Elksourcing

If China is front and center of your sourcing strategy, make sure you are associating with a sourcing partner that has a strong presence in Chinese marketplaces. It is wise to choose a consulting firm which has delivered Chinese sourcing solutions to other businesses. Depending on your core requirements, they can come up with flexible time and cost-effective sourcing strategies that give you the desired results. The followings are some key strategies for China sourcing. 1. Building a supplier list– Sourcing agents are informed about your specific requirements and they identify the potential list of suppliers, who can deliver what you need, within your budgets and delivery timelines. Reputation is another factor that is kept in consideration when it comes to suppliers, as it signifies reliability and punctuality. 2. Aiming for profitability– Once the task of identifying the right supplier is completed, sourcing agents focus on sealing the deal. Focus must always be…

For a business to set up its own manufacturing facility or procurement office in China is actually impractical. Such decisions raise and increase the hassle of business owners. Instead, any business that wishes to explore China sourcing, should do it with a reliable sourcing agency. There are many reasons for consulting with agencies that have operated in China before. Let’s have a look. A.   Reputed sourcing agencies have core local knowledge of Chinese marketplace.  B.   They can identify and recommend the most profitable supplier options.  C.  Business owners do not have to face linguistic, cultural, geographical and negotiation hassles. D.  Agents in China seal the deal with suppliers. They proactively work to reduce costs, while profitability and efficiency. Chinese product sourcing is something that can offer serious benefits to businesses across many industry sectors. The large domestic markets, promising labor, and logistics maintain its position on top of other marketplaces. Associating with experienced and verified…

Procurement solutions should not be viewed as fixes, as they can continue to offer benefits for. While it is practical to be realistic about initial profits and cost savings, nurturing a sourcing mechanism can prove advantageous in the long run. Let us look at some of the key objectives of procurement.  1). Long-term cost savings  You will invest less and gain significant results. This can continue for years and decades, and your organization will make cost savings a way of life. One must realize that there are barely any constants in sourcing and procurement. For instance, a marketplace that seems promising for cost might be outdone by another competitor in 2-3 years. A reputed agency can help you find the most profitable marketplaces at any time. 2). Surpassing regulatory barriers  Emerging businesses in the developed world face with expenses but that is not all. There are a lot of regulatory and…

1.   China is the second largest economy in the world and has a huge open marketplace that welcomes foreign investment. The economy of China has grown by over 300% in the past decade.  2.   Per capita income in China is still considerably low, when compared to those in many leading western countries. It also has the world’s largest population. Hence, there is a growing abundance of skilled and unskilled labors that can aid one’s sourcing ambitions.  3.   China is a haven for thousands of readymade goods, machineries, parts and components, which are available at attractive rates. As a result, western businesses and their sourcing agents stand to gain.  4.   Rather than raw materials, manufactured goods are the major exports of China. The country is one of the leading producers of manufactured goods in the world.  5.   Many leading global Fortune 500 companies have invested in Chinese marketplace. The dedicated workforce, vast infrastructural improvement and quality manufacturers make it…

China has got certain benefits in terms of overseas sourcing, however, in order to do it properly, a professional sourcing agent is needed. Do you know how to qualify a sourcing agent? You may ask below 10 questions. 1)What sort of services can a sourcing agent offer? Obtaining products from China is often underestimated. It requires good amount of hard work, knowledge and expertise in this domain. Ask your agent to demonstrate what can he or she do to manage your project ‘end-to-end’ and this will save a lot of time in inspecting companies, customs, freight forwarders and collaborating agents. 2) What can the sourcing agent source? You may come across some agents who have a wide network in a market and they can help you to purchase different products. With large database and purchasing system, such agents can penetrate various markets and get you a product at an affordable costing. A good…

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…

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…

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,…