Successful product procurement is a necessity for all enterprises, even non-profit ones.
In this post, I intend to give you tips for successful product procurement based on my 10 years of business consulting experience.
I also want to encourage you to be fearless when entering a totally new market like Turkey. To me, there are more important issues than market trends and some global trade methods. Everything about product procurement starts with identifying reliable and experienced suppliers, learning import regulations, and negotiating favorable pricing terms. To do these things, you should not pick sides based on politics or religion and always stay neutral.
| Successful Product Procurement | Summary |
|---|---|
| Stay Neutral on Politics and Religion | The seller or buyer may go against your principles, but they may also be your best alternative. |
| Know Your Product Well in Product Procurement | I gave three examples of how not knowing your products can cause confusion, errors, and problems in the procurement process. |
| Identify Reliable and Experienced Suppliers | When you identify the suppliers correctly, you will have no concerns about product quality or long-term cooperation. |
| Learn Import Regulations | Once you have identified the regulations and requirements for your specific product category, the next step is to start pricing negotiations as part of your product procurement strategy. |
| Negotiate Favorable Pricing Terms | Negotiating favorable pricing terms is crucial to ensuring the success of a long-term partnership. It is essential to engage in open and honest communication |
Contents
The Key to Product Procurement: Stay Neutral on Politics and Religion
Before reading the tips for successful product procurement, I wanted to provide my general perspective, which is applicable to any type of product procurement in any sector and in any country. Most of the time, there is no religion or politics involved in trading. The seller or buyer may go against your principles, but they may also be your best alternative. You never know if you avoid them in the first place. And people change minds.
Working in Demirci, a town in Turkey’s Manisa region, was one of the most memorable experiences I had in product procurement.
Demirci is known for its devout and conservative culture, which contrasts sharply with my own. However, I had no trouble talking with the residents of Demirci since they trusted my business skills and expertise. They avoided any political or religious debates with me and instead concentrated on how I could assist them in obtaining grants from international funding organizations. I also facilitated collaboration between Demirci and an Italian municipality, resulting in a twin city relationship and expanded trade potential. When it comes to product procurement, I’ve learned that the most important thing is to build trust and mutual benefit with your suppliers, regardless of their background or views.
Know Your Product Well in Product Procurement
One of the common challenges that I faced in product procurement was that many clients did not know their products well enough. This often resulted in confusion and errors in the procurement process.
For instance, one of my clients wanted to buy brode fabric, a type of embroidered fabric. However, when I searched for it in Turkey, I found out that the fabric she wanted was actually called “brokar damask,” a special name for a fabric with a woven pattern. Brokar damask is a rare and expensive fabric that is specially fabricated. It took me two days to find out this information, and my client only said, “I am sorry.” This was a waste of time and effort for both of us and happens very often in the Turkish fabric manufacturing sector.
Another example was when a client wanted to buy jewelry made of melchior, a type of alloy metal. However, when I contacted the manufacturer in Turkey, I discovered that the jewelry was actually made of zamak, another type of alloy metal. Zamak and Melchior have different properties and prices, so this could have been another waste of time. Fortunately, I was able to verify the product details and inform my client before making the purchase. Please read our case study titled Sourcing Turkish Zamak Jewelry for $160.
Another example was when a client wanted to sell bentonite clay, a natural clay with various uses and benefits. However, the client did not know anything about the therapeutic effects or the grade of the bentonite clay they were selling. I helped them learn more about their product by sending them some scientific reports. Sometimes, even the sellers do not know what they are selling. This is really a huge problem for sourcing experts like me. Read how unsuccessful I was in sourcing bentonite clay for detox in Turkey.
These examples show the importance of knowing your products properly before engaging in product procurement. Not knowing your products can lead to problems such as miscommunication, dissatisfaction, and loss of money. Therefore, I always advise my clients to do their homework and research their products thoroughly before entering the product procurement process. This will ensure a smooth and successful product procurement experience.
Identifying Reliable and Experienced Suppliers
Finding reliable suppliers is a key step for product procurement. To do this, you need to:
- Research the market trends and identify the industries that match your needs
- Create a list of potential suppliers using online directories, trade fairs, industry events, and referrals.
- Evaluate the suppliers’ reputation, experience, financial stability, production capabilities, and legal and ethical compliance. Also, ask for references from their clients.
Study Your Industry Before Any Product procurement
Before entering into any product procurement, it is important to thoroughly research and understand the target market’s trends. This will give you insights into the current pricing norms, what competitors are offering, and the overall demand and supply dynamics. Armed with this knowledge, you will be better equipped to negotiate favorable pricing terms that are realistic and in line with market expectations.
If your target market is Turkey, you may use our secondary market research services, which is “Turkey’s sector reports: English summaries“.
If you are an American, always visit the “Turkey – Country Commercial Guide” before any product procurement from Turkey.
Shortlist the Potential Suppliers
Once you have thoroughly evaluated your market, you can shortlist a few candidates for product procurement who meet your criteria. This communication can be done via email, phone calls, or in-person meetings, depending on convenience and necessity.
During the initial communication, it is crucial to inquire about their ability to meet your demands and any additional services they offer, such as customized packaging, labeling, or after-sales support. Additionally, discussing the payment terms and conditions, including any applicable trade agreements or contracts, is vital to ensuring a mutually beneficial partnership. Therefore, try to obtain as much information as possible at the supplier identification phase.
If you want to find Turkish manufacturers or suppliers for your product, you may consider checking our “Turkish Supplier Identification for 1 Product Category” and “Turkish Supplier Identification for Product Groups“.
Please note that you can also identify suppliers by attending trade shows or exhibitions and networking with local industry professionals as an alternative during product procurement.
Ensuring Quality Control And Product Testing
In the product procurement process, you will have an idea of the seller’s quality control after shortlisting possible suppliers and contacting them. Always double-check their qualifications and request analyses, etc., as needed. This request may come as a surprise to you from the vendor. Good providers will always submit their official documentation before you ask. Spammy or untrustworthy vendors will always write long and empty promotional messages replete with slogans. Never deceive with slogans; always request documentation.
Learning Import Regulations Before Product Procurement
To import products to your country, you need to do the following before product procurement:
- Check the product category and see if it needs any special permits or licenses.
- Hire a local agent or consultant who knows the Turkish import regulations and can help you with the paperwork, customs, and legal issues.
Understanding the specific regulations, engaging with local agents or import consultants, and collaborating with reliable suppliers are key steps to ensure compliance and a smooth product procurement process. By carefully navigating these regulations, you can establish a strong presence in the target market and capitalize on the opportunities it offers.
Negotiating Favorable Pricing Terms
When it comes to Product Procurement one of the key factors that many businesses consider is negotiating favorable pricing terms. This is crucial in order to maximize profits and maintain a competitive edge in the market.
| Benefits of Negotiating Favorable Pricing Terms |
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Overall, negotiating favorable pricing terms when procuring products requires a combination of market research, relationship-building, and strategic purchasing decisions. By following these tips and considering the benefits of negotiating better prices, you can enhance your product procurement process.
If you want to ensure a successful venture in the Turkish market, you may consider our services of “Price Quotes from Turkish Manufacturers for 1 Product Type” and “Price Quotes from Turkish Manufacturers for Product Groups“.
Conclusion
In conclusion, choosing dependable and knowledgeable suppliers, learning import rules, and negotiating attractive rates are critical in product procurement.
The same rules apply to Turkey. Establishing long-term connections in Turkey is a strategic move that can generate major rewards for businesses engaged in product procurement. You may establish strong connections that contribute to long-term success by finding reliable Turkish suppliers, negotiating competitive pricing arrangements, guaranteeing quality control, analyzing market trends, and maintaining effective communication channels.
Additionally, you may wish to consult the post “Comprehensive Guide to Private Label Services in Turkey” to acquire additional information regarding product procurement, which can also be seen as “private label production.”
Your examples of the difficulties you experienced during product procurement are very enlightening.In particular, your description of the problems arising from confusion over the names of materials was very useful. The trader’s inability to recognize the material can pave the way for unfair competition. Knowing such details can be of immense benefit when approaching the market and suppliers. Thank you!