Hurdling Disruptions in Global Supply Chains
Whether you’re managing a domestic or international supply chain, both are a process that can pose many complications for you and your customers. When working with international distribution, risks are intensified at the limitations and knowledge of how to do it correctly. Awareness and experience are critical in global distribution, and the ability to properly execute plans of attack will not only aid in overcoming interferences but allow your business to thrive in a worldwide market.
May 13, 2021
Supply chain disruptions can occur both domestically and internationally; it’s how you prepare to handle these situations and execute those plans that will separate you from your competitors. Hurdles in global distribution can show up in many different forms and, depending on the severity, can lead to months or years of complications. How can you correctly identify a global disruption and adequately prepare for these disturbances? What do these supply chain interruptions look like? How quickly can your team identify and work to prevent these potential disruptions?
Whether you’re looking to ‘tap’ into the international supply chain or fully submerge, HB International is a global manufacturing agency here to provide you with everything you need to remain competitive and successful. Supply chain risks are heightened when working internationally; however, HB International’s experience combined with our team’s packaging knowledge and quality expertise is what allows our customers to continue to stay competitive and successful.
Overcoming Language / Cultural Barriers
Having a global reach and working with international teams and suppliers is such an excellent benefit for many companies. Engaging in international business allows companies to expand their access to talent, an opportunity to learn a new culture, as well as a chance to diversify their market and expose their business to worldwide opportunities.
How can HB International Assist?
In partnering with a global manufacturing agency, such as HB International, you will learn that our team works in direct contact with our international suppliers, as well as with each other. Our global team can conduct in-person audits, in-person negotiations, and in-person product inspections to ensure face-to-face interactions continue to be a part of the high-quality service we provide our customers.
Currency Fluctuations
Prices and currency exchange rates are always going to fluctuate with the cost of raw materials combined with customers’ ever-changing supply and demand. Oscillating costs and currency fluctuations need to have an active role in your risk-management plan. Unfortunately, you will never be able to overcome the effects of foreign exchange rates truly; however, there are ways to prepare and manage these fluctuations in the supply chain.
Work with your supplier to agree on a baseline exchange rate during the initial quoting. Product production can last weeks or months, while currency rates can change within 24 hours. Settling on a baseline rate will eliminate assumptions and help create a more concrete budget for your project..
How can HB International Assist?
Our team works directly with our suppliers from the initial project negotiation through the final steps of logistics. We are here to ensure your project is of the highest quality and completed at a competitive price. Our project managers and quality assurance team play a vital part in each step in the supply chain. We provide our customers with consistent feedback on currency rates, forecast increases and decreases on raw materials, and update (as best as we can) the ever-changing freight rates.
Compliance with International Standards + Government Regulations
Even the most successfully managed supply chains encounter risks. When working internationally, you must be aware of domestic laws, regulations, and standards and those of the country you are working with. It’s best to do your due diligence in establishing a compliance management system designed specifically to address government laws and regulations. Designating transparent processes and procedures and understanding your team’s responsibilities will assist in preventing potential misconduct or illegal activity. If overlooked, these types of violations impact companies financially and concurrently can influence a business’s reputation.
How can HB International Assist?
Our team works consciously to ensure your company, your customer, and your product is in the best care. Throughout your project, we will provide you with your supplier’s qualifications, product specifications, and other documentation that will ensure your product and production processes are compliant with the most current laws and regulations. We understand that laws and rules can change without adequate notice, which is why we choose to continue to professionally develop our team members and provide educational opportunities to ensure our suppliers and your products are always our priority. Our responsibility as your manufacturing sourcing agency is to give you confidence in our processes and in your product to build lifelong trust and partnerships.
