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.

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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Navigating Global Sourcing 2.0: Challenges and Strategies for Procurement TeamsRead More »

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. 

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. 

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.

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

4. 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.
5. 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.
6. Quality & Compliance testing: Once you have selected a supplier, request product samples for testing and quality assurance.
7. 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.
8. 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.

4. 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.
5. 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

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

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

From trade disruptions to sustainability concerns, navigate the complex world of global procurement in 2024. Discover the key challenges and practical strategies for resilient sourcing success. 

Companies face a multitude of concerns and issues in their global sourcing and procurement in 2024, with many challenges echoing concerns from previous years while others emerge as new anxieties. As issues and turmoil continue to grow and change shape and impact companies must respond with more flexibility and agility in the sourcing. 

Sourcing strategy and procurement is becoming a critical element of competitive advantage in many markets. Ensuring that the global sourcing and procurement function in companies is a critical part of company’s business plan and margin defence. The range of trade impacts is huge from the residual effects of El Nino to the turmoil in the Red Sea increasing shipping costs and timing to receive orders.

Regular reviews and updates of your strategic sourcing plan are vital to ensure that global sourcing is as effective as possible in a world of emerging threats to supply chains. 

 ET2C International Experts in Global Sourcing Strategies  

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 strategy make sure 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.  

Our 250 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 better visibility on your 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  

Top 10 Global Sourcing and Procument Challenges 2024  

1. Geopolitical Uncertainty and Trade Disruptions:

• The ongoing tension between major powers, potential regional conflicts, and unpredictable sanctions regimes can disrupt supply chains and inflate costs. 
• Trade wars and protectionist policies continue to create uncertainties and increase border friction, hindering smooth global sourcing. 

2. Supply Chain Resilience and Disruptions:

• The lingering effects of the pandemic and climate change exacerbate supply chain vulnerabilities. Events like natural disasters, cyberattacks, and labor shortages can cause sudden disruptions and shortages. 
• Building resilient supply chains with geographically diverse suppliers and alternative routes becomes crucial to mitigate risks. 

3. Inflation and Rising Costs:

• Global inflation, driven by factors like energy price hikes and resource scarcity, leads to increased procurement costs for materials, transportation, and logistics. 
• Companies need to adapt sourcing strategies and negotiate effectively with suppliers to manage cost pressures. 

4. Sustainability and Ethical Sourcing:

• Consumer demand for sustainable and ethical products is growing, pushing companies to source responsibly and consider environmental and social impacts in their procurement decisions. 
• Managing supplier audits, ensuring transparency, and addressing ESG (environmental, social, and governance) concerns adds complexity to sourcing processes. 

5. Technological Disruption and Talent Shortage:

• Emerging technologies like AI and automation are changing the landscape of procurement, but require skilled professionals to implement and manage effectively. 
• The talent shortage in the procurement field makes it difficult to find professionals with the necessary skills and experience for these digital transformations. 

6. Data Security and Cybersecurity Threats:

• Increased reliance on digital platforms and automation in procurement exposes companies to cybersecurity risks like data breaches and cyberattacks. 
• Investing in robust cybersecurity measures and ensuring data privacy within complex global supply chains becomes paramount. 

7. Evolving Regulatory Landscape and Trade Agreements:

• Changing regulations around customs, product safety, and labor standards can add complexity and compliance costs to global sourcing. 
• Understanding and navigating the evolving trade agreements and navigating their intricacies become critical for smooth international procurement. 

8. Managing Diverse Supplier Relationships:

• Building and maintaining strong relationships with a diverse network of global suppliers is essential for long-term success. 

• Effective communication, cultural sensitivity, and collaborative partnerships are crucial in this complex ecosystem. 

9. Transparency and Transparency Challenges:

• Ensuring transparency throughout the supply chain, from sourcing materials to product deliveries, is increasingly important for ethical and sustainable practices. 
• Companies need to implement robust traceability systems and communicate their sourcing practices effectively to consumers and stakeholders. 

10. Balancing Cost, Quality, and Ethics:

• The constant pressure to reduce costs while maintaining quality and adhering to ethical standards presents a challenging balancing act for procurement teams. 
• Innovative sourcing strategies and strategic partnerships can help companies achieve a sustainable and balanced approach. 

These are just some of the biggest concerns and issues companies face in global sourcing and procurement in 2024. By being aware of these challenges and proactively implementing solutions, companies can navigate the complex landscape and build resilient, sustainable, and successful global sourcing strategies. 

ET2C International: Trusted Partners in 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 team of experts can help you create and deliver a global sourcing plan.  

If you would like to discuss any of the challenges outlined in the post or to discuss how we can help you to diversify your supply chain, please contact@et2cint.com