Procurement Challenges in Eastern Europe

Many organisations choose to outsource their purchases and capacity to places with low labour expenses so that they can free up their companies’ assets and also save money. While China remains a widely preferred region, some countries in Eastern Europe are just as commonly chosen for their production facilities. This encourages many firms to opt for Eastern Europe procurement freelancers for seamless processing. However, there are a few challenges you must address before taking any step forward and making mistakes.

If you are a supply chain manager, there are a few factors for you to assess.

Sourcing -

When strategising, you need to understand what will be the best gateway for shipping goods into Europe. Is it wise to bring in products from a place in Asia to a distribution centre in Eastern Europe only to redistribute them to various warehouses? It may be better to directly get goods from Asia to the regional warehouses. Additionally, you must also check the effect that will occur from the alteration in the location of production. There is a need for your supplier auditors to analyse and determine if there will be changes in the entire sourcing process when the distribution strategy changes.

Inventory –

When it comes to inventory, it may impact reliability or costs. You will select a centralised distribution framework to minimise your supply chain inventory to lessen capital investment. But, if it is the other way around and you need to make a quick supply to your customers, you are going to focus on the supply chain agility. Since this calls for several warehouses in Europe, you will have plenty on your plate and thus need an Eastern Europe procurement freelancer who can make things easier for you by providing you with a clear idea while you handle your other organisational difficulties. Because having several locations plays an important role in the sourcing policy.

Customer Distribution –

The countries in Eastern Europe experience much product sales, which has an impact on the distribution structure. Presently, sales to the continent are mostly made on Free Carrier or Ex-Works basis. So, practically, the cargo reaches the distribution centre without clear notice beforehand. As such deliveries increase at the warehouse, it receives a lot of stress. In such cases, the organisations may opt to raise the sales number according to a Delivered Duty Unpaid basis. Meaning, the flow of goods going out of here is under their control. At such times, there are two essential factors to consider – lead times and the costs of transportation. When you have supplier auditors to analyse and clarify all the elements before there is a rush, your procurement ability and efficiency will greatly increase.

With many companies mainly focussing on the labour costs, it creates a strong pressure that disrupts their supply chain. Having good ideas for dealing with such changes can be a valuable tool for you and your business. If you plan to reassess your supply chain, the best thing to do is for you to consult with the procurement experts.