Strategic Sourcing Destinations in Asia

A large number of modern-day organizations resort to sourcing operations to reduce their production costs. If the manufacturing costs are reduced, the prices of goods and services will also be lowered. This will intrigue more consumers to buy a particular product or service. Asia is a favorable sourcing destination for Western marketers. Easy availability of raw materials, low labor charges, a talented workforce, excellent infrastructure, and favorable trade policies are some of the reasons. China, India, Vietnam, and Thailand are the top four strategic sourcing destinations in Asia. With the assistance of sourcing agencies in Asia, organizations are streamlining their procurement strategies while adhering to the objectives.

Sourcing Hotspots in Asia

Some of the major strategic sourcing destinations in Asia are listed as follows:

China:

Most marketers are going with China sourcing for obvious reasons. China has an emerging economy that marketers look to take advantage of. The production capability of China is higher when compared to Asian countries. This is indeed an added advantage for marketers. Unlike Western countries, labor charges are also low in China. This reduces the production costs of organizations. The Chinese workforce is aware of the latest trends in production techniques. They also know how to implement these techniques in their operations. This is enabling marketers to get hold of quality materials at minimal prices. China also has superior infrastructure and excellent transportation options that reduce the lead times of companies.

Marketers can get hold of finished products within a short period. This is particularly helpful in times of increasing consumer demands.

India:

After China, India is the most preferred sourcing hub for marketers. When it comes to sourcing from Asia, India is giving a tough competition to China. This promising Asian country has a large number of raw materials under its name. This is proving to be a boon for marketers. Like China, India also has a skilled workforce. The Indian workforce is aware of the advancements in manufacturing techniques. Added to this fact, labor wages are also low in India when compared to Western countries. India also has a superior infrastructure that makes it a preferred destination for conducting sourcing activities. The Indian government has also initiated favorable trade policies that are boosting the sourcing scenario of this country.

Vietnam:

Vietnam is another Asian destination that is fascinating to marketers at large. The sourcing agencies in Asia help marketers to get acquainted with the economic and political scenario of this country. Vietnam’s stellar economic growth in the manufacturing sector supplemented with economic activism are the two driving forces behind Vietnam sourcing. This country also has a strong team of Foreign Direct Investors. Like China and India, the Vietnamese workforce is also aware of the latest production techniques.

Organizations are looking to make the most of sourcing opportunities in the Asian markets. Sourcing from Asia is a growing trend nowadays for a plethora of reasons. Conduct your organization’s sourcing activities in Asia and reap increasing benefits.