Offshoring in Asia has grown in popularity. The reason for this is because Asia offers a skilled workforce, lower labor costs and plentiful resources. However, while offshoring in Asia does offer many advantages, there are also many challenges.
Luckily, with the right strategy, any retailer can compete and bring merchandise from Asia to their store effectively and efficiently.
There are three secret ingredients to successful supply chain management that savvy retailers know. They utilize these secrets to compete effectively, control shipping expenses and improve margin and profitability on offshore goods:
3 Secrets to Offshoring
1. A Flexible Supply Chain
2. A Third Party Logistics Provider
3. A Visibility throughout the Supply Chain
Retailers that can adapt to production delays are usually using a service provider. They know that the second secret – having someone with the presence and experience overseas has pros and cons, however in most cases, a great 3PL is an incredible asset.
For retailers who need to make Asia a strategic link in their supply chains the determination is whether to insource or outsource the logistics and distribution. Particularly when it comes to PO management and consolidating shipments, it helps to partner with the right third-party logistics provider. The ideal partner offers solid experience, top-of-the-line facilities, sophisticated technology, a network of qualified carriers and resources to automate vendor and PO management to improve supply chain visibility.
Working with a company that has the expertise and presence in Asia can help you to manage your vendors and fulfillment from their factories, check the quality of the products on the line, and give end-to-end visibility or real-time overseas management.
To learn more about the improvements that have been made to make offshoring a good alternative, download this article called “Optimizing the Supply Chain Where ‘East Meets West’” which discusses how low labor costs, plentiful resources and a skilled workforce are making Asia an appealing option to North American Manufacturers.
