Posts Tagged ‘Market’

Is Global Sourcing Via Online Market an Easy Decision to Make?

We have seen that global sourcing and multinational purchasing activities are on the rise in the current times, and that online market places have come to occupy increasingly important place in the scheme of things of such nature. We also know that countries such as China are one of the major destinations for global sourcing, multinational purchasing and related activities and that the use of online market places for such purposes had given China a cutting edge over others. Of course this does not mean to say that online market places are the only factor responsible for such increase of global sourcing and multinational purchasing activities to the nation, for online market places exist literally everywhere; but there are several other factors such as availability of low cost skilled labour, plenty manpower etc. which have led to such a tremendous growth in global sourcing and multinational purchasing from China.
This may seem to suggest to most people that decisions such as global sourcing, multinational purchasing and so forth are very easy to make and it just need the presence of an online market in form of a website to carry out the same. Well if you are under such an impression you really need to think it over for making a decision to manufacture or buy a product or service literally halfway across the globe which means global sourcing and multinational purchasing decisions are not to be made simply at the wink of an eye or click of a mouse on an online market website.
When a company decides to carry out global sourcing and multinational purchasing using an online market, it is literally putting its brand name and reputation at stake; hence the need for carefully thought out and well planned moves in order to carry out global sourcing and multinational purchasing via online market places. Just imagine how disastrous it could be if such activities like global sourcing and multinational purchasing are simply outsourced without much careful thought just by getting attracted towards a luring online market website. This could ruin the reputation of a company and the faith of the customers should there be any mishap in such a deal due to lack of transparency and trust because of the huge geographical distances involved in the utilisation of online market places in global sourcing and multinational purchasing. Hence the need for ingenuity on the part of management to use online market places for global sourcing and multinational purchasing activities.

news.tootoo.com, which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.

Online Market ? What Does it Mean to Global Sourcing and Multinational Purchasing Companies?

By name, global sourcing companies imply that they have got to go for multinational purchasing for obvious and oft repeated reasons such as cost controlling in order that they gain required edge over competition and tap global talent pool- an act they are masters at and are doing since long even when there was no concept of online market.

Multinational purchasing is a complex act of supply chain management across multiple borders, cultures, regulations and currencies. Complications attached with global sourcing (frequently used interchangeably with multinational purchasing,) which can be hardly explained in simple terms, is a delicate act of balancing mutually opposite forces. Before the emergence of online market, the global sourcing companies were making things fall into place right on time and importantly at right price efficiently using the old world communication media such as facsimile, telephone etc.

-Online Market- Plans for Global Sourcing and Multinational Purchasing Firms

Online market hopes to build business on three critical issues that bog the multinational purchasing and global sourcing companies.

1. Eliminate repetitive and routine clerical work often prone to costly errors

2. Remove irritating and costly communication mode proven to be erroneous

3. Facilitate freedom of multiple choice across online market

All global sourcing firms or anyone that spent some time in multinational purchasing will accept these online market points readily. That online market automates global sourcing and makes life easier for multinational purchasing managers should be a welcome factor for them.

Unfortunately, there are creases to be ironed out before rejoicing. If online market automates everything else but fails to mind the chinks in payment processing which it has seriously, let alone the multinational purchasing and global sourcing companies, not even the online can hope to earn credibility with individual consumers in an international transaction.

The next very serious issue the global sourcing as well as the managers of multinational purchasing companies have raised about online market is the lack of authentic system to certify or ensure credit worthiness of countless small and medium online market retailers. Often, we hear of complaints about differences in quoted and received goods.

It is harsh to term the global sourcing and multinational purchasing firms as skeptics because of their apprehensions about online market because the same multinational purchasing and global sourcing companies were buying internationally all the time. Online market has some miles to go and address issues raised by them and put in place a foolproof dispute redressal system.

news.tootoo.com, which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.

Online Market Drawbacks

The online market has been used increasingly in order to do business. Actually, large portions of a corporation's money is acquired online, therefore constituting higher profits than if the online market never existed. With the internet bringing about better communication, easier ways to do business, and access to information about almost anyone and anything, global sourcing has been able to take advantage of this online market, making things such as internet sourcing for qualified employees and multinational purchasing research much easier than ever before. Yet there are drawbacks to the online market just as there are drawbacks to almost anything and everything in business.

-The cyberspace void

There is this huge void on the online market between global sourcing and multinational purchasing. The reason is because the online market has taken away that personal touch in communication. At one time the telephone served as the primary form of communication if questions needed to be addressed, but now the online market has presented an environment where global sourcing and multinational purchasing can be undertaken without hearing a voice or even seeing a face. Basically, the online market constitute anonymous dealings which can be fine in some global sourcing and multinational purchasing dealings, but in other cases it may be in the best interest to have some sort of personal communication.

-Government Rules and Regulations

When implementing global sourcing and multinational purchasing operations are taking place between two or more countries, there are various rules and regulations that must be undertaken. This also applies to the online market when goods and even people are going to be crossing borders. You have to keep in mind that some operations that are legal in one country may not be legal in another. This can be cause for penalties that you do not want to have to pay. This is why you want to diligently follow the global sourcing and multinational purchasing rules when implementing operations in the online market.

These are just a couple of the online market drawbacks when conducting global sourcing and multinational purchasing over the internet. Of course there are more, but communications and government rules and regulations tend to have considerable impacts on global sourcing and multinational purchasing in the online market.

news.tootoo.com, which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.

The Interrelationship Between Global Sourcing and Online Market

The world has always been mutually dependent and this fact is true for all aspects of life and society be it business, social life or anything else. Even the activities such as global sourcing, multinational purchasing and e-commerce and dependent on one another and also dependent on another factor namely the online market places and owe much of their popularity to the latter. Of course nature always has a way of finding alternatives and even life did not come to an end after the extinctions of the dinosaurs on this planet, so will the activities related to global sourcing and multinational purchasing continue even if there is no existence of an online market place. But then this statement is a sort of easier said than done type.

So much has been the interdependence of global sourcing and multinational purchasing with online market places that it is literally hard to imagine the existence of one without the other. This is mainly due to the nature of the concepts and the activities of global sourcing and multinational purchasing which require that some sort of quick and efficient platforms such as online market be used to carry out the transactions involved in the process. Time factor is one of the most important parameters in business activities and decisions and an online market exactly gains its advantage from the fact that it is in a position to reduce the same in processes of global sourcing and multinational purchasing.

Another important thing which an online market platform provides for global sourcing businesses and companies carrying out multinational purchasing is the vast reach of consumers which would not have been possible with the concept of an online market. The reach in terms of geographical distances and across international borders is something which is very costly and difficult to achieve otherwise in the era of global sourcing and multinational purchasing except with the use of online market facilities. Just imagine if you had to send across a business executive to the other corner of the planet to promote your product or service for global sourcing or multinational purchasing in lieu of an online market. It would involve lot of time, travel expenses, visa formalities, stay expenses and what not. On the other hand carrying out the same with an online market would boost multinational purchasing and global sourcing in a big way without the related cost factors for the organization, which would also increase its margins and help to keep costs low.

www.tootoo.com, which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.

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