The international procurement process is highly inefficient
In a perfect world, an end user of a product would be able to purchase a product directly from the best manufacuturer anywhere in the World. Unfortunately, many non-value-added organizations currently exist between the manufacturer and you. The chart below outlines the typical international procurement process and highlights each of these non-value added profit takers. They are illustrated in red for a good reason.
As you think through the typical international procurement process outlined above, ask yourself one question: What physical change has occurred to the product you are purchasing since it has left the manufacturer? That's right ... nothing. Now ask yourself, what has happened to the price of the product you are purchasing since it has left the manufacturer? That's right ... several non-value added organizations have taken a profit, and as a result, the price of the product is signigicantly higher to you.
Our other philosophy is that:
You should not pay for non-value added profit taking.
