Even if you have set up a small company global sourcing can be added to your purchasing strategy. Sourcing and outsourcing is not only a possibility for large companies, small business owners can have the same benefits of outsourcing some of their processes to low cost countries.
Everybody know that India is an outsourcing centre for business processes such as call-centered turn 2d ca din to 3d drawings and internet services such as creating low cost websites. India's advantage is India's enormous pool of good English speaking computer engineers and administrative workforce combined with lower salaries than in the west. Same story for China, but than on the manufacturing end. And other advantage of China is her excellent road-train and harbor's network, or the logistics and transportation system is well organized in China.
So both purchasing of goods and business process can be outsourced by small business owners as we live in a global marketplace that opens the entry for small businesses to make use of resources in countries like India or China. Nobody could imagine, 20 years ago, that the world would be so "flat". (please read the book of Thomas Freidman if you want to learn more about globalization)
Finding a suitable business process supplier or Sourcing is now possible due to easy access of the internet and the present on the Net of numerous business 2 business websites. For the small business owner it can have several advantages to add this strategy:
Focus
If you start your own business in the beginning it is good to do all, so you know how to handle it and you can understand these processes roughly. This is the starting or birth phase of your company; you will see a quick growth after a year or so.
However once your company is running well and growing you need to focus on your expertise. Probably you will be an expert or selling goods in a certain area. To keep updated with all the trends, to handle your main customers will consume a lot of time. So it is good to focus on your expertise (and this is the fun part, right!) , thus other "jobs" can be outsourced such as creating your new website, do translating work , design work or purchasing products.
Cost reduction
Small businesses can also access the numerous cost saving benefits of outsourcing easily and quickly. As mentioned earlier as a small entrepreneur in the second phase, the growth phase, you will spend a lot of time on your own expertise. So you will have a lack of time to do other work. So your primary and secondary business process can be outsourced to low cost sourcing countries. Of course every business will have different benefits and needs however; it is rare that an industry cannot come across some way to minimize expenses by using this tool. China suppliers can affordably and easily supply whichever goods you wish to market. These suppliers can usually supply these goods for just a nickel and a dime. The majority business requirements, including labor or suppliers can be satisfied through china sourcing company.
Enlarging your network
By using Chinese sourcing companies or other BPO (business Process outsourcing) companies your network will be enlarged; you will need new people and new businessmen. So if they do something for you, maybe you can also do something for them! Think about those opportunities.
So as a small entrepreneur it is good to focus on your own expertise, once you are in the growth phase of your company. Less important business processes can be outsourced to low cost countries such as India, Vietnam and China. Besides saving on your costs, your network will be enlarged and you will focus more on your own strengths.
Author Resource:
Roger van der Linden an owner of triple-c ltd that delivers cnc prototyping and injection moulding parts and author of the article sourcing from china
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