Interested in knowing more about sourcing and procurement in Asia? Don't know what all these industry terms mean? Feel free to read our 'Frequently Asked Questions' section to learn more about global trade.
What is Sourcing?Sourcing is a strategy in which a business seeks to find the most cost efficient location for manufacturing a product. Often sourcing strategies encourage a business to seek manufacturing options in a foreign country.
The process of sourcing includes identifying potential vendors, conducting negotiations with them and then agreeing to supply contracts with the new vendors.
The exponential growth of Asian manufacturing capabilities in the past century has made this region one of the most cost efficient areas for sourcing in the world. Many of these developing nations in Asia offer tax and tariff incentives to encourage companies to purchase products in their country.
What is Procurement?Procurement is the acquisition of manufactured goods from an outside external source. Sourcing, purchasing and much more are part of a procurement strategy. It is best if the procured goods are cost effective, of good quality, and come within a timely manner. A good procurement strategy also includes shipping and logistics details.
Procurement strategies are complicated and deep in nature, and most companies consider several factors including; price fluctuations, scarcity and much more.
What is Supply Chain Management?Supply Chain Management is the active management of materials as they move from supplier to manufacturer to wholesaler to retailer to customer. SCM covers the entire life of any particular product and therefore requires thorough overview.
The complexity of SCM integrates several people and networks, all of which are obliged to cooperate in order to gain a shared mutual advantage.
The focus of Supply Chain Management is to maximize customer value while achieving a competitive advantage over other companies that make similar products.
What is Quality Assurance/ Quality Control?Quality Control is a process that considers all factors involved in manufacturing a product. This includes aspects such as; vendor capabilities, management and reliability. Thorough and routine inspection is a part of quality control that guarantees customer satisfaction.
Quality Assurance is the promise to uphold a level of quality in a manufactured product by performing excellent quality control. Preventing mistakes and defects in products, while all around avoiding any problems give customers a strong sense of quality assurance.