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Sourcing Products - How To Deal With It Wisely

By: Admin In: Business Last Updated: 2012-04-09

It is rightly said that cost, demand and competition are the three key factors that determine success of a trading business. To attain a distinguished position in international market, you should be able to source products at such a cost which is better than your competitors. This is because production cost is considered to be the most vital part which determines the success or failure of any trade business.

The factors that play critical role in trading are:

  • Sourcing directly from producer: Avoiding involvement of any middleman in your trading business.
  • Make best Use of Leveraging incentives like special export processing zone, and cheaper export credit.
  • Sourcing from those places that have traditionally excelled in producing quality products makes all difference.

Besides all this, a practical approach in product selection is a must. The key factors, determining the product selection, are listed below:

  • The product's manufacturing or sourcing should be in compliance to consistent quality standards such as ISO or equivalent certification
  • The available stock of products should be sufficient enough
  • The product should be priced reasonably
  • A special care should be taken for the packaging and labeling of products, especially of the products that are of perishable nature
  • All the export related matters should be dealt with utmost care and in compliance of norms laid by the government
  • Mode of transport and need of logistics

There is no exact way out - one should check various alternatives and take a decision that provides better sourcing solutions. However, the cost factor should be considered as the most crucial criterion in this. It is necessary to perform homework before finalizing a competent source of products.

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