China sourcing is popular with many professionals in the field of procurement. Do you know why? Because it is the country that sells more manufactured goods than any other country! China is often called the world’s factory due to its strong and huge manufacturing sectors.
I will discuss what China Sourcing is. I will check how sourcing in China can be best for businesses. Also, I will share some tips when sourcing goods or services in China. Furthermore, I will present our best sourcing service in China.
Once you finish reading this, you will have a deeper understanding of how to source products in China. You will know how to analyze which supplier is good to be a business partner. Additionally, this type of sourcing will allow you to save more to develop your company’s future.
What is China Sourcing?
Many of us know what sourcing means. It is the act of searching for a supplier that can deliver the best goods or services for a company.
It involves finding quality goods and services for the best possible price. Therefore, if we connect it with China, we will get the main idea of China sourcing.
China sourcing is the act of searching for a supplier in China to acquire goods or services. It is not surprising that many professionals source in China due to its low costs.
Sourcing in China is the best decision if the organization wants to reduce costs when it comes to acquiring materials.
China offers low-cost materials which are why it is very popular in the trade industry. However, language barriers and some business practices can be challenging for foreign buyers.
When this happens, foreign buyers would seek help from a sourcing agent or agency in China. This makes their life easy because they do not need to personally negotiate anymore with the Chinese suppliers or manufacturers.
Should you use a Sourcing Agent?
When you start to buy in China, the first thing that will come into your mind is, “can I manage this myself?”
Of course, it is valid to be scared of sourcing in China as you do not have any idea how to start. But do not worry, we are here for you!
The below are the advantages and disadvantages that can help you decide if you want to employ a sourcing agent:
Advantages
Sourcing agents in China have a vast network that you can use.
Sourcing agents have mastered the art of negotiation which can help you when communicating with the supplier.
The organization will be able to break the language barrier through
Disadvantages
When you are employing a sourcing agent, there is a high risk of secret commissions.
Sourcing agents have more control over the relationship with suppliers.
Sourcing agents may switch suppliers without you knowing if it benefits them more.
China has become the largest manufacturing hub in the world in the last few decades. It is most likely to remain so for the next few decades too. With advancements in technology, production became faster in China and gave birth to the fast fashion industry. Its short production turnaround time ensured unlimited choices for customers. Today, everyone knows about e-commerce. The Asian country has taken advantage of it on its own in the past decade. These are some reasons why Chinese manufacturers have a competitive advantage over others. If you are keen on sourcing products from China, you must know about a few crucial aspects to succeed.
A web search is the default option for many people desiring to source items from an Asian country. You can also try out online sourcing platforms that will connect you to suppliers there. However, remember that most of them may be resellers and not manufacturers. If you are purchasing items like clothes, cheap electronic products, and toys, you can acquire their services. When you need products that must meet particular technical requirements, like plastic injection molding, die casts, and metal stamping, source directly from a manufacturer. Locate a trustworthy and reliable vendor as it helps reduce costs.
After shortlisting vendors, verify their credentials. While you can check out some information online, evaluate whether they are indeed a manufacturer and not a middleman. Also, see whether they possess the production capability and technical expertise to deliver what they promise. You can do so by checking their audited accounts, reviewing their product samples, and evaluating their tax invoice. Also, seek help from the local government office, which will have the vendor’s registration records. Verify every detail and only then hire the right people for the job.
One has to be skilled and experienced to transact with Chinese suppliers successfully. You may find it quite challenging to secure a favorable agreement if you are new to the industry. This is where a professional and expert sourcing agent comes into play. These specialists can liaise with a retailer. They usually possess a range of supplier contacts that their customers may use to avail the best deals. Not hiring these professionals can make the product sourcing process riskier and more stressful.
A strong strategy is needed while sourcing from China as handling suppliers and paying off money to liaisons overseas can become risky. You can make this happen with the help of experienced sourcing agents.
Although a good manufacturing agreement is an excellent way to begin your relationship with the vendor, also opt for daily quality control inspections. These are necessary so that you can ensure high-quality products. Quality control inspections help prevent costly errors later on. As per research, problems discovered later in the production process will always cost higher than those identified earlier.
Keep these tips in mind while sourcing products from China. Get in touch with a professional sourcing agent. They will help you achieve the best business outcome.