Global Sourcing Consulting
The right choice of procurement markets, channels and suppliers is becoming ever more important for companies to develop a competitive advantage. But inconsistent standards, political and legal differences, different time zones and communication barriers can all complicate access to global procurement markets, especially if sourcing activities in Asia are managed from Europe.
Rising costs and increasing time pressure, the high input ratio in the manufacturing industry and increasing globalisation and internationalisation represent further challenges for procurement and supply chain management.
Implementing a successful global sourcing strategy can reduce your costs in the long term, ensure supply and minimise price risks. Whether you need advice or wish to work together to implement your global sourcing strategy, we will always adapt our services to meet your needs. We support you in your international procurement and handling the challenges of global sourcing.
How do we do it? Our approach of Global Sourcing Consulting:
1. Global Sourcing Consulting
Procurement goods analysis
So we can assess the global sourcing suitability of procurement goods, we examine them in terms of technical, economic and logistical requirements, such as lead times, technical complexity, replenishment lead times and cost and risk objectives. Based on the defined requirements, we identify goods for you that are suitable for global procurement.
Determining procurement strategies
Following our analysis, we work with you to set targeted global procurement strategies for your selected global sourcing requirements. During this process, we consider your overall corporate objectives as well as your procurement goals, integrating them into the global sourcing strategy. Your strategy has a huge influence on selecting procurement markets and suppliers.
Selecting procurement markets
After determining the goods to be procured globally and the corresponding strategic objectives, we move on to identify potential procurement markets. In order to do this, we classify the procurement markets based on characteristics such as wage levels, technical and social infrastructure, natural resources, political and legal framework conditions and market risks and match them to the procurement goods.
Assessing global sourcing potential
Potential analysis involves us showing you the main potential for optimization in terms of risks and costs (total cost of ownership) and developing a structured plan of action with a clear timeline for implementation. The result is a comprehensive global sourcing concept that you can implement immediately.
Global sourcing preparation
After your global sourcing potential has been identified, we will support you in implementing your global sourcing concept and identifying the best-suited partners by building optimal supplier structures and networks, including prequalifying suppliers, calling for tenders, sampling, auditing, negotiating and concluding contracts.
The main steps in terms of preparation are the detailed and structured compilation of your requirements and the specifications of a product or service and the pre-selection of potential suppliers.
Our extensive project experience and the consultants in our global sourcing offices make the communication surrounding the tender process both direct and efficient. At this stage, we will already be visiting suppliers and carrying out pre-audits. Maximum transparency and ensuring tenders’ comparability form the basis of successful negotiations in international procurement.
When negotiating, for example with Chinese suppliers, linguistic and cultural differences generally prove to be the biggest obstacles. Our in-country procurement consultants know both cultures and speak the language of our customers as well as that of the suppliers. Negotiations can therefore be quick, achieve your goals and maximise profits.
We support you in agreeing contracts by recording the results of the negotiations and developing an implementation plan, taking into account the specifics of the procurement market. The implementation plan includes all of the factors key to success, from technical support and sampling to test orders. We can also help you to establish your own global sourcing offices to ensure sustainable, international procurement.
2. Global Sourcing as Part of Our Partnership
As your global sourcing partner, we take care of your procurement operations, from demand planning, order management, quality control and complaints handling to trend scouting. With our industry, cultural and linguistic knowledge, we help you to conduct supplier visits and face-to-face meetings, to establish and increase the contact between both partners.
By analysing historical data, we create a demand plan, defining your inventory while taking into account ranges and capital commitments. This planning security then allows your selected suppliers to optimize their production.
Using our order tools allows us to permanently monitor orders, from order release and final pattern inspection through to shipping.
Quality is generally the biggest risk in global sourcing, which is why we focus particularly on on-site quality control. We work alongside internationally-renowned institutions and offer the following services:
• IPC: Initial Product Check
• DUPRO: During Production Check
• FRI: Final Random Inspection
• LS: Loading Supervision
If a complaint is made, we find the optimal and, most importantly, fastest solution by making direct contact with the global sourcing suppliers to minimise any potential damage.
We use our proximity to the markets and close collaboration with suppliers to keep up with the development of new market trends and technical innovations, and we regularly present you with market and competitor analysis, as well as new products, including all of the information you need.
- An optimized supplier portfolio with a well-balanced international procurement quota
- Sustainable, measurable savings on the entire procurement volume, increasing your profits
Sourcing from China for effective cost savings.
Advanced infrastructure and reduced costs: Sourcing in China has great potential for efficient procurement. China is increasingly becoming a leading sourcing country due to its quality and supplier reliability, making it an important sourcing country for reducing procurement costs.
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