Most brands are seen as the one-stop solutions for each problem a customer has and, they are. But we need to understand, no one gets there marching alone. No brand exists in a vacuum and it is tremendously significant that the link between different brands is maintained and strengthened. And given that companies are either goods or services, they work through the procurement of their assets. No matter how self-sufficient the house is, there are always numerous facts and sources from where the brand does the procurement.
This is the baseline for every company. Any shake at this level would send tremors through the whole brand and affect the brand, from the inner workings to the market image. Thus, comes in the brand sourcing support agencies. No one exists in a vacuum and thus while the brand works on perfecting the source chain. The agencies work with vigilance to make sure that the progress made is not lost. Ironing out any wrinkles and thus, the agency proving sourcing support will tackle and provide some of the following strategies according to your business:
OUTSOURCING
When any company starts, it is a small, self-sufficient establishment but as it grows, the rate at which it grows increases as well. To simply put, when you win once, the probability of winning again increases as well. And the wins stack one after the other.
Now the general mindset is that, as the company gets bigger, it should become even more self-sufficient. But it is not always the case. As the company expands, the focus is shifted towards the customer. So, one of the obvious first strategies is to outsource the service or product that was initially in-house. Now this calls for greater efficiency and collaboration between the two companies but, for the larger brand, it is always better to concern itself with the market and outsource the grunt work.
INSOURCING
Now outsourcing is well and good. But, like anything with the human element, it has its intrinsic flaws that can be reduced but never completely. There are always time delays and lack of coordination and environmental factors that can never be predicted fully but there are always alternatives. So, instead of outsourcing, brands can also opt for insourcing, depending upon the needs and suitability.
Once the company starts to progress, they can form specialized units to work in conjunction and allocate resources within the company. So, the smaller section serves as the source of the product and services for the chain. The highlight being the increased efficiency but the downside being the possible creative stagnation as the company does everything on its own.
NEAR SOURCING
It is a less clouted cousin of outsourcing and insourcing strategies. It can be seen as the hybrid of these two strategies. However, it can lean towards any of the two. In essence, the near sourcing works by having the different units of operation close by but not necessarily in direct connection with the brand.
The smaller units work in conjunction but they are independent of any big companies. They go for near sourcing when brands need to oversee the operations and do tweaks when necessary but don’t want to get involved directly or allocate resources.
VERTICAL INTEGRATION
It is just a fancy way of saying that two people (in this case brands) realize how well they work together that they end up getting married (in this case, it’s merging). It can be called sourcing but backward.
And because people emphasize being difficult, they are of course two sub categories of vertical integration. First is the forward integration when the company acquires another company that they work with, and then there is backward integration where the company acquires their suppliers and they are a big joyful family in the end.
Sourcing is done initially on an experimentation basis. When the company is trying to expand and therefore, the waters are navigated carefully. Sourcing and procurement are done on a contract basis. However, once the company establishes its footing, merging the organization working on a similar wavelength can be the next big step in expanding the business.
VIRTUAL ENTERPRISE
In the past, the market and businesses had a streamlined working. The sources of information and education were few and so traditional ways of running a company were enough. But now with the boom of technology and abundance of information. Now the individual is rising as the whole company. The whole brand.
But again, nothing exits in a vacuum. And thus, as these strategies come together, different people collaborate, all representing their own brand to create the final product or service and establish themselves in the market.
And with the latest technologies such as VR and AI, the barriers between the possibilities and realities of what a small group of individuals can do are almost beyond imagination.
JOINT VENTURES
This is where two or more people share the ownership of the company. Collectively they share the benefits and bear the risks that the enterprise entails. This is best employed where there is synergy present. Two or more forces come together and achieve more than what was possible should they have worked individually. The difference from the merger strategy is that the company is started with all the hands on deck, everything is developed from the bottom up.
Brand sourcing support strategies are employed under the belief that two heads are better than one. Going alone would cause the brand to rise faster than their competition as they perfect their singular purpose. However, the market is a living breathing entity. And changes can occur faster than we can comprehend.
What is dominating the market today could be obsolete by the time day comes to an end. Therefore, it is always preferred that as the company evolves, more minds board the ship to navigate the increasingly uncertain waters of the market. Just remember, alone a brand can go faster but with collaborated effort, it can rise further. After all, business is not a sprint, but a marathon.