Sourcing from China has allowed companies to increase their international competitiveness with low-cost prices and most importantly, focus on their core business. Over the past few years, China has been named as the “factory of the world” and is an appealing option for any business seeking cheaper raw materials, semi-finished and finished products for profit improvement.

A. Provide sourcing service:

It is difficult to do sourcing in China without the help of professional sourcing agents. Chinese agents are good at sourcing, efficient to work with the business owners. China has set up factories to make about every kind of products whatever you need, however, research is an essential part of souring, but it is always difficult. Professional sourcing agents evaluate, compare products to determine which best meet your organization’s needs.

B. Monitor quality control:

The quality of the product is the main concern of the business owner. The biggest concern of sourcing directly from China is it’s very difficult to assure the quality. But with the help of professional sourcing agents, things are significantly different. You can rely on the Chinese sourcing agents to get the best quality to promote your business.

C. Improve business performance:

It is important for you to decide that from who you are going to take help. You may work along with a reliable global procurement company to boost your business performance and able to enjoy more sales and profits. In the end, the number of customers will be increased and your market reputation will also be high. You may be looking for an experienced procurement company for your own improvement in business.

D. Lower labor rates:

A lot has changed when it comes to the Chinese economy. The country has risen as one of the biggest economies in the world. However, it keeps offering low labor rates as compared to western economies. This scenario offers distinct advantages for businesses who want to avoid paying high wages. To find the lowest possible labor rates without a compromise in quality, reaching out to a reputed sourcing company is vital.

Usually China sourcing agents are friendly, and you can communicate easily with them in any kind of situation. They will help you out with your problem related to your business. They are there to handle every kind of situation and to promote your business to a better level.

China Sourcing Agent

Elksourcing：Main Challenges Procurement Companies Face

Apr 13, 2021 Elksourcing, Procurement Companies by 露露

Business owners should be reasonable in their demands during the initial phases of any procurement process. If you expect too many results for too little investment, suppliers might not really be able to deliver. It is better to start in a practical manner and slowly move towards increasing profitability and efficiency. Generally speaking, some suppliers offer better terms than others and are also more flexible. But choosing the right one is a decision best left with procurement professionals.

1. Maintaining Consistent Sustainability

One of the main challenges faced by procurement companies today is maintaining a good level of sustainability for their clients. Establishing procurement projects in low-cost markets is a very easy of saving a lot of costs.

There are some question marks regarding supply chain efficiency, owing to the relative lack of infrastructure. Even if initial sustainability results are promising, realize that cost surges can occur abruptly due to various market-specific factors. Businesses should be aware of this need for flexibility due to procurement difficulties. Reputed service providers will, however, take proactive steps to maintain sustainability under most market conditions.

2. Risk Management in Newer Markets

The possibility of risks appearing out of the blue are actually quite real. Economic crashes can hurt low-cost countries more than their relatively affluent counterparts i.e. first world economies. Other key risks that usually impact procurement solutions include economic sanctions, trade embargoes, supplier disputes, logistical problems, natural disasters, and strikes. If you are sourcing from well-known marketplaces like China, the risks might be less pronounced.

Risks in relatively nascent procurement marketplaces are often difficult to handle. This is because suppliers are often not experienced in dealing with major risks. Procurement companies might lack a substantial plan B, to protect the interest of their clients. That is why every agency should associate with only reputed suppliers. Even though some questionable suppliers might offer very low-cost structures, your investments are at immediate risk when disaster strikes. This is why many procurement consultants refuse to associate with relatively unknown suppliers. Fortunately, there is no need for concern if you are investing through proven service providers. They are always equipped with actionable risk management plans.

3. Supplier Related Issues

Supplier related concerns can put active procurement processes in trouble. In fact, supplierproblems are the first ones that need to be addressed. There are also concerns about obtaining suitable suppliers to work with. Many procurement agencies face a lot of trouble during supplier testing and qualification phases. This is a problem that not all companies face. Another key supplier related issue is agreeing on terms. Oftentimes, procurement professionals are unable to convince promising suppliers of accepting client terms. This can lead to further uncertainty and confusion.

These are some of the most widespread challenges that affect procurement functions and outcomes. If you are interested in effective solutions, get in touch with a well-known procurement service provider.

China Sourcing Agent

Elksourcing：How to Judge the Quality of a Sourcing Agent?

Apr 13, 2021 Elksourcing, sourcing agent by 露露

Most business firms are preferring China as a sourcing destination owing to various benefits. The sourcing service providers of China are giving the necessary framework to organizations regarding how to conduct key business operations on an effective note.

How to judge the quality of a sourcing agent? The following are some parameters:

1). Trustworthiness:

This is the foremost quality of a sourcing agent, which all organizations want. If a company works with a wrong sourcing consultancy, there is every possibility of getting ripped. Organizations may think that these sourcing consultants are offering free or low-cost services, but this is not always the case.

Professional sourcing agents make it very clear to the companies that no information regarding suppliers will be hidden. There will be no faking of information regarding the number of employees, market performance, registration information, reputation, real business type, and product original price.

2). Quality-focused:

It is necessary from the part of sourcing agents to be quality-focused in their approach. They should leave no stone unturned while negotiating with suppliers. The prime reason why organizations seek help from sourcing consultancy firms is to find the best supplier choices that are available to them.

A sourcing agent must implement rigorous research techniques so as to scrutinize the official registration details, organization type, year of foundation, production efficiency, engineering capability, and technical standards. The sourcing agents in China are making organizations familiar with the economic and cultural environment of this Asian giant.

3). Accountability:

A sourcing consultant will take full responsibility regarding follow up of the production process and shipment of goods. He must coordinate with suppliers in times of technical support. If there are discrepancies in arranging the returns and refunds, the sourcing agents will go all the way to check the issues so that they are aligned with the terms and agreements between both parties.

4). Communicate Well with Buyers:

A sourcing consultant has to think of himself as a colleague of the buyer. He should give priorities to the interests of buyers. In times of business negotiation or technical communication, these procurement agents must find out the relevant information.

5). Know How to Monitor Suppliers:

There are many countries where business culture is considered to be synonymous with the relationship. The sourcing agents are doing every effort to build positive relationships with suppliers. These sourcing consultants also exert pressure on the suppliers. If there is a positive relationship between organizations and suppliers, it will not be a difficult task for business firms to enhance their efficiency.

6). Protect the Business Secrets of Buyers:

It is the sourcing consultants who get hold of necessary information relating to products, prices, designs, components, technologies, and suppliers. This information is of great help to organizations as it will enable them to formulate key business strategies on a positive note.

Nowadays, more and more business firms are seeking help from the sourcing agents in China in order to tap the sourcing potential. It is beyond doubt that the importance of sourcing activities is very likely to grow in the forthcoming days. If you are thinking about sourcing your key business operations, consult reliable procurement agencies without delay.

China Sourcing Agent

Elksourcing：How a Sourcing Agency can Help Your Sourcing from China?

Apr 13, 2021 Elksourcing, sourcing by 露露

In China, the wages for skilled workers are still quite low in the global perspective, this is probably the most important parameter which makes China the factory of the world. Sourcing products from China can prove quite advantageous for struggling western businesses. But sourcing products from any developing country is not free of risk. There are a great number of parameters that you need to consider before jumping in with your investments.

1). What Are Main Challenges Faced by Business Owners Who Intend to Source Products from China?

A. Communication– First of all, Chinese people do not generally have a good command over the English language. Hence, initial talks and negotiations require Chinese speaking skills. Many western business owners are therefore clueless and ineffective in communicating with potential suppliers.

B. Varied Business Culture– It is a known that most countries in the world have some differences in their business culture. But regionally, the differences are not as pronounced as they are with markets like China. Hence, sourcing products from China can get a little complicated if you lack a good understanding. You should only proceed with a thorough understanding.

C. Supplier Performance– Monitoring supplier performance is one aspect of sourcing which many businesses fail with. It requires on-ground presence on your part, constant communication and monitoring activities. If you cannot manage to effectively monitor suppliers, how will you recommend improvements? This is another major problem with China sourcing.

D. Quality Concerns– Quality of products manufactured is quite important for any successful sourcing process. So, if Chinese suppliers offer substandard products, your investment goes down the drain. That is why any business owner should take steps to monitor quality at the step of production. A single batch of low-quality products can ruin your brand’s reputation.

2). Why a Professional China Sourcing Agency is Needed?

Identifying Key Suppliers – A sourcing agency with experience in the Chinese marketplace usually has core knowledge regarding the country’s top suppliers. Depending on your industry domain and particular requirements, agents can shortlist the most relevant suppliers. Most businesses are unaware that sourcing agencies actually put in a lot of work during the pre-selection and finalizing of suppliers.

A. Achieving Profitable Contracts– The contract is the most important agreement that determines what type of profits you can expect by sourcing products from China. With powerful communication skills, agencies can effectively convey your needs to choose suppliers. They can negotiate sourcing contracts that focus on helping you conserve costs and meet deadlines.

B. Maintain Process Efficiency– Professionals from sourcing agencies proactively take measures to monitor supplier activities and performance. They are quick to suggest improvements with your interests in mind. Any problems that arise during the raw material sourcing and production processes are swiftly addressed. The result of such efforts is consistent efficiency.

C. Quality Control and Logistics– A sourcing agency will take full responsibility for performing quality checks and factory audits. Steps can be taken to ensure that suppliers adhere to the specified standards of quality. Agency professionals are also equipped with suitable logistical options for global sourcing clients. There is usually zero hassle involved in receiving products that meet your expectations.

This was a peripheral insight into the key challenges of China sourcing and how a sourcing agency can be of help. Get in touch with a reputed sourcing company to get the best possible profitability for your business.

China Sourcing Agent

Elksourcing：Why a Sourcing Agent is Necessary for Your Importing Business?

Apr 12, 2021 Elksourcing, sourcing agent by 露露

With advanced manufacturing techniques and large-scale production, it is necessary to seek the global market for finished goods. Along with the increased movement of goods, the services sector has also flourished across nations. Nowadays, more and more importers have learned that a good sourcing agent is necessary for their importing business.

Here are some benefits of using a sourcing agent:

(1) A sourcing agent represents the buyer and not the supplier so that you will have a local representative for your business.

(2) Sourcing agents help you in finding out trustworthy suppliers and factories with expertise in specific products.

(3) They help in finding out the products at affordable price and will save you from wasting money on hidden costs.

(4) They can easily communicate in the native language, thus making it easier for you to deliver your message to the supplier and other local authorities.

(5) They manage all the tasks of your company or business on your behalf. Sourcing agents perform the regular quality check.

(6) Most of the sourcing agents in China work on commission basis and will pay the suppliers on your behalf.

(7) Good buying agents take quotations and do the price negotiations on your behalf.

With the help of a good sourcing agent, what shall you do to find the good suppliers? The following are some steps:

1. Conduct an initial research

This is the first stage where you decide what your primary activities are, what are the needs of your clients and who your competitors are. These steps help you to determine your business goals and your position in the market. You and your sourcing partner need to design a business plan to determine the performance measurement system and primary work strategy.

2. Evaluate supplier and market

Your sourcing partner, which offers global sourcing service helps you to make a supplier selection benchmark. When you have the list of criteria, you can make further changes in the sourcing strategy and determine the final cost. Given the fact that you already have information regarding clients and prospective markets, you can identify the economic and operational benefits of the project and decide, if you at all want to source from a foreign base.

3. Select suppliers

You can create an inquiry and send it to your selected suppliers. After you get back the quotations, you can compare the price and quality make a final list of suppliers. You can then conduct a price negotiation depending on the final supplier list and determine how much you can save.

4. Implement decisions

In this stage, you have to create a performance analysis schedule. Your sourcing partner is going to be a part of the implementation team where you will have to decide resources, shared supply and logistical arrangements. You should keep an account of the performance of every supplier in case of more than one supplier.

5. Monitor supplier performance and take necessary measures.

You must make sure that you, along with the company offering global sourcing service carries out regular performance check and reports it. This will assist you in realizing whether the suppliers are sending products as per your requirements or not. You will also get to know if the suppliers are following your criteria of quality and safety or not.

China Sourcing Agent

Elksourcing：How Can a Sourcing Agent Help Your Product Sourcing?

Apr 12, 2021 Elksourcing, sourcing agent by 露露

China is the most prominent place for sourcing of products. With the country’s economy growing stronger, the procurement and sourcing infrastructure is advancing to an even better state. It isn’t hard to find proficient low-cost Chinese suppliers. In order to get it done appropriately, a business needs to create association with the global sourcing companies.

Agents from such companies are well-versed regarding the Chinese market, and its latest business model. They are capable of seeking out appropriate suppliers, and negotiating your agreements, as per your requirements. If you still hold second thoughts regarding China sourcing agent, the below mentioned reasons may clear it out.

1. Benefits of Chinese Product Sourcing

1). Quicker Production: We all know that time is of essence. It is even more significant in a business, as it influences the total success of a business and its activities. With the increase in demand, supply should not fall behind, or the business will not last. Sourcing Chinese products can assist you reach your production requirements faster. You can find products that suit your quality framing, faster.

2). Lower Wage Rates: Let’s admit it: wage rates in China has increased in the past few years, but it is still pretty far away from reaching the currency value of the Western countries. That is why, in spite of the rising wages, the costs are way lesser than the first world countries. This makes the Chinese marketplace, abundant in opportunities.

3). Great Production Infrastructure: China’s recent economic boost has upgraded its infrastructure. That being said, the Chinese suppliers are famous for being able to produce a large volume of products. Now that the new technologies and machinery have been incorporated in the system, product suppliers have taken it a few good steps higher in terms of both volume and quality. The inclusion of an enhanced infrastructure, and modern research and development techs have significantly lowered disputes over products.

4). Safe Sourcing: You are likely to face some unwanted situations if you are buying products without the assistance of an arbiter. This situation can be avoided when you make your investment via professional sourcing companies. Ground agents taking care of your interests can be crucial. Sourcing agencies move forward to improve production, resolve important problems, and evade risks and output loss.

2. Why Should You Hire a Sourcing Agent for Your Business?

1). Many businesspersons do not have a clear idea about supplier pools in the top low-cost markets, moving forward without expert guidance can be unwise. The best idea is to hire from a list of the best professional sourcing services, and supplying your requirements to them. The experts are capable of calculating your needs, and connect with the appropriate suppliers in cost-effective markets. In simple terms, the better the sourcing agent, the better the suppliers you connect with.

2). A supplier is also a business company, so, you need to be sure that they are trustworthy. Verifying a supplier’s identity papers is highly important. The sourcing agency you hire will take care of this task efficiently. The supplier’s certifications, license plates, and registration details are checked. You also hold the authority to inquire about their year of foundation, capital, and quality standards.

3). Another method of verifying an inexpensive abroad supplier’s ability is to visit their factory. This is also a task you can assign to your sourcing service provider. The agents can visit the factory, converse with the representatives of the supplier, and ensure if they’re legitimate. Such visits can help you discover the infrastructure of the factory, and clear your views regarding the product development, skills, manufacturing, subcontracting etc. If you have your doubts, you can directly interact with the supplier through video sessions.

Now that you know the benefits about hiring a China sourcing agent, you can get your business to make the best possible profit, while delivering quality products to your customers.

China Sourcing Agent

Elksourcing：How to Work with Your Chinese Sourcing Partner?

Apr 11, 2021 Elksourcing, sourcing partner by 露露

Hiring a Chinese sourcing agentcan make things easier if you decide to import goods from China. But you need to learn how to work with them, to make your sourcing business smoother. Here are four tips to help importer obtain quality products from China, especially for the importers who source products from China for the first time.

Tip 1: Know Each Other Before Paying Any Money to China, Both Partners and Suppliers

Make something as a rule before working with a sourcing partner in China. Business license, contact person, and company profile are important documents, make sure you have them on hand before going forward.

(1) Contact information (Contact person, Email, Phone, and Address).

(2) Copy of business license.

(3) Company profile (Documents, Website, and Product Catalog).

If you are looking for a strategic supplier in China, you also need to audit the supplier before sending any money to China. You can hire a third-party company to audit it if you can’t visit in person.

Tip 2: Mare Sure You Can Contact the Right Person at Any Time

In China, a technical engineer will always not be involved in sourcing or market. So, please make sure you can find the right person for different communication. The sales manager is one of the most important people when having issue. He/she can help you to solve any question, should communicate with another colleague or introduce to you if you need.

Tip 3: Ask Your Chinese Sourcing Partner for Quality Control Report Before Delivering

Reliable China sourcing partner should provide quality control service to help you get good quality products from China. Their QC team inspects the products before shipping.

They should report to you if any quality issues and stop supplier to ship the products to you until the issue is solved.

A good partner should also be able to help you solve payment issue when you are in trouble, such as invoice issue.

Tip 4: Pay Attention to the Quality of Service if You are Looking for a Strategic Partner

Quality of service is one of the most important factors to keep a long-term cooperative relationship. A sourcing service company has the responsibility to do all the work. A good sourcing partner not only can export products from real manufacturer to customer, but also should be able to provide good services. For example, your Chinese sourcing partner should handle any quality issue and take actions to make sure it does not happen again.

China Sourcing Agent

Elksourcing：5 Steps to Realize an Idea to a Product in China

Apr 11, 2021 Elksourcing, Supply Chain by 露露

So, you have an amazing idea for a product that you know will do well on the market, but are wondering what the next step is to bring this idea to life. This article will show you how to go from start to finish by explaining the steps to take to go from an idea, to producing in China.

Step 1 – Creating Engineer Drawings and a Prototype

You need to get this idea made into engineer designs and a prototype. It is crucial you get both done; it can be difficult to manufacture a product without an engineer drawing that has tolerances, material, and finish requirements. You need a prototype so you know your product is functional and looks good. You can do this in China, but it is not easy. Communicating with an engineer in China over different time zones can be difficult enough, but when there is a language barrier, the challenge is compounded as difficult ideas and concepts can be hard to translate. Progress is much slower because of this. It is recommended you find a trustworthy sourcing company in China.

Step 2 – Finding a supplier

Okay, so now you have a beautiful prototype with clear and exact engineer drawings. The next thing you need to do is find a factory in China that can produce your products. You basically have two options, find one yourself, or get a sourcing company to find one for you.

You may think that getting one yourself may be the cheaper solution, because you don’t have to pay a commission. In actuality, it is often more expensive. If you choose to get one yourself, you must learn the culture, fly to China, and start building business relationships over time. You would need to look for factories that have the capability to manufacture your product and keep your level of quality. You would need to visit their actual location. Just googling Chinese factories doesn’t work because many “factories” have websites but are really just a front some scammer setup out of his apartment hoping to con westerners out of their money. They could also be a real factory but may steal your product and sell a knockoff version. After a lot of flying around China while paying for a translator, you will be out a large chunk of change, with no guarantee of success. Using sourcing agents can simplify things as you no longer have to deal with cultural differences, language barriers, time zones, the risk of getting burned by a fraudulent factory, and a whole lot of jet lag.

What makes a qualified sourcing company? Well, for one thing, biggest isn’t always best. Alibaba has had a number of issues over the past few years as listed in this article. A good sourcing company will have skilled people in China who either are Chinese or know the culture and language fluently. They have a longstanding history of protecting intellectual properties and know how to find qualified factories. They are responsive, pay attention to detail, and will ask a lot of questions about your situation to get a clear picture. They will help you through the import process and have a replacement policy for defective products. Sourcing agents should be upfront about fees and will work to fix any issues that occur.

Step 3 – Getting a Quote

When you find a sourcing company you like, you will need to provide them with your engineer drawings and some information such as: your shipping location, quantities to quote, packaging and labeling instructions, so they can tell you how much it will cost to produce and ship your product. Also, make sure you provide the company with any additional requirements you need your product to pass such as U.S. consumer certifications. It is a good idea to get exact quotes and not shop around for ballpark figures so you have reliable numbers. It is important to note that cost, while important, should not be your main reason to pick one quote over another. Choosing a company that is responsive, reliable, and reputable will save you more money over the long run.

Step 4 – Purchase Order

Now that you have a quote that includes sample, production, and shipping charges, along with estimated production times, you should be ready to place a purchase order. Some companies offer a third-party inspection service which may be a good investment if this is a first order or you are buying a large order. At this point, you should have been provided information about marking your product as “Made in China”, various import fees and paperwork you should expect, and you should either have your own customs broker, or have had one referred to you. Make sure the factory will make and send a sample to you before you move to production so that you will know the level of quality you will be receiving. You should also review their replacement policy.

Step 5 – Receiving the Shipment

After you have signed a purchase order, you should receive a sample for approval. If there is something wrong with the sample, bring it up with your sourcing agent and have a corrected sample sent over. When you approve the sample, you should expect to pay a portion of the production order up front, and the balance when the order is ready to ship. You should expect to have to file some paperwork. Many companies will ship your shipment to the port authority of your choosing, and you may be responsible from shipping it from there to your door. Make sure you inspect your shipment, and the right quantities were received.

Category: China Sourcing Agent