Whether you’ve found the supplier that you need for your products and services domestically, but they happen to be overseas, or you’re looking to expand internationally and need new suppliers to help you do it, it’s a bigger ask than finding a domestic provider. Going in without an idea of how to tackle the potential problems can leave you open to all kinds of mistakes. For that reason, let’s look at some of the kinks you might need to iron out when finding new suppliers across borders.
Understanding The Culture
When you enter a new market, either as a business or a client, you need to do your research. In this case, it’s vital that you understand the cultural context of the companies that you work with. Etiquettes and how you do business can differ from place to place. For instance, hierarchy and respect for authority play a critical role in many Asian markets, while in the West, directness is much more widely welcomed. Do your research on the culture of the people you aim to work with to start relationships on the right foot.
Build Trust Bit By Bit
It’s easy for all parties to speak enthusiastically about the potential benefits of a business relationship. However, while you may want to make promises, it’s more important to let trust build over time. Consistent communication, transparency around your needs and how well their supplies meet your demands, and predictability through shared production forecasts and the like, can be foundations of a transparent supplier relationship. This trust can, in time, smooth down friction. Suppliers are a lot more willing to show flexibility for those who prove they are worth it in terms of long-term revenue.
Ensuring Your Money Makes The Journey
One of the most surprising challenges when doing business overseas is that it’s not always easy to make payments across borders. Traditional methods can be fraught with issues like slow transfers, high fees, and friction as a result. Late payments can damage your relationship with your supplier, even when it’s not your fault. Finding the best way to pay overseas suppliers, such as through purpose-built payment providers, can ensure a much smoother journey. Make sure that payments are all secure and traceable, so that there’s no room for miscommunication down the line, too.
Do Nothing Without A Contract
Handshake agreements aren’t worth much in the domestic business world, and the same goes for overseas, as well. A well-drafted agreement defines the quality standards you expect, payment terms, and delivery timelines, ensuring that everyone is held to professional standards. Those contracts should also include penalties for non-compliance, and go through business lawyers or international trade lawyers to make sure that they will hold up no matter what jurisdiction you’re in.
The above examples are not a comprehensive list of the steps you need to take to secure a good overseas supplier, but they should give you an idea of how you should be thinking, with preparation and willingness to find the solutions needed to break down those barriers.
