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Sourcing Agent – 7 Tips for Successful China Sourcing

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China has emerged as a leading manufacturing hub of the world. From electronic goods to plastic products- the country has it all. It should come as no surprise that more and more companies are now sourcing products from China. When it comes to variety, quality, and pricing, very few countries can compete with China.

Whether you are a business owner or a purchasing manager, one of your primary goals is to source high-quality products at the best price. Getting quality products at low prices enhances the cost-effectiveness and profit margins of your business.

If you are new at sourcing products from overseas, you must be wondering if sourcing from China is a viable option for you. You may be wondering if it is worth the risks. When done right, the benefits of sourcing from China far outweigh the risks. However, to achieve these benefits you should institute a well thought out strategy to ensure you get the best quality products with minimal risks.

Here are seven helpful tips for you for setting up your China sourcing strategy:

1.   Use a sourcing agent

A sourcing agent performs the outsourcing activities on your behalf. Instead of hiring someone else, you may be tempted to do it yourself. You might think that all you need to do is visit China yourself and speak to a few suppliers.  Sounds straightforward enough but have you considered the following hurdles? Do you speak the local language? Are you aware of local business practices? Do you know the licensing, certification, and other legal requirements?

A great China sourcing agent can take care of the entire sourcing process. From getting quotes from reliable manufacturers to shipping the products to your warehouse, the agent does it all. 

Choose an experienced agent that not only has a domestic office but also a well-staffed office in China. They would know the local language and dialects and be well-versed with the business practices. With several years of experience, the agent would help you connect with reliable manufacturers or suppliers specializing in the product you need.

Take your time in choosing the right agent for your business. They can take away all your outsourcing worries letting you spend your precious time on other critical business activities.

2.   Verify the credentials of your agent

As important as it is to hire the right agent for your business, it is equally important to verify their credentials. Don’t select the first name that pops up on your Internet search. Do take the time to research the agent and verify their credentials and track record; it is a vital step that should not be skipped. 

Look for the following:

  • Where is the agent located? It is much easier to do business with a foreign agent than a Chinese one. Getting accurate information on Chinese businesses is quite difficult. We recommend choosing a foreign agent with a local presence in China. Verify their trade license before you even begin discussions.
  • How long has its Chinese office been in operation? Find out how long their Chinese office has been operational. Your agent must have an experienced staff employed in their local office in China. Partnering with the right agent with a proven track record can help your business grow leaps and bounds.
  • Can your agent provide genuine references from business owners who have used their services? Be sure to check these references out. Speak to the business owners, wherever possible, and ask them about their experience.
  • How does the agent handle quality concerns? The main attraction of sourcing from China is to get high-quality products at affordable rates. Choose one that prioritizes quality. They must make it very clear to the Chinese manufacturers that substandard quality products will not be accepted.
  • Does your agent speak good English? Good English language skills- both spoken and written, are non-negotiable. Ideally, you should choose one with an office staff in China that can both speak and write well in English as there may be situations when you may need to speak directly with their staff in China.

Hiring the right agent is a crucial step to successfully sourcing products from China. Ask the right questions to ensure that you partner with the right agent that can help grow your business.

3.   Be very clear about what you want

For the sourcing process to be successful, you must provide your agent and the manufacturers a detailed specification of the materials or products that you want. Be very clear about what you want in the product or raw material. Do not assume anything is implied because doing business in China can be quite different than doing business in the West.

Failing to provide detailed specifications may lead to confusion and you could end up with something different than what you had ordered. You will end up wasting a lot of time and money getting the right products.

Provide detailed drawings if possible. If you are currently manufacturing your products, you may want to send them a sample piece. If changes are needed, make sure you provide detailed written specifications.

If you are ordering raw materials like aluminum or steel, specify the grade that you want. You may also want to specify what raw materials are to be used, to minimize the risks of getting the wrong products.

For colored goods, specify the color codes. Make sure you specify the exact raw materials you want your products to be manufactured with. Send photographs whenever possible.

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