Sourcing essentially means locating the right suppliers that provide the quality of goods or products needed at a price point that gives you the margin you need. A strategic sourcing process can be a difference-maker in manufacturing when it comes to your bottom line. Strategically, sourcing is simply the process of selecting suppliers to provide the goods and services you need to run your business. It may sound uncomplicated, but the process can be complex.
Sourcing for suppliers may be tedious due to its tenacity and trust issues as consumer landscapes are continuing to change while businesses are adjusting for the new normal. Manufacturers and industrial companies across the world are working hard to maintain and strengthen their supply chains. Apart from the limited access to suppliers and disarray within the exportation industry due to the pandemic. Some companies who preferred to source internationally to save on costs are seeking other cost-effective solutions to deter from ending up with untrusted and illegal suppliers.
Sourcing involves the establishment of a concrete relationship between a supplier and more and buyers with consistent supply chains satisfying their product need with strategic planning put in place in the sourcing process to manage central to cost structure, profit margins, and competitiveness for businesses of all sizes. Therefore, sourcing involves:
- Market research
- Discover quality sources of goods and product
- Research on the quality of the goods
- Testing for quality
- Negotiating contracts
- Establishing payment terms
The process of sourcing products or goods is the first step in the supply chain. It’s about finding the balance between the quality of products, product authenticity, raw materials needed, and affordability. The less you spend in the search for a genuine supplier the easy to access the required product, the better for successful Business to Business transactions. However, the era of poor branding and poor product is not doing enough justice to the investment and business industry.
Benefits of Sourcing Suppliers through ABEN
It is not hard as it seems with ABEN, let’s break down everything involved with sourcing from finding products, to finding the best people to buy those products from, to connecting the supplier to customer. ABEN has created a seemingly smooth-running platform to connect buyers and suppliers of these products with compatible buyers and vice versa majorly to give vast networking opportunities for the aforementioned which is essentially needed to make local and foreign goods accessible.
Securing a Supplier
ABEN has created a sustainable platform for African business owners both global buyers connect and carefully secure trustworthy and competent suppliers, farmers, producers, exporters, and importers of diverse products from 54 African countries and around the world, This is to successfully navigate and network with suppliers to for a business to a business transaction which supports both small and large marketplace.
Cost Management
We portray a strategic supplier sourcing avenue where we provide benefits for both buyers and suppliers. Buyers can typically, communicate directly with the suppliers, negotiate lower unit pricing for high volume purchasing. Thereby reducing the costs of goods and keeping retail prices competitive. Suppliers benefit because they have a consistent outlet for their goods which makes planning and cash flow more dependable.
Cost-quality balance
Maintaining cost-quality balance is vital for local and international brands and working with a domestic or overseas supplier can be truly beneficial in achieving this. And there are a few ways how some markets are more attractive for importers due to weak currencies. For instance, the United States is renowned for producing quality products and since the currency inflation in Nigeria, this provides a great opportunity for local food-producing companies in Nigeria to venture into exportation of food and therefore partner with American restaurateurs, for exportation transactions to curb them from falling prey into the imbalance of cost quality
Stability
When you find the right source for your products such as ABEN, it truly becomes a partnership. Both businesses rely on each other to keep the supply chain intact. We help suppliers develop a close relationship which can lead to higher quality and efficiency as suppliers and customers work together to identify and minimize the root causes of any defects that hurt both buyer and seller.
Managing Risk
Besides identifying and solving problems, a strong relationship built of trust can help mitigate risk. We create a room for both parties to know they can depend on each other, it opens the door to honest conversation. For example, if one party is having temporary cash flow concerns, it can be discussed openly. This lowers the risk associated with delivering a complete transaction.
Access to Local Supplier
Having the right supplier is crucial for your success as a business. There are several benefits and advantages from choosing to source products locally, that will provide your business with high-quality products. However, Aben has provided that opportunity for manufacturers or buyers from the diaspora communicate easily with suppliers without travelling around the world.
Reliability
Sourcing locally means that you can have direct oversight of the supplier process. With ABEN you will be able to see the products and where these products are being made, produced can be seen or communicated, meaning that you have more control over the development and quality. You can also have face-to-face conversations with your suppliers allowing for easy and fast communication.
Marketing and Brand Appeal
One of the biggest benefits of using ABEN in sourcing for suppliers is that you attract customers with it. People in today’s society are more aware of the advantages of sourcing from within and outside a local community and you can use our platform to make your business more successful.
Visit the ABEN website for more information.
