There are various reasons why companies source from overseas suppliers. There are a few main reasons, low production costs, low labour costs, and production capability.
Suppliers use economies of scale to lower their fixed production costs over all units produced. This is extremely attractive to clients as it allows them to purchase more for their money then they would have purchasing locally.
Overseas suppliers have lower labour costs, usually around 40-60% less then local suppliers. This allows products that require high labour demand to be produced at a fraction of the cost. This lower labour costs helps make overseas procurement feasible for all business sizes.
Suppliers overseas have a large production capability which means for growing businesses here their needs can continue to be met by the overseas market through procurement. This is a long term advantage to sourcing overseas and will benefit businesses of all sizes.
Kimaya believes these are the main advantages to overseas sourcing and with their professional knowledge the outcome will be a successful experience.
Kimaya International is a unique and innovative sourcing agency that offers end-to-end import & export assistance to source.