How To Successfully Manage the Risks of Asian Sourcing

No one said managing risks of Asian Sourcing was going to be easy. Yet, businesses seem to continue reaping the benefits of international sourcing and expanding their sourcing landscape. Many of the successes that businesses are seeing stem from many years of relationships and international experience. As the term “Asian Sourcing” continues to bring uneasiness and avoidance, there are countless reasons why those who have committed themselves to Asian Sourcing see more growth and opportunities for their businesses.

March 8, 2022

Of course, while we will always support businesses that carry out production and manufacture products domestically, we want to educate you, our customers, to value the growth and opportunity that relates to Asian Sourcing. Although navigating the international supply chain can be challenging, HB International offers professional sourcing guidance and support to manage and avoid potential risks.

Altogether, we want to manage the risks of Asian Sourcing just as much as our customers, which is why we’re here to offer our global sourcing advice. You’ve shared your questions, and now, we’re giving you answers to hopefully alleviate the negative connotation associated with Asian Sourcing and provide you with positive insight.

Fortunately, many suppliers are located within the Asian landscape with many different capabilities. The skillsets of many of these suppliers are incredible; however, ensuring high-quality products and their manufacturing procedures is difficult to do, especially when you’re on the other side of the world. So how are companies successfully selecting high-quality suppliers?

Established businesses that have experience with suppliers throughout Asia continue to foster these long-standing relationships and ensure good manufacturing practices (GMP). These relationships have established trust, transparency, and years of business that continue their supportive relationship.

For any business looking to take the leap into Asian Sourcing, being on the other side of the world and selecting your Asian supplier has never been a “simple task .” The time, money, and resources necessary to visit different suppliers in person has become even more of a risk due to Asian travel restrictions. However, with global sourcing agencies such as HB International, we have a team of project managers and quality assurance personnel local to our suppliers. Having local personnel allows our team to visit our suppliers in person, conduct audits, and observe production throughout its entire process.

How will HB International Provide My Business with the Best Supplier for My Project?

Since 2002, our business has strengthened relationships with our Asian Sourcing and suppliers. In our twenty years of global sourcing, we continue to meet our customer’s ever-changing demands as packaging trends continue to evolve. Our extensive list of audited suppliers spreads vastly over the Asian landscape, ensuring that our customers receive a high-quality product, and simultaneously, at a price they can afford.

As customer demands unfold, our supplier selection process continues to improve. Our process for auditing suppliers is first-class and conducted in-person by our FSC 22000, BRCGS, and ISO 22000 Certified Quality Assurance team. Once our in-person audit is completed and the supplier is approved, our team regularly monitors production throughout the entire production process. Our Project Managers will never proceed with a supplier that does not meet our audit requirements or HBI standards.

Anyone new to Asian Sourcing has heard enough stories to intimidate and hold to their beliefs, altering their perspective on the value of working with international suppliers. As with anything, the negatives seem to outweigh the positives in this perspective. However, we want to assure you that quality should always be the priority regardless of who you choose to work with, whether it’s a domestic or international supplier or sourcing company.

Extensive research on both suppliers and sourcing agencies is imperative. Visiting suppliers directly invites businesses first-hand experience to observe operational procedures, meet with employees, and inspect every aspect of the vendor. Using a global sourcing agency with on-the-ground personnel allows your business the advantage of working directly with the supplier visiting suppliers before, during, and after production to ensure quality specifications are met.

Perhaps you’re unable to visit the factory in person? Many suppliers are integrating technology into their quality assurance and operational processes. Requesting video tours and meeting face-to-face via a virtual platform permits a more personal business and supplier meeting and allows for similar face-to-face interference, as would an in-person meeting. Requesting samples, product drawings, and up-to-date product specifications will also help you maintain current records, documents, and products to ensure your product meets your expectations.

How does HB International help to manage the risk of poor quality?

With our robust quality assurance procedures, many businesses choose to work with our team because of our incredibly talented and detail-oriented Quality Assurance team and Project Managers. As we continue to acquire new customers, it allows our team the opportunity to perfect our process. We continue to improve our Quality Assurance standards based on our customer’s expectations and projects and keep up with current trends.

The best way to manage the risks of quality concerns is to ensure you have resilient quality control procedures that your business and your supplier agree on. Fortunately, working within the international environment invites your business to more accessible opportunities to expand into other markets.

Of course, working internationally does pose the risk of miscommunication and misleading business negotiations; there are ways that language barriers can be managed and managed well. It’s important to understand that language limitations exist for both businesses and suppliers and ultimately, expressing patience and understanding is critical. Communication must be simple yet effective. Provide your supplier with very detailed information, and be sure you’re available to answer questions or clarify information. Be precise about your expectations and communicate as much detail as you can to ensure that you know what their questions are related to if they have questions.

How will HB International help manage the risk of negotiations and unfair prices?

With our twenty years of established reputation across Asia, HB International’s team connects closely with our suppliers. Our Project Managers continue to set our suppliers’ expectations and communicate our customer’s demands. The relationships that we’ve established with our suppliers are based on patience, transparency, support for each other, and many years of high-quality products.

Our team works with many suppliers during the request for quotation process (RFQ), offering projects to our approved suppliers to negotiate the most competitive pricing. Essentially, having a team that communicates price, negotiates project costs, and technological terms and manufacturing processes has enabled our team to become the choice for many businesses seeking expansion in Asian Sourcing.

While current logistic situations are a nightmare for any business right now, there are ways that these risks can be avoided. Whether you’re planning for sea or air logistics, working with several reputable freight forwarders is essential. Having a wide-range network of freight forwarders is critical, just as your suppliers, because it allows your businesses the advantage of negotiation. Not all freight forwarders will have comparable rates, similar scheduling procedures, and identical payment terms. Effective communication and organized negotiation should alleviate some of the risks associated with handling logistics successfully and allow your business to distinguish between a freight forwarder willing to work with your company versus a freight forwarder who creates uncertainty.

Pay attention to the details! Always be sure you communicate your expectations with your freight forwarder and, at the same time, ensure you understand the capability of your forwarder. Ensure your product is insured in the off-chance that it is damaged or lost during transit. Having insurance on your shipment does entail that you’ll be spending a little more on the ‘safety’ of your product; however, it’s certainly a lot cheaper than not having any insurance at all.

How can HB International alleviate the risk of working with a freight forwarder who doesn’t understand the importance of our shipment or whose rates and accountability lack urgency?

Our team works diligently through effective negotiation and communication to ensure your product has container space and is shipped on time. As freight continues to be a concern for many companies, we believe our job as a global sourcing agency is to ensure your product is shipped with the very best rate, space, and coordination. We have an expansive network of forwarders that continue to provide our customers with proper documentation, communication, and organization to ensure your shipment arrives on time and safely. Our forwarders use the most advanced technology to observe and track shipments, allowing us to communicate early arrivals and delays to our customers.

Interested in learning more about how HB International can assist your business in Asian Sourcing? Fill in our General Form below and let us know what you’re looking for. Our team is well versed in many project areas and happy to assist each unique customer’s request. We’re here to service you!