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Things to avoid when you go for global sourcing strategy

Most of the business owners are sure that global sourcing will be the business strategy that works based on their expectation. Do you think so? Have you tried to access Nowadays, information about global sourcing is available online, so you can conduct your research easier than before. To be able to get success in implementing your business strategy, knowing everything is important, including know how to avoid common procurement mistakes. Surely, no one wants to make even one mistake, right? You really come to the right place when deciding to avoid any unexpected thing during your global sourcing.

1. Not obtaining the visibility of the supplier

Once you are ready for global sourcing, it means you take responsibility for any risks associated with, right? In evaluating the risk and possible sources of disruption, it is essential to have a clear understanding of the supplier practices. One of the great ways to get a better sense of who the suppliers are is by talking to them face to face. If you can do it yourself, will you ask the help from your global sourcing advisor?

2. Overlooking the contracts

Unfortunately, not all people are aware how this could be an easy mistake to make in procurement. Keep in mind that your contracts must be reviewed by a corporate lawyer before getting signed. To understand the entire procurement process, make sure you have someone professional stays by your side. Yes, this is another way to avoid making even the mistake that looks so small.

3. Failing to emphasize the results

It is too often people think that procurement is a driver of productivity and profit. However, you may not forget that the strategy sourcing is critical in reducing the cost. If you want to boost the efficiency, the results must be measurable and substantial.