Running a retail business can be described as a ship in an ocean- no matter how familiar you are with the seas, there are times when you would not have expected storms. So as the captain of the ship, it is up to you to reach the shore safely. Risks in retail business(or any business) are not always anticipated- your retail shop(ship in the ocean) can even wreck due to one wrong turn. And that is why you need an expert by your side sometimes.
Now, this is especially relevant if you are a retailer and rely on sourcing agents or sourcing companies. There is nothing wrong with that- you can get good sourcing agents in India. But, as you know- the market is a risky sail so, to play as safe as possible, you might require a sourcing consultant.
To me, sourcing specialists or consultants are like the co-captain: they might not be in charge of the ship as a captain, but the captain needs a co-captain for better navigation.
So, what do Sourcing Consultants do?
Sourcing consultants are experts who help make the sourcing process of the business or institution more efficient. They do this by building a reliable business relationship with the suppliers, negotiating costs and developing agreements that ultimately help your business grow and become more profitable.
Still having second thoughts? Here is the list of reasons to hire a sourcing consultant
1. Building Relationships with the Suppliers
Suppliers are very important when it comes to the retail business and building a good business relationship with the suppliers is even more important when it comes to a country like India- all the successful people in the business world that I have ever met, tend to have a good relationship, not only with their employees but also the suppliers.
In order to facilitate an efficient sourcing process, sourcing consultants form a stable business relationship with important suppliers or sourcing companies in the industry. Sourcing companies in India hold an immense potential that is exploited by a seasoned and efficient Sourcing Consultant for the benefit of the client.
Sourcing consultants must maintain relationships with the suppliers to ensure continual improvement in sourcing.
2. Negotiate Deals
Sometimes, experience in business needs a little addition of experience in striking win-win deals. A sourcing consultant/specialist is responsible for negotiating deals and contracts with suppliers. They negotiate pricing, quantity and delivery schedules, keeping your profit in mind.
This is especially beneficial when it comes to the furniture retail- business in India. An average Furniture sourcing company in India can provide retailers with a wide range of variety and some even have the benefit of product customization.
A sourcing consultant, here, would play the role of a negotiator, making sure that your inventory is not running out of stock often and the supplies are on time with the right amount.
3. Drafting Contracts
It is the responsibility of a sourcing consultant to draft a detailed contract to be reviewed by both, the supplier and the retailer or company.
It goes without saying how important a written document is when it comes to business dealings. Such documents will contain all the details of the deals and negotiation.
4. Understand The Commodity Industry
To be a Sourcing Consultant, the sourcing specialist is supposed to have in-depth knowledge about the commodity industry- how it works, what is it that is required to seal solid deals, how to keep both the sides happy and going and how to benefit the most out of deals.
As experts, they will know the ins and outs of the commodity and how to effectively source it.
Now that you have all the reasons to hire a sourcing consultant- you should be knowing how to find the right one. So, I’m here with the list of skills a genuine sourcing consultant must possess.
- Wide experience in providing strategic sourcing services
- Strong Knowledge of manufacturing practices( according to the field)
- Panoptic knowledge of access and SQL technologies
- Familiarity with sourcing and procurement procedures
So that is all you need to know to go hunting for star sourcing consultants or should I say perfect co-captains and your ship (business) is all set to sail.