23 Jul

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How To Choose From Product-Sourcing Options

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:

  1. Single Source

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

  2. Multisourcing

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

  3. Automation

    A virtual workforce reduces costs and increases efficiency.

  4. Shared services and service integration

    Eliminate the faults of both, bring the best together.

  5. 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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