Category: China Sourcing Agent

中国采购代理指南

Elksourcing:How to Find a Good China Buying Office, Sourcing Agent or Purchasing Agent

A good Buying Office, Sourcing Agent or Purchasing Agent plays a very important role in doing safe and smooth business in China, especially when you’re placing a large order: Sourcing and Verifying qualified suppliers, Quality Control, Loading Process Supervision, Warehousing, Shipping Support, Business Risk Control, Legal Contract Support and After-sale service etc. However, It is NOT easy to find a right one. If you don’t make an informed decision when selecting a buying office or purchasing agent you might end up losing a lot more than the commission or service fee.

What is a purchasing agent and why do I need one?

A purchasing agent could be an individual, a group of team or a company, helping companies overseas to import from China. So sometimes buying office service can also refer to ‘purchasing agent’, Buying Office service will be supported by a team of experts in each field: sourcing, verification, procurement, quality control, business risk control etc. A good agent can be an extremely valuable asset in your overall product procurement strategy. Here are the main services offered by your qualified ‘buying office’ or ‘purchasing agent’ in China:

I. Keep sourcing new products and suppliers.

II. Verify, inspect or audit existing suppliers.

III. Price negotiations and Supply Chain Management

IV. Draft formal Purchase Contract (Business Risk Control)

V. Quality Control Management

VI. Shipping Support and Loading Process Supervision

VII.Customs Clearance Support

VIII. Attend any professional trade fair on behalf of the customers and obtain the latest market information or trend in their industry in China. 

Any other service, say, order follow-up, biz guide, after-sale service support etc, can be available upon request.

Dealing with Chinese suppliers is very time consuming. Working with a qualified Buying Office or Purchasing Agent can save you much time, cost and energy etc in China. For example, 80% of the suppliers you met online or at local trade fairs might be a typical trade company while the local sourcing specialists can go to the real manufacturing bases to find out some qualified factories for you in person. Apparently the factory price is much more competitive than that of the trader’s anywhere on the globe, by this way you can save more cost in the business.

China is a huge country with more than 1.4 billion people, there are countless individual agents and more than 35000 professional purchasing agent companies based on official data in China as of Nov 1,2020. Most of the sourcing service companies are located in coastal areas like Guangdong, Zhejiang, Fujian etc. No matter whom you are going to work with, the first step is to verify their business license or identity card before you sign any agreement.

How to choose a right buying office or purchasing agent from China?

Here are my tips for your reference, we will focus on 5 important things: 

I. References

Trust is very important among any international business worldwide, especially for long term cooperation. The best way to check out their qualifications and obtain trust is simply to call their current client from your area or other countries. Some unqualified agents will refuse to offer client details but most of the reliable agents will offer references to get trust from their potential new clients. Do remember to ask your agents for at least 3 client references and check them out before working together. 

II. Manufacturing Bases

Do not forget to choose a right sourcing or purchasing agent who is near to the manufacturing base ( industry cluster) of your industry.

In China, almost every city has their pillar industry and each product has one or several manufacturing bases. Say, if you’re buying fireworks, you can simply go to Liuyang city, which is called ‘Home of Fireworks’ or ‘Capital of Fireworks’, where there are more than 400,000 people directly or indirectly engaging in this business in China. ‘Liuyang-made’fireworks account for 70% of China market and 50% of global market at present. Another three famous manufacturing bases for this product is Liling, Hunan and Shangli, Wanzai, Jiangxi, these four manufacturing bases are near to each other. This is the same situation to most of the products in China. Your agent’s proximity to a certain industrial cluster can certainly help out when things go wrong during production. It may also cut traveling and transportation costs.

III. Verification 

As I mentioned just now, it is very important to check out their credit and qualifications first before cooperation. As far as we know most of the sourcing agents do not have export license in China. 

Ask them for their Identity Card Copy if your agent is an individual and ask them for their Business License copy if they a company, check them out with local officials or third-party verification service company first before formal cooperation.

IV. Kickback Issue 

Kickback issue does exist in some businesses, esp among some individual agents. When you are working with an individual purchasing agent, they may choose the supplier based on the kickback amount and will not protect the client’s interests in China sometimes. While for some professional purchasing agent companies, they may have strict counter-measures on how to avoid ‘kickbacks, say, their staff has to sign an anti-kickback agreement with their company and the suppliers during any sourcing activity in China, this is why you’d better work with a purchasing agent company instead of an individual agent. Of course, this is an issue of management and it is very hard to eradicate‘kickback’but some well-known agents may have lot of experience to avoid it. 

The client is also suggested to ask them for the measures on how to avoid‘kickbacks’from the suppliers in China. 

V. Quality Control Management

 Ask them enough professional questions regarding the coming orders in China.Many sourcing agents are also lacking expertise about quality control in overseas markets.

Keep in mind that in the end, you are going to be held financially responsible if your products turn out to be non-compliant with the relevant standards. Importing from China can be a completely different story depending on the product. Some products are very complicated (i.e. machinery ) while others a fairly easy to get right (i.e. facial tissues ). So the client is suggested to work with an agent who has a team of professional quality control inspectors.  

If they are able to satisfy you from above five aspects, then you can feel assured to work with them in China. We are also a professional business service company and we have served more than 2,000 clients from over 80 countries and areas on the globe so far. You are welcome to visit us in China !

Elksourcing:Why Look for Product Sourcing Agent China?

Sourcing is the art of locating and choosing certain businesses or individuals or in accordance with set criteria. Companies routinely hunt for sourcing requirements to complete the Supply Chain Management cycle. Identification of potential manufacturers is the first step in this process, followed by subsequent assessment of goods. Finally, the product sourcing agent China must engage with the manufacturer for the best price. 

At present, China is regarded as the world’s premier manufacturing hub, with all types of parts being made here, thereby ensuring low prices. Therefore, any business that requires different parts can get them from hire. However, direct engagement with the suppliers is very difficult, owing to language barriers, cultural differences, legal issues, and business risks. All these challenges can be effectively mitigated by a reputed product sourcing agent China.   

Every business wants to ensure that it is able to get manufacturers who give high preference to quality. For this reason, the top management at various businesses has to finalize a suitable sourcing company and go by the expertise and judgment of its professionals. Once chosen rightly, the sourcing agents will help businesses run successfully for a long time.    

The dependable network 

Chinese sourcing agents function efficiently due to a great network with manufacturers and other parties who form part of the SCM cycle. It makes sense for a company to leverage this network through the agent and formulate a procurement strategy accordingly. Various methods to reach out to the sourcing framework include:

1) Use of the Internet – This is possibly the single largest source to locate sourcing agents. A number of them are present here, though one can get better results through streamlined searches. 

2) Tapping into social media – A few exclusive sourcing companies use social media to propagate themselves, although the numbers are lesser than the Internet. Some of these are likely to very well known in small circuits, which may be visible on forums. However, some of the information here is unverified.

The sourcing agents can be trusted enough to do their part of the job, which is to locate suitable manufacturers. However, companies doing business with them will need to keep track of transactions. Contracts enforced with the manufacturers, using help from sourcing agents, must be done carefully. One can look at the sourcing agents for a healthy degree of assistance here. Of course, every organization must remember to conduct thorough market research prior to sourcing their requirements.

How is sourcing carried out?

1) Quotes – Agents must work hard enough to collect price quotes from various Chinese manufacturers 

2) Sample review – After acceptance of the final quote, physical samples are taken from the manufacturer and are forwarded for approval

3) Trial run – During the trial run, the critical section of the project is discussed in detail with the manufacturer

4) Production – Mass production commences once the customer feels confident. QC professionals play their part in monitoring quality.

5) Delivery – Forwarders pick up the products to deliver products as per customer demands. Additionally, aspects such as certification custom clearance, product clearance, and documentations are also handled.

Elksourcing:Nine Things to Consider When Choosing A Sourcing Agent

China is undoubtedly the largest manufacturing economy in the world. It is one of the largest exporters of products. The markets of China are known for their cost-effective, high-quality products. Hence the manufacturing sector of China has significantly boosted its economy.

The industrial markets of China are on par with the best ones across the globe. If you wish to source your business from China, this could prove to be your best decision. The difference in language and culture and the heterogeneity of the business practices that might starkly differ from your native place can prove to be a barrier. 

Selecting from the pool of products for investment, and to stand out amongst the foreign buyers, might seem difficult. This is where the Chinese sourcing agents step in. If you are not aware of the process of choosing one, don’t worry. Sourcing agents are the third party who will thoroughly help you to find the right supplier for you in the concerned country. The sourcing agents are aware of every minute detail of the country, from their business practices to their languages. Here is a list of things you need to consider while choosing a sourcing agent in China.

1) Location of The Sourcing Agent

While looking for the sourcing agent on the Internet, find the location of these agents. Do the research, find out if they are Chinese or an outlet of the foreign company established in China. Doing business with foreign companies will prove to be easier than proceeding with the Chinese ones. 

This is because internet policies are rigid in China. Hence investigating the credentials of the Chinese sourcing agent can be tricky. But, if you are going along with a foreign sourcing agent in China, check thoroughly if they have an established reputation and not faux. 

2) Experience of The Sourcing Agent

Western companies starkly differ from Chinese businesses in terms of operational factors. This could be ascertained to the difference in language, customs, and culture. Hence, you need to wisely choose a sourcing agent who has served a long time in China‘s service. If they have years of experience and expertise, they will certainly have a large network of trustworthy contacts. 

3) Check for References

Before you settle down for your sourcing agent, make sure they provide you with authentic references. Once you get hold of these, contact these references and check their websites. Ask them for reviews that is, if it is right for you to work with the concerned sourcing agent.

4) Get Required Documentation

It is the sourcing agent’s job to refer you to the appropriate documentation for the sourcing and shipping process. Sourcing agents will provide you with the documentation like the Certificate of Origin, Bill of Lading, Certificate of Fumigation, along with a packing list.

5) Research on How They Deal with Quality Issues

It should be your duty to check how the sourcing agent deals with quality issues. Ensure that you will not compromise with the quality of the products.

6) Have Necessary License

Any established business will have a license to trade. Before you finalize your sourcing agent, check if they bear a legitimate license.

7) Check Language Proficiency

The sourcing agent based in China should have multiple languages, most importantly, English and Mandarin. Written and spoken abilities should be satisfactory for good business dealing.

8) Expertise in The Product You Want to Purchase

The sourcing agent should have expertise in the sourcing product that you want to trade with. Check how they have dealt with this product in the past, as each product has different dealing techniques.

9) Good Ethics

The ethics in dealing and trading is important. A sourcing agent should make sure that the supplier they source out is reliable. They should ensure that the supplier takes care of the quality of the products.

Conclusion:

If you plan on sourcing the products for business from China, you must find the right China sourcing agent. A detailed analysis of how the sourcing agent has conducted its business in the past and their expertise in handling the trade and finding the right supplier will benefit your business.

Elksourcing:Areas to Consider When Looking for a Sourcing Agent

China is becoming the major manufacturer of industrial products due to its low price and improved quality. But the diversity of products, language, culture and business practice differences pose problems for most foreign buyers and thus, having a good rapport with the suppliers is very important. This is where a China sourcing agent comes in.

Finding the right China sourcing agent is an important step to successfully sourcing products in China. Your relationship with them and their ability to deliver quality products in timely manner and at the right price will be major factors in the success of your business. 

It’s important to take your time and ask the right questions. Only proceed when you’re confident that the agent can do what they say can, and that they’re a good fit for your business. Here a few areas to consider when looking for a China sourcing agent.

1. Office in China

Do they have a fully staffed office in China? How long has it been there and how long have their staff been employed there? It is important to work with an established company with a proven track record of successfully sourcing products in China.

2. Experience in China

For most people, China is a very different country from what they are used to. The culture and the mindset are very different from the west. When vetting a sourcing agent, ask them how long have they been operating in China? Good representation will come from an agent who has been operating successfully in China for many years. Established working practices will help ensure that you get good service. They will also have built up a network of reliable contacts – which is very important part of life and business in China.

3. References

Can they provide genuine references from other businesses who have used their service? If they can provide references, you should always take the time to call to them. Ask how long they have been in business, how long they have been using the agent, what products they have sourced, what is the quality like, and can they recommend the agent. Take time to check out their website also.

4. Documentation

Ask the agent what documentation they can provide as part of the sourcing and shipping process. They should be conversant in the process and give you confidence that they know what they are talking about – based on the language that they use. Typical documents include the Bill of Lading, Certificate of Origin, packing list and commercial invoice.

5. Quality Issues

Ask what their procedure is for dealing with any quality issues that may arise. Having dealt with Chinese manufacturers for over 15 years, in general, we have been very impressed with their quality. It’s important however that the agent makes it clear to the manufacturer that they will not accept substandard levels of quality.

6. License to Trade

In China, the law is very strict on what a business can and cannot do. All businesses must have a license to trade. That license enables the business to conduct one specific type of operation. They cannot do other things which don’t match the description of their license. Ask to see the agent’s license before you start doing business with them.

7. Good English

As English is the international language of business, regardless of which Western country you come from, your primary point of contact at the agency should have a good command of spoken English. They should also have good written English as many of your communications will be in email. The same rule applies to the staff in the agent’s Chinese office. They too should have good verbal and written English as you may have to speak to them directly on occasions.

8. Process of organizing and sourcing

You have to get an insight into the sourcing strategy of the agency. A good agency is one that presents the certification requirements and product specifications of the client at the very beginning. This is proof that the agency is an incorruptible friend of the client.

Include certification requirements and product specification confirmation; Research of price, ordering a sample and choosing suppliers who qualify; First stage of negotiation of prices; Supplier selection after audition; Agreement of sales; Quality inspection; Shipping agreement, etc.

9. Field of expertise

China sourcing varies depending on the products you are buying. While some agents are good at sourcing one type of product, they might be not so good at sourcing another type of product. You have to know whether the sourcing agency you are hiring has prior experience in procuring products you want to deal with.

You can ask your agency to provide you with a record of similar orders they have handled before in the same industry. You should also ask for buyer references, so that you can get the information directly from the buyers. You might not come across a procurement agency which deals with only a specific product, but you might ask for buyer reference in the same industry. This helps in assessing if the agency is efficient or not.

10. Management

The procurement agency must have knowledge about the quality standard, certification needs and other aspects acceptable in the Western economy. Therefore, it is better if the sourcing agency has offices close the manufacturing towns, so their quality staff can easily visit the factories and do online and pre-shipment inspections frequently.

Elksourcing:What Makes a Right Sourcing Agent?

A lot of businesses reply more and more on importing from China, as China is becoming the major manufacturer for most of consumer products, because of low price and improved quality. 

However, the geographical distance, vast categories of products, language barrier, and cultural differences pose a problem for most foreign buyers. Thus, having a good China souring agent is important. The following aspects are important for you to choose a right sourcing agent.

A. Trustworthiness

A buyer should note trustworthiness is the primary factor when it comes to the selection of a sourcing agent. If you work with a dishonest sourcing agent, you will never be aware that, your sourcing agent is actually ripping you off by secretly ask the supplier for hidden commission.

A professional sourcing agent will make their golden rule that no information about the supplier should be hidden or faked to the buyer, including number of employees, market performance, reputation, registration information, real business type, product cost, quality, etc. All the communication and operation are transparent and open.

B. Communication

As English is the international language of business, your China sourcing agent should have a good command of spoken English, so you can talk online for important matters. Also, the They should also have good written English as many of your communications will be in email.

Besides, Time & Efficiency is important. Professional skills and efficient reaction can speed you up and get you ahead of your competitors. Your personal sourcing agent will provide you real-time services. If you have any questions they can help you solve immediately.

C. Product expertise

Knowledge about product and industry is a decisive factor. First, an insider has a much more comprehensive product expertise, which is required to understand what makes good quality for a certain product. Second, this may also speed up supplier sourcing and vetting procedures, as they can utilize an existing network of suppliers.

However, still it is important for you to communicate your quality requirements and product specifications.

D. Quality sense

No matter looking for products or suppliers, a good purchasing agent should guarantee the quality.

The products provided must meet the needs and requirements of customers. Supplier verification and evaluation plays a very important role, sourcing agent also will provide you when start the sourcing.

Once a supplier is chosen by the buyer, the sourcing agent should take the time to go to the factory in person to check the raw materials, assembly lines, semi-finished parts, warehouse, and do quality inspections, and provide the written report to the buyer with photos and detailed findings.

Elksourcing:Quality of a Good China Buying Agent

A good buying agent would be a great contributor to your business success in China. To safeguard the whole process of buying goods from China, the character of the buying agent matters. A good agent should have outstanding qualities. Some of a good buying agent’s quality include:

1. Trustworthy

The buying agent should be a trusted person or company. You may carry out your research to know if the party can be trusted. You can pull off from the deal if there are red flags.

2. Excellent Communication Skills

The whole process is guided by communication. If the buying agent has poor communication capabilities, it would be hard for you to get the goods on time. If they are poor listeners, they may compromise the whole process.

3. Market Knowledge

A good buying agent should have sufficient knowledge of Chinese market. This shows you that they can deliver quality services at reasonable prices. 

4. Resources

You have to inquire more about the buying agent to know how resourceful they can be. This would mean knowing their networks and their portfolio.

5. Experience

The buying agent should be experienced to ensure that you get the best services. Experience guarantees the agent knows the technicalities experienced in the buying process.

Elksourcing:What Can a China Sourcing Agent Do for You?

Sourcing from China is a lucrative business, but it can be risky and complex. Finding a reliable China supplier is difficult, the whole sourcing process seems daunting to new importers. You can’t fully trust the information shown online, and it is important to know the reality of the suppliers in China.

If you’re buying from China, you need trustworthy people on the ground in China. A good sourcing agent can help streamlining manufacturing processes. The followings are what a China sourcing agent can do for you.

1. Handle communication

Usually, if you are looking for a list of products you think promising, you may need to find 5 suppliers, also, you need to calculate unit cost and shipping cost. That means, you will have to spend lots of time at Alibaba or other sourcing websites and deal with endless emails with various suppliers. Every time you want to get price and delivery information for a product, you need to spend a few days to communicate with suppliers back and forth.

A China sourcing agent will help you solve this problem. You can easily send full production specifications and quality expectations, along with order QTY and target FOB price to the sourcing agent, then the sourcing agent will do the sourcing in their professional field, filter qualified suppliers, negotiate the best possible prices, and get back to you with a full package of options within a week.

2. Get better price and lower MOQ

Many clients always start off with 100-200 units because they want to test a product, see how it behaves, get a feel for the specification and overall market performance. What a China sourcing agent can do is to talk with the local suppliers, get quotations from various suppliers, compare one to another, negotiate with suppliers, and try to get the most suitable option. Because the China sourcing agent has long-term business relationship with suppliers, he can get the support from suppliers and start with a low MOQ.

3. Do quality inspection

Nowadays, bad product quality can kill a project instantly, as disappointed customers will leave bad reviews online, and tell more people around him. You cannot trust a China factory can manage quality 100% correct, especially in peak seasons.

If you have a China sourcing agent to help you handle whole process, it will save you lots of hassle. China sourcing agent can help you check monitor production line, check finished products one by one, and prevent bad products being packed into cartons.

Also, China sourcing agent can inspect bulk production before shipment, and do container loading check to ensure that the specifications are the same as the customer required. Especially for small sellers, it is not cost-effective to order a third-party inspection company for the production quality control.

4. Consolidate shipment

If you request samples or products from multiple suppliers, it is expensive to ship them separately. When you have a China sourcing agent, you can have all the samples sent to his office, or all the products sent to his warehouse. Usually, the China sourcing agent can keep the products in his warehouse free of charge for up to a week, you may combine all the products and shipped them in the same container to your country, to save your pennies.

As an experienced Sourcing agent has cooperated with logistics companies for a long time, they can get favorable rates and priority from logistics company. So, you can get your products shipped earlier and at a lower cost.

Moreover, your sourcing agent will prepare shipping documents and let you know what compliance certification you will need for customs clearance. You can stay away from hassle of shipping and focus on your marketing strategy.

Elksourcing:Qualifications Owned by Good Sourcing Agents in China

A product sourcing agent is the one who is responsible with the entire process of product importations from China to your country. Hiring a reliable product sourcing agent can help you with your overall business. Whether you are a first-timer or a frequent importer, hiring a product sourcing agent can be a good investment for your business. 

However, how to judge a good sourcing agent? Here are some qualifications commonly owned by good sourcing agents in China:

1. Excellent communication skills

Efficient and effective communication is crucial for any business. It is important to hire one you can rely on for his communication skills (both oral and written). The person must be able to properly communicate well with you in English and speak freely with your suppliers in Chinese. Hiring someone who clearly understands you and communicates with relative parties on behalf of can create your peace of mind.

While you can look for suppliers via online platform such as Alibaba, choosing the best among them in terms of quality and price can be confusing. By hiring a sourcing agent, you can find the suitable suppliers as the China sourcing agent clearly understands China manufacturing hubs, knows lots of good factories, and can establish a good working relationship with many suppliers. 

2. Good capability in quality control

A good sourcing agent knows the industry thoroughly, he fully understands your quality requirements and can effectively communicate your expectations with the suppliers. Also, the agent is well experienced in quality control, both in system and in operations. He specializes in your specific industry like electronics and consumer goods. The knowledge is very important to prevent potential issues, detect problems from an early stage. More importantly, he knows the compulsive requirements involved in importation to prevent noncompliance with the law in the future.

3. Experience in reducing importation risks

A reliable China sourcing agent should have years of experience in his field. These include extensive knowledge in production, documentation, and other rules and regulations in product importation from China to your markets. 

If you don’t have time to visit China to check out the products yourself, a reliable China sourcing agent can do the task. He will be primarily responsible with product inspections and dealing with production issues on-hand before delivering the finished good to you.

Following up on your orders in China can be tedious and stressful as well. A sourcing agent will help you ease that burden, so you can focus on your primary business activities.