China Sourcing Agent

Manufacturing industries and business houses are increasingly relying on global destinations aided by sourcing companies for factor resources. The involvement of these companies is significant considering the global nature of commerce nowadays.  1.Conducts 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,…

It’s a good way to find a sourcing agent to help you for importing from China, especially when you are new to your importing business. What can a sourcing agent do for you? What is China sourcing agent fees? Below are some key aspects: 1. Services Sourcing agents offer a catalog of services for you. Agents and traders charge you for just the facilitation of a manufacturer relationship. Sourcing agent fees is charged with a more holistic, service-based approach to your procurement. 2. Cost-Efficient Sourcing agent fees is usually not a percentage based on unit quantity. Rather, sourcing agents usually cost a flat fee per product (not per unit). These flat fees help you better calculate your monthly costs for sourcing with little variation. This flat fee is also a lower-cost option overall, allowing you to maintain your margins and revenue. 3. Transparency You have control over your own supply chain. You are…

The first issue you want to look at is the China sourcing agent’s location. The closer the people who manage your project to you, the easier the communication will be. When both of you work in the same time zone it is easier to find a time during the day to speak and a face to face meetings are easier to arrange. On the other hand, an agent that is close to you is far from the factories, and all the advantages I just spoke about become the disadvantages of the communication between the agent and the Chinese suppliers. In addition, if the people that run the sourcing agency are close to you, but in terms of experience and culture background are far from the Chinese suppliers, then that together with the physical distance will create a communication barrier. Some of the important advantages of a China-based agency management is that they have…

It has been over 15 years since millions of companies around the world have taken the opportunities of sourcing in China and outsourcing partial of their production to China. In theory, the profits expected are huge but on the ground, it is not as easy. Many companies will have difficulties in dealing with Chinese suppliers. Sourcing is an English term that refers to practices aimed at finding, evaluating and contracting with suppliers of goods and services. The main tasks are: A. To increase competition in the panel of existing suppliers for lower prices. B. To identify new suppliers in the international market. C. To discover innovation offered by new suppliers. Here are a few things to notice for sourcing in China: 1. Use a local representative Quality control will be a key factor of success for your sourcing activities in China. Then having a local person who anticipates problems in China is…

Sourcing From China is not a new thing, but in this post, we want to focus on providing China sourcing beginners some valuable tips on what is a very challenging but often very rewarding journey. So, by definition a source is “a place, person, or thing from which something comes or can be obtained”. It makes sense to start there. Spending time and energy on getting the best sources is a worthwhile venture. In relation to having products manufactured and importing them from China it’s an incredibly important part. A good beginning really is half the work where choosing wisely is very important in lowering your risk. 1. Finding supplier Start by signing up as a free member to alibaba.com, globalsources.com and made in china. Familiarize yourself with these platforms which are user friendly but do contain a few more bells and whistles than before. The number 1 important thing to learn about…

If you are starting to buy from China, your first decision will be: should I manage this by myself? If your team can’t dedicate 1-3 hours a day (per supplier) to follow what happens in China, you might need help from a sourcing company that can handle these tasks: Identifying new suppliers that can make your products at the right price and quality levels; Helping develop new products/styles with these suppliers; On-going management of the supplier relationships (communication, quality control, shipments follow-up, quality problems, and so on). You may have 3 options: 1. Purchase direct This is what 80% of importers try to do. They want to control the whole process, and avoid paying commissions to any middleman or agent. If you are organized enough to manage suppliers, and if you can satisfy the minimum order quantities (MOQs) of suppliers, this is probably the best option for you. 2. Purchase from…

Why do many importers use sourcing specialists for their international procurement? Because they want to reduce costs, ensure quality, shorten sourcing lead time and mitigate risks. Most importers don’t have the in-house resources or skills to implement all these by themselves. Good sourcing specialists can achieve a 20% or more reduction in overall cost. The sourcing specialist can also negotiate on your behalf, manage quality and ensure on-time delivery. So, what do a sourcing specialist do? 1. Choosing right place for your sourcing needs Sourcing specialists can pre-qualify suppliers, develop the relationship for you and ensure that the products you require are provided in the right place at the right time for the right price. Some specialists have expertise in supplier chain management across borders. 2. Price negotiations Negotiation on product price, packaging and transportation cost is one of the key roles of sourcing specialists. They provide clients with the lowest possible price based…

Product sourcing companies are agents who facilitate relationships with suppliers. They specialize in importing goods from various regions of the world on your behalf. They locate the best sources at the most competitive prices to save your cost, at meantime, they contribute in quality control and communications. 1. How do product sourcing companies actually work? Product sourcing companies source goods and, usually, store them in their warehouses to provide you with a responsive, reliable and a readily available service. They work with multiple wholesale suppliers and manufacturers aggregating purchasers’ needs into one service. Many products are sourced from low-cost countries in Asia, mostly China. 2. Who are the product sourcing companies? They may be called trading companies, third party sourcing, importers, brokers or drop shippers and they only represent the purchaser, not the supplier. Services may include sourcing specified products at the best price to managing the whole import process and all…