We take a closer look at how we helped one customer navigate and overcome the challenges of sourcing from multiple locations.
In an earlier blog, Wendy He, Managing Director for Asia, highlighted how businesses – driven by a desire to avoid tariffs and reduce operational risks through diversification – are increasingly exploring new sourcing options outside of China. In this next installment, we take a closer look at how we helped one customer navigate and overcome the challenges of sourcing from multiple locations.
In 2020, one of our customers – a large department store chain – entrusted us with the management of its international supply chain and the transformation of its sourcing strategy across Asia. The goal was clear: to improve supply chain efficiency, increase vendor compliance, deliver added value, and enhance critical path visibility.
The customer’s sourcing footprint spans a few Asian countries including India, Bangladesh and Vietnam. With this multi-country setup, we needed to provide integrated in-country solutions that optimise the supply chain. This included outbound transportation, data management and supplier collaboration.
Some key challenges the business was facing included the need to establish seamless communication with local suppliers as well as improving and standardising vendor compliance. Naturally, each region operates under distinct logistical infrastructures, cultural norms and labour practices, necessitating tailored strategies for smooth operations.
Navigating local complexities: Managing shipments from different countries requires overcoming logistical hurdles unique to each location. For this customer, our already-established local teams were able to step up to ensure safe receipt of purchase orders from numerous suppliers, engaging in region-specific planning and coordination. This involved working closely with shipping companies, local customs authorities, suppliers and even truck drivers to address the unique challenges of each region.
Our local teams are well-versed in these processes and able to provide careful coordination, ensuring timely border clearance, continuous visibility of purchase orders and rigorous quality assurance.
Driving vendor compliance: Building strong relationships with suppliers in sourcing locations can often be a significant challenge. With improved vendor compliance already highlighted as a cornerstone for success for this particular customer, we invested in robust supplier education programmes, as well as regular conferences to align suppliers with new and evolving processes, highlight areas for improvement and share reports and business reviews. This proactive approach not only enhanced compliance but also fostered the strong supplier relationships we know are critical for sustained operational efficiency.
Optimising data visibility: The optimisation of data visibility brought about by the implementation of our supply chain technology Ligentix was another big step forward for the customer. The platform ensured they were able to access real-time and accurate information across their supply chain in Asia without delay. Providing SKU-level visibility across the supply chain, Ligentix connected all local factories, carriers, customs teams, and warehouses, right through to final delivery to the end customer. This visibility empowered the customer with enhanced inventory control and operational agility. What’s more, through data automation it’s now within their power to optimise orders and make planning decisions that reflect the stock needed, reduce waste and save costs.
Hub rationalisation: Considering the customer’s intent to diversify their supply chain production beyond China and to support efficient operations across Asia, we established a new consolidation hub in Port Klang Free Zone in Malaysia. This facility is specifically designed for orders originating from locations outside of China. The final shipping arrangements, including the choice of destination hub, are carefully determined based on the size and volume of each order. Once goods arrive at our bonded warehouse, our local team ensures that customer requirements are fully implemented across their distribution centres throughout Asia. This includes meeting specific value-added needs to guarantee that orders are store-ready and tailored to the customer’s exact specifications.
Sourcing from multiple countries offers significant advantages, such as minimising the impact of supply chain disruptions and expanding your operational reach. However, it also introduces the complexity of managing diverse networks and handling critical data across regions. As experts in supply chain management, we work in partnership with our customers to ensure these complexities are effectively managed.
We offer tailored solutions that streamline operations, enhance vendor compliance and provide real-time visibility across your entire supply chain. With our innovative technology and local expertise, we help businesses stay resilient, agile and ahead of the curve. Whether you’re shifting sourcing strategies or expanding into new regions, we’re perfectly placed to help you drive continuous improvement and ensure long-term success.
Connect with us today to learn more about how we help support you through strategic sourcing decisions.
