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.   CommunicationFirst 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 PerformanceMonitoring 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.


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