Effective Sourcing Strategies
Find the Value
It is important for any company worth its salt to find the value in any deal it contemplates. In the past GSSI has been tasked with producing print in Europe only to find manufacturer costs to be beyond budget. We found the value by carefully researching comparative labor costs, proximate distance from various potential sites, evaluating shipping schedules, port fees, customs and duty charges as well as ease of clearance and entry issues we begin to understand our client’s total cost. But of course there is much more to it than that. What is our philosophy when it comes to printer selection, equipment evaluation and quality control procedures? Each issue can either save of cost our clients thousands of dollars. Why does one press cost “X” while another costs “Y”?Is equipment in house or located elsewhere? Do they have experience shipping internationally or will the client be a test case?
Confidence in the Solution
Risk Management. Foreign manufacturing carries risks. It would be foolish for GSSI to deny that fact. But assessing and estimating the expense of such risk and the tangible and intangible costs associated with that risk can turn a successful venture into a poor one. What do we look for? How do we communicate up front with our clients so that they can be prepared? What assurances can we offer? Is experience enough?
Requires managing cultural barriers, overcoming language issues. How many times have we heard about companies who thought they were getting one answer when in truth they didn’t ask the right question in the correct manner so the result was something completely different and they didn’t know why. Money is lost, time is wasted and heads rolled. How often do companies blunder forward thinking they understand the next step only to discover that they haven’t a clue? And what is the cost to the decision maker? The answer isn’t always bodies, the answer isn’t even experienced bodies. It is having an approved and clearly detailed plan and communicating it regularly. Clients feel better when they are in the loop. In the boxing game the saying goes, “everyone has a plan until they get hit”. Our world has lots of moving parts, something always happens. So our success should be measured by how well we adjust and how quickly we recover.