Category: China Sourcing Agent

中国采购代理指南

China Sourcing Agent

Elksourcing：How to Qualify a Sourcing Agent?

Apr 19, 2021 by 露露

More and more importers realize the benefits of a sourcing agent; however, they do not know how to qualify a good sourcing agent. In my opinion, below 4 points are the most important areas you need to focus on.

1) Communication: Fluent English, High Efficiency

A good sourcing agent must have a strong command over English in both writing and speaking and should be able to communicate with you smoothly by phone and email. Smooth communication is the foundation that helps develop cooperation and seamless workflow.

Ability to communicate fluently and confidently in English also reflects that the agent can be trusted to carry out his tasks efficiently and with ease. On the other hand, if your sourcing agent’s English is weak, it will only cost you time as you will have to communicate your requirements time and again until he understands them correctly.

A good sourcing agent must also be highly efficient and prompt in responding to the emails.  There is a time difference between China and most countries. China is 12-15 hours ahead of the US and is 7-8 hours ahead of Europe.

Usually, your questions will not be answered until the next day. If your sourcing agent never responds to your emails and messages after work or on weekends, they are not a good fit.

2) Understand your requirement

In addition to knowing English, it is also essential for the sourcing agent to be quick in understanding the precise requirements of his clients.

For example, if the product is complicated and you require a little customization with the material or redesigning some parts, the sourcing agent must be able to understand your requirements so that he can convey the same to suppliers.

They can communicate with the factory on behalf of you according to your product ideas. If your sourcing agent can’t understand your real need very clearly, then it will take more time to modify the product back and forth.

3) Professional product knowledge

There are two main types of sourcing agents, and you need to choose an appropriate sourcing agent according to your own needs. One, those who assist in finding a particular kind of product, such as drugs, machinery, etc. and the others are who specialize in finding products of daily use for consumers.

Sourcing agent who specializes in finding suppliers of a specific type of product needs to have a good understanding of the products and relevant professional knowledge as well. Customers who come to procure such products are professionals with sound knowledge of those products. The knowledge and experience of the sourcing agent should at least match his customer so that he can understand client requirements and deliver the same.

The agents who deal in all kinds of products have an extensive network of cooperative factories and suppliers. So, they can find the best suppliers for the products you want in a very short time. If you open a supermarket in your country and need hundreds or even thousands of different categories of products, the procurement management can be challenging. In this case, sourcing agents that specialize in providing all kinds of products can prove to be an asset.

4) Professional import & export experience

Any good sourcing agent must have a good understanding of the legalities and paperwork involved in import & export. This includes the process of import & export, certificate and document requirement, licenses, etc.

The agents should also know about international transportation. They should have an understanding of what kind of products can’t be transported by air or by sea, or what type of compliance certificate is required for air transportation. In addition to this, the sourcing agent should have knowledge of patents to avoid potential inconvenience while importing.

China Sourcing Agent

Elksourcing：Factors about Choosing a Sourcing Agent

Apr 19, 2021 , by 露露

Global sourcing companies give necessary advice to organizations regarding the successful implementation of their sourcing strategies, among that, selecting a sourcing agent that fits your needs and preferences is very important to your success. Consider the following factors before selecting a sourcing agent for your business.

1. Knowledge of Sourcing Agent

This is the first and foremost aspect you should focus upon. The sourcing agent you choose should possess solid knowledge of the items they deal with. Problems may arise in technical or electrical products as the sourcing company needs to be aware of the specifications. If your hired sourcing agent does not know the technical specifications relating to your product, it can prove to be futile for your organization. It is advisable to hire a sourcing agent that has enough professional experience in handling the same type of products. Furthermore, your selected sourcing company should also be familiar with the production processes. It should also have proper knowledge about the components and materials that can have a huge impact on product quality. Global sourcing companies help organizations get acquainted with the economic and political scenario of the sourcing destination.

2. Experience of Sourcing Agent

This is another factor you need to take into consideration. Generally, a sourcing agent that has been in the business for more than 5 years is considered reliable. Henceforth, it is always recommended to hire a sourcing agent that is operating for more than 5 years. If your hired sourcing agent possesses an adequate professional experience, you can be assured of high-quality services from their part. However, the experience of the sourcing agent should be in the relevant field. You would not prefer to hire a sourcing agent that has no experience in your domain. With the help of professional sourcing companies, your organization can get access to the right suppliers when it comes to conducting sourcing activities. These agencies also know how to deal with suppliers properly.

3. Background of Sourcing Agent

More often, marketers give a blind eye to this fact. This should be avoided under all circumstances. You should check the background of sourcing agencies before coming to a final decision. This will give you a fair idea about their services. Apart from this, you can also know your sourcing agent precisely. This is indeed an added advantage for organizations of all sizes. In this internet-driven age, it has become easy for marketers to get access to the reviews of sourcing agencies. Also, probe into the founded time, services, company goal, number of employees, etc. relating to a particular sourcing agent. In this way, you can also assess the capability of sourcing agencies and thereby, choosing one that fits your goals. Professional product sourcing companies have excellent backgrounds that make organizations go with them.

4. Location of Sourcing Agent

Organizations prefer to work with a sourcing agent located near to them. If the suppliers are dispersive in several areas, the tasks of organizations become tougher. If the sourcing agent is located close to your organization and the sourcing destination, you can communicate with the officials of these agencies properly. It will also be a problem for your organization’s officials to visit the suppliers and do daily activities. This also raises the transportation and accommodation costs.

5. Target Markets of Sourcing Agent

Before hiring a sourcing agent for your company, you should ask the officials of your hired agent which markets they focus and where are their customers from. Every country has a different set of cultures, regulations, standards, and certification requirements. You also need to focus on this aspect.

China Sourcing Agent

Elksourcing：Benefits of Using a China Sourcing Agent

Apr 19, 2021 , by 露露

Finding a reliable supplier is one of the most important matters in starting an import business. However, it is uneasy considering you stay at the other part of the globe. So, it is advisable for you to use a sourcing agent to help you find the high-quality suppliers you need. 

The following are the main benefits:

1.    They can personally visit the factories and check the quality of the products.

2.    They can help you choose the right products and the best supplier based on your specifications.

3.    They negotiate prices with the supplier.

4.    They do quality control.

5.    They provide logistics and shipping support.

6.    They speak the same language the suppliers do and they know the culture by heart thus there are almost no communication barriers.

7.    They are familiar with the business landscape in their country so they know the suppliers to consider and those whom you need to stay away from.

8.    They are experts in what they do.

With a sourcing agent you do not need to have a buying office in China to take care of all the dealings of your business. They will take care of the buying process so you can concentrate on the other aspects of your business.

China Sourcing Agent

Elksourcing：Benefits of Hiring a Purchasing Agent in China

Apr 19, 2021 , by 露露

Nowadays, more and more importers realize that it is important to hire a purchasing agent in China to help them, as indeed there are lots of benefits of doing so. The following are some of the key work the purchasing agent can do on behalf of you.

1) Supplier Evaluation

China purchasing agent will evaluate suppliers, review products, and negotiate contacts. A purchasing agent will assess any supplier on the basis or quality, price, and speed of delivery when it comes to products and services. He or she will interview any kind of vendor and pay a visit to the distribution centers and plants of any supplier to learn about and examine products, prices, and services. A purchasing agent will also attend trade shows, meetings, and conferences just to learn even more about industry trends. He or she will work hard to make contacts with any sort of supplier.

2) Price Proposals

Your purchasing agent in China will analyze any kind of price proposal and financial reports. He or she can analyze any other information just to determine any reasonable prices. A purchasing agent will negotiate contacts just on behalf of your organization, and she or he can also work out any agreements with your suppliers. He or she will determine the right action to take when an unacceptable or defective service or products is found. Your purchasing agent will also monitor and evaluate any kind of contract just to be sure that suppliers and vendors comply with the conditions and terms of a contract. 

3) Quality Control

Quality is crucial to the success of your business, however, as you are tens of thousand miles away, it is very difficult for you to control the quality. Then, your purchasing agent in China will can play an important role. The team on the ground will visit your China suppliers’ facility, to check products on production line, perform visual/function/packaging check and do online testing when necessary. So, before the products leave China, you will get a thorough inspection report and judge if or not to release them. All these happen before you pay the final payments, so, you stand at a strong position to negotiate with China suppliers.

4) Logistics Handling

A purchasing agent can arrange logistics for you in China. China purchasing agent will deliver your goods to the Sea port or airport When the product is packed. The next is for you to deal with customs and other related customs services. So it’s important to have a purchasing agent in China.

5) Maintaining Record

Your purchasing agent will review and maintain records of costs, items bought, deliveries, inventories, and product performance. He or she can buy nondurable and durable goods, farm products, and services for your organization or institution. A purchasing agent will work hard to get the best deal for your company out of the negotiating process. Getting the highest quality services and products at the lowest cost is the goal of any purchasing agent out there. Your purchasing agent will gather a lot of information about the trend of your industry in China so he or she can give you what you need.

Now that you know more about what a purchasing agent can do for you, you just have to take what we call a bold action. This will allow you to get what you need in a decent amount of time if you do the right things at the right time. Remember that your purchasing agent can evaluate your suppliers in China so you can get the best products and services at just the lowest possible prices.

China Sourcing Agent

Elksourcing：How to Find a Good Sourcing Agent in China?

Apr 17, 2021 , by 露露

When your start your business of importing from china, it is advisable to find a sourcing agent to help you, but it is not easy. You may not know how and where to find a good sourcing agent. How to sign a contract with the agent? How to pay the sourcing agent? How can you tell if they are trustworthy? 

Here are some tips for selecting a sourcing agent:

1. Trust is everything

I think you would agree with me that to work with an agent, trust is important. I would rather use a reliable and trustworthy but mediocre agent than someone who is capable but not reliable. Ideally, you need someone who is competent and reliable.

How can you tell if your agent or representative in China is trustworthy? In many cases, first impressions can misguide you. You can do some online research to see if there are any comments and feedback about them. Give them some trial tasks to gauge their performance. You can generally understand their work ethic by working with them a few times.

2. Contract versus verbal commitment

Some buyers think a contract is not important, so they work with purchasing agents and suppliers on verbal commitment, binding by morality and virtue. My suggestion is to sign a contract with your sourcing agent no matter how good your personal relationship is with the agent. Ask the help of lawyer to draft and review the contract.

3. Sourcing companies versus sourcing agents 

Sourcing offices normally have experience in more industries while sourcing agents often specialize in certain areas such as apparel and electronics. If your sourcing projects cover many industries, it is better to use a sourcing company. If you deal with a single industry, you could work with an individual agent. 

Sourcing companies are normally legally incorporated companies, so if they breach the contract, you will have somewhere and someone to chase after. 

A sourcing agent is often a one-man show. If bad things happen, he might disappear. So relatively speaking, sourcing companies are more reliable than agents. 

4. Hire an expert, not a secretary

There are thousands of products global buyers are sourcing from China, and each product is different. Sometimes it takes years to understand the production mechanism of a specific product. A competent sourcing agent should be a product expert. If he does not know the product, he will not know how to do quality control, he will not know the costing, and cannot negotiate the price properly. He might not even know where to buy product. 

That is why Li & Fung hires only sourcing experts with more than 10 years working experience in certain industries. The experience gives them the knowledge of quality control, price negotiation, product research and development. They can deliver a solution.

5. Communication is often a problem

First is the language. You should make sure your sourcing agent speaks your language well enough to understand your emails, and to draft and review an English contract. They should also be familiar with the products in your language (parameters, specification, parts and components, etc.). 

You need a sourcing agent who is well prepared to hit the ground running. If you are looking to build a long-term relationship with your agent, ideally the agent should be proficient in speaking, as in many cases, email is slow, and you will need to call them to speed up the process. 

The efficiency of communication is an issue to look at, especially when there is a time zone difference. Your agent should reply your emails promptly. Instant messengers can be used to speed up communication.

China Sourcing Agent

Elksourcing：How to Identify Right China Sourcing Agents?

Apr 16, 2021 , by 露露

China is a vastly populated nation where coming across efficient and cost-effective sourcing, however, for new importers, it is daunting considering the far distance and vast culture difference.Sourcing agents play a great hand in the success of a sourcing strategy of a company. With the help of sourcing companies, organizations can lower the prices of their products while focusing on key operations. Seek help from sourcing agents if you want to accelerate the growth of your organization.

Firstly, observe the market condition

The concept of perfect market exists solely in academic books and economic theories. The concept of marketing service in China does not function in perfect market situations. The exercise of marketing strategies depends on the supplier’s expertise and strength of resource. Transactions are often affected by information asymmetry which leads to market failure. Therefore, you should never think of paying a sourcing agent on an hourly basis; you incur loss in this process. Novice entrepreneurs and marketing personnel are an easy catch for high cost vendor companies. However, you have to remember that you can gain high quality result and that too on time from some of the low budget sourcing companies.

Secondly, emphasize on increasing efficacy by reducing cost of alignment

Sometimes, you might have to opt for a costly vendor despite having access to reasonably charging sourcing companies. This is because; the costly sourcing agency understands your business much better than the agency that charges less. Hiring a low-cost company entails investment on vendor alignment. Making the agents aware of the needs and tone of communication involves a lot of time as well as energy which could otherwise be used in earning revenue. You do not have to unnecessarily spend time and effort if you hire a sourcing company which is well aligned to your requirements and working style.

It is necessary for all organizations to stick to the below-mentioned factors while identifying the right sourcing agents:

1). Excellent Communication Skills:

Professional procurement experts must have fluency in English. If they have a strong grasp of English communication skills, it will not be difficult for them to talk with clients. Good English writing skills are also required in most cases. It will lead to smooth communication that will further play a great hand in developing cooperation and thereby, resulting in a seamless workflow. 

If sourcing agents speak confidently in English, it will reflect their trustworthiness. Organizations that are likely to conduct procurement activities in Chinese markets can put faith in them. This will also make organizations get a fair idea about their quality of services. Apart from this, a good sourcing agent must be prompt enough to reply to the emails. As China has a huge time difference with the U.S., the sourcing companies of China must be highly-efficient to respond to the queries of overseas clients. 

2). Assess the Requirement:

This is the most important aspect while selecting procurement agents. More often, organizations overlook their needs and focus on other aspects. A sourcing agent must understand the requirements of his client within a short span of time. Moreover, professional procurement agents should address the needs of clients to the suppliers in an effective manner. 

If organizations present their product ideas to the procurement agents in a lucid mode, it will result in better outcomes. It is a sourcing agent, who communicates with factories on behalf of suppliers. If these agents fail to understand the needs of companies, it will take a long time to modify the product. 

3). Deep Product Knowledge:

Generally, sourcing experts have deep knowledge regarding their areas of expertise. They are able to give suggestions to the companies about the best sourcing measures. Procurement agents are generally of two types. One kind assists organization in finding specific products while the other one specializes in finding goods for daily needs. It is up to the business firms to decide which sourcing agents they would go with. It is desirable to select a procurement agent who has deep product knowledge. If professional experience is added to this, it can work wonders for organizations. The sourcing agents of China have tons of experience in the procurement domain.

There are many customers who want to procure products and services they have a sound knowledge of. These agents must keep them updated about the latest sourcing trends. They also must give advice to the business firms regarding how to streamline their operations while going with the flow. Their knowledge and domain expertise should at least match with the customers. While communicating with customers, professional sourcing agents can understand the requirements of clients in a better way. 

There are some procurement agents who deal with an extensive range of products. They also have a huge network with the best suppliers and cooperative factories. More often, organizations feel the difficulty while formulating sourcing management strategies if there are different categories of products. Versatile sourcing agents are an asset to organizations as they specialize in offering various types of products and services.

4). Experience in Import and Export Activities:

Sourcing agents need to have a proper idea of the legal framework during import and export operations of companies. Import and export activities require a lot of paperwork in the form of document requirement, certificate, and licenses. It is even better if the procurement agents have a fair idea about international transportation. 

There are various products that are transported by air or by sea. In such cases, the compliance certificate is necessary for organizations to conduct trading operations and procurement agents must know about this fact. Moreover, they also should have adequate knowledge of patents so as to avoid all sorts of hassles while importing products.

China Sourcing Agent

Elksourcing：How Can Sourcing Agencies Help Your China Sourcing?

Apr 15, 2021 , by 露露

For a business to set up its own manufacturing facility or procurement office in China is actually impractical. Such decisions raise and increase the hassle of business owners. Instead, any business that wishes to explore China sourcing, should do it with a reliable sourcing agency. There are many reasons for consulting with agencies that have operated in China before. Let’s have a look.

A.   Reputed sourcing agencies have core local knowledge of Chinese marketplace. 

B.   They can identify and recommend the most profitable supplier options. 

C.  Business owners do not have to face linguistic, cultural, geographical and negotiation hassles.

D.  Agents in China seal the deal with suppliers. They proactively work to reduce costs, while profitability and efficiency.

Chinese product sourcing is something that can offer serious benefits to businesses across many industry sectors. The large domestic markets, promising labor, and logistics maintain its position on top of other marketplaces. Associating with experienced and verified China sourcing agencies can ensure benchmark profitably.

1. Long-term sustainability

The objective that many businesses and their sourcing partners strive towards is long term sustainability. China product sourcing opportunities offer a multitude of opportunities, due to low costs and large volumes. The key to benchmark sustainability is associating with the right suppliers.

2. Profitability 

What a western business will spend in its manufacturing processes in its native marketplace, will probably be a lot higher than what it spends by sourcing in China. China sourcing is a way of improving production and delivery timelines. 

3. Quality 

A sourcing agency can be utilized to help businesses find quality suppliers in China. Chinese suppliers have strong reputations, that been built on delivering quality assurance to the west. Apart from volume and sticking to estimated timelines, sourced products and materials will comply one’s quality standards. 

4. Labor force 

China is the most populated country in the world. It also happens to have the largest skilled and unskilled labor forces in the world. Although the Chinese economy is growing at a steady rate, cheap and quality labor is still abundant.  

5. Volume 

Not many marketplaces have the capability of handling manufacturing volumes like China. If you need voluminous results and need them fast, China is the place to be. This is the reason why so mid to large sized businesses have incorporated China sourcing into their production workflow. It is very hard to achieve the kind of volume China can provide, within very limited timescales. 

6. Efficiency 

Infrastructure that is capable of handling heavy duty manufacturing processes is commonplace in China now. As a result, China sourcing agent professionals and their agencies confidently recommend China. Whether energy assured compliance with international standards, or efficiency in manufacturing and distribution.

China Sourcing Agent

Elksourcing：How to Qualify a Sourcing Agent from China?

Apr 14, 2021 , by 露露

China has got certain benefits in terms of overseas sourcing, however, in order to do it properly, a professional sourcing agent is needed. Do you know how to qualify a sourcing agent? You may ask below 10 questions.

1)What sort of services can a sourcing agent offer?

Obtaining products from China is often underestimated. It requires good amount of hard work, knowledge and expertise in this domain. Ask your agent to demonstrate what can he or she do to manage your project ‘end-to-end’ and this will save a lot of time in inspecting companies, customs, freight forwarders and collaborating agents.

2) What can the sourcing agent source?

You may come across some agents who have a wide network in a market and they can help you to purchase different products. With large database and purchasing system, such agents can penetrate various markets and get you a product at an affordable costing. A good sourcing agent will have a systematic approach to manage your project.

3) How can you be sure of the price?

To know ‘fair market value’, you should go for open market tendering, instead of just creating just a few established contacts. This will let you know the average cost prevailing in a marketplace and will give you a peace of mind that you are not being overcharged.

4) Will the agent give you full details of suppliers?

Most of the sourcing agents will prevent you from knowing their suppliers, they try to withhold their details so that you rely on them. But, when you are selecting a sourcing agent, ensure that they are transparent and provide you with every detail. This can be quite beneficial for you. In case, if you and your agent relationship ceases, you will not be out of products, as you can directly contact the suppliers.

5) Does the sourcing agent have good knowledges about factories?

A professional and reliable sourcing agent will get quotes from many suppliers so that you can decide who can suit your needs. If the sourcing agent is professional, he or she will suggest you a trustworthy supplier who can meet your requirement.

6) Is the owner of the sourcing agency firm Chinese?

Many agencies can be non-Chinese, who have made a few contacts, done a few business trips and are trying to fit in the Chinese marketplace. Whenever you pick a consultant, make sure that the owner is Chinese so that he or she can give you a clear picture of the market that can help you to be successful.

7) Are you going to have a single point of contract?

In case of single point of contract, this will save a lot of money and time from being passed from one person to another.

8) How is their ability in English?

Email is the only channel used to conduct business. Hence, agents with good English written ability and communicating ability is important to avoid any sort of inadequate communication.

9) Do they have any sort of experience in West and East?

Sourcing agents with bi-cultural experience and knowledge will help them to do create a better approach while doing business. A bicultural agent is someone who understands Western and Chinese culture. Choosing such an agent will give you smooth access in different markets and he or she can negotiate with the supplier.

10) How can you ensure the quality?

Throughout the sourcing process, there must be a quality control unit. Your agent must work closely with factory and managers so that he or she can satisfy your demands.

On reading these points, you can understand which questions are needed to ask before you think of selecting a reliable sourcing agent from China.