Setting up or even expanding an existing business has a lot of intricate steps. If you are a new entrant into the business fraternity you could be at a stage when you have found the eureka moment. The idea has struck, but now to put it into motion manufacturing sourcing may be an appropriate strategy to successfully bring your dream into reality.
What is sourcing in the first place?
In layman’s terms, sourcing refers to procuring your products from a trusted manufacturer, either from your home country or abroad. This is a critical decision since your brand's reputation as well as your business’ profitability hinges on sourcing from the right manufacturer. If your research suggests sourcing from overseas then you have your work cut out.
This is where consultants and organizations adept at manufacturing sourcing enter the scene. These individuals or entities have the expertise to connect you to the appropriate manufacturer based on your business requirement. Typically sourcing companies leverage their industry know-how, local market knowledge, export norms, and various other business paraphernalia to liaison with a vast range of manufacturers.
Two-fold approach to manufacturer sourcing
There are two broad approaches to manufacturing sourcing.
- Self-sourcing: This means you have decided to source the manufacturer directly through your own channels. In this scenario, consideration the following shall be important
- Credentials of the manufacturer
- Flexibility in times of business uncertainties
- Payment terms
- Quality assurance
- Delivery time
Outsourcing: This process leads to parking the entire responsibility to a manufacturer sourcing consultant of selecting & coordinating with the manufacturer on your behalf. Typically, if you are procuring goods from overseas, outsourcing could be an ideal route.
The sourcing company may also connect you with the end producer and liaison in the entire negotiation process, thus enabling you to focus on other critical business domains.
India as a sourcing destination
India has always been at the forefront of chosen destinations for global procurement. Within the country, manufacturing sourcing is witnessing significant growth due to:
a) The emergence of digitization & technology. Cloud technology is estimated to be worth $1250 by 2028.
b) Recent travel restrictions promoting tech-enabled procurement.
c) Growing small-time retailers & manufacturers who are promoting B2B sourcing.
d) Drone deliveries are changing the supply chain landscape.
For overseas clients, India promises to be a great manufacturing sourcing option due to low-cost production, cheap labour, skilled technical manpower and increasing adoption of modern technologies.
‘Industry Experts’ (www.industryexperts.co.in) is a trustworthy manufacturing sourcing company with expertise across the entire spectrum of the sourcing process and over a wide range of businesses.