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:
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.
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.
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:
Hassle-free product sourcing. You have to deal with just one manufacturer.
This is the most commonly adapted sourcing option. Working with a number of small manufactures ensures quality, competitive pricing, and fast delivery.
A virtual workforce reduces costs and increases efficiency.
Shared services and service integration
Eliminate the faults of both, bring the best together.
Basically a contract.
To learn more, call Michaels Global Trading today at (888) 471-5066 or contact us here.