Today procurement has emerged as an important function for business enterprises. It helps determine the profitability of the business, especially at times when there is pressure to keep the cost of production at a bare minimum. Developments in Procurement Asia have been subject to a number of factors including political stability, international competitiveness, transport infrastructure, and social demographic factors in the various Asian countries.
You can find more details of the relative labor cost position of the Asian countries in the chart below.
The below figure displays the demographic and infrastructure positioning of the various countries so you can determine the best means to develop your sourcing strategy.
Thorough and Analytical Procurement Asia Solutions
Typically, procurement requires a lot of research, especially at a time when you begin to strategize. Among the various new trends, the usage of the internet for direct and indirect procurement services has increased considerably. With the amount of information now available online, even smaller companies are beginning to find services to import from Vietnam and other low-cost countries in Asia. The service companies with their knowledge of the region are able to help you with an extensive database of suppliers to work with.
These advantages become an essential part of most companies trying to globalize their sources of supply. The Asian region was touted as the newest and the most attractive market of the 21st century and procurement of Asia services has helped reinforce that belief with the professional and affordable services they provide.
Sourcing from Asia – The Successful Way
Apart from fundamental issues of capability and competitiveness, there are a number of traditional barriers common to all LCC countries such as:
- Internal barriers to change make it very difficult for procurement professionals to convince their internal customers in engineering, manufacturing, quality, and marketing to take the risk of switching to new suppliers.
- Communication difficulties (both in terms of language and in terms of technical specifications that are often driven by different standards) discourage many companies from attempting to reach out to potential suppliers. However, companies that do source from Asia are addressing this issue by either executing that programme via their own buying office located in LLC and staffed with local procurement professionals or via procurement service providers that manage the sourcing process for them on an outsourced basis.
- Quality risks where the belief is that low costs are often synonymous with poor quality.
However, the need for companies to continuously look for alternative sources of supply is driven by the following factors:
- There is a requirement to secure new sources of supply in categories where the supply markets are increasingly tight. This could be due to the increased demand emanating from countries such as China and India.
- Identification of lower-cost sources in order to remain competitive in global markets.
Professional and experienced companies with a focus on quality inspection and timely delivery can assist you with Asia procurement. From manufacturing in LCCs at lower costs to setting up a sales network in the LCC of your choice, the service is a reliable bridge between your organization and the market.
Procurement Asia Services – They Value Your Business and Your View
The service provider can help you with:
- Research and analysis of low-cost country sourcing options
- Development of profitable procurement strategies
- Enhanced company competitiveness
The service you choose will be able to provide you with consultation with quality experience to serve your best interests. They aim to partner with companies across the world and create successful procurement strategies for the betterment of your business.