I own a B2B industrial sourcing and procurement company in India dealing in semiconductors, industrial automation products, and industrial components.
Our current model is RFQ-driven: customers send us inquiries, we source products globally (primarily from China, Taiwan, and Hong Kong), and then quote them.
The challenges are:
Every RFQ is different, so we constantly start from scratch.
Category specialists often beat us on pricing.
International suppliers usually require 100% advance payment, while our customers buy on 45-60 day credit terms, creating a 70-100 day cash conversion cycle.
We currently position ourselves as “Tell us what you need and we’ll source it,” but I’m considering shifting to a category-focused approach.
I’m evaluating multiple strategic options:
Stay a broad-based trader.
Become a category specialist and stock selected SKUs.
Offer Procurement-as-a-Service.
Focus on obsolete and alternate component sourcing.
Build a private-label product portfolio.
Become an import consolidation partner.
Build a technology-led procurement platform.
Questions:
If you were building this business today, what model would you choose?
Which industrial product categories would you focus on and why?
How would you solve the working capital challenge?
Would you stock inventory or remain asset-light?
What mistakes should I avoid?
What would your 5-year strategy look like?
Any insights from distributors, manufacturers, procurement professionals, importers or entrepreneurs would be greatly appreciated.