You may be wondering why an expert in procurement would insist that you consider suppliers that are not local for your needs. That’s because strategic sourcing requires you to explore all possible options.
In this case, a foreign supplier may be viable if you happen to be courting a foreign market as well. Instead of considering the distance between your business and the supplier, consider the proximity of the supplier to your market or customers. If doing business with a foreign supplier can drastically lower your company’s production expenses, don’t you think it’s worth giving the new supplier a try?
Another thing you should consider would be the rates. Granted, the supplier is a little farther located than what you are used to, but what if he compensates it with discounted rates?
Strategic sourcing is really something worth considering especially if you want to explore your options when it comes to expanding your business.