Supply Chain In Foreign Trade Markets

Understanding the supply chain of the target market can help us to do market information research more easily. Not only that, we can also analyze customer groups from different perspectives of the supply chain, and reflect on what potential customers we have not yet tapped. This information is also important when dealing with customers. So let's take a look at what is a supply chain? What is the supply chain? First, let's look at its definition. The supply chain focuses on the core enterprises and brand owners. Through the control of business flow, information flow, logistics and capital flow, the supply chain starts from the purchase of raw materials, makes intermediate products and final products, and finally delivers products to consumers through a variety of sales modes. In the process of product production and circulation, the involved suppliers, manufacturers, distributors, retailers, until the final consumer and other members are connected to form an integral network chain structure. And through the purchase, storage, distribution, service and other activities, there is the formation of a connection between customers and suppliers so that enterprises can meet the needs of customers. Let's look at a typical supply chain structure in traditional European and American markets. The upstream raw material supplier supplies the raw material to the downstream producer, who then makes the final product, which is then sold to his authorized distributor. Among them, the distributor can sell the product to the retailer on the one hand, and the wholesaler on the other hand. In short, it forms a chain structure from manufacturing this product to reaching the hands of consumers. Foreign trade supply chain In global trade, many countries have actually participated in and benefited from trade activities. Why do you say that? As a typical example, the product is a car, its engine is made in Germany, the exhaust filter is made in South Africa ... the final assembly of the car is done in Mexico. We can see that the production process of this product is actually participated by multiple countries and multiple manufacturers, and then reach the final product assembly and sales process. In fact, this is the automotive company, which has a global strategy and the layout of the global supply chain. Outsourcing of product production is common in the supply chain of global trade. Many foreign importers, brands, in fact, it is also the product manufacturing that links to labor-intensive countries, and research and development and sales remain at home. We all know that the added value of research and development and sales is the highest, so most of the profits made by foreign importers. For example, many times it is foreign customers who provide product design drawings, and then Chinese suppliers to manufacture. In fact, there have been some new trends and changes in the production outsourcing in recent years. We take the textile industry as an example. When many foreign buyers outsource product production, they transfer product orders from China to Vietnam, Thailand, Sri Lanka and other countries. Everyone knows that the labor costs in these countries are relatively low. In addition, some countries have signed "reciprocal agreements", such as the TPP economy and NATO. The trade between member countries is exempt from tariffs, and the competitive advantage is even greater. Although China has always been a country with a very large export volume in the traditional textile industry, it also faces a very large competitive challenge. Therefore, friends from foreign trade are advised to learn more about their industry from different perspectives, understand some changes in the surrounding market, and pay attention to our supply chain and trading environment, which are closely related to you.

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