Jamesway - The Incubator Company Is Expanding Its Supplier Base in Europe with a New Sourcing Project
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The world has grown a great deal smaller over the past 50 years or so - figuratively speaking - what with the increased speed of transportation and advances in communication technology. In more recent times, the explosion of the internet has accelerated this trend beyond measure, expanding "small world" benefits to global supply. This is leading many purchasing organizations to increase their levels of global sourcing in order to tap into the promising opportunities made available by easier access to overseas suppliers.
Firms expand their supply base to include foreign suppliers for many reasons. Chief among them, however, is that better value is perceived to be available from an international source than a domestic one. This value may be realized in terms of lower costs, through gaining access to higher quality goods, or both. But even as the internet gives buyers greater access to a larger and more competitive field of international suppliers - and facilitates quick and easy communication between them - challenges remain.
Though it is true that global sourcing employs the same set of activities as domestic sourcing, there is also greater complexity. For starters, selecting responsive and responsible suppliers can prove challenging, as obtaining relevant evaluation data is both expensive and time-consuming. Longer lead-times can also be experienced - even with improvements in transportation, the buyer may still experience delays, particularly with inland carriers in the foreign country, at ports, and sometimes at customs. There can also be a number of hidden costs involved with offshore procurement, such as foreign exchange premiums, finance charges, foreign taxes, import tariffs, customs documentation charges, additional administration costs, and other costs (and headaches) that come with global logistics and transportation.
To overcome these complexities and unlock the value of international supply, it's important that firms work with trusted partners in the overseas markets they want to access - and this is precisely the strategy that leading global supplier of quality hatching equipment Jamesway - The Incubator Company has employed.
Jamesway - The Incubator Company
Jamesway plans, designs, installs, and maintains incubation and hatchery systems worldwide. It is the leading hatching equipment supplier in North America - providing machines that feature high biosecurity, easy cleaning, and accessible, user-friendly controls that produce quality day-old chicks, poults, and ducklings - and has now expanded to include facilities in Asia as well. In all, Jamesway's machines are sold, installed and maintained in over 150 countries around the world.
In its course of continuous growth, the company was looking to expand its supplier base in Europe for chosen strategic commodities. In October 2019, Jamesway launched a sourcing project with international consultancy firm OptiBuy in order to support its sourcing activities in the region.
"Maintaining Jamesway's approach of 'worry-free hatchery', we are excited to partner with OptiBuy for a 'worry-free procurement' by sourcing commodities with high quality, lower cost and from a world-class supply network," said Director of Strategic Procurement at Jamesway, Ankur Thakur. "We are confident that OptiBuy's expertise in the region will provide an added advantage to Jamesway's global procurement initiatives."
OptiBuy is one of the leading procurement consulting companies in Central-Eastern Europe and provides a broad range of procurement solutions using an international network of offices in Poland, the Czech Republic, Switzerland, and China, extensive market knowledge, and an advanced set of IT tools.
OptiBuy's specialties are the optimization of procurement costs, implementation of specialized procurement software solutions (including Ivalua and NextBuy), and global sourcing projects. Within the new sourcing project, Jamesway will be able to work with OptiBuy in everything from potential supplier identification and assessment to conducting risk assessments and negotiating terms and conditions of sales.
"We are proud that a firm with such a history of success and reach, turns to us to support them in sourcing activities," said Bartlomiej Bacik, Partner at OptiBuy and manager of the project. "The tools and methods we use today at OptiBuy were developed through 16 years of experience in procurement management. In addition, our remote and on-site experts' market knowledge proves invaluable in such projects. I am sure, we can deliver the quality and consistency Jamesway is looking for - both in terms of our service, and the provided solutions."
In an era of the widespread globalization of procurement processes and an ever-increasing number of players on the market, it is crucial that firms seek local support when searching for and working with external partners on global markets. Strategic procurement is not limited to just securing supplies of necessary products and services. Insight into foreign markets and the development of supplier relationships is critical when strategizing for company growth and making the most of long-term partnerships. Jamesway's sourcing project with OptiBuy will aim to deliver on all fronts - something that Thakur knows is vital to the company's ongoing success.
"Within my organization, we now have a seat at the table - supply chain isn't just under the operations umbrella," says Thakur. "I believe supply chain and procurement is like the foundation of a building: if the foundation is wobbly, the building can collapse. The supply chain and procurement department manages a high proportion of the raw material costs and negotiates with key stakeholders."
You can hear Ankur Thakur, Director of Strategic Procurement at Jamesway, speak at ProcureCon Canada 2020, taking place in May at the Marriott Toronto, CF Eaton Centre, ON.
Download the agenda today for more insights and information.