In some industries, such as automobiles, textiles, and electronics, procurement accounts for the lion’s share of total costs—as much as 80%. Despite this, the vast majority of executives readily admit that their companies rely on procurement capabilities that are no better than their competitors’. Nowhere is the pressure to improve procurement more intense than in Asia-Pacific, for both domestic companies and multinational corporations that rely on the region as a major source of goods and services. World-class procurement is just as important in developing countries as it is in the region’s developed countries. Scratch the surface of an industry leader, and you’ll find an unbreakable procurement operation. What companies like Apple and Walmart have discovered on their way to the top of their respective industries is that procurement leaders are essential.
Cost leaders can out-invest in innovation, capture market share through price flexibility, and capitalise on new opportunities quickly—all while maintaining margins. We found no company executives who would describe their capabilities as world class in a recent Company study of procurement in the Asia-Pacific region. When compared to a previous survey of North American executives: The 15% of respondents who thought their companies had world-class procurement also had industry-leading costs.
Companies in China, Asia, and other growing countries are under pressure to improve the efficiency of their rapidly expanding operations. Without a doubt, rapid growth, combined with shorter product cycles, has presented businesses with the challenge of dealing with massive operational complexity. Each new product has an impact on the entire supply chain, from sourcing to logistics to warehouse management. Each time a new product or Part number is introduced, planning becomes more complicated. Aside from complexity, there is the issue of cost inflation. Revenues in these countries are increasing rapidly, but input costs are increasing even faster—eating into margins. In addition to rising input prices, our study found that volatility is a source of concern for some Asia-Pacific executives.
Users collaborate closely with the client to source and manufacture products from Asian suppliers to the required specifications and within the agreed-upon lead time, while maintaining transparency throughout the production cycle. Trust is central to how we operate, and we strive to build long-term relationships with both our clients and suppliers. Developed a well-defined sourcing process that ensures we are collaborating with the right suppliers from the right countries in order to meet your needs. Humans are your Asian sourcing partner, not just your China sourcing company, India sourcing company, or Vietnam sourcing company. This means that we will always be on the lookout for opportunities in other Asian markets to ensure that we are on the same page.
Components for Industry
We have a wealth of experience in producing industrial products in Asia as sourcing and supply chain professionals with backgrounds in engineering and manufacturing. Procurement Agency in Asia supply technically challenging, high-quality components and sub-assemblies to customers in Europe, the United States, and Australia. Metal fabrication and plastic injection mounded components are among our core competencies.