Many people who need to start a home based business often find themselves wondering if they should hire a sourcing company or not. After all, it does cost money to set up the business and sometimes it can be difficult to know where to start when it comes to business growth. However, here are some reasons why you might consider hiring a sourcing company for your home based business:
Cost – One of the major factors that influence how profitable your venture will be is the cost of the supply chain management strategy that you choose to implement. If you were to go with a company that didn’t provide logistics solutions then it’s likely that you’d spend a lot more money in the long run, as you would need to train your own staff as well as pay for their professional development. Plus, you would need to pay for raw materials and equipment that would otherwise be provided by the sourcing company itself. So, if you don’t need to manage the whole process directly but instead want to concentrate on growing and developing your business then it makes great sense to hire a sourcing company instead.
Quality Control – Many outsourcing companies offer a quality assurance program that they call “SOC”. What this entails is a detailed look at the performance of each department in your sourcing companies warehouse. This includes inspections of goods, tracking progress, and corrections that need to be made. So, if you’re thinking about hiring a supplier, one of the things that you’ll really want to look for is whether or not they offer quality control services. You might think that the whole point of outsourcing is to get cut corners when it comes to the quality of what’s shipped to you but you’d be surprised just how many suppliers actually do this, and the ones that do it poorly often won’t have a long list of happy customers to boast of Vietnam manufacturing.
Logistics – If you’re a high-volume importer or exporter then you know that your logistical processes are absolutely crucial to the way that you manage your inventory. Suppliers of outsourcing services are notorious for having poor logistical practices so if they can’t meet the demands of your operations in either one of these departments, then you may want to consider finding another supplier. In addition to poor practices in shipping, supplies and factory maintenance, poor logistics can cost you a lot in terms of profits and overall productivity loss.
Costing – Although quality control and logistics are the most important aspects to consider when choosing a supplier of outsourcing services, they shouldn’t be the only ones that you should be looking at. After all, why hire a supplier of outsourcing if they can’t offer you the best price possible? You need to take the time to shop around amongst the many businesses out there in order to find one that offers you the best deals. It is furthermore important to hire a supplier who is flexible in terms of pricing. Find one that will allow you to adjust pricing according to the demand for their product, as well as adjusting prices according to how fast they change.
Lastly, in terms of sourcing and business model, you may want to find out more about the supply chain management capabilities that a company possesses. Chinese companies aren’t known for their excellent business model skills, but on the other hand they aren’t known for their shoddy ones either. The best companies in terms of both shoddy and good performance will be located in China. Therefore, it is in your best interest to conduct research into the sourcing and business model of the company that you plan on doing business with. By doing this, you can ensure that your Chinese supplier will support your manufacturing operations and that you won’t lose out in the global marketplace by partnering with a shoddy or poorly performing firm.