Tips for effective global sourcing
by Paul Teague -- Purchasing, 8/17/2007 1:48:00 PM
Sourcing in low-cost countries requires rigorous analysis of potential suppliers. Here are some suggestions for successful strategic global sourcing from Jack Daniels, president and founder of Buyers Bridge and EastBridge Partners. Daniels and his team help manufacturers think through and implement business relationships in China and other countries.
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Share information during the vendor-qualification and quotation process. Once you have the short list of prospective suppliers, send drawings an an electronic format, samples and a clearly written specification. It’s unreasonable to expect any new supplier to understand all the intricacies of your products. What’s common sense to you may be exotic knowledge to them.
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Translate your specifications into the local language. It minimizes misunderstandings.
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Check professional references. Call three-to-five current customers and speak with your peers in those companies. Ask about all aspects of the manufacturing and procurement process. If the suppliers won’t provide references, you probably shouldn’t work with them.
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Visit the factory. Make a site visit, conduct interviews and audit the processes. A good first step is to make sure the sign on the building matches the name of the company you think you might engage with. Define the various certifications the supplier has and confirm the number and productive range of the subcontractors they may use.
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Assign a point person. Regardless of the supplier’s sophistication, it may have trouble navigating the complexities of your organization. Assign one person in your company to be the portal and advocate for the supplier.
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