0:07
hi this is Anita from the global trade
0:09
gal You know sourcing is one of those
0:12
sort of funny words where people that
0:14
are in the global trade understand it
0:16
Other people may not quite understand
0:19
exactly all the implications of the word
0:21
but sourcing is very essential and
0:24
important and anyone who's in the global
0:26
supply chain That's why they're are
0:28
experts and that's all that they do is
0:30
they just source all day long Sourcing
0:33
means to be able to find products
0:35
materials or other things that can
0:37
either be used in manufacturing or could
0:40
be used to be purchased so that you can
0:42
be able to buy them There are really
0:44
three main things when people are
0:46
looking for for sourcing and it's it's
0:48
the quality Make sure it's of the
0:50
quality the quantity and the price And
0:54
those are the three essential things
0:57
that need to be looked at that whenever
0:59
you're looking to source products you
1:01
need to make sure that you know you're
1:03
able to buy the quantity that's required
1:05
It's at the price that's needed and it's
1:08
at the quality that you need and that
1:10
you know the basically the person that
1:12
you're buying it from can be able to
1:14
deliver Those are all very
1:17
important things whenever you're looking
1:20
to source a product At Maduro we create
1:24
develop and manufacture for the home
1:27
decor and home furniture industry And
1:30
some of the things that we really have
1:31
to do a lot is we need to be able to
1:34
source or be able to find raw materials
1:38
in order to produce the things that we
1:40
need to produce For example it can be
1:42
everything from a piece of hardware uh
1:45
for a cabinet to it could be something
1:49
like a piece of you know cabinet for a
1:51
hardware or it could be something um
1:54
like you know some material that we need
1:56
in order to finish the
1:59
product You know there's many reasons
2:01
why many times we end up doing
2:04
international sourcing In other words
2:06
we're you know in Vietnam maybe we're
2:08
manufacturing something and we might buy
2:10
something from say China And there's
2:13
many reasons why A lot of times it's the
2:15
quality that you know a lot of times
2:18
it's just the best quality product we
2:20
can find is in a specific region or
2:22
place Um it's also the other reason
2:25
could be specialization There's some
2:27
countries that just specialize in
2:28
specific things and really do a great
2:31
job with that or they have unique
2:32
materials unique finishes which are not
2:35
available anywhere else Cost efficiency
2:38
Well you know quality is important Also
2:41
you got to make sure that it's at the
2:42
right cost and that you know people can
2:45
be able to buy it For in other words you
2:46
know we a lot of times will buy some
2:48
metal fittings from China and even
2:50
though the primary product is being
2:52
produced in Vietnam you know that this
2:55
will be some sort of crossborder sort of
2:57
transaction taking place of sourcing
3:00
that make sure all the components meet
3:01
the high standards of what's
3:04
required you know international sourcing
3:07
can actually be complex across borders
3:10
And that that actually is one of the
3:11
problems and that's one of the things
3:13
where we're seeing you know especially
3:14
in the present political climate in a
3:17
place like the United States today where
3:19
they're saying well we want to have
3:20
everything made in America Well I can
3:22
tell you now it's not going to happen
3:24
There's a lot of things which are just
3:25
going to be made internationally and
3:27
need to come across borders Why because
3:30
you know one country may have the
3:31
resources the technology they may have
3:34
the raw materials and the other things
3:36
to be able to make the product better
3:38
than someone else can make it And even
3:39
if you make it in your home place it may
3:42
cost you a lot more than if you imported
3:45
it or brought across the border But of
3:47
course whenever you're starting to bring
3:48
things across borders especially raw
3:51
materials there's a lot of challenges
3:53
that go with it One of course is
3:55
logistical challenges and time
3:56
management You know you need to make
3:58
sure that whatever it is that you can
3:59
get it across the border get it in the
4:02
time that you need to and that it can
4:04
arrive at the facility in the time
4:06
that's required This is really you know
4:08
important For example we you know Muro
4:11
sometimes we'll we will source some
4:12
highquality veneer from China
4:14
manufacturers and in order to avoid
4:17
production delays we need to make sure
4:18
we get that veneer material in at the
4:21
required time so we can get the
4:22
production out on time
4:25
You know this requires a lot of advanced
4:27
planning It means that you must have you
4:29
know reliable logistic partners It means
4:31
that you must sometimes even you know
4:33
buffer inventory a bit in case something
4:36
happens A lot of things about crossber
4:38
trade which can get very complicated One
4:40
of them of course is regulations and
4:43
compliance And you know as as I was
4:45
saying to somebody recently the problem
4:47
with all the tariffs going on in the
4:49
United States is that whenever tariffs
4:52
happen in the United States and other
4:54
countries start making things more
4:56
difficult too So it sort of becomes this
4:58
sort of chain reaction where everybody's
5:01
making it difficult and it can make
5:03
global trade extremely difficult So
5:06
things like you know customs duties and
5:07
tariffs of course is a barrier to trade
5:10
you know quality and and safety
5:12
standards is is another one You make
5:14
sure it complies with the quality and
5:16
safety standards you need and
5:18
documentation and certification Making
5:21
sure you have accurate documentation You
5:23
know you need to really be able to
5:25
understand these things People think
5:26
that sometimes you think it's very easy
5:28
You just bring it across the border and
5:30
that's it It's really not that easy
5:32
There's a lot of different variables
5:35
involved with even bringing simple parts
5:37
from one country to the next you know
5:40
and you have to really ensure that
5:41
there's consistent quality because I can
5:43
tell you now that if you bring something
5:46
from let's say we bring something from
5:48
China to Vietnam and you bring it across
5:50
the border and then you find out there's
5:52
a problem there is no way to be able to
5:55
correct that You know you don't the cost
5:58
to bring it back to China to correct it
6:00
is huge In other words it would cost you
6:04
more than if you just bought it new
6:06
again So that's why it's really
6:09
important that whenever you're dealing
6:11
with this type of thing that you really
6:13
make sure that whatever you're shipping
6:16
that it's of the quality that you need
6:18
that it's consistent quality And that's
6:19
why we have people on on both sides
6:22
checking it out counting it looking at
6:24
it verifying it because this is very
6:27
very important You have to make sure you
6:29
have stringent quality checks involved
6:31
that you maybe the the audits
6:33
relationships and other things like that
6:36
There's many ways that um why this is
6:38
important and essential especially in
6:40
the type of industry which we're in
6:42
which was you know medium to high home
6:45
furnishings You know we need to be able
6:47
to buy the parts the pieces the material
6:50
and other things and many times we just
6:52
have to simply import them and this
6:55
becomes this you know strategically we
6:57
need to source these materials We have
6:59
to really be able to buy the best
7:01
quality at best price that we can in
7:04
order to to remain competitive but not
7:06
only that is to make sure we have a
7:09
product So that is why it's important
7:12
that you know we do all of these things
7:14
within our supply chain itself But it's
7:17
also the reason why sourcing and
7:20
understanding sourcing and how to bring
7:22
things in and how to find the things
7:24
that you need to is is essential and
7:27
very important And it's also making sure
7:30
that you have the product and you're
7:31
shipping the product of the quality that
7:33
you need so you don't end up with
7:35
problems once it's been produced You
7:39
know it may sound very simple and it may
7:41
sound really easy but the truth of the
7:43
matter is that all these things are
7:45
actually quite complicated and it's
7:47
quite a complicated process It requires
7:49
that a lot of things fall in line in
7:52
order to make this happen If you'd like
7:55
to be able to read more about this I've
7:57
written a a blog post on this called
7:59
challenges and triumphs in sourcing raw
8:01
materials for highquality home decor And
8:04
even though this is for highquality home
8:05
decor it's actually for any type of um
8:10
manufacturing at all there might be some
8:11
ideas here to help you to understand how
8:14
to navigate this better In the world we
8:16
live in today this is an important and
8:18
essential part of most people's supply
8:21
chain most people's global supply chain
8:24
essentially that you need to be able to
8:25
find ways to bring things across borders
8:28
because it's just the way the world is
8:30
working these days Even if we want to
8:32
try to stop it we want to change it it's
8:34
actually the way the world continues to
8:37
work We'd like to thank you so much for
8:39
listening and for joining us We hope
8:41
that you'll subscribe and become part of
8:43
our community and that you'll um check
8:46
out our blog and if you're interested
8:48
more in about home furnishing home decor
8:51
or about the global supply chain Thank
8:53
you so much This podcast is sponsored by
8:56
Menuro We create develop and manufacture
8:59
home decor and home furnishing products
9:01
in Asia with a social conscience We'd
9:04
love to have you check out our blog at
9:06
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9:09
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