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, 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 request for inquiry (RFI) and send it to your selected suppliers. After you get back the filled up RFIs, you can 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.
Here are some benefits of using Sourcing Agents in China for your business:
i. A sourcing agent represents the buyer and not the supplier so that you will have a local representative for your business.
ii. Helps you in finding out trustworthy suppliers and factories with expertise in specific products.
iii. Buying agents help in finding out the products at affordable price and will save you from wasting money on hidden costs.
iv. They can easily communicate in the native language, thus making it easier for you delivered your message to the supplier and other local authorities.
v. Manage all the tasks of your company or business on your behalf. Sourcing agents perform the regular quality check.
vi. Most of the sourcing agents in China work on commission basis and will pay the suppliers on your behalf.
vii. Good buying agents take quotations and do the price negotiations on your behalf.