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What You Must Know About Sourcing! IEF 100 Days Action Plan 2

PRODUCT SOURCING

PHASE 2: PRODUCT SOURCING

Product sourcing

1. Product Sourcing Network

Product sourcing is crucial in exporting as it affects product quality, cost, and availability. Good sourcing improves cost savings, quality control, time efficiency, and market access while delivering a competitive advantage. But along with product sourcing, building up a good product sourcing network is just as important, if not more. For starters, a product sourcing network provides access to products and suppliers while ensuring quality and timely delivery.

It also reduces supply chain risk, facilitates communication and negotiation with suppliers, and provides support for international trade complexities. Spending quality time exploring your product and doing actual field research will help you build a strong product sourcing network that supports you in any requirements.

2. Procurement of Goods

In the process of procuring goods, determining the products comes first followed by identifying the suppliers and negotiating terms. Here are a few questions to ask while you are going through this process:

  • How can you smartly select suppliers? Selecting smart suppliers depends on the criteria you have marked- the product quality, delivery time, and price; if they are well-reputed, if their manufacturing systems and facilities are up to mark, how responsive they are, and their long-term potential.
  • How to close deals with smart negotiation? The steps to smart negotiation are preparation, effective and open communication, active listening, offering creative solutions while seeking a win-win situation, being flexible, and appropriate follow-ups for a healthy future relationship.
  • How to identify if the goods are of high quality & ensure consistent delivery? Carry out supplier evaluation, sample testing, quality control procedures, and ongoing monitoring.
  • How can you export goods through containers and freight? You need to first determine the mode of transportation. This is followed by properly packaging and labeling goods, getting all the required documents, proper loading, and finally delivery to the port.

3. Market Network

Apart from the network in product sourcing, an export network also consists of many other people from varied sectors. This includes packaging agencies, transporters, brokers, commission agents, other exporters from India, and most importantly, importers from other countries and India as well.

This network will help you stay updated with the latest day-to-day happenings for more informed decisions. Real-time information from all fronts of the export cycle helps you stay one step ahead and carry out an export that is smooth and hassle-free.

4. Learn Packaging and Logistics

No matter what product you have, its branding and packaging greatly contribute to its export. Some certain costs and efforts are associated with packaging. Another important aspect to consider is logistics. This takes up a part of your expenses, thus it is necessary to optimize it. Understanding your product geography and the logistics connected with it becomes important.

5. Learn Pricing

At the end of the day, Import Export is a trading business, where everyone is looking for their price benefit. One major trading rule is to buy low and sell high. Becoming a master of your product prices is key as it helps you crack deals. But these aren’t the only areas where the money comes into the picture.

Some other cost elements to consider include product manufacturing cost, quality inspection cost, packaging cost, transportation cost, loading & unloading cost, certification cost, and other expenses on smaller levels.

You can find the Previous & Next Phases of the 100-Day Action Plan here! (link to previous & next blog post)

About Us

We are experts in a variety of sectors in import-export. For now, let’s check the agro sector.

Import Export Federation caters to food sections that include the most demanded export products in India. These include- Spices, Vegetables, Fruits, Packaged Food, Processed Food, Perishable & Non-Perishable Food, and Confectioneries (Biscuits, Chocolates, etc.). We are best known for training to export these products & offer throughout hand-holding.

May 17, 2023
Import Export Federation

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