Procurement and sourcing of building materials from Australia

Purchasing products or services seems easy, but this is not always the case. How do you know that you have the best deal, especially if you haven’t done much business before in Australia?

It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.

Find the right suppliers in Australia

Australia, a large country in Oceania, exports a variety of products that show its natural resources and advanced manufacturing. It sells minerals like iron ore, coal, and gold, which are crucial for its economy. It also exports agricultural goods such as wheat, barley, and wool, which are important for farming. Australia is a big exporter of liquefied natural gas (LNG), because it has lots of natural gas.

Wages in Australia are generally higher than in nearby countries. The minimum wage is higher, which means people usually have more money to spend. But living costs in cities like Sydney and Melbourne can be expensive, so people might not have as much money left over after paying bills.

Australia is known for its mining technology and equipment. It exports these to mines around the world. It’s also famous for its high-quality agricultural products and good wines. Many people come to study at Australia’s universities because they are well-regarded. Australia’s economy does well because it sells valuable things like minerals, food, and advanced technology.

Shipping your products

If you purchase tangible products, you have to ship them out of the country. Depending on the country where you want these goods, this may have implications.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial barriers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

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A structured sourcing approach in Australia

Step 1

Supplier search

Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.

Step 2

Supplier selection

Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.

Step 3

Supplier management

Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.