A large number of modern-day organizations are resorting to sourcing activities to reduce their production costs. Decreased production costs result in lower prices of goods and services. In this age of cut-throat market competition, every organization is trying innovative means to reach their end-users. With sourcing activities in the foreign markets, organizations are getting an upper hand over their competitors. Eastern Europe has emerged as a favorite sourcing destination for marketers in recent times. If you run an organization, you need to consider several strategic factors in this regard. Marketers are taking suggestions from procurement experts to channelize their sourcing activities in the Eastern European markets.
A Closer Look at the Countries of Eastern Europe
Unlike Asian countries, the Central and Eastern European regions are very competitive locations for procurement and sourcing activities. Business firms get chances of expansion and diversification while operating in these markets. These regions have a favorable atmosphere for businesses combined with strong local market demands. Owing to the low landed costs, business firms can reduce their manufacturing costs at large. Moreover, this region is filled with efficient managers and engineers who are professional in their approach. According to experts, the competitive market of CEE is very likely to expand further in the coming years.
The Eastern European workforce is aware of the latest advances in technology. They also know how to implement these advanced techniques in their production operations. As a result, organizations reap the benefits of exceptional productivity and capabilities while conducting procurement activities in these countries.
Strategic Aspects to be Considered
The strategic aspects to be considered come in the form of competitive costs, managing port congestion, and market opportunities. With the assistance of Eastern Europe procurement freelancers, marketers are getting acquainted with the economic and political scenario of these countries. These strategic factors are discussed in detail as follows:
Competitive costs: This is undoubtedly one of the most important factors why marketers are choosing the Eastern European countries as a sourcing destination. Unlike other European countries like France, Germany, Italy, Portugal, and Spain, the labor charges are relatively lower in the Eastern European countries. Nations like Romania, Belarus, and Ukraine have a developed economy that is catching the attention of marketers at large. All these countries fall under the Central and Eastern European region. These countries are also located close to the Western nations that have a highly-advanced economy. This is helping Western marketers to reduce the transport costs and thereby, shortening the lead times. Well-developed infrastructure and excellent transportation options make Eastern Europe a genuine sourcing hub for the marketers.
Managing port congestion: Unlike Asia and the countries of Western Europe, the Eastern European region has fewer issues of strained networks, labor shortage, and traffic congestion. For this purpose, marketers are utilizing the far eastern ports of Europe. This is accelerating their sourcing activities at large. The ports of the Central and the Eastern European countries have favorable environmental conditions for carrying out trading activities. Organizations are also taking advantage of lenient trade laws in these countries. Marketers may not be aware of the trade laws of the countries of Eastern Europe. By taking suggestions from procurement experts, they can fix this gap. This is undoubtedly a great advantage for companies that are new in the sourcing arena.
Market opportunities: In this age of perfectly competitive market environment, every organization is trying to make the utmost use of prevailing market opportunities. Unlike most of the Asian nations, the Eastern European countries have an advanced economy. Marketers can take full advantage of this opportunity if their sourcing activities are channelized in the right direction. There is no doubt about this fact. All the Eastern European nations encompass a smaller region and have a lesser population. However, these countries produce the amount of GDP per capita that is more or less the same as the large-sized Asian countries. The Central and Eastern European countries have more than ten national markets under their name. Furthermore, these markets comprise regional subsegments that are targeted by various organizations.
Benefits Associated With CEE Procurement
Some of the benefits associated with CEE procurement are listed as follows:
- Skilled workforce: The Eastern European workers are aware of the latest trends in technological advancements. Organizations can be assured of getting better quality products from them.
- English proficiency: English is spoken widely in Eastern European countries. Henceforth, it becomes easier for Western marketers to communicate with manufacturers and suppliers.
- Cultural similarities: The Eastern European countries have cultural similarities with the Western nations. Their direct style of communication makes it easy for organizations to accelerate results.
Conducting procurement activities in Eastern Europe can turn out to be a profitable venture for organizations if their sourcing activities are channelized in the right track. The Eastern Europe procurement freelancers are helping organizations to get in touch with the right suppliers while operating in the markets of Eastern European countries. If you want to intrigue consumers with your low-priced goods, opt for Eastern Europe procurement without giving a second thought.