7 Steps to Efficient Sourcing in the Import of Inputs and Services

In a world of increasingly competitive and volatile international trade, sourcing strategy has emerged as a crucial factor for companies that aspire to import inputs and services efficiently. Successful sourcing is much more than simply locating suppliers; it involves building a strong network of partners, adopting strategic approaches and operating ethically and transparently.

Understanding sourcing and its correct application is vital for any company wishing to thrive in this scenario.

Sourcing, in simple and straightforward terms, is the practice of locating and selecting companies or individuals with whom you wish to connect in order to establish commercial relations, always on the basis of clearly defined criteria.

In the context of international trade, it becomes the art of strategically identifying, evaluating and contracting suppliers that best align with your company’s needs.

Amazon, for example, shines for its ability to carry out global sourcing with mastery, thus guaranteeing an unparalleled variety of products to consumers.

A vast network of contacts in the sector is an invaluable competitive advantage. Suppliers, business partners and even competitors can bring valuable insights that help you better understand the market and identify opportunities.

Uber, for example, has leveraged its extensive global network to provide transportation services on an unprecedented scale, irreversibly changing the traditional cab industry.

An efficient sourcing strategy is not just about identifying the right suppliers. It’s about a comprehensive analysis of your inputs and services, understanding which of them are on your “A curve”, i.e. are fundamental to the operation and success of your business. These should be your initial objective when looking for supplies.

However, being strategic goes further. You need to guarantee the continuity of supply of these critical items, avoiding interruptions that could affect your business’s value chain. Contingency and risk management are also fundamental parts of this strategy. Problems with suppliers can arise – perhaps for financial reasons, labor disputes, natural disasters or even geopolitical changes. Having alternative plans and backups is essential to ensure that your production and service will not be affected.

Apple, for example, is known worldwide for its impeccably managed supply chain, which allows it to launch innovative products on a regular basis.

International trade is a world of constant change, where the rules of the game can be rewritten overnight. New technologies emerge, regulations are updated, markets fluctuate and yesterday’s successful strategies can become obsolete tomorrow. In this dynamic scenario, continuous learning is not only desirable, but an undeniable necessity.

Understanding and adapting to these changes requires an ongoing commitment to learning and updating skills. This commitment must be internal, instigated and maintained by the individual themselves, and also external, encouraged and supported by the organization as a whole.

Google, for example, instills in its employees a culture of constant learning and innovation, which has been the key to its continued success.

Before selecting a supplier, it is essential to establish strict criteria. Price, quality, reputation and delivery time are just some of the factors to consider, and the composition of these criteria is the key to success. It won’t help to have price and quality, for example, if the supplier doesn’t set adequate delivery times. Establishing weight scores for each category can also help you make a good decision.

Companies like Netflix, for example, have rigorously defined criteria for selecting content producers, thus guaranteeing the quality of their productions.

The ability to negotiate is an essential asset in international trade. It is important to be prepared to guarantee the best possible conditions for your company, always understanding that there are strong cultural changes from country to country that must be respected. Failure to observe or be aware of these factors linked to people’s customs often “sours” extremely promising business relationships.

Tesla, for example, is notorious for its ability to negotiate favorable contracts with suppliers of lithium-ion batteries, a vital part of its electric vehicles.

In any business, in any market, reputation is everything. Maintaining high ethical standards and operating with total transparency are characteristics that can set a company apart from the competition. In an age where information is accessible just a click away, maintaining high ethical standards and operating with total transparency has become more than a recommendation, it’s a necessity. Business practices are now under public scrutiny and companies are being evaluated not only for the quality of the products or services they offer, but also for how they conduct their operations.

Patagonia, for example, is renowned for its commitment to ethics and transparency, which has attracted the loyalty of its customers over the years.