To successfully step into new markets overseas, you need to reach your customers at the right place, at the right time and at the right price. However, to establish processes, storage facilities and transport logistics can all slow your journey to international expansion. In this blog, we address why startups and scaleups should initially consider outsourcing their distribution and supply chain logistics.
Research by the bank, Santander (July 2023) [1] found that among SMEs considering international expansion, 33% cited the high cost of establishing operations overseas as a barrier. Challenging trade logistics was a pain point for 24% and managing international employees was a cause for concern for 28% of SMEs eyeing new overseas markets.
“24% of SMEs cited challenging trade logistics as a pain point for international expansion.”
At Bridgehead, we understand these pain points, which is why we’ve developed a comprehensive suite of value-added distribution (VAD) services to support businesses so that you don’t need to establish your own processes, which is often costly, so that you can access new overseas markets quicker.
What are value-added distribution (VAD) services?
Our VAD services will enable you to access your new market overseas. The result is a ‘business-in-a-box’ solution to enable your international expansion. Our range of VAD services includes the following:
- Full 3PL (third party logistics) services;
- Import tax and duty management for in-depth knowledge of different tax legislation and compliance;
- Warehouse storage facilities, logistics, stock handling and inventory management to meet customer needs;
- Order fulfillment services and stock replenishment that are proactive and drive sales;
- Returns processing to support customer service;
- Pricing strategies to ensure your expansion is profitable in different regions;
- Market and product expertise to effectively communicate your unique value proposition in different cultures.
Why should you outsource VAD services?
The best VAD providers should make it easy for your business to enter new markets. Your distributor needs to understand your product, target market and goals and, as a result, be able to advocate for your product in a way that resellers can’t. Accessing the right distribution support will help you to work smarter, not harder. Here are reasons why you should outsource.
Allows you to Focus on what you do Best
Paul McIntosh, CEO and Founder of Bridgehead, said, “It’s easy to get caught up in the strategic and tactical details of distribution and logistics, which can cause your business to lose focus on your core competencies.
“By outsourcing these processes, you will be able to devote your time, energy, and resources to focus on what you do best.”
Rapid Access to Supply Chain Solutions
It takes businesses several years and substantial capital investment to develop their own supply chain capabilities, solutions, and expertise.
Using external providers can be extremely valuable, especially if they are knowledgeable in your region, industry, and vertical.
Significant Cost Savings
Supply chain activities incur significant costs associated with infrastructure and staffing. A company’s operating and capital expenses can quickly accumulate and significantly impact profitability if not handled correctly.
For startups, it’s often more cost-effective to outsource supply chain activities to a reliable third-party provider than to handle it in-house.
Partnering with a supply chain company gives you access to their resources, knowledge, and industry expertise. Our team has offered VAD services to a number of clients, helping them to tap into new markets and scale up with success. Are you ready? Get in touch.
