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Elksourcing：Quality Control When Source Products from China

Apr 14, 2021 , by 露露

China is called “the world factory” for its business ecosystem, huge labor pool and low production costs. As a result of focusing on production-oriented upstream and downstream in production facilities, materials, design, and freight transportation within a specific area, a close economic and technological cooperation circle has been established to reduce production costs and increase production efficiency. 

China has a long list of producers, thereby leaving you spoilt for choice. You have the flexibility to choose a producer whom you think is best and as per your preference. However, one of the biggest issues is quality control, considering you stay tens of thousand miles away from the production line. In this article, I’d like to share some of my thoughts per my 20-year experience.

1. Understand the value of your products

When you plan to source products from China, you must have a full understanding of the products. With the product value in mind, you are allowed to figure out the quotes from suppliers which may help you settle on the market. You have to figure out the raw material, basic process, functions, and even the design.

The most important thing you have to understand is about product quality. You have to know the price range of the product at a certain level of quality. Normally, you will find a different price on the market for similar products because of different quality standards. As such, you have to understand the value of the product. The full understanding of your products will definitely help you to specify the quality standards in detail in the contract when you cooperate with manufacturers.

2. Cooperate with a quality supplier

Remember to cooperate with quality suppliers when you start souring from China. First and foremost, you have to reach them to check their qualities. You can find these suppliers on different platforms such as B2B websites, Google, trade shows, and social media sites such as Facebook, Twitter, and LinkedIn. Find them and get their contact info and background info to know much more about the supplier. Secondly, you are allowed to entrust a third-party inspection company to inspect the manufacturer. Remember to ask for the inspection report if you entrust someone or a company you are familiar with. This helps you narrow down your choices.

3. Quality Control over imported products

When it comes to quality control over the imported products, there is a wide variety of stuff to do on the list. It covers all possible links ranging from the beginning of the production line and the ending of pre-shipping management. We’ve divided it into three different periods for the product.

(1) Pre-production Inspection

The first comes to the pre-production inspection. At this period, you have to check the raw material and components. Generally, manufacturers are inclined to source the cheapest material and components, and they are not aware of the raw material restrictions of your country. To make sure the quality of the raw material and components, you are allowed to draw a few samples randomly for the lab testing. Besides, you have to check the prototype of the product to ensure a successful design. In addition, you have to communicate frequently before it enters the mass production period. All this is to make sure that your quality specifications, materials, components, and process are completely understood by the manufacturer.

(2) In-process Inspection

Then it should be the in-process inspection. This means the inspection during the mass production. You have to make it in case of possible unsellable products produced. During this period, you have to check the quality of a few products that were already manufactured and avoid possible issues on the rest production. You should never check it too early or late given its turnover of the product manufacturing. Try to find out the non-conformity products based on the buyer’s requirement. Besides, you have to pay attention to the visual defects of the products. This is of great importance before it enters the market. What’s more, you have to monitor the process for the product such as the forging process, and the assembling requirement. You can supervise the manufacturing process. If possible, you have to keep frequent communication with the supplier to follow up on the manufacturing process and give specific details about the product. Frequent communication delivers a better understanding of the products specification. Get the manufacturing update from the suppliers, and find possible revisions, and correct it during the production period. You can get the potential problems fixed before it’s too late.

(3) Pre-shipment inspection

Literally, pre-shipment inspection means the product inspection prior to the shipping. Normally, you will get the finished product quality control from the manufacturer. But that’s not enough. Pre-shipment inspection is normally carried out once 100% of the order is produced, and almost 80% packed. Some may even wait until all orders get packed. This is to identify possible faults and errors in the batch orders before you ship the items. This is how you make it easier for suppliers to rectify an issue. For this part, you may not be able to check the product one by one. The best solution is to carry out the sampling test onsite. Sampling plans are available for you to determine the acceptable number of defects. Pick randomly and figure out an accurate overview of the quality of the batch order. Get the test report and evaluate if it is up to your quality standards.

4. Who will carry out quality control?

It’s important for you to entrust quality control to a reliable partner to ensure quality product sourcing. As such, you can make it by yourself, hire inspectors, or entrust a professional quality inspection agency. Make sure they fully understand the requirement of your products.

(1) Travel to China to Inspect Products Personally

You may not know the best way to conduct product inspection. Remember to take the details of the process into account and get the necessary training. You have to figure out the inspection quantity. As we know, it is impossible for you to inspect all the products one by one. You have to know the sampling inspection process, the on-site testing procedure, and the equipment for inspection. Besides, traveling to China takes your time, money at the expense of the opportunity which may neglect other business activities at home.

(2) Hire a third-party inspection company

A third-party inspection company will be the best option for those who don’t have a big budget to fly to China or hire your own inspection staff. The third-party inspection company will offer you their professional service with their expertise.

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Elksourcing：Things to Consider for Choosing a Sourcing Company

Apr 14, 2021 , by 露露

After several painful lessons of trying to “buy direct”, are you planning to hire a sourcing company for your business? If that is the case, then you are making a good choice. But, are you going to hire one just because you have heard how they can benefit you? You might end up selecting a wrong agency which cannot stand up to your expectations. However, there is always a way to determine what is right for you. So, here are a few things you should consider whilst you compare different sourcing companies.

1). Knowledge:

A sourcing company needs to be acknowledged about every product they deal with. It will not be able to perform the tasks without proper knowledge. It is especially difficult for a sourcing company to move ahead with their work when their supposed specialization is technical items, such as mechanical or electrical products.

Take this for an instance; your business is in LED lighting, so they must know the parameter and specification of the products. Also, the sourcing company needs to be familiar with the production of the goods – how they are produced, what is the process, and which materials or components affect the quality. If they know this, they will be able to arrange a quality control audit and find out the potential issues regarding quality before the delivery.

2). Experience:

One of the biggest factors that make the best sourcing agency is experience. Having experience means that they know what they are doing and also how to do it. If they lack experience in the field of sourcing and export, they will have no clue where to get the appropriate suppliers and how to analyze the quality of products. You do not want them to learn things from scratch whilst dealing with you. If they make mistakes, you will be at a loss. Another problem you will face with inexperienced sourcing companies is that they do not really know how suppliers should be dealt with.

3). Background:

Perform a background check of the agency you want to hire. You can check their Facebook and LinkedIn profiles to see how long they have been in business. It will also give you information regarding the firm when they were founded, what kind of services they offer, their goals, and the number of employees they have, etc. You will understand their capability, and how well they can utilize the resources.

If the sourcing companies you are considering have enough experience in the field of import/export or other relevant fields, they will be partnered with suppliers and vendors. So, these sourcing firms will be able to connect you to several reliable suppliers for your entire business, lessening the level of your direct involvement and providing you with time to focus on your primary business.

4). Location:

This element can have a straightaway effect on whether an agency can conduct efficient work or not because the suppliers are scattered in various areas, and it will be tough if the sourcing agents are far away from them. For example, the industrial conglomeration in China is primarily in the coastal cities, mainly in provinces like Fujian, Zhejiang, and Guangdong. So, if your aim is to source from that country and the sourcing agency is located somewhere in a different province, visiting the suppliers for routine tasks will be really difficult for the sourcing company. Expenses in terms of accommodation and transportation are pretty high.

Hence, look for a firm in the industrial sectors so that they have easy access to the suppliers and can visit at least 2 to 3 of them in a day. If the sourcing company is situated in the right place, it will be much quicker and efficient for them to handle everyday work like industry audit, pre-production inspection, quality check, shipment loading check, etc.

5). Focus Market:

Prior to choosing a sourcing agency to help you with your imports, enquire about which markets they consider and where their customers are from. As various countries have their own cultures, standards, requirements and regulations, it is important for them to know all of these factors for efficient and effective work.

Different markets provide different qualities for specific products. If you are looking for high-quality items from the Middle East or India, but your sourcing agents are from Europe or the USA, they are not the right match for your business. The best sourcing method is to look for a sourcing company dealing in that particular market. This will ensure that you are getting maximum value for what you pay.

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Elksourcing：Pros and Cons of Sourcing from China

Apr 14, 2021 , by 露露

Businesses in the west have always been on the lookout for profitable product sourcing opportunities. Sourcing and global procurement used to be concepts that just big businesses considered. However, now even those who are just starting out look towards developing countries to cope up with high material, labor, infrastructure and energy costs.

Pros of Sourcing from the China

1). Lower expenses– This is one of the most obvious advantages of Chinese product sourcing. If the right strategies are followed, a business will definitely witness significant popularity. Some of the most significant expenses one can save are evident from the start. From better supplier rates, to lower labor, shipping and duties, business owners stand to gain a lot. Hence, sourcing in China can give you better value than manufacturing domestically. 

2). Quality of service– Many Chinese suppliers are renowned for the quality of service they offer. They are capable of handling huge production volumes, in very short spans of time. Hence, business owners can be assured of fulfilling their requirements without hassle. The level of commitment exhibited time and again by suppliers, is one of the key factors responsible for China luring in high volumes of foreign investments. 

3). Faster delivery times– Chinese marketplace suppliers specialize in offering high-value workloads within far less delivery times. This is one of the key reasons why businesses choose to invest in the country’s supply bases. Sourcing agencies incorporate steps to further speed up sourcing processes. Technological improvements keep on improving process handling capacities. Chinese skilled labor forces can be the difference makers for your business.

Cons of Sourcing from the China 

1). Lack of clarity regarding resources– Most business owners do not have any idea regarding relevant product sourcing suppliers. This lack of information leads to impractical and hasty buying decisions. If you are a business owner who lacks clarity regarding suppliers and distribution resources can hinder sourcing decisions. 

2). Communication barriers –Barriers of communication exist as China is not an English-speaking nation. Businesses who are going in and negotiating without the assistance of agencies will face difficulties in communication. Such issues can give rise to misinterpretations and subsequent losses. Apart from China, many countries in Asia and southeast Asia also carry the issue of communication gaps.  

3). Quality concerns– Chinese suppliers falling short of expectations is a possibility which has been faced by many businesses. Business owners have discovered that products are substandard, or do not match up to quality expectations. In the quest of saving costs and getting better overall value, low quality can really hurt your business. 

If you have looked at the above-mentioned pros and cons, the bigger picture of Chinese sourcing should be clear. It is advisable to approach sourcing agencies who have substantial experience of operating in the China. With the right level of expertise, your business can enjoy China sourcing success.

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Elksourcing：How to Qualify a Good Sourcing Agent?

Apr 14, 2021 , by 露露

China is a large country geographically, and the country’s businesses also have relationships with other companies throughout the world. Without a local agent, you would spend an inordinate amount of time on tactical shipping details but still end up with unacceptable shipping delays and additional costs.

However, how to quality a good sourcing agent? It is same as you need time to find a good product in China, you also need efforts and wisdom to find a good sourcing agent. Below are several top qualities you need to check on a sourcing agent.

1. Trustworthiness

A buyer should note trustworthiness is the first and foremost quality 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 asking the supplier for hidden commission or kickback while appearing to offer low or even “free” sourcing service. A professional sourcing agent, however, persistently makes it the golden rule that no information about the supplier should be hidden or faked to the buyer including number of employees, market performance, reputability, registration information, real business type, product original price, etc. Without this, the buyer’s plan of getting better price and services by entrusting a sourcing agent is totally ruined, in other words, the buyer is simply dealing with another trader. 

2. Quality-focused

An excellent sourcing agent should spare no efforts in tirelessly searching and talking to the optional suppliers instead of stopping the efforts too early before finding out the best choices. Careful research should be carried out on the official registration details, business type, year of establishment, production capacity, engineering capability and technical standards to ensure the required products can be made with ideal standard and quality. Additionally, once a supplier is chosen by the buyer, a good sourcing agent should take the time to go to the factory in person to check the assembly lines, warehouse, quality control standards, etc. and provide the latest information and analysis to the buyer with photos, meeting minutes, written reports for the client’s evaluation and decision-making.

3. Accountability from Pre-sale to After-sale Service

A sourcing agent’s mission does not end when the transfer is made. He should take the responsibility to follow up the production and shipment of the goods, coordinate with the suppliers to offer technical support for trouble-shooting, and assist in arranging the returns and refund according to the terms and agreement between the two parties. This concern can be hugely worthy of consideration when a buyer deals with a technically unsound trader or a factory where no one speaks English, especially when it comes to industrial products, timely, in-depth and effective communication between the sourcing agent and the engineers are essential to ensuring the products work ideally to meet the consumers’ expectations. So, the buyers can dedicate themselves as being professional, answerable and reputable in their home market and keep their business blooming.

4. Be a colleague of the buyer

A simple direction that the sourcing agent needs to work to is being a colleague of the buyer. He is supposed to fully represent the buyer’s interest in the business operations in China, that is, he is just a bilingual colleague of the buyer working in the procurement/buying office in China. In the course of the business negotiation or technical communication, the sourcing agent needs to find out the information, if any, that the suppliers wish to hide from the buyer and report it to his client in a timely manner yet also in a suitable occasion. In such situations, however, the sourcing agent should not make the decision without the buyer’s knowledge, instead, the decision of how to respond still is left with the buyer to consider.

5. Protect the buyer’s business secrets

Information is a matter of utmost importance to business people. In the course of the joint work with the buyer, the sourcing agent is exposed to considerable amount of information including products, price, design, components, technologies and suppliers. Whatever the buyer does not wish anyone else to know, everything should be held as absolute business secrets by the sourcing agent to in order for the buyers to keep competitiveness in the market.

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Elksourcing：Tips to New Importers for China Sourcing

Apr 14, 2021 , by 露露

Sourcing your products from China manufacturers may indeed be a smart decision, as it has the potential to help you cut costs and maximize profit. But you have to do everything right to truly benefit from this business solution. And an important part of doing things right is hiring the right agent to assist you in the sourcing process. It isn’t that easy to find the right suppliers and manage the logistics of sourcing. That’s why you need to call experts for help.

The following are some tips to new importers:

1. Do not take sourcing processes for granted.
If you do an online search about sourcing products from China, you are likely to find countless articles on finding the right suppliers and going through the sourcing process on your own. This has led many business owners to thinking it is easy enough to source products from overseas. But that’s not necessarily true. In fact, you can get into a great deal of trouble if you engage in China sourcing without seeking help from an agent or consultant.

Remember that there are laws involved that may not be the same as the ones that apply in your own country. There is also the matter of choosing suppliers from halfway across the globe. And if your business deals in a variety of products, then you’d most probably need several suppliers. The services of a consultant who is based in China or at least has years of experience in dealing with China manufacturers are indeed valuable.

2. Avoid communicating with your consultant or suppliers via chat.
Sure, practically everything is now done online, from correspondence to trade and commerce. But when you’re sourcing products from a different country, especially one where the language is completely different from your own, you have to make sure the people you’re dealing with completely understand what you expect from them. In the same way, you need to make sure you understand everything they expect from you.

For this reason, it isn’t advised for you to communicate with your sourcing consultant or your China suppliers via chat. You can still communicate with them online, but it would be preferable to do so via email rather than chat or messenger. In an email, you can explain things in detail and ask your consultant/supplier to do the same.

Better yet, talk to them over the phone or via a video call. And don’t be content with an “okay” or “no problem” response. Chinese companies are fond of saying these things. Ask for concrete confirmation that they have understood what you’re trying to say perhaps by asking them to repeat the instructions to you or asking questions that could tell you whether they have indeed understood or not. If there is anything you don’t understand, ask them to explain further. Proper communication is the key to smooth transactions.

3. Don’t be afraid of cargo costs.
One of the best ways to secure your orders from overseas is to confirm them with samples. In most cases, it is even advisable for you to send a prototype or at least a blueprint/formula with detailed and exact specifications to your suppliers. The supplier will then give you the opportunity to re-confirm the order by sending a few samples of their work. In this case, you may be asked to take care of mold and material costs.

Do not be afraid of this extra expense. You may recover the cost of getting samples sent by negotiating payback if you reach a particular amount of order. Even if you aren’t successful in negotiating payback, the added cost could very well be worth it in the end. After all, ensuring the quality of your products is one of the best ways to make sure you get good returns on your investments.

You may have paid a good deal of money to send prototypes and get samples back, but if that results in getting high-quality products your target customers can appreciate, then the amount of revenue you get in return will most definitely be well worth the expense. 

4. Do not ask for CIF prices at the outset.
The two most popular price terms in international trade are Cost Insurance and Freight (CIF) and Free On Board (FOB). With CIF, the seller (in this case, your supplier) pays for shipping the goods to you. With FOB, your supplier will be responsible for loading the goods onto the ship and for clearing them for export. Cost and risk are divided between you and your supplier.

It may be tempting to buy CIF because of the convenience it offers. After all, you will no longer have to deal with shipping details, as it is all taken care of by the supplier. Note, however, that with this arrangement, the supplier chooses the forwarder and could mark up shipping costs to increase their profit. This means you’ll be paying more than you should and you can’t even be sure how reliable the forwarder is, since you’re not the one making the choice.

It is advisable for you to buy FOB instead, so you’ll have better control of who ships your goods and how much you spend on shipping. Being the one to communicate directly with the forwarder also helps ensure that you get assistance and information whenever you need it. And because you’re the one dealing directly with them, you can be sure the forwarder will have your interests, rather than your suppliers’ interests, in mind.

5. Do not make decisions as regards suppliers without personally visiting their factory.
China may be halfway across the globe from where you’re based, but if you really want to make sure the sourcing process goes well for you, then you will have to visit the country at least once. Take the time and make the effort to visit about five factories before deciding which particular manufacturer to do business with. Do this for every product or component you need to source from the country.

As a general rule, it is advisable to get a list of prospective suppliers from your sourcing consultant and then visit the factories of the suppliers on the list. It would be preferable if you conducted the visits together with your consultant, since the consultant is the one with the local experience and cultural expertise. He can assist with the negotiations (perhaps carry out translations to avoid misunderstanding between you and the supplier) and advise you on which supplier best suits your needs and preferences.

Most agents have years of experience in product sourcing and manufacturing processes and a business relationship with multiple factories in different regions. You can receive competitive quotes from multiple manufacturers that are capable of fulfilling your needs.

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Elksourcing：Key Benefits of Chinese Sourcing

Apr 14, 2021 , by 露露

There are some fundamental benefits of Chinese product sourcing. Rather than buying directly, businesses should be proactive in approaching sourcing agencies. Agencies can conduct a thorough analysis to identify the most profitable Chinese opportunities. With effective strategies, it is possible for your business to grow fast and surpass its key competitors.

1). Sourcing parts and components– If you are a business that absolutely needs to keep closer control on production processes, Chinese marketplace opportunities can still bring you profits. Sourcing raw parts and components for cheaper rates is the way forward. It is possible to find far lower rates for the same quality of mechanical components, machine parts, raw materials, and more. A sourcing agency can conduct the research on your behalf, to identify suppliers who offer the expected quality and value. Sourcing parts can help you speed up production, and add to your production-stage savings.

2). Sourcing finished products– This is another approach followed by businesses who intend to profit from investments in China. As an entrepreneur you can take the decision of shifting your entire production to foreign shores. Every step, right from the sourcing of labor and materials, to production supply chain, can be handled by experienced sourcing professionals. It is a hassle-free experience for business owners, and a popular mode of sourcing services. Numerous globally leading business organizations are reaping the benefits of utilizing Chinese labor and production opportunities. With continuing favorable conditions, Chinese finished product sourcing will be a way of life for countless organizations. 

The following are some of the key benefits of Chinese sourcing:

1. 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 quite low labor rates as compared to western 1st world economies. This scenario offers distinct advantages for businesses who want to avoid paying high wages. To find lowest possible labor rates without a compromise in quality, reaching out to a reputed sourcing company is vital. 

2. Higher production volumes– If you are looking forward to scale up your production capabilities, China based suppliers can help you out. Till date, China is an undisputed winner when it comes to large scale production. As a result, you can get very fast production rate. Sourcing companies equip western businesses with the ability to fulfill requirements, and scale up production effectively. 

3. Expand your portfolio of offerings– Once you take a step towards sourcing from China, a whole world of opportunities can open up. No longer will you be limited to a small product range. The Chinese domestic market offers a multitude of quality finished products in almost every category. An increasingly diverse product portfolio can help your business gain higher conversion volumes. Doing so can be a good step towards growing your business.

4. Enjoy efficient production – Production efficiency is mainly dependent on two factors, namely time and costs. Both these factors can be optimized, if you are following the right Chinese sourcing strategy. For years and decades, some of the most prominent global organizations have obtained benchmark efficiency with such methods. Sourcing professionals can negotiate profitable supplier agreements, that keep delivering results for years. 

5. Commitment to quality– Reputed suppliers in the Chinese marketplace lay stress on delivering quality, time and again. This is because many Chinese suppliers handle high profile production processes. They carry the necessary expertise to deliver specified results, which adhere to set quality standards. Agencies are vigilant to ensure that quality checks are performed at various production stages. So, business owners can be assured of getting quality products, at low rates.

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Elksourcing：Do It Yourself or Hire an Agent for China Sourcing?

Apr 14, 2021 , by 露露

When it comes to sourcing products from another nation, you can either choose to do it yourself or work with a global sourcing agent. Even though a number of small business owners opt to handle the sourcing requirements themselves, it is a bit of a hassle. If you are sourcing from China, there is the added difficulty of learning the local language. Do you have so much of time and resources to spare? If not, the best solution would be to collaborate with a professional sourcing agent.

1). Local representation of your company

Sourcing agents will act as the local representatives of your organization in the country or region from where you want to source products. Since these agents have in-depth local expertise and experience, they can fetch you the best deals. Since a majority of sourcing companies have offices in foreign countries, they can assist you in maintaining a good relationship with suppliers based on trust. Sourcing agents will always keep your business agenda on the forefront and strive hard to serve and represent your interests. 

2). Decreased logistics expenses

As you engage a sourcing company for carrying out your procurement tasks, the agent can help your organization in avoiding unnecessary expenditure. In case you were to source products yourself, you would be required to make frequent trips to the procurement destination. In the long run, the frequent travelling and subsequent accommodation costs will drain your company’s financial resources. With a sourcing agent present on-site, you can be rest assured that you will get best quality products without having to be physically present. 

3). Enhanced safety and security

In overseas product sourcing, your company is not situated in the area from where you are sourcing goods. There are high chances that you have never visited the foreign nation before and do not have any known associates who can help you. Under such circumstances, the chances of being deceived by scammers becomes quite high. The suppliers may pose as trustworthy and reliable, but may not provide you with what they have promised. To avoid such situations, turn to the expertise of the sourcing agents who already have a list of trusted suppliers in leading sourcing destinations. These agents also frequently update their list and provide unbiased recommendations. With these agents handling your sourcing requirements, you know that you will be dealing with only the very best of suppliers.

4). Effective communication

Language is a huge hurdle when doing business outside of one’s country. When sourcing bulk products, miscommunication is certainly not an option. You would not want an entire shipment of wrong products delivered to you! Such situations can be avoided by working with a procurement agent. Professional agents are proficient in the native language and will effectively convey your message to the suppliers. This will eliminate all kinds of disruptions that might occur in business activity. 

5). Lessening of your workload

When you engage a sourcing agent, the agents will take complete charge of your business tasks, such as finding the right supplier after vetting them, negotiating prices on your behalf, arranging for logistics and so on. They will help in reducing your responsibilities and ensure that the procurement of products is completed smoothly. Furthermore, this will save you effort and time, which can be utilized for other important aspects of business. 

Sourcing agencies offering global procurement services are a blessing for companies that need outsourcing their product requirements. Hiring an agent is the ideal solution as they not only reduce hidden costs, but seamlessly and professionally manage sourcing activities.

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Elksourcing：How to Choose a Good Sourcing Company?

Apr 13, 2021 , by 露露

Sourcing in China is proven more and more a trend, however, for new importers, it’s usually daunting to source direct from China. B2B websites like Alibaba is convenient, however, according to an article, over 75% companies shown on Alibaba are either traders or traders who disguise themselves as factories. Also, there are many shady companies or even some scammers, as there is almost no filtering system, or the filtering system is too easy to bypass.

So, after having some lessons, more and more importers learned that it’s very important to hire a good sourcing company to find the direct manufacturer and manage the whole sourcing and quality control process.

How to choose a good sourcing company?

1). Look at the reputation

The reputation of a sourcing company is the number one thing that needs to be kept in mind. Make sure that the organization has a list of prominent clients. If the company has nothing to show in terms of a track record, do not fall prey to its promises. There is a high probability that such companies will just eat into your finances and fail to deliver core results. On the other hand, you are in safe hands by hiring a well reputed company. 

2). Consider the investment 

Hiring a sourcing company involves initial investments along with a commitment of offering funds which would be utilized for one’s sourcing requirements. As a business owner, you might be at the crossroads of sourcing or direct purchasing. However, low cost product sourcing through an agency will ultimately push your brand towards steady growth. But ultimately the decision regarding hiring sourcing services lies with businesses. If you ascertain that the investment is not worth it, wait till you find lower sourcing company fees. 

3). Look around 

Do not commit a contract with the very first sourcing agency you approach, compare them; be careful not to use the sourcing agencies that approach you by group emailing, decent companies won’t do group emailing to approach clients. What an organization is offering might sound promising, but there might be others who offer better rates or terms. Seek initial consultation with multiple sourcing agencies. Ask questions regarding their methods, low cost supplier associations, business approaches, and seek information regarding the markets where their presence is dominant etc. You can also compare rates of agencies to make up your mind. 

4). Ascertain regulatory practices

One of the most disappointing situations you can be in is your sourcing operations being halted, due to regulatory violations. In such cases, your business might have to bear the brunt of hefty fines and even face legal loopholes. For this reason, it is important to know that your chosen sourcing service provider sticks to international and local laws and regulations. The issue runs deeper, as suppliers might be the one making the violations without the knowledge of agencies.

5). Contractual obligations

The wrong sourcing partner can wreak havoc in your path to profitability. It all comes down to the terms of doing business, which are sometimes not in favor of investors. In case of market risks, regulatory hassles or other risk scenarios, sourcing partners should be accountable. While that is ideally the case, there are shady service providers who leave investors out in the dark when trouble arises. Hence, it is quite crucial that business owners go through the terms and conditions thoroughly before committing. 

The above-mentioned points are prerequisites that will help you arrive at a decision regarding sourcing partners. The right company can make a marked difference for your business, and take it to newer heights. Some of the distinct advantages of availing sourcing company services include- 

a.   Low costs of raw materials, energy costs and overhead costs. 

b.   Low costs of skilled and unskilled labor resources. 

c.    Clear path of sustainability through sourcing operations. 

d.   Consistent and rising profitability with passage of time. 

e.   Protection against prevalent risks in low cost country marketplaces. 

f.     Swift and hassle-free logistical capabilities. 

So, if you are keen on experiencing the above-mentioned benefits for your business, finding the appropriate sourcing partner is essential.