According to a 2019 B2B buyer survey, about 72% percent of buyers responded that they always or generally prefer to source locally. While it is not always possible to source locally, the growing reality is that procurement prefer to source commodities closer to the source. Regardless these are organic or conventional raw material, or simply final products.
Here is why Poland might be a good solution for your business while sourcing here your commodity:
1. It Gives You Greater Control
For companies sourcing from local suppliers or closer to the origin, one of the greatest advantages is the possibility of having greater control over the purchasing process. Buyers can meet the suppliers of buckwheat or millet (or any other product) on regular basis, their quality teams can audit the potential suppliers without planning costly and long (overseas) trip.
The further away you are from your product of interest, the less control you have. Face-to-face visits of your Polish supplier will allow you to address any concerns and ensure all products meet your quality standards. Organic commodities lately requires greater control and quality assurance which Poland can provide.
2. Reduces Your Delivery Costs
Another advantage of sourcing your product in Poland is our location. We are located in the East-Central part of Europe, where deliveries to the farthest place in our continent take maximum few days by truck. Another factor is that Poland belongs to EU community where food products can move freely across the borders within Schengen zone, because they fall under common EU rules.
On the other hand, buying raw materials or final products from outside of Europe is a long and very costly process. Bloomberg reports that sea freight rate between China and the UK gone up by over 350% in the past year. Container freight rates will remain elevated throughout most of 2022.
Meanwhile, the time to transport containers in the routes between Asia and Europe has gone from an average of 55-60 days to over 100 days in 2022. A shorter supply chain ultimately means fewer costs related to shipment and long transit time, that can potentially save you money.
3. It Makes Dealing with Problems Easier
Imagine you imported a container of some product from Asia (or any other continent) and the product you just imported and supposed to use in your production is defective and you cannot use it. Now what? Dealing with this kind of issues is never easy and very often it’s a long and complicated process.
Food production isn’t perfect. We all make mistakes and as a result, most industries are impacted by simple human error. When you source your product locally or very close to the origin, you don’t have to worry about those distance issues. Handling the potential issues from Poland is also less problematic, can be fixed faster and can result much cheaper in the potential final costs of handling the issue.
The longer and further reaching a supply chain is, the harder it becomes to determine who and what is involved in the process.
4. It Enables You to Build Long – Lasting Partnership
Buyers and sellers both describe high levels of trust and good communication in relationships which they consider strategic. Companies involved in long-lasting collaborations understand each other’s businesses better.
However, building trust takes time and effort. Often this means starting small, with simple collaboration efforts that well developed along the years, can later turn into a great partnership. More importantly, companies should base their relationships on information sharing and transparency, and on establishing communication as a foundation of their link.
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5. Sourcing in Poland Can Be Good for Your Community
After the COVID-19 pandemic, supply chains across the world have been disrupted in many ways. Lots of companies that previously preferred to source their raw material overseas to save on costs are now seeking other cost-effective solutions. Then we had (still have) a negative impact of Russia’s invasion of Ukraine on the prices of most raw materials and its availability.
Sourcing in Poland not only contributes to the closer supply chain but ultimately helps you build consumer confidence in your products. When consumers buy with confidence, the business benefits from increasing positive brand awareness so customer will more likely choose your products.
Today, more consumers than ever before have been driving the food industry by purchasing products that have “clean labels” and explain the origin of their products. It’s important that food companies that are manufacturing products more sustainably are using marketing to effectively showcase those efforts and better communicate a ‘farm to fork’ strategy within their consumers group.
Sum Up
The advantages are clear: enhanced control, reduced costs, streamlined issue handling, long-lasting partnerships, and positive community contributions. As global supply chains evolve, choosing Poland offers a strategic advantage, positioning your business for growth and finally, long-term success.
Source:
- https://www.thomasnet.com/
- https://www.bloomberg.com/news/articles/2021-04-12/higher-shipping-costs-are-here-to-stay-sparking-price-increases
