As we enter a likely period of Tariffs, Protectionism and Disruption to Supply Chains, many companies will be focusing on Global Sourcing and Procurement teams to manage and mitigate impacts.
Defending Your Margin and Competitive Advantage
Margin and Competitive Advantage Defence will become crucial for companies to retain and build margin delivery. As Global Sourcing teams seek to mitigate potential increases in tariffs, an effective Global Sourcing Strategy will become critical to ensure companies are well placed to manage their way through the likely turmoil of the next few years. As the ripples of increased tariff’s effect all Sourcing and Demand markets the most effective sourcing and procurement solutions could be a blend of responses.
-Near Shoring and Friendly Shoring
-New Sourcing Market development
-Buying Office Team establishment in Sourcing Markets
For many companies a blended approach to risk can provide the most robust solution to future planning. The three approaches to risk mitigation all have the potential to yield positive results there are significant cost (investment) and timing (delivery) challenges to be overcome.
The choice to move supply lines to a new sourcing market can be long, risky and expensive in both investment and on-going product costs. The rationale to deliver a major project must be both long-term and extremely robust in pay back.
Setting up Buying Office teams in Asian market can by contrast provide rapid deliverable benefits that can be used to offset potential tariff increases, defend margins and ultimately support competitive advantage.
Asia Buying Office Benefits
The benefits of establishing a buying office team have been well established. Having a team on the ground in your chosen market delivers
- Enhanced supplier relationships
- Faster to market innovation
- Better product pricing
- Enhanced Quality and Compliance
This will rapidly build margin, defend competitive advantage and manage risk. The added complexity expected for the year ahead as we enter a period of Protectionism, Tariffs and Geo-Political trade tensions can be navigated more easily with a dedicated team on the ground.
Mitigation strategies for potential tariff increases can be best delivered through the closer growth partnerships of an established team on the ground.
Challenges of setting up Dedicated Buying Office in Asian
The challenges for companies setting up a team in new markets are many and varied.
- Recruitment and Team Management
- HR and Legal Compliance
- Premises Management
- Time Zone, Language and Culture
The Most Effective way set up a Dedicated Buying Office team in Asia
The quickest and most effective way to establish a buying team is to use a fixed fee model.
For businesses aiming to set up buying offices to streamline their sourcing operations, a Fixed Fee Buying Office Model offers a smart, low-risk alternative to traditional methods.
This model rapidly delivers you a dedicated team on the ground who can deliver immediate margin and product improvements. Removing the risk, cost and time of setting up an in-house team in new country.
ET2C International Unique Buying Office Model
ET2C are a UK based Global Sourcing company with over 23 years trading experience. Our 200 colleagues are based in 7 offices across Asia. China, India, Vietnam and Turkiye. Ensuring you always have a presence on the ground to support your Strategic Sourcing and Procurement requirements.
We have pioneered the development and running of buying office models for clients in USA and Europe for over 20 years. Delivering all the benefits of a dedicated Purchasing team whilst mitigating all the risk of establishing and managing a team and facilities in a new country.
Drop us a line if you would like to learn more about how we can help you establish a team contact@et2cint.com
