Manufacturing sourcing is fueling B2B growth
15 Sep 2022
Sourcing is a business process decision that enables the primary company to outsource its production requirement to a third-party manufacturer. The manufacturing company has the expertise to produce and deliver products as per the requirement of the sourcing company. The two companies engaging in this business partnership are not necessarily but often based in different countries. There’s is often a B2B manufacturer sourcing company involved in liaisoning between the supplier and the primary companies.
What is the difference between sourcing and procurement?
Though these two disciplines work hand-in-hand, they have distinct roles to play in the supply chain process.
Sourcing is responsible for evaluating potential suppliers, selecting, and maintaining relationships with a list of vendors who match the production requirements of the company.
Procurement, on the other hand, is only concerned with acquiring the required goods or services from the empaneled vendor(s).
How to maximise your benefits from B2B manufacturing sourcing?
You can follow the five steps given below to stay competitive with your sourcing efforts in modern times:
- Utilize supplier management software to connect with a wider network of suppliers worldwide.
Get a price advantage by collaborating with a large group of suppliers with similar efficiency levels.
Reduce your time-to-market by leveraging digital design tools to send and approve product designs in a jiffy.
Build your primary supplier base with manufacturers who think about product design and other relevant business aspects on your behalf. This will ensure you are on top of the market in terms of technological factors and product varieties.
Optimise inventory spending and supplier compliance by regularly monitoring each vendor’s performance.
What is the B2B manufacturing market size?
India is the 6th largest economy in the world. From 2001-2020, India’s exports have grown at a CAGR of more than 17%.
By 2030, India is expected to become a global manufacturing hub and add $500 billion to the global economy annually.
India is on-course to touch $1 trillion in exports by 2025.
What is the role of a consulting company in
B2B manufacturer sourcing
A consulting company not only acts as a mediator but also guides the sourcing company in multiple areas such as finance, legal aspects, government compliances, quality control, and other critical business domains.
You can rely on Industry Experts to guide you throughout the sourcing process.
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