Turkish Wholesale Suppliers: A procurement market for the future in Turkey

Disruptions along many supply chains due to unexpected global events make Turkey an interesting market. The disruptions that have been caused by crises in supply chains have been overcome by many Turkish suppliers and manufacturers. This has helped companies save and stabilize their supply chains. This has also resulted in an increase in Turkey's export values in recent years. Increasingly, more and more companies are shifting their procurement sources from Asia to Europe, and especially to Turkey.

The Turkish procurement market is attractive thanks to its well-developed infrastructure and proximity to Europe. However, it is also more attractive in terms of low costs when quality requirements are considered. Raw materials are essential for production. Turkey has significant boron salt and granite reserves, as well as sources of raw materials for various metals. Turkey is a country that is consistently growing and is noteworthy because of its innovative structure. For example, the TOGG electric car is planned to soon be launched on the international market.

World map with magnifying glass directed to Turkey
The Turkish procurement market offers the opportunity to purchase or produce products from a variety of industrial sectors. The German-Turkish Chamber of Commerce (AHK) announcement that many companies are investing in the Turkish procurement market supports this notion.

Why Should You Source from Turkey rather than from China?

 

The Turkish procurement market is becoming increasingly important and is widely viewed as an alternative to the Chinese market.

  • But why should you opt to procure from Turkey rather than from China?
  • What are the primary reasons?
  • And what has recently caused many companies to relocate their procurement locations from China to Turkey?

The key reasons for this shift are as follows

Companies prefer to be close to their procurement markets.

  • Did you know that the shortest distance between Germany and China is 9,000 km?

Taking into account the manufacturing time and other processes, this means that on average you will have to wait for two months before you receive your order. It takes a very long time to transport goods over this good, which increases delivery time and the risk of problems along the supply chain.

  • And did you know that the distance between Germany and Turkey is just 3,000 km?

This shorter distance reduces delivery times and increases the reliability of the overall supply chain. Further, the shipping costs from Turkey are much lower compared to those from China. Another example: the shortest distance between Great Britain and China is about 10,000 km, while Turkey is just 4,000 km from Great Britain.

A shorter distance to the procurement market brings huge and varied advantages. On the one hand, short lead times increase transparency in procurement processes. This allows for more effective optimization of the procurement steps that are required. Moreover, products do not have to be kept in stock for lengthy periods, as reordering is faster.

Two signs in opposite directions Turkey and China

Customs procedures and taxes are further essential factors that influence firms’ procurement markets' preferences. For example, China has complex and time-consuming customs procedures and high taxes. These factors increase the total cost of procuring from China. By contrast, Turkey has a customs union with the EU and more favorable customs procedures and tax rates. This makes Turkey a more attractive procurement market.

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The quality and reliability of the products and services offered in the procurement market are important factors that affect companies’ decision-making process. Recently, there have been increasing concerns about the quality and reliability of products and services that are procured from China. On the other hand, Turkey has a reputation for producing high-quality products and offering very reliable services. This makes Turkey a preferred procurement market for many companies across an array of industries.

In recent years alone, the Turkish economy has improved significantly and the export rate has increased. Many Turkish suppliers and manufacturers now follow European-level standards and have all of the necessary certificates. In addition, quality controls are carried out via external agencies. This provides opportunities and possibilities to fully exploit this potential from the Turkish procurement market.

Businessman on laptop with quality symbols

Companies want conditions that respect human rights within their supply chains. However, China is known for poor working conditions that do not adhere to European standards.

Moreover, protecting human rights is an important criterion in Europe, especially with the entry into force of the Supply Chain Law. The Supply Chain Law aims to protect human rights around the globe, especially along supply chains. It is primarily a preventive measure against poor working conditions, including forced or child labor.

While China needs to make many changes in line with the Supply Chain Law, Turkey is not affected much by the Supply Chain Law. This is because of the excellent conditions in the Turkish market and the fact that their production is quite good compared to other countries.

Work conversation among colleagues with paper and writing

These advantages are attractive and make the Turkish market an even more interesting value proposition. That said, it should not be ignored that the Chinese procurement market is far ahead in terms of their supplier networks. International companies can access few developed supplier networks in Turkey.

For this reason, it is recommended to seek the help and support of sourcing experts with long-term experience and a broad supplier network. In this way, you can profit and enter the Turkish procurement market with certainty and security.

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Over 26 years, Turnkey Sourcing has developed a network of suppliers in these and more industries.

Do you need support with your sourcing issues in Turkey?

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