Asia is a land of opportunities and it is estimated that by 2030, the region will contribute to roughly 60% of global growth. As local and regional players gain ground, Asia is also witnessing a massive spike in entrepreneurialism with over 140 unicorns in the continent as of 2019. For any business or organization operating globally, it is evident that Asia is one of the most lucrative and profitable sourcing and procurement alternatives, thanks to the massive population, which is young and thriving, and the plethora of opportunities available in the continent for businesses to grow in magnitude and reach new audiences.
Apart from China, many up-and-coming players are emerging as the new manufacturing hubs for Asian sourcing, namely India, Thailand, Malaysia, and Vietnam, often referred to as the ‘Mighty Five’ when it comes to sourcing. Malaysia’s economy is the 3rd largest in Southeast Asia, falling closely behind India’s and Indonesia’s, and the nation reportedly exported $264 billion worth of goods in 2017, which included machines, mineral products, chemicals, metals, plastics, and rubbers, to name a few. One of the biggest advantages of sourcing from Malaysia is that it ranks top out of the Mighty Five, according to the World Bank’s 2018 ease of doing business metric, outranking even China. India is one of the top countries that is often cited as a viable alternative to Chinese sourcing and procurement services, due to the availability of a massive labor force at a relatively low cost. India reportedly exported $292 billion worth of goods in 2017, which included textiles, precious metals, mineral products, machines, and chemical products.
This has been possible due to a variety of factors such as low labor costs and a comparatively cheap minimum wage, and the absence of language barriers since English is one of India’s official languages. Thailand is the world’s second-largest manufacturer and producer of hard disk drives (HDDs) and exported about $215 billion worth of goods in 2017 alone, which included foodstuffs, chemical products, transportation, and metals. This has been possible due to Thailand’s superior infrastructural quality, which ranks similar to China, according to 2018 data from the World Bank. Indonesia is the second-largest economy in Southeast Asia, and has the 4th-largest population with about 269 million inhabitants, in the continent. Indonesia exported about $189 billion worth of goods in 2017, and while the export industry is largely dependent on agriculture and raw commodities, it is quickly expanding to other sectors as well.
With a median age of just 28 years, Indonesia provides the lucrative advantage of a cheap and young labor force. Apart from this, Indonesia also offers more political stability which significantly reduces risks for manufacturers. Finally, Vietnam has been labeled as the ‘new China’ by many due to its rising importance as an alternative to Chinese sourcing, and US imports from Vietnam rose 40.2% in the first quarter of 2019, while Vietnam’s economy grew by a staggering 7.08% in 2018, which was the highest in more than 11 years. In 2017, Vietnam exported $220 billion worth of goods which included footwear and headwear, plastics and rubbers, metals, textiles, and machines.
Asia sourcing and procurement is one of the most in-demand resources for growing organizations who want to expand globally, and here are a few benefits of Asia sourcing that make it the most lucrative and advantageous alternative in 2021:
– Reduced production costs
It is no secret that production costs are higher in western nations, which is one of the key reasons why Asia sourcing is emerging as a suitable alternative for all production-related activities for almost every industry globally. In addition to this, Asia sourcing also provides a better and more extensive range of relevant raw materials, as well as strategic guidance and inputs to ensure that the procurement strategies and solutions are relevant to their industry-specific needs. Redeure provides its clients with key market insights about the Asian scenario that enables them to reduce and optimize costs while ensuring the highest production standards and building meaningful and fruitful partnerships with suppliers.
– Better and enhanced production standards
When companies refer to specialized sourcing and procurement experts such as Redeure, they get a hold of quality resources that lead to better and improved final products for their businesses. The global market is extremely competitive and hence growing organizations must leverage this opportunity of enhancing their production standards by opting for the best Asia sourcing and procurement companies, such as Redeure, to ensure that their production strategies are innovative as well as effective to improve overall production standards. Moreover, improved product and service quality also helps in improving customer loyalty and retention, which is important for businesses to be sustainable and cater to the growing demands of an insistent consumer market.
– Competing with bigger businesses
Redeure’s Asia sourcing and procurement services are aimed towards maximizing cost-efficiency through extensive research and the use of innovative technologies, which is crucial for growing businesses that want to expand globally. By providing viable and strategic solutions, Redeure helps emerging organizations to minimize their procurement costs, which represent anywhere from 50% to 70% of annual revenues. Hence, even a minor reduction in that cost can lead to significant profits, and hence, empower businesses by making them financially stable and strong and help them direct financial resources towards growing their presence.
Redeure- Enabling High Performance India and Asia Sourcing.
At Redeure, we believe in delivering high performance and generating value through procurement and Asia sourcing for emerging businesses. By identifying key trends that are relevant to Asia sourcing and procurement solutions, our services are strategic, customized, and highly efficient for monumental and sustainable growth for organizations that want to grow and expand globally. Redeure is changing the Asia sourcing and procurement game, and here’s how:
– Bridging the cultural and communication gap
One of the most unaddressed and underrated challenges to Asia sourcing is undoubtedly the cultural and communication gap, and at Redeure, we realize the significance of bridging these gaps to optimize and enhance production, operations, and establish relevance. This helps businesses save costs as well as avoid unforeseen expenditures, making them financially stronger, and ensuring that they understand and comply with the Asian markets they seek to function and thrive in.
– Better security and safety
Asia sourcing and procurement does not come without its set of risks and uncertainties, and at Redeure, we work tirelessly to eliminate and mitigate associated barriers and roadblocks. Our procurement solutions and services are designed to help businesses successfully navigate with unparalleled ease through the various complexities and uncertainties, ensuring high performance and minimum losses.
– Forging reliable and stronger supply chains
With our innovative and result-driven approach, we ensure that businesses are connected to the most relevant, reliable, and authentic suppliers for their respective industries, and ensure stronger supply chain management and sustainability. We believe that value generation also includes maintaining and nurturing supplier relationships by enlisting and including them in Asia sourcing and procurement discussions. Moreover, through our extensive research about emerging trends in different industries, we identify the most appropriate and attested suppliers for smoother functions and operations that are time and cost-efficient.
At Redeure we cater to over 35 industries worldwide and given the increasing importance of Asia sourcing for growing businesses, we provide them with suitable solutions by leveraging digitization and technological advancements Choosing managed procurement services for Asia sourcing is an alternative that growing companies who want to make a mark in the Asian markets is a smart decision as Redeure supplements this seemingly basic function with facilitating and improving supplier relations, providing relevant and customized sourcing and procurement solutions that are specific to the industries the businesses operate in, and most importantly, ensuring that the entire process is cost-efficient and sustainable.