Like many other companies, you may be using or
considering a global sourcing strategy to produce exclusive products,
reduce the cost of goods sold, and improve inventory and line turns.
However, the gains from producing unique goods more cheaply overseas
can be offset by complexity, red tape and uncertainty: When will the
products arrive in my D.C.? Will they meet our quality standards?
Will they meet the special promotions date? Will we be able to
contain shipping costs?
These are just some of the concerns that arise when managing the
import of products from overseas:
- Margin erosion because product costs increased from
initial design to delivery or weren't estimated accurately
- Long lead times that hinder your ability to react to
consumer demand quickly
- Inefficient, manual processes that limit your ability to
grow the business
- Lack of visibility into production status and physical
movement that can lead to late, incomplete and unexpected
- International complexity that requires document
management for standards compliance and customs regulations
Fortunately, there is an answer in sight. These
problems can be addressed through: 1) a complete picture of the
sourcing process to calculate and manage true costs; 2) automated
order management for productivity gains and cost savings; 3) data
integration to properly track, trace and pay; and 4) comprehensive
shipping/logistics visibility from the time goods leave the factory
to the time they arrive in the D.C.