How To Choose From Product-Sourcing Options

Be it a startup or an established business, when introducing a new product, the most difficult decision is the product-sourcing option to go with. The manufacturer can be a friend, or you may start an in-house manufacturing department. You can also enter into partnership with another business. So once you have your problem – solution fit and your product-market fit, start with the product-sourcing process and choose wisely.

Three types of product-sourcing:

In-House Manufacturing
This requires extensive planning and development. You’d need a technical team for research and development, an assembly line for assembly, and a product testing department.

Contract Manufacturing
Logistics will be your duty and so will be the sourcing cycles. Storage packing and shipping will no longer be a burden, but you need to pay close attention to who you hire with.

Partners
The difference between a contractor and a partner is that you are dealing with a stakeholder. Here is a breakdown of the most common options:

Single Source
Hassle-free product sourcing. You have to deal with just one manufacturer.

Multisourcing
This is the most commonly adapted sourcing option. Working with a number of small manufactures ensures quality, competitive pricing, and fast delivery.

Automation
A virtual workforce reduces costs and increases efficiency.

Shared services and service integration
Eliminate the faults of both, bring the best together.

Joint Venture
Basically a contract.

To learn more, call Michaels Global Trading today at (888) 471-5066 or contact us here.

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