Top 5 Tips for Choosing a Product Sourcing Company Your Go-To Guide for Supplier Risk Mitigation | Page 6

Making sure that you understand the formal relationship that you are entering
into and the fact that in a lot of cases it is a very alien business environment will
put you in good stead. In addition, a lot of companies use commercial levers (like
payment terms) to provide protection should something go wrong. Working with a
company that has experience on the ground can help you manage such risks.
Summary
Over the years, we have been told and likewise heard of some production runs
gone badly wrong. Being able to develop a relationship will define how easy it is
to work with an overseas supplier. In Asia, relationships are of particular
importance and leveraging this can help you benefit from the broad
manufacturing base. Look at your suppliers as ​ ‘Partners’​ , who can actually help
you deliver the products you want, help ​ drive innovation​ and sync with your
own procurement technology rather than look simply over a short term horizon.
In the main, having some kind of ​ local presence​ will only help enhance these
relationships whether it be ​ your own office​ , a sourcing company or some other
third party presence. If you were manufacturing 30miles up the road from your
head-office, you’d be visiting the facility on a regular basis. The same principle
should stand true if the equivalent spend is put to work 6,000 miles away.