Possible Reasons that Cause Failure in looking for Sources of Trading Parts

There are a lot of reasons that prevent successful in sourcing for trading parts in Asia:

a. Environmental Cause:
Generally, it is more fruitful to source goods from one continent and sell to a different continent. When we source the goods from Asia and sell to Europe or America, we take advantage of the lower cost. On the other hand, we source for goods from Europe or America, we take advantages of the technology and prestigious that are currently lack behind in Asia or other developing countries. The bigger challenge for sourcing from Asia and sell to Asia is we do not enjoy either benefits. For the example of some Taiwanese suppliers’ cases, they need to pull out from China due to inefficiency in cost. However, they could still enjoy sales in other parts of the world

b. Limited Resources:
It is a full time job to source for good vendors and build up relationship. Companies that have not allocated enough resources to do it will fail in the attempt. Normally, the sourcing staff also need to have vast experiences on sourcing for vendors and have visited exhibitions, factories etc. They have thus built up a width network of suppliers.

c. Cost Concern:
If the primary criterion for sourcing in Asia is cost, this will also result in failure. Cost is normally associated with order quantity. Without a confirmed large quantity order, it is difficult to demand for better price. It is therefore not possible to build up any vendor network based solely on cost criterion.

d. Lack of Focus:
To ensure success in sourcing, companies need to have a focus on what they want to source for. Without a clear specification, it is like aiming in the sky.