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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Marlon McPherson is the CEO of Michaels Global Trading, certified appraiser and liquidator in Toronto, Ontario. With over 7 years of experience in the industry, he has worked with companies such as Druxy’s Deli, Blackberry and Thomson Reuters. Marlon is very involved in the day to day operations of MGT from marketing messages to sales meetings. When not working Marlon enjoys spending his time wine tasting, travelling and cooking at home with his family.

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