While China is still considered as the primary product sourcing destination, a lot of buyers are increasingly trying to explore alternative destinations like India. They are mainly doing so to reduce their sourcing risks and diversify their organizations. An even more sound reason is the accelerated import tariffs imposed on China products by the United States. All these reasons are working in a combining way to make buyers look beyond China.
This context will describe some of the tips to source from India. Read them and start sourcing products from Indian procurement freelancers in a smart, yet productive way.
Building a strong relationship with Indian suppliers is the most important criteria to source products from there. For Indians, trust is a vital thing. After you have placed a few orders, you can easily expect them to have trust in you. After establishing the relationship, you can expect to have more favors. You might even get easy payment terms, longer credit terms, better prices, and better quality of products. They might even spare you from charging for samples. Unlike China, it is common among Indian suppliers to take their clients out for sight-seeing or arrange for lunch. The Indians like to do things in a more relaxed way.
Hierarchy is important
Hierarchy forms an important part of the business culture of Indians. Here, suppliers are more focused on asking questions and making decisions on a higher level. If you source your products to a small organization, decisions will be taken by the owner of the company and if you source in a large organization, the top managers will make the decisions. The Indian procurement freelancers mainly believe in maintaining a rank. If you ever visit India and have a face-to-face conversation with the company owners your introductions will take place according to the rank you hold. Seniority is determined and maintained when sourcing products from India.
Ask important questions
You need to ask indirect questions when outsourcing to India. Indians do not like to reject something on anybody’s face. They will rather stick to terms like ‘maybe’ ‘we will see’ or might even say ‘yes’, but never a direct ‘no’. The Indian suppliers think about making circumstantial decisions. They like to keep several options open and make more informed decisions based on situations. For example, when you will negotiate about the prices of products, you could ask a procurement subcontractor you are looking forward to increasing the production volume and trying to gain momentum instead of directly asking them to reduce the price.
Mix leisure with business
India is an exotic place and the culture there is rich and you can have a lot to explore. It is a colorful place, loud, and chaotic with a strange kind of peace as well. If you have planned to source products from India, you will need to plan a trip for few days as you might like to attend a trade show and the suppliers might even take you for a cultural drive.
These are the tips you need to follow when dealing with procurement subcontractors. Follow these tricks and confirm sign the contract with Indian suppliers today.