like a consulting fee—only without all of those annoying meetings and snazzy business cards.