In today’s volatile market, defending your margin and competitive advantage is more crucial than ever
As we enter a period of tariffs, protectionism, and disruption to supply chains, many companies will focus on global sourcing and procurement teams to manage and mitigate impacts. The focus risk mitigation is the expected first response in this evolving scenario. For fast moving companies there is advantage to be created to build market position.
Fast movers will focus on growth during global sourcing disruption
Whilst all the discussion and debate on tariffs and how they will impact various countries, is focused on risk mitigation and margin defence there is another side to the disruption caused to global trading markets. The opportunity created by a rapid strategic response to the emerging disruptions. Companies who embrace this growth opportunity can build margin and competitive advantage. Fast movers will be making key changes to their sourcing strategies without delay, to ensure they emerge from the disruption with stronger market positions. A growth mindset will re shape the questions and the responses to the current global sourcing disruption
Navigating Tariffs and Protectionism in global product sourcing and procurement
An effective and agile global sourcing strategy will be critical to ensure companies are well-placed to navigate the likely turmoil of the next few years. Global sourcing teams will need to mitigate potential product cost increases driven by tariffs and their potential inflationary impacts. The most effective sourcing and procurement solutions could be a blend of responses, including:
Near Shoring and Friendly Shoring:
This option can appear to be the most attractive answer to increased tariff cost and shipping challenges. However the speed of implementation and effectiveness is driven by the products complexity, manufacturing capability of current market and capex investment required to re-establish production.
Many product categories where China is the market leader such as T shirts and some apparel or heavily invested categories such as automotive cannot be simply moved to friendlier shores. They require long term investment and planning in the case of automotive, or a restructuring of product costs (T shirts)
New Sourcing Market Development
Establishing new supply partner relationships in a new tariff friendly sourcing markets can be a more rapid route to supply chain building. Speed of access and quality of new manufacturing and supply partners will be dependent upon high quality market knowledge. good market insight and factory knowledge base
Establishing Buying Office Teams in Sourcing Markets
Rapidly establishing a dedicated buying office team on the ground can be maximise the value created with new sourcing and manufacturing partners. Building closer partnerships with teams on the ground in market. Enhance market knowledge and access. Using a buying office model also has the benefit of no capex cost for offices or recruitment and team management challenges whilst delivering rapid sourcing and procurement benefits.
ET2C International Unique buying office model-rapid effective and risk free
ET2C International are a British owned global sourcing company with over 23 year’s experience working with our clients to make their sourcing simple. We have been running dedicated buying office teams with a range of international clients in China, India, Vietnam and Turkiye.
Our 200 colleagues are based in 7 offices located in emerging and developed sourcing markets to give the best in market access and deep insight. Delivering
- Growing margin
- Removing risk
- Delivering simplicity
The power of a dedicated buying office team to unlock margin
Setting up buying office teams in Asian markets, such as an Asian buying office or an Indian buying office, can provide rapid, deliverable benefits. These benefits can offset potential tariff increases, defend margins, and ultimately support competitive advantage. The buying office model is flexible enough to be delivered in any Asian, South American of African market,
Benefits of an Asian Buying Office:
- Enhanced supplier relationships
- Faster to market innovation
- Better product pricing
- Enhanced quality and compliance
Overcoming Challenges in New Markets
The challenges for companies setting up a team in new markets are many and varied, including:
- Recruitment and team management
- HR and legal compliance
- Premises management
- Time zone, language, and culture differences
Our unique buying office model will deliver modern office premises, local legal expertise and joint recruitment and HR management to ensure your team can focus on building your margins. Giving you rapid setup and a dedicated team on the ground without having fund a new team or invest in premises.
Rapidly building your margins, and your competitive advantage in a challenging trading environment.
ET2C International: global sourcing experts and strategic partner
ET2C is a UK-based global sourcing company with over 23 years of trading experience. Our 200 colleagues are based in 7 offices across Asia, including China, India, Vietnam, and Turkey. We ensure 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 the USA and Europe for over 20 years, delivering all the benefits of a dedicated purchasing team while mitigating all the risks of establishing and managing a team and facilities in a new country.
Interested in learning more about how our unique buying office model can benefit your business? Contact us at contact@et2cint.com.
