Imagine your shipment is delayed from China, your product has defects which reduce customer satisfaction or in the worst case require product recall. In order to avoid such risks, more and more importers realize the importance of partnering with a reliable sourcing company. This will ensure that you are able to well control production lead time, enhance your quality standards, reduce manufacturing cost, and improve your profit margin.

Finding the China sourcing company that you partner with in long term is one of the most important decisions for an importer, but it is an uneasy task. You may evaluate a sourcing company based on below factors:

1) Referrals

The best way to tell how a sourcing company will treat you is to determine how they have treated other companies. If others have had a good experience with them, you likely will as well. You depend greatly on your sourcing partner to supply quality products, so you don’t want to depend on trial and error before finding the right one. Receiving referrals from other companies will provide assurance that you have found the right sourcing company.

2) Communication

The right global sourcing company will provide highly effective means of communicating important production information on a timely basis. All stakeholders should have access production updates and critical documents, including the customer, the global sourcing company, and the factory. This allows the customer to make informed decisions regarding their manufacturing project, and allows all parties to mitigate risks of lost time and money through improved project management.

3) Product Quality

When partnering with a sourcing company, you need to be assured that they will provide quality products for your business. While it may be tempting to partner with the company that quotes the lowest price, that company may provide products that are of lesser quality, potentially hurting your production and your company’s reputation. The best option is to find a global sourcing company that offers sustainable value pricing coupled with a solid quality assurance process.

4) Types of Services

While some sourcing companies only do the bare minimum, others offer services that will provide great assistance to your business. The best option is to find a sourcing company that offers scalable services, so that you select and pay only for the services you need. For a global sourcing company these services may include sourcing & manufacturing management, onsite quality inspections, shipping and logistics management, warehousing, and engineering services.

China Sourcing Agent

Elksourcing：Why Sourcing Companies Are Better Than Direct Manufacturers?

Apr 21, 2021 Elksourcing, inventory warehousing by 露露

For many importers especially small one, choosing whether to deal with a direct manufacturer or a sourcing company depends on the nature of the business, and the order quantity.

Direct manufacturers offer more attractive costs, however, will require higher order quantity and may ask for better payment terms — such as 30% deposit at time of order, and 70% balance before shipment.

On the other hand, sourcing companies can help many importers. The following are some reasons:

1. They should strictly follow timeline

A dependable sourcing company should practice what it preaches. When your contact says the items will be delivered on Friday afternoon, it should be delivered on that exact day and time. Much better if earlier, but it should be advised in time.

More than the product cost, a good sourcing company should have a better understanding of the entire business process. Likewise, it should give importance to product quality, so you only get the best out of its price.

2. They understand their customers

Unlike manufacturing companies, most sourcing companies focus on customer satisfaction. Since they do not directly manufacture the products they sell, they make up to it by providing utmost client service. Communication is crucial for business, and this is usually sourcing companies are strong in – they have staff who have excellent English skills and can communicate with customers in professional, efficient, and effective way.

3. They are good at building relationships

They are basically experts in relationship building. On one hand, they usually deal with multiple factories in sourcing their products from, so they have good understanding about capability and capacity of factories. So, they know which products are best suitable for which factories, and when to place orders.

On the other hand, they also build a good relationship with their clients and satisfy their business needs. They understand their clients’ concerns, know the key areas their clients focus on, and can get know the ultimate needs of their clients. So, they know how to clearly work on behalf of their clients and get the maximum interests for their clients.

4. They are willing to go the extra mile

Many sourcing companies can take the extra task of sourcing other products aside from their current inventory. If you need additional business requirements such as dedicated labeling, sourcing companies can do that for you. Also, they can re-pack the goods, allocate them to different markets, and consolidate products from multiple suppliers.

5. They can offer better price

Sourcing companies know the local supply bases better, so they know where the best place is to source a specific product. For example, you may source metal products in Shenzhen, but usually not at the best price. If you go to the manufacturing hub of such products, such as Zhongshan, you can find the most competitive prices.

Most sourcing companies have a small office or warehouse spaces, unlike manufacturing companies. Hence, the former can only incur lower overhead costs than the latter. Also, building/space rental is cheap in China, so rental costs should not be a big deal for sourcing companies either.

6. They are ideal for small importers

Sourcing companies accept a smaller MOQ, which is a major concern for small importers. Likewise, they can also offer a wide variety of products you can choose to sell, each at affordable MOQ and fair price. For small importers, it usually does not make sense to try to work with direct manufacturers, as a very high MOQ will be required; even if the MOQ is acceptable, the manufacturers will not put smaller importers in priority, for both lead time and quality.

China Sourcing Agent

Elksourcing：What Sourcing Agents Do to Help Your Importation Business?

Apr 20, 2021 Elksourcing, shipping and tracking upload by 露露

Starting a business of importing from China is a tedious process. You have to create a sound business plan to run your business and ensure it will create profit in the long-term. More importantly, you should have a reliable and trustworthy supplier you can get quality products to sell to your target customers.

For first-time importers, the task of looking for a supplier is daunting, you should consider your budget and the number of products you need to order. With business transactions most likely done online, it can be hard to deal with someone without at least seeing your contact in person. Adding to that worry are horror stories where business owners get duped by scammers online.

In such cases, hiring a sourcing agent to help you deal with your supplier can help a lot, employing an agent can make transactions easier and with less hassle. Reliable sourcing will make your job easier as far as dealing with Chinese suppliers is concerned.

This article will discuss what sourcing agents do and how important they can be on your business. Here are some things you need to know about a sourcing agent’s tasks:

1. They take care of importation process

In a nutshell, sourcing agents do the importation transactions with the supplier for you. They take the major responsibility of all the related legwork of product importation – from ordering up to the delivery. A reliable sourcing agent should also be knowledgeable with the importation process and prevent risks that can affect your operations.

2. They speak local language

If you are importing from China, it is only logical to hire someone who can speak their language. This can help in better communication and prevent miscommunication that can ruin your business.

3. They represent your business

Because sourcing agents will represent your business, it is important to hire someone reliable and trustworthy enough. A sourcing agent will also help you look for suppliers and conduct on-site factory visits when necessary.

4. They serve as quality controllers

A reliable agent should know the roundabouts of the importation process. At the same time, the agent is also responsible for conducting product quality inspections before it lands to your doorstep for selling. Sourcing agents will ensure you only get the best products from the best suppliers in town.

If you are a first-time importer, you will definitely need help with experienced personnel, and a reliable sourcing agent will help you with such tasks. Many successful businessmen believe hiring a sourcing agent for importing from China is a good business investment.

China Sourcing Agent

Elksourcing：What Makes a Sourcing Agent Good?

Apr 20, 2021 Elksourcing, sourcing agent by 露露

China is the most prominent source for products, however, it’s a complicated market for new importers, so more and more businessmen realize the importance of using a sourcing agent. However, it is difficult to find a trusted sourcing agent in China if you do not know below key parameters of a good sourcing agent.

1) Specialize in your niche

If you want to import many different types of daily consumer products, it is better to choose a sourcing agent that has already sourced similar consumer goods for other buyers.

If you specialize in importing certain industrial products, then find a sourcing agent that focuses on that specific industry.

Because these sourcing agents have accumulated lots of experience and built relationships with many good suppliers in this industry, they can help you in the long run.

2) Know what you will get

You have to inquire more about the sourcing agents to know how resourceful they can be. This would mean knowing their networks, partners and their portfolio.

A good sourcing agent should provide service including certification requirements and product specification confirmation; Research of price, ordering a sample and choosing suppliers who qualify; Affordable rates; Supplier selection; Quality control; Logistic coordination, etc.

3) Close to industry cluster

In China, each city has its own specialized industrial clusters, which are groups of similar and related firms in a defined geographic area.

Therefore, locating close to the industry cluster is convenient to contact with factories and reduce intermediate costs, like shipping costs, quality control fees and so on.

4) Understand the market

A good sourcing agent should have sufficient knowledge of global market, which means they can deliver top quality services.

Moreover, the agent must have knowledge about the quality standard, certification needs and other aspects acceptable in the Western countries.

Hence, it is better if the sourcing agent has offices both in your country and in China to facilitate the supply chain process.

5) With rich experience

Sourcing experience is a vital factor that you should take into consideration. The sourcing agent should be experienced to ensure that you get the best services.

Experience guarantees the agent knows the technicalities experienced in the sourcing process. Thus, the number of years spent in the business turns into proof of track record.

For example, an individual who works as an agent for 10 years can be much more resourceful and more reliable than a sourcing company that only established only several months. This means he has continuously provided his clients with a good quality business.

Other than being knowledgeable in choosing suppliers he should also be extremely skilled in the areas of quality control, logistics and business risk management.

China Sourcing Agent

Elksourcing：What Make a China Sourcing Agent Outstanding?

Apr 20, 2021 Elksourcing, sourcing agent by 露露

Many importers know the importance of using a China sourcing agent but feel frustrated to find the right one. In this article, I want to share you the key factors which good sourcing agents commonly possess.

1) Local Office in China

Sourcing agents are expected to be your representatives in China – your boots on the ground and the reason you don’t need to fly to China regularly or spend time and money setting up an office there. An agent with a local presence will be able to quickly find you a reliable supplier. Their local staff will also negotiate prices with the local factory owners, resulting in better pricing.

China-based sourcing agents bring several other advantages. They will be able to steer you away from unreliable suppliers or scams. Once they help you finalize a supplier, they will take care of the documentation, draw up payment terms beneficial to you, help you assess and approve samples, conduct in-process quality checks and resolve problems that happen during production, do pre-shipment quality inspections. Again, to do all of this reliably and efficiently, they have to be present on the ground in China.

2) Excellent Communication Skills

Many stories have been posted on internet about the communication challenges western businesses face in China. These are not just related to the fact that China lies in a different time zone or that its people speak a different language, but also to its cultural quirks. A good sourcing agent will not only be familiar with Chinese, but also be acquainted with the country’s cultural differences, allowing them to guide you through the minefield that these differences can be for importers.

A good sourcing agent will anticipate that this may happen and spell out all your requirements to the supplier to ensure that they have completely understood your requirements.

3) Experience in China Sourcing

Experience is especially valuable in sourcing because of the risks involved. If you are a small to medium enterprise, sourcing from a country halfway across the world from you is a risk – with both your money and your reputation on the line. If your consignment is delayed, for instance, it will not only affect your inventory but also upset your customers, hurting your revenue and reputation in the long run.

Hiring an experienced sourcing agent – one who has been in the business for at least 10 years – will protect you against these risks. These agents have several advantages:

They will usually have a bank of reliable suppliers they have worked with before, allowing them to quickly identify a supplier who can give you exactly what you need when you want it.

They will be aware of the strengths and weaknesses of these suppliers. They will know, for instance, which supplier to pick in case your product needs further development, or which one to pick if it is imperative that your product has a super smooth finish.

They will know what you need to do to protect your IP rights in China.

They will be able to anticipate what can go wrong with lead times. They add extra days or weeks to lead times, for instance, because of local disruptions caused by festivals such as Chinese New Year.

They will know what HS codes to put on your consignment, protecting you from expensive and frustrating delays that incorrect shipping codes cause.

Such agents will also be able to tell you if your expectations, say, with regard to quality, are too high, or whether your design is too ambitious to fulfill technically. This knowledge will save you time and effort.

4) Know the Products You Want to Manufacture

There are millions of products you can source from China. It will be difficult if not impossible to find a sourcing agent who is an expert in all of these industries. But what you can do is find a sourcing agent who is an expert in the process used to manufacture your products.

For example, if you want to manufacture outdoor ovens, look for agents who specialize in these manufacturing processes and is familiar with stainless steel, aluminium and plastic materials. Also, the agents should have clear understanding about packaging regulations, if you are based in Europe, they should try to decrease the usage of non-recyclable plastic and use eco-friendly materials. These experts know the ins and outs of all related processes and be able to steer you away from potential problems.

China Sourcing Agent

Elksourcing：Main Benefits of Using Sourcing Agent

Apr 19, 2021 Elksourcing, sourcing agent by 露露

More and more importers realize the benefits of using sourcing agents, not only they stay away from sourcing frauds, but also, they save time and money. In this article, we will tell you more details.

1) Save Your Time

Buyers always hope to source products efficiently. Picking out satisfying suppliers from thousands of suppliers in Alibaba is time-consuming and inefficient. Also, buyers cannot verify the qualifications of these suppliers one by one. Some suppliers in Alibaba have no experience in international trade, some do not have good quality management, it is difficult for them to guarantee on-time delivery and assured quality. Compared with sourcing in Alibaba by yourself, finding a reliable sourcing agent can offer you sound sourcing suggestions according to your requirement. Sourcing agents are familiar with local markets. They can pick out right suppliers with a good reputation from thousands of suppliers to ensure you a good sourcing experience from China. Thus, you can save lots of time on sourcing and be more efficient.

2) Choose Good Suppliers for You

There are thousands of different suppliers in Alibaba. The barrier in the communication between buyers and suppliers is quite difficult to bridge. Besides, some online suppliers are not familiar with the international shipment, so shipping can take a very long time to reach you. In this circumstance, finding a sourcing agent from China will be helpful. They can verify the qualification of suppliers and pick out a reliable one. Besides, some online suppliers are traders instead of manufactures. Products from them are at a higher price. Sourcing agents have close contact with factory outlets. They can help you get a competitive price. All these service sourcing agents provide can also help you reduce the risk of supplier fraud.

3) Offer Product Inspection Service

Suppliers from Alibaba have no service for products inspection. If you need, they will do an internal quality inspection which is according to international standard and not independent, countless lessens tell us that 3rdparty quality inspection is very important. Qualifications of these inspectors are hard to verify. If you use a professional sourcing agent, you no need to worry about the sourcing progress. Sourcing agents not only make sound sourcing plan according to your need but also offer independent quality inspection service. They can help you control the quality of products and reduce the risk of customer claims.

4) Provide Product Consolidation Service

It’s difficult for buyers to ask for consolidating goods from different suppliers, which means buyers will cost too much on international shipment. An experienced sourcing agent can do product collection, warehousing, international freight and shipping for buyers is helpful. If the product quantity you need is small, sourcing agents can ship your good in less than container loads (LCL) to save your shipment time and handling cost.

China Sourcing Agent

Elksourcing：What Can China Sourcing Agents Do for You?

Apr 19, 2021 Combination packaging & individual packaging, Elksourcing by 露露

China has always been a key sourcing destination for countless businesses across the world. The country offers a world of benefits in terms of product manufacturing scale, efficiency, and cost-effectiveness. But do you know that the outcomes of your investments depend on the skill and expertise of China sourcing agents? Experienced agents from reputed sourcing companies are the real difference makers.

If you are a business owner aiming to make profits from the Chinese marketplace, finding a suitable agent is essential. Agents for China sourcing are equipped with extensive local knowledge about suppliers, prevailing market conditions, logistical options, and potential risks. What can China sourcing agents do for you?

1) Evaluating your requirements

One of the most important responsibilities of a sourcing agent is the analysis of client requirements. You will understand if China sourcing is indeed the right path in the first place, by consulting with suitable agents. Sourcing agency professionals direct their efforts into understanding what a business expects from investing in the Chinese market. Based on that, they form an idea regarding how to proceed.

2) Establishing a sourcing strategy

Agents use their expertise to create flexible strategies for businesses that intend to source from China. The extensive local knowledge and expertise of sourcing agents in China can be instrumental in creating the right plan of action. A strategy is created through the assessment of a client’s budget, market conditions, key expectations, and expected delivery timelines.

3) Finding suitable suppliers

Chinese marketplace offers a great number of supplier options for businesses across industry domains. Yet, shortlisting the right ones can be quite difficult for businesses who proceed without an agent. Almost all suppliers in China will make hefty promises to grab purchase orders, but only some can deliver upon them. Agents can locate and list the most valuable and competent suppliers for your sourcing requirements.

4) Verifying suppliers

Shortlisting several suppliers in China is only part of the equation, as verifying them is quite essential. A sourcing agent in China performs the important task of supplier verification. The methods they use include the inspection of individual suppliers and their credentials and performing audits on them. Supplier verification is quite a challenge without the help of a reputed sourcing agent, but a step that cannot be skipped.

5) Negotiating with suppliers

Decisions have to be taken to select from the top 2-3 suppliers that can be approached. Prior to this, a sourcing agency can take steps like ordering samples and having initial conversations. Then agents enter the phase of negotiations with these suppliers. Client requirements are addressed by agents, who try to negotiate the best possible deal. The decision of a supplier is finalized if the sourcing agent is confident of his choice.

6) Managing supply chain

The supply chain is crucial when it comes to running successful sourcing operations. China sourcing agents utilize their supply chain management experience to ensure that sourcing processes are efficient. The range of responsibilities includes keeping tabs on raw material supply, labor resources, infrastructure demands, production activities, and much more. A sourcing agent carries the responsibility of monitoring all these aspects to ensure your investment does not waste.

7) Performing quality control

Maintaining product quality is critical at every stage of your sourcing process. This is yet another task that sourcing agents perform in order to help their clients. Agents can organize factory floor visits to glance upon operations and to ascertain if products comply with the specified standards. This is needed as even a single batch of substandard or faulty products can ruin a brand’s reputation among customers. Agents are in a position to demand accountability with suppliers for quality-related concerns.

8) Reducing logistical hurdles

Logistics is one of the key aspects of running a successful sourcing process. The logistical options determine how fast your products leave the factory floors and reach the market. A reliable sourcing agent is adept in dealing with issues related to import and export duties and tariffs, and other hassles. The expertise of your China sourcing agent can result in cost savings in logistics. More importantly, the presence of an agent ensures that your products reach you on time.

The above-mentioned points highlight the roles and responsibilities of a sourcing agent in China, and why businesses should rely on them. Proceeding without a reliable agent can make it quite difficult for business owners to obtain the desired level of profitability.

China Sourcing Agent

Elksourcing：Why a Sourcing Agent is Helpful to Your Importing Business?

Apr 19, 2021 Elksourcing, sourcing agent by 露露

China is a very large source of good products at low costs, however, dealing with Chinese manufacturers is extremely tedious. A sourcing agent is an essential part of business operations of importing from China, they would be able to save your time and money.

1) Easier communication

An excellent sourcing agent is an individual with fluent English speaking and understanding, business evaluation, general technical education, coordination, product design and worldwide perspective. He or she can work impeccably in the interest of the buyer to access suppliers at all times, also enhancing the business relationship with the provider.

2) Superior control

Having a good sourcing agent, the purchaser’s interests are completely enacted in an exceptionally controlled way. Firstly, with a person getting deep into the industries, the buyer has a superior control of the delivery, production, and after-sale service, and he or she ensures all the information he or she gets is valid. More particularly, the sourcing agent can freely or mutually discover supplier’s information without willing to sell one particular product. Hence, the purchaser would probably be able to locate a more appropriate product as he doesn’t get puzzled by the misrepresented or false descriptions from the dealer or producer.

3) Experience in Dealing

Most sourcing agents have been in the business for years and would be able to get the correct products and suppliers, handle any problem that occurs, and predict accurate delivery timeframes. Also, they have a great business relationship and negotiating skill when trading with manufacturers making them get great costs as global product sourcing is more complex than the vast majority think, particularly when various products, suppliers, and shipments are included.

4) Authentic assessment and review

A sourcing agent can give the buyer complete information on official documents, registration details, current photographs and documented reports about the industry including workplaces, warehouses, production lines, laboratory equipment and so on to access the industries’ qualifications, validity, production capacity and professional expertise. But dealers can send any information to the purchaser or even claim they are producers of any product, while the truth of the matter is they might not be high-tech sound or have enough manufacturing capacity.

5) Order checking and tracking

If you want the best service and product, pick a sourcing agent who can run background checks on suppliers and also keep an eye on their performance is the best for you. Casual quality checks and industrial facility visits amid the production stage can assist in ensuring that dealers remain on track too most particularly at the time of the packaging and delivering stages which are fundamental.

The work of the best China sourcing agent is dependably. Their commitment to bringing organizations the correct things before the due date with accuracy and quality is something excellent. Organizations that are dealing with the best sourcing agent in China are absolutely in the best hands for their operations.

Category: China Sourcing Agent