Unlocking Asian Sourcing: Benefits, Risks & Why a Buying Office could work for you

The Growth and Development of sourcing in Asian and China  

The allure of Asia’s vast manufacturing base, skilled workforce, and cost-competitiveness has prompted many European and North American companies to explore sourcing opportunities in the region. Global Sourcing from China or wider Asians markets has always been a source of huge competitive advantage for companies in many industries.  

From start-ups to multinational organisations building Supply Chain to encompass offshoring has been a corner stone of margin delivery and competitive advantage.  However, as more companies start to recognise and develop their Asian sourcing or Global sourcing strategies. The immediate first stage benefits are beginning to be  degraded removing some of the early mover advantages.  

Establishing a Buying Office in Asia can be a strategic move to enhance Sourcing Capability 

Establishing a team in market can deliver significant advantages over working through an agent or trying to manage relationships directly from Head Office. 

Whilst the Advantages can be huge the challenges of office space, recruitment, HR and Legal in a new country or jurisdiction can seem insurmountable and full of complexity. 

ET2C International Unique Buying Office Model

ET2C International have over 23 years’ experience as Global Sourcing Experts. Our 200 colleagues are based in 7 offices across developed and emerging Asian sourcing markets to be your feet on the round. Creating your bridge to your Asian supply partners.

Many of our clients have developed their Asian buying offices with us. Taking advantage of our unique model that mitigates all the risk of establishing a new entity whilst releasing all the benefits of a team on the ground and direct supply relationships. Removing the challenges of office space, recruitment, staff isolation, HR, Payroll and Legal in a simple solution. Our teams can rapidly establish Buying Office teams in China, India, Vietnam and Turkey to rapidly take your Global Sourcing to the next level. Buying Office Model

To find our more about our unique Asian Buying office model drop us a line at contact@et2cint.com  

The Advantages of Establishing a Buying Office in Asia: 

The balance of benefits will be dependent on your current sourcing and procurement model.  

  • Cost Reduction: A key advantage is the potential for significant cost savings. Asian countries often offer lower labour costs, raw material prices, and production overheads compared to Europe and North America. 
  • Enhanced Quality Control: A local presence allows for closer collaboration with suppliers, facilitating improved quality control measures throughout the production process. Regular on-site inspections and communication can minimize defects and ensure adherence to quality standards. 
  • Efficient Sourcing & Negotiation: A dedicated buying office can identify new suppliers, negotiate better pricing based on local market knowledge, and manage sourcing activities efficiently. 
  • Improved Speed to Market: Having a local team facilitates faster communication and quicker response times with suppliers. This can lead to shorter lead times and faster product introductions in your markets. 
  • Supply Chain Visibility & Management: A buying office can provide real-time information on production progress, inventory levels, and potential disruptions within the supply chain. This allows for proactive management and mitigation of risks. 
  • Regulatory Compliance: Navigating the complexities of Asian regulations can be daunting. A local team can ensure compliance with product safety standards, import/export regulations, and labor laws. 
  • Cultural Understanding & Communication: An Asian buying office fosters better cultural understanding between the company and its suppliers. This bridges communication gaps, avoids misunderstandings, and strengthens business relationships. 
  • Direct Access to Asian Markets: A physical presence allows companies to explore opportunities for selling their own products within the Asian market itself, potentially creating a new revenue stream. 

 The benefits can be huge and wide ranging in establishing your team on the ground. The Risks are the factors holding back many companies from releasing the Operational benefits. Mitigation of these is crucial to effective implementation. 

Risks to be Mitigated in establishing a Buying Office in Asia: 

  • Investment: Establishing a buying office requires an initial investment in setting up the office space, hiring staff, and legal compliance. Simply finding office space of the right standard can require significant time and market knowledge. 
  • Skill Sets: Many organisations do not have the current capability to navigate employment law, practises and legality in a new jurisdiction.  
  • Cultural Differences & Language Barriers: Cultural differences and language barriers can lead to communication difficulties, misunderstandings, and potential delays in operations. 
  • Labor Regulations & Ethical Sourcing: Navigating complex labor laws and ensuring ethical sourcing practices can be challenging for companies unfamiliar with the Asian landscape. 
  • Distance & Time Zone Differences: Managing a team across a significant time zone difference can pose communication and operational challenges This can build a feeling of isolation and remoteness in working reducing effectiveness.

ET2C International Unique Buying Office Model-What are the Benefits  

  1. Local Expertise & Knowledge: Setting up a buying office requires navigating complex legal, cultural, and business environments. Companies often lack the in-depth knowledge and experience to navigate these challenges effectively. Our 23 years experience and teams on the ground in China and other Asian Sourcing markets enable us to rapidly deliver:
  • Office space: Our modern office facilities ensure great working environment and the ability for your teams to network with other Buying teams within the same building. Sharing knowledge and building Insights 
  • Recruiting & HR: We manage all your recruitment with you to find qualified local staff, managing payroll, and adhering to labour regulations. 
  • Supplier Identification & Negotiation: Identifying reliable suppliers, negotiating competitive pricing, and managing vendor relationships. 
  • Quality Control & Inspection: Providing quality control support and overseeing production processes. 

 2. Faster Start-Up Time: Companies can leverage our existing infrastructure and resources, leading to the quicker establishment of their buying office and streamlined operations.

The benefits of setting up your Asian Buying Office 

Moving your Global Sourcing Strategy to one with Buying Office established moves your delivery to the next level. Improving operating margins, developing faster innovation, improving quality and supplier relationships. When establishing your new office risk mitigation is crucial to ensure rapid margin and trading improvements. 

Buying Office Model   has been delivering benefits to our clients for over 10 years. Mitigating all the risk of setting up a team in Asian to allow them to focus completely on delivering the benefits to operating margins. To find out more about how this could elevate your Global Sourcing drop us a line contact@et2cint.com  

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Nearshoring the Answer

Is Nearshoring the Answer to Disrupted Supply Chains?

Nearshoring the Answer

The plan to near shore supply chains has been talked about since the pandemics first waves struck global supply chain networks fragmenting the previous structures and organisation. The immediate  impact was a desire and corporate focus to develop shorter supply routes, rebuild partnerships and build more resilience by removing distance.

The immediate rush and to redevelop Global Sourcing Strategies, shorten supply routes and ‘Near Shore” is not being delivered. As the simple ideal of moving sourcing markets is proving much tougher to achieve than anticipated for Sourcing and Procurement teams.

Global Supply China shocks fuelling the drive to near Shore

The aftershocks to global trade and supply chains after the Pandemic have been many and unexpected regularly buffeting the smooth winds of commerce:

  • Ukraine War
  • Pandemic recover
  • US – China Trade conflicts and Tariff increases
  • WTO disputes
  • Weather impacts from El Nino and droughts in major rivers and canals

ET2C International Global Sourcing and Strategy Experts

ET2C are a UK owned Global Sourcing company with over 22 years experience in making sourcing simpler for our clients. Our 200 colleagues are based in 7 major and emerging sourcing markets to ensure they can be your bridge to your supply chain partners. We work with clients from Early stage start-ups and challenger brands to global retailers to ensure their sourcing and procurement is as effective as possible. https://et2c.com

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The growing desire to Near Shore or Friendly Shore Supply routes

The background to the rush to Near or Friendly shoring has been the nearly five years of open economic conflict between the US and China. US-China trade flows hit an all-time record of $690.6 billion in 2022. Connecting the countries by a larger movement of trade than any other Nations (without shared borders).

Suggesting that Globalisation is not showing signs of halting. DHL in their recent report suggest that the US-China trade relationship is beginning to show a “general pattern” of decoupling even as globalization more broadly remains resilient, according to DHL’s global connectedness index.

“International flows have proven remarkably resilient through recent crises, and they strongly rebut the notion that globalization has given way to deglobalization,” according to the report, produced with New York University’s Stern School of Business.

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“Today’s threats to globalization, nonetheless, are real and demand serious attention,” it continued. “It would be a mistake to infer from the recent resilience of international flows that globalization cannot go into reverse.” What has been the real world experience of brands and companies looking to Near Shore as part of their Sourcing Strategy ?

US Apparel Companies Can’t See a Future Without China

Brands are finding few factories outside the country that can produce the quality and quantity they require.

When Lanny Smith founded Actively Black Inc. in 2020, he hired factories in China to produce the brand’s athletic wear. But last year, concerned about production delays caused by China’s Covid lockdowns, Smith explored buying elsewhere. He shipped samples to a supply chain agent who’d assured him there were alternatives in Latin America. “He hit me back the next day and said, ‘You’re not going to find anybody who can do this in the Western Hemisphere,’” says Smith, 38, a former basketball star at the University of Houston.

The challenge of delivering a China +1 or Near Shoring Strategy

For many companies buying from China has become more challenging in recent years because of increased tariffs, snarled supply chains, factory shutdowns under Beijing’s Covid Zero policy and rising geopolitical tensions. Factors which have combined to make

many Companies and brand owners investigate changing their Sourcing Strategy to be China +1 or to seek to replace China completely. Whilst on the face of it the idea has a lot of merit and upside finding suppliers who can match China for quality and price is not so simple.

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Quitting China as a sourcing partner isn’t easy, and most progress has been concentrated in industries such as semiconductors that are considered vital to national security or have high added value. Producers of lower- tech, lower-margin and less added value products such as clothing, shoes, housewares and luggage are finding that few factories outside China have the machinery or the skilled workforce to deliver the quality and specifications required.

China-The worlds Premier destination for Manufacturing

Since the 1990s, China has spent hundreds of billions of dollars transforming itself into the world’s premier location for manufacturing. Its factories have the machinery and expertise needed to produce quality products at a volume and pace that’s difficult to match. Along the 80-mile stretch from Shenzhen to Guangzhou, companies can weave, dye, sew, trim, label and package anything from T-shirts to tuxedos. And China’s investment in highways, railroads, air hubs and seaports has created a smooth path from factory gate to consumers worldwide.

Twenty years of Global Trading growth between China and the World is not something that can be dismantled quickly and easily. China’s advantages as a sourcing destination are so great that many companies that have tried to move away have returned at least a

portion of their production there. Even moving away from the Chinese mainland cannot guarantee moving away from China. As China has expanded its influence, support for infrastructure and factory investment to other countries such as Ethiopia.

When companies move manufacturing out of China, they often end up working with Chinese- owned suppliers or sourcing components and materials from the country.

Sourcing and Procurement Strategy-Is Near Shoring always the right answer?

Sourcing strategies are not always quick and easy to implement, the initial idea to relocate manufacturing from China to other Asian or African markets can suggest instant benefits. China’s experience of supplying and shipping products around the World is difficult to replicate. For some markets this may well require more product side compromises to deliver the geographic move.

ET2C International Global Sourcing Strategies

ET2C Is a global sourcing company with over twenty years’ experience working with our clients to deliver their sourcing strategies. Our offices in seven countries ensure you always have a team on the ground to be your bridge to your Off Shore suppliers.

If you would like to explore Sourcing Strategy options or opportunities within China or in addition to China  or to discuss your future challenges.

Please contact us at contact@et2cint.com

Is Nearshoring the Answer to Disrupted Supply Chains? Read More »

Navigating Global Sourcing 2.0: Challenges and Strategies for Procurement Teams

What is Global Sourcing 2.0

Global Sourcing 2.0 will define the response of Procurement and Sourcing Teams to another year of volatility in global trade.  The range of impacts to the smooth running of global trade continue to build. Inflationary pressures continue to impact margin growth and the business need for Environmental and Supply Chain Risk management gains momentum. The risk of a protracted trade war using tariffs as the weapon of choice starts to loom large as elections take place in many countries. Most importantly the US presidential race which has already initiated companies’ scenario planning for a very different trade environment. The ongoing conflict in Ukraine and the Middle East are continuing to create huge challenges for Sourcing and Procurement Teams.

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Procurement and Sourcing Team leaders who had hoped that economic conditions in 2024 would make their jobs easier than last year are already disappointed. As the new year began, the volatility and inflation of the previous year showed no signs of abating.

Many of the dimensions of change impacting business in 2023 are likely to still be with us in some form at the outturn of the year. Procurement and Sourcing functions are responding to these wide-ranging challenges in an equally wide range of structural changes and ways of working adaptations. Sourcing teams are facing the New Challenge of Global Sourcing 2.0

ET2C International Global Sourcing Experts for twenty years

ET2C International are a UK owned leading Global Sourcing Company. Over twenty two years trading history playing a crucial role connecting global brands and companies with sourcing partners, delivering Strategic Sourcing projects and working with clients on our unique buying office delivery model.

Our 250 colleagues are based in offices in seven key Asian sourcing markets (developed and emerging markets) with the sole mission to make your global sourcing simpler. Where language, time zone or business communication practices can make things difficult, our team will be your bridge to your suppliers.

At ET2C our history of delivering the benefits of global sourcing to our clients enables businesses to quickly and easily connect with factory partners who can deliver your product requirements, quality and compliance requirements and margin improvements.

Macroeconomic conditions straining procurement.

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Die Casting

Die Casting: Global Sourcing of Die Cast Components

The rise of strategic sourcing has significantly impacted the die casting industry and the market is undergoing significant evolution to align with the emerging demands of Strategic Sourcing plans As companies seek to optimize their supply chains, die casters are evolving to meet these new demands. Die casting is facing many of the challenges to ways of working that many compaines face. As Sustainable and Circular business principals are adopted and commitments made by Sourcing compaines for their Global Sourcing plans. 

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Finding the right Supply partners has never been so important to ensure that Quality and Service is delivered with clarity on the Environmental and Social impact of the manufacturing process.

Die casting is evolving rapidly through investment in new prcess, sustainable design, material use and process efficiency. The Die casting market is etimated at $82b in 2024 and is expected to reach $112b by 2029 growing at a CAGR of 6.24Source: Mordor Intelligence Die Casting

China has become the market leader in innovative Die Casting with huge investemnt in innovation nad factory capacity. China is the first stop for global sourcing and procurement teasm in their search for high quality innovtive die casting.

ET2C International Die casting Sourcing Specialists

ET2C are a UK owned Global Sourcing company who have ben trading for over 22 years. Our 200 colleagues strive each day to deliver our Mission to Make Sourcing Simple Safe and Fast for our clients.

Based in 7 offices across the globe in developed and emerging markets we work with clients to create and deliver effective sourcing strategies. Our industrial clients value our work across a range of process’s including Die Casting.

Our team will give you feet on the ground and become your bridget to Asian Supply partners. Ensuring you have peace of mind and deep partnership for growth. If you would like to know more drop us a line at contact@et2cint.com

Die Casting: A Versatile Manufacturing Process

Die casting remains a vital process for many industries. It offers several advantages, including:

  • High precision:Die casting produces parts with tight tolerances and consistent dimensions.
  • Fast production:It’s a highly efficient process, allowing for rapid production of large quantities of parts.
  • Complex shapes:Die casting can create intricate geometries and details that might be difficult or expensive with other methods.
  • Material versatility:A wide range of metals and alloys, like aluminum, zinc, magnesium, and copper, can be die cast.
  • Cost-effective for large volumes:Die casting is cost-efficient for high production runs due to its speed, minimal material waste, and reduced post-processing needs.

Die Casting techniques innovating in a Shifting Landscape

The growing demand for die cast components is shaping the industry in several key areas:

  • Lightweight and sustainable materials:Sustainability is a major focus, leading to a rise in lightweight materials like aluminum and magnesium alloys, offering excellent strength-to-weight ratios.
  • Complex geometries and miniaturization:As industries evolve, the need for intricate and miniaturized components grows. Die casting’s ability to produce complex shapes is ideal for these applications.

Customization, Speed, and Sustainability in Die Casting  

Modern sourcing demands are also influencing die casting: 

  • Customization and rapid prototyping: Companies increasingly need customized components and faster product development cycles. Die casting offers the flexibility to produce complex shapes and adapt designs while maintaining efficiency. 
  • Sustainability and recycling: As environmental concerns rise, the die casting industry is focusing on recyclability and waste reduction. This may involve improving material efficiency, optimizing energy consumption, and implementing closed-loop recycling systems. 

How Strategic Sourcing can build effective Sourcing and Procurement  

Strategic sourcing helps companies ensure their global procurement effectively delivers: 

  • High-quality products 
  • Sustainable practices 
  • Faster manufacturing 
  • Clear communication 
  • Quality and compliance 
  • Competitive costs and reliable supply 

 ET2C: Your Bridge to Successful Die Casting Sourcing 

For over 21 years, ET2C has helped industrial clients build and execute their global sourcing strategies. We act as a bridge to strategic sourcing partners in Asia, ensuring complete supply chain transparency and meeting all quality and compliance standards. We simplify sourcing by providing you with a team “on the ground” across seven countries, ensuring your sourcing plans are delivered effectively. 

Contact us at contact@et2cint.com to learn how our experience can help you build a winning global sourcing strategy and gain a competitive edge. 

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Strategic Sourcing and Procurement: Essential Strategies for Business Success

What are Sourcing and Procurement ?

As businesses navigate the ever-evolving terrain of global supply chains and commerce, mastering the intricacies of sourcing and procurement has become paramount. But amidst the buzzwords and industry jargon, it’s crucial to grasp the fundamental disparities between these essential functions. How can we decode the intricacies of sourcing and procurement, unravelling their distinct roles and uncovering the transformative potential they hold for businesses across industries.”

Interchangeable words or unique, complementary activities that together can unlock superior business performance ?

As a smaller brand or business without a Procurement or buying team where do you start and do you need both ?

Definitions- What’s the difference between Sourcing and Procurement , how do they affect your global supply chain?

Sourcing and procurement are two related but distinct activities that are essential components of an overarching strategic supply chain management plan.

  1. Sourcing refers to the process of identifying potential suppliers and selecting the best among them to provide goods or services to a company. It includes activities such as supplier identification, supplier evaluation, negotiation, and contracting.
  1. Procurement on the other hand, refers to the process of purchasing goods or services from a supplier. It includes activities such as ordering, invoicing, payment processing, and supplier management.

Strategic Sourcing impact for your business

While sourcing and procurement are distinct activities, they are closely related and often overlap in practice. A strategic sourcing approach can help companies optimize their procurement activities by ensuring that they are working with the best suppliers and getting the best possible prices and terms. Procurement, in turn, is an important part of the sourcing process, as it involves executing contracts and managing supplier relationships to ensure that goods and services are delivered on time, at the right quality, and at the agreed-upon price.

Building a strong Sourcing Strategy and Executing the resultant Procurement Strategy can deliver a range of benefits

  • Reducing costs
  • Improving Quality
  • Improving efficiency
  • Managing Risk
  • Ensuring Regulatory Compliance
  • Managing Corporate risk
  • Speed up innovation
  • Improve Customer Experience and Brand Reputation

Building your competitive advantage. Where do you start creating your Sourcing Strategy ?

Strategic Sourcing and Procurement: Essential Strategies for Business Success Read More »

Reduce Costs and Boost Inventory

Reduce Costs and Boost Inventory, Sourcing from China.

Reduce Costs and Boost Inventory

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Discover how China sourcing can help your business increase competitive advantage by reducing costs and expanding product ranges.

The benefits of a Global Sourcing and Procurement Strategy

You may have been thinking about Strategic Sourcing for some time. Reading about the benefits China Sourcing can bring to a company, but you’ve probably also read about some of the problems and frustrations people have come up against.

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Whilst the benefits can be huge, and to not source from China can put you at a huge competitive disadvantage in some markets. It is also true that time zones, language barriers and business communication standards can be very different and challenging to navigate.

So how do you avoid the pitfalls and frustration and deliver all the benefits of Strategic Sourcing and Procurement ?

ET2C International Global Sourcing and Procurement Specialists

ET2C International is a UK based company with over twenty years experience playing a crucial role connecting global brands and companies with sourcing and supply partners. Our expertise in global sourcing and supply chain strategy ensure you get all the benefits of sourcing from China, Asia or Emerging Sourcing jurisdictions such as Ethiopia, India, Turkey or Mexico without any of the risks, frustrations or challenges.

Our 200 colleagues are based in offices in seven key sourcing markets to make your global sourcing simpler. Where language, time zone or business communication practices can make things difficult, our team will be your bridge to your suppliers.

Our team of experts can help you build a resilient, visibility supply chain. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to discuss the emerging issues outlined below please drop us a line at contact@et2cint.com

Creating an effective Sourcing and Procurement Strategy

Delivering an effective Sourcing Strategy is dependent upon a range of factors which must be confirmed before any product is ordered.

  1. Define your sourcing needs: Determine the specific products you want to source including specifications, accreditations, price and shipping
  2. Conduct market research: Researching the range of potential suppliers. Identifying those who can meet your sourcing requirements and have clear alignment with your business vision and values.
  3. Supplier referencing: Your new supply partners need to be reliable and trustworthy. Whilst difficult to assess other than through experience communication and sampling can help to prove competence and reliability

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  1. Communication and negotiation: Establish clear communication channels with potential suppliers. Be prepared to discuss packaging, shipping, minimum order quantities, pricing and any additional costs involved.
  2. Due diligence: Before finalizing any agreement, conduct due diligence on the supplier. Verify their legal status, business license, and certifications. Consider performing a background check and requesting references from other clients they have worked with.
  3. Quality & Compliance testing: Once you have selected a supplier, request product samples for testing and quality assurance.
  4. Legal and logistics considerations: Familiarize yourself with import/export regulations, customs procedures, and any applicable taxes or duties in your country. Understand the logistics involved, such as shipping methods, packaging, and transportation options.
  5. Place orders and establish a contract: If you’re satisfied with the sample testing and all terms are agreed upon, proceed to place your first order.

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  1. Monitor production and quality control: Regularly communicate with your supplier during the production process to stay updated on the progress. Consider conducting factory visits or hiring a third-party inspection service to ensure quality control.
  2. Manage shipping and delivery: Coordinate with your supplier regarding shipping arrangements, including choosing the appropriate shipping method (air, sea, or land) and handling customs clearance. Track your shipment to ensure timely delivery.

The opportunity to source from China is huge but also a lot of complexity and requires many new skill sets and knowledge

The skills required for start-ups and challenger brands to build a global sourcing program

For many small start-ups, challenger brands or emerging high growth companies the skills sets and connections to deliver Strategic Sourcing projects are not readily available. Working on these 10 areas to ensure you are working with the right sourcing partner can be very time hungry.

However you can short cut this by engaging a Sourcing company to  deliver all the benefits of China sourcing without the stress and time pressure. You need to find a Sourcing partner who shares your vision or business and can demonstrate

1.Offices and people on the ground in your sourcing markets.

2.Experience and knowledge in those markets and understanding of product issues

3.Ability to deliver independent quality and compliance reporting to ensure you have full transparency of your products progress

4.Track record of successfully delivering projects for clients

Next steps in Sourcing from China

At ET2C we work with our clients to make their Global Sourcing simple. For over twenty years we have been working with our clients to deliver their sourcing strategies. Working with Multi National retailers to E-Commerce start ups.

Our offices in 7 countries and a team of over 250 colleagues ensure we are always on the ground in your market. Delivering independent and fully digitised QA reporting, Supplier contact.

If you would like to see how we might be able to deliver your strategic sourcing goals please get in touch contact@et2cint.com

Reduce Costs and Boost Inventory, Sourcing from China. Read More »

Supercharge Your Supply Chain

Supercharge your Supply Chain:The Vietnam Sourcing advantage

Supercharge Your Supply Chain

In today’s competitive landscape, global sourcing offers businesses like yours a strategic advantage. Sourcing from Vietnam, with its cost-effectiveness and growing manufacturing capabilities, can be a smart move to boost your margins and competitiveness. However, navigating the process requires careful planning and expertise.

ET2C International: Your Trusted Partner in Vietnam Manufacturing

For over 20 years, ET2C International has connected global brands and companies with reliable Vietnam manufacturing partners. Our deep understanding of global sourcing nuances ensures you reap the benefits without the risks. Our team of 250 professionals, including those based in Ho Chi Minh City, act as your bridge, overcoming language barriers, time zone differences, and cultural complexities.

Your Step-by-Step Guide to Vietnam Sourcing Success

Market Research & Product Selection: Identify your target products and research the Vietnam manufacturing landscape. Consider demand, competition, and potential profit margins.

Compliance & Regulations: Understand import regulations and product compliance requirements for your country.

Legal & Regulatory Frameworks: Ensure your business complies with international trade regulations, including obtaining necessary licenses or permits.

Finding Reliable Suppliers: Leverage online directories, trade shows, or consider a sourcing agent to help you identify reputable Vietnam manufacturing partners.

Thorough Supplier Verification: Carefully vet potential suppliers by checking credentials, conducting facility visits, and requesting references. Prioritize quality-focused partners.

Negotiation & Agreements: Negotiate terms like pricing, payment terms, lead times, minimum order quantities, and quality control procedures.

Quality Assurance & Samples: Request product samples to ensure they meet your quality standards and regulatory requirements.

Finalizing Agreements: Once satisfied, finalize agreements with chosen suppliers, including contracts and clear communication channels.

Logistics & Shipping: Choose the most cost-effective and efficient shipping method, working with freight forwarders or shipping companies as needed.

Import Duties & Taxes: Understand and factor in import duties, taxes, and customs clearance procedures.

Robust Quality Control: Implement a strong quality control process, considering third-party inspections before shipment.

Secure Payment Arrangements: Establish secure payment terms to protect your interests.

Shipping & Receiving: Monitor shipments and ensure you have all necessary documentation for smooth customs clearance.

Building Strong Relationships: Cultivate lasting partnerships with your suppliers through effective communication and collaboration.

Explore the pivotal concept of supply chain visibility

The increasingly important and significant need for increased and enhanced visibility across the full value chain. Future supply chains will require sourcing and procurement strategies that deliver resilience, agility, and customer-centricity. Business critical issues for success and continuity in a global trading environment that is stressed from regular disruptions. For inquiries about visibility, contact us at ET2C International contact@et2cint.com.”

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Global Sourcing 101

Global Sourcing 101:How to Mitigate Risk and build a Resilient Supply Chain

The Challenges of Global Sourcing

In today’s interconnected world, many businesses are turning to global sourcing to reduce costs and improve efficiency. However, global sourcing also comes with its own set of challenges, such as supplier risk, quality control, and logistical complexities. This article provides a guide to navigating the challenges of global sourcing and building a resilient yet agile supply chain. identifying key risk areas, strategies for supplier evaluation and diversification, and best practices for quality control.

The benefits to business of strategic sourcing globally are huge and have been a foundation for many companies and brands to successfully develop their business. The cost and quality of the products available in some markets is so strong that not to source globally can put companies at a serious competitive disadvantage in their markets.

Whilst the benefits are well known and recognised the complexity and challenges of creating and implementing a global sourcing and procurement strategy can be daunting ? The last few years of Post Covid turmoil have demonstrated the importance of strong resilient supply chains that can deliver the product your company needs at the quality required.

To these traditional procurement challenges are the reputational and risk issues from Social and Environmental factors that need to be understood and measured. An increasingly important factor in the responsibilities of the Procurement teams in many companies.

These factors are consistent across all sourcing whether near or offshore, however they can prove more challenging to manage when the value chain is stretched across many miles, time zones and languages.

ET2C International Strategic Sourcing and Procurement Specialists 

We are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of over 200 colleagues are based in seven offices in key international sourcing markets across Asia.

We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities or see how we have worked with clients to manage risk, quality and compliance across their supply chain.

Please message us at contact@et2cint.com we would be happy to share some examples of how we work.

Measuring and managing reputational and supply chain risk

The first task in managing risk is to understand and bring visibility to the diverse risk elements in a sourcing strategy.

Whilst many of these issues can be managed with a degree of simplicity for shorter or in country supply chains. As supply chains and partners become extended across market and time zones the challenges can mount.

Overall risk assessment and mitigation should be approached by breaking down overall risk into core areas. The extension across the globe can build complexity.

Identification, assessment and management of global supply chain risk

1.Supplier Evaluation and Selection: Conduct thorough due diligence and assess potential suppliers based on their track record, reputation, financial stability, production capabilities, quality control measures, and compliance with regulations.

2.Supplier Relationship Management: Establish strong relationships with your suppliers based on trust, open communication, and transparency. Regular communication and shared vision can move relationship from one of delivering forecast to one built on partnership and shared vision for growth.

3.Diversification of Suppliers: Avoid overreliance on a single supplier or region. Diversify your supplier base to minimize the impact of disruptions, such as natural disasters, political instability, or changes in trade policies. Building strong supplier relationships can be create resilience in your supply chain but having potential back up suppliers can be valuable.

4.Risk Assessment and Contingency Planning: Identify potential risks that could impact your sourcing operations, such as supply chain disruptions, currency fluctuations, quality issues, or regulatory changes. Develop contingency plans to address these risks, including alternative sourcing options, backup suppliers, and risk mitigation strategies.

5.Quality Control and Product Testing: Implement stringent quality control measures to ensure that products meet your specified standards. Conduct regular inspections, audits, and product testing to verify compliance with quality requirements and safety regulations. Implementing robust quality control processes helps minimize the risk of receiving substandard products.

6.Intellectual Property Protection: Protect your intellectual property rights by implementing appropriate legal measures, such as non-disclosure agreements, trademarks, copyrights, and patents. Work with suppliers who respect and adhere to intellectual property regulations and have a clear understanding of your IP protection requirements.

7.Compliance and Ethical Standards: Ensure that your suppliers comply with ethical and social responsibility standards. Verify that they adhere to labour laws, environmental regulations, and international standards, such as the International Labour Organization (ILO) conventions and responsible sourcing initiatives.

8.Continuous Monitoring and Performance Evaluation: Regularly monitor the performance of your suppliers and evaluate their ability to meet your expectations. Continuous monitoring allows you to identify potential risks and take corrective actions proactively.

9.Supply Chain Transparency: Establish transparency in your supply chain by mapping the entire sourcing process and understanding the various tiers of suppliers involved. Promote ethical practices, sustainability, and traceability throughout the supply chain to mitigate risks related to social and environmental impacts.

10.Stay Informed and Engage Experts: Stay updated on global market trends, economic indicators, geopolitical developments, and regulatory changes that may impact your sourcing operations. Engage industry experts, consultants, or sourcing partners who have in-depth knowledge and experience in global sourcing to provide guidance and insights.

Summary Releasing the value in your Supply chain from Global Sourcing  

The benefits of a strong global sourcing strategy are clear but to fully realise all the benefits requires planning and focus. As many procurement and sourcing teams are under huge time pressure and so may not have the time of the skill sets to deliver a global sourcing strategy. Working with a trusted partner with a track record of delivery can be critical can ensure that the benefits are delivered without any of the pitfalls.

Conclusion delivering the benefits of Global Sourcing and Procurement

For many companies building and executing a global sourcing strategy is becoming business critical. A well constructed sourcing strategy can deliver:

-Incremental operating profit

-Short term capacity build

-Fast Product Innovation delivery

-Increased market competitiveness

ET2C International have over twenty years experience delivering and executing strategic sourcing.

Our colleagues are baes in all the major sourcing markets in Asia, Turkey and South America.

For more information or to discuss how we could help you with your sourcing challenges or ambitions please drop us a line at contact@et2cint.com

Global Sourcing 101:How to Mitigate Risk and build a Resilient Supply Chain Read More »

Unleashing the Power of Supply Chain Visibility: Strategies, Challenges, and Solutions by ET2C International 

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Explore the pivotal concept of supply chain visibility

The increasingly important and significant need for increased and enhanced visibility across teh full vlaue chain. Future supply chains will require sourcing and procurement strategies that deliver resilience, agility, and customer-centricity. Buisness cruitical issues for success and continuity in a global trading environemnt that is stressed from regular disruptions. For inquiries about visibility, contact us at ET2C International contact@et2cint.com.”

Unleashing the Power of Global Supply Chain Visibility

In the complex environment of worldwide trade, where the movement of goods and information seamlessly cross, a pivotal concept emerges as crucial for triumph—supply chain visibility.

Many businesses without strong supply chain visibility experience operate in a fog of uncertainty, struggling to anticipate disruptions, manage inventory, and meet customer demands.

Why is Visibility the New King of the Supply Chain?

Supply chain visibility is the ability to track and monitor products, transactions, and relevant information as they move through the supply chain—from raw material sourcing to the end consumer. It provides a real-time view of the entire process, fostering transparency, efficiency, and informed decision-making.

ET2C International Experts in Global Sourcing and Supply Chain

ET2C International has for over twenty years played a crucial role connecting global brands and companies with sourcing partners. Our expertise in global sourcing and supply chain can make sure you get all the benefits of sourcing from China and Asia without any of the risks.

Our 250 colleagues are based in offices in seven key Asian sourcing markets to make your global sourcing simpler. Where language, time zone or business communication practices can make things difficult, our team will be your bridge to your suppliers.

Our team of experts can help you build a better visibility on your supply chain. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. contact@et2cint.com

The Significance of Enhanced Visibility

  1. Proactive Issue Resolution:Visibility allows businesses to identify potential disruptions or issues before they escalate, enabling proactive resolution and minimizing the impact on operations.
  2. Optimized Inventory Management: Accurate, real-time data on inventory levels aids in preventing stockouts or excess inventory, leading to improved inventory management and cost savings.
  3. Customer Satisfaction:With visibility into the supply chain, businesses can provide accurate delivery estimates, reduce lead times, and enhance overall customer satisfaction.
  4. Efficient Collaboration: Enhanced visibility facilitates better collaboration among supply chain partners, fostering a synchronized and responsive network.

Challenges on the Path to Visibility

  1. Data Quality and Integration:The reliability of visibility hinges on the quality and seamless integration of data from various sources within the supply chain.
  2. Complexity of Global Networks: As supply chains extend globally, navigating the complexities of diverse regulations, languages, and cultures poses a challenge to achieving comprehensive visibility.
  3. Technological Barriers:Legacy systems and outdated technologies may hinder the implementation of advanced visibility solutions.

Strategies for Achieving Sourcing, Procurement and Supply Chain Visibility

  1. Advanced Technology Adoption :Embrace cutting-edge technologies such as Internet of Things (IoT), blockchain, and artificial intelligence to capture and analyze real-time data. Technology to the rescue: Utilize technologies like IoT sensors, blockchain, and AI-powered analytics to automate data collection, improve forecasting accuracy, and generate actionable insights.
  2. Collaborative Platforms:Utilize cloud-based platforms that enable seamless collaboration and data sharing among supply chain partners. Collaboration is king: Break down silos and foster communication between all stakeholders in your supply chain. Open communication and information sharing are essential for effective collaboration and visibility.
  3. End-to-End Integration: Integrate all aspects of the supply chain, from suppliers to end-users, to create a holistic view that enhances decision-making. Data is the key: Invest in robust data collection and analysis tools to track shipments, inventory levels, and performance metrics. Integrate data from various sources to create a holistic picture of your supply chain.
  4. Predictive Analytics:Leverage predictive analytics to forecast potential disruptions and make informed decisions preemptively.
  5. Continuous Monitoring and Improvement:Implement a continuous improvement mindset, regularly monitoring and refining visibility strategies to adapt to evolving challenges.

Illuminating the Future of Supply Chains

In a world where adaptability and responsiveness define success, supply chain visibility emerges as a guiding light. As businesses strive for greater efficiency, reduced risks, and improved customer experiences, the journey toward enhanced visibility becomes imperative. By embracing technological advancements, fostering collaboration, and overcoming challenges, organizations can illuminate the path to a resilient and agile supply chain future.

The future of supply chains is about agility, resilience, and customer-centricity. By prioritizing visibility, it is possible to equip yourself with the tools and knowledge to navigate complex challenges, seize unexpected opportunities, and deliver exceptional value to your customers.

In the symphony of global supply chains, visibility orchestrates harmony, turning data into actionable insights and challenges into opportunities.

Join us on this exploration of the transformative power of visibility, where the future of supply chains is not just seen but embraced with clarity and confidence. For more questions about visibility, please contact us at contact@et2cint.com. We will be happy to answer all your questions.

Unleashing the Power of Supply Chain Visibility: Strategies, Challenges, and Solutions by ET2C International  Read More »

Unleash Cost Savings & Quality

Unleash Cost Savings & Quality: Source Machinery Directly from Turkey!

Unleash Cost Savings & Quality

Beyond China: Expand your global sourcing horizons with Turkey’s diverse, high-quality machinery and industrial component supply options.

Turkey’s industrial machinery exports are making waves in the global sourcing and procurement arena. Its unique advantages, from strategic location to strong infrastructure and favourable trade agreements, are attracting companies seeking diverse and cost-effective manufacturing solutions.

The appeal of Turkey has increased dramatically as the turmoil in the Red Sea has forced many sourcing and procurement teams to investigate the opportunities Turkey can provide as a product or component sourcing destination.

As an alternative to China sourcing or as part of a China +1 global sourcing strategy Turkey can offer a huge range of benefits that as a product sourcing destination. Discover why Turkey is a rising star for global sourcing of industrial machinery.

Turkish Machinery Exports: A Global Sourcing Powerhouse

Turkish machinery exports surpassed a new milestone in 2022, exceeding $10 billion in the first 5 months. This growth has positioned Turkey as a prominent destination for global sourcing and procurement, particularly for companies seeking to diversify their supply chain and mitigate risks (environmental and geopolitical). This trend is set to increase rapidly as the turmoil in the red sea continues to increase cost and shipping times for Asian supply.

ET2C International: Your Global Sourcing Partner in Turkey

With over 20 years of experience, ET2C International is a leading sourcing agent specializing in global sourcing strategy and procurement. Our team of 200 colleagues operates in seven key sourcing markets, including our new office in Izmir, Turkey’s third-largest city.

We simplify global sourcing for clients by acting as a bridge to their supply partners, overcoming language barriers, time zone differences, and cultural nuances. Our expertise ensures you find the right factory partners and deliver your sourcing strategy effectively. Contact@et2cint.com

Growing Global Sourcing and Procurement Demand for Turkish Machinery

Over 200 countries are recognizing the value proposition of sourcing machinery from Turkey. With a population of 80 million and a transcontinental location spanning Asia and Europe, Turkey offers a strategic advantage for global sourcing. As a product sourcing agent with an established network in Izmir, we can help you connect with the right Turkish suppliers for your specific needs. We have been working with clients on industrial machinery and engineered components

Turkey’s Industrial Machinery Strength and Specialism in Industrial Sourcing

Industrial machinery is the second-largest export market for Turkey, showcasing an average growth exceeding 15%. Exports reach over 200 countries, with over half destined for the EU and USA. Key product categories include:

  • Construction machinery
  • Textile machinery
  • Food processing machinery
  • Plastic and rubber machinery
  • Printing machinery
  • Machine tools
  • Agricultural machinery

Why you should focus your Machinery sourcing strategy on Turkey?

There are many reasons why you should consider sourcing machinery and industrial components from Turkey, including:

  • Competitive pricing: Turkey has lower labour and manufacturing costs than many other countries, which can save businesses money on their machinery purchases. For example, a recent study found that businesses can save up to 20% on the cost of machinery by sourcing from Turkey.
  • High quality: Turkish machinery manufacturers are committed to quality, and their products meet international standards. Many Turkish machinery manufacturers are also ISO 9001 certified, which means that they have a quality management system in place.
  • Wide variety: Turkey produces a wide variety of industrial machinery, so you can find whatever you need from Turkish suppliers. Whether you are looking for textile machinery, food processing machinery, or construction machinery, you can find it in Turkey.
  • Ease of doing business: The Turkish government has made it easier for foreign businesses to invest in the country. There are now tax breaks and other incentives available to foreign businesses that source machinery from Turkey.
  • Strategic location: Turkey’s location between Europe and Asia makes it an ideal hub for global sourcing. This means that you can get your machinery to your destination quickly and easily.

ET2C the Local Expert Sourcing strategy with Global presence

We are one of Europe’s leading product sourcing agency based in Izmir, we have extensive experience helping businesses source machinery and industrial components from Turkey. We have a deep understanding of the Turkish machinery industry and can help you find the right suppliers for your needs. We can also help you navigate the logistics of importing machinery from Turkey.

Contact us today to learn more about how we can help you source machinery from Turkey  contact@et2cint.com

Unleash Cost Savings & Quality: Source Machinery Directly from Turkey! Read More »

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