As globalization mores forward, it is becoming so that international sourcing is no longer considered a competitive advantage, but a necessity for companies. People are realizing this, and more and more companies are expanding operations to a global level. Since there are major differences between global and domestic supply chain strategies, this can be a little overwhelming. World Trade Magazine has published an article with helpful advice for companies who are in this situation.
Here are a few good tips from the article:
Rule Number One: Take Your Time!- The top mistake executives make in going global is being unrealistic about their timelines.
Know Your Terms - Negotiating an international sales contract? “Both parties need to pay as much attention to the terms of sale as to the sales price,” reminds the International Business Institute.
Global Sourcing 101 for Retailers - Global and domestic retail supply chains share the need for speed, agility and flexibility regardless of length of chain. However, domestic supply is simply not as complex or risky. Global supply brings an increased risk for errors, delays, regulatory and customs challenges and a need for greater, broader visibility to manage the flow of product and information.
Want to learn more about managing your supply chain? Take a look at one of our Supply Chain Visibility GTM Success Kits- a zip file emailed to you containing white papers, case studies, and information on how you can ensure visibility, communicate efficiently with carriers and suppliers, and make accurate decisions relating to diverting inventory or resolving bottlenecks.
This post was published on September 17, 2009 and updated on February 11, 2015.