Carmel Giblin, President and CEO of Ethical Supply Chain Program
Emerging markets, such as parts of Southeast Asia, Africa and Latin America, are becoming the core of the consumer goods industry. Countries such as Vietnam, Indonesia, Ethiopia and Guatemala are becoming increasingly prominent due to their cost-effective labor, government incentives for foreign investment, and manufacturing capabilities. In addition, these regions are home to a large number of skilled workers and suppliers who are increasingly able to meet international business standards.
A solid supplier relationship is the key to successful procurement. Trust and collaboration with suppliers can improve communication, improve product quality and timely delivery – which is essential in today’s fast-paced consumer goods market.
Carmel Giblin, President and CEO of Ethical Supply Chain Program
However, operating in these markets can challenge businesses seeking diversified businesses. People affected by distance and lack of local expertise may face regulatory complexity, cultural differences and oversight challenges. Therefore, businesses must prioritize building trust and transparency with suppliers to ensure stability and compliance with standards.
A solid supplier relationship is the key to successful procurement. Trust and collaboration with suppliers can improve communication, improve product quality and timely delivery – which is essential in today’s fast-paced consumer goods market. In addition, long-term partnerships encourage suppliers to invest in capacity building and innovation, which benefits all parties.
Building these relationships requires regular engagement and clear expectations settings. Companies must invest in supplier training, share performance metrics, and establish a shared responsibility to meet goals. Partnering with third-party organizations such as Ethical Supply Chain Programs (ESCPs) is both a savings and cost-effective way for businesses to procure new suppliers that benefit from capacity-building support, committed to transparency and data sharing, and meeting the standards required by buyers around the world.
Third-party organizations can help browse the complexity of procurement in emerging markets, which can be daunting for businesses without a dedicated team or technical infrastructure.
3 important steps:
Businesses seeking to spread risks or gain competitive advantage should follow these three steps to maximize available opportunities:
- Identify emerging markets that meet your business needs; assess production costs, shipping costs, import duties, labor availability and capacity, and legal obligations.
- Work with third-party organizations to identify trusted suppliers in these markets. Several third-party organizations such as ESCP provide support for supplier review and certification, supervision and evaluation, and tools to help enterprises make decisions.
- Implement risk monitoring systems to ensure long-term success. Consider market volatility, geopolitical instability, environmental issues and moral violations.
To learn more about global procurement opportunities, please contact member [email protected] to book a phone with our team. Discover the latest news, webinars and thought leadership on Ethicalsupplychain.org.
Versions of this feature were originally published in the 2025 Big Toy Book. Click here to read the full question! Want to receive a printed toy book? Click here to get subscription options!
Postal Procurement in Emerging Markets: How to Take advantage of the opportunity to appear in Toy Books in the First.
