Sun Industries recently conducted a flash a survey to our followers to learn about their experience working with global manufacturers. A key takeaway from the survey is while price is, not surprisingly, an important factor – one of the top 3 reasons for buying from a foreign manufacturer – a positive holistic purchasing process is required to build the partnership. We found that the top three hurdles for customers buying from a foreign manufacturer are:
- Pricing negotiation is too difficult
- Production and delivery time is too long
- Desire to purchase domestically
The hurdles noted in the survey are not surprising given the natural geographic and cultural distance involved with working with businesses abroad. An important question raised is can you have the best of both worlds: cost efficiency of foreign manufacturing but the communication and delivery of a local domestic partner? At Sun Industries, we believe you can, but a key ingredient for success is the right strategic partner to address these specific pain points with tangible results.
Three factors to consider when assessing foreign manufacturers and suppliers are:
- Does the foreign manufacturer have a location outside their home country? If not, how will this impact the way you want to communicate requirements, manage orders and delivery?
- Is price negotiation transparent? While the perception is a race to the bottom – it’s not – what other factors are important to you and are implicitly embedded in your pricing that the foreign manufacturer should be aware of?
- What specific elements of purchasing domestically appeal to you and is that sufficient and sustainable for your business’ goals?
Has your experience with foreign manufacturers and suppliers differed? Do other factors impact your experience? Please share your experiences with us by connecting with us via e-mail or on social media including LinkedIn and Twitter.
*image courtesy of Rudolf Simon