When you start a company, you need the right suppliers. However, sourcing the right products or services can get overwhelming, especially if you are new in the industry. Moreover, you need to balance product quality, the cost of raw materials, and the affordability of your final product.
Handling all these aspects needs a sourcing company. So, what is a sourcing company, and how can they help you achieve consistent supply chains?
Sourcing Companies: What Are They?
Companies can find agents in China for sourcing regardless of their industry. After all, different sourcing agencies have set up in China as the hub of production for many industrial products.
Sourcing companies (or agencies) are the link between companies and the source for their products and supplies. Their significant role is ensuring these companies get low-cost supplies and products from credible suppliers.
Moreover, they go into specifics to provide products of a certain quality and type. In many cases, the companies (or clients) in question cannot acquire these products independently.
Sourcing companies work with one company at a time on exclusive contracts or remain open to handling other company’s needs. Unlike individual sourcing agents, sourcing companies work with larger teams and departments, including:
- Sourcing
- Quality inspection
- Warehousing
- Shipping
- Product packaging
These companies can also integrate supplier resources without an issue, making it possible to work with many companies simultaneously.
What Sourcing Companies Can Do for You
Firstly, agents in China for sourcing differ in experience and expertise. Therefore, their costs are not the same. Sourcing companies offer the following services:
- Selecting the Best Supplier
As a client, you must provide the sourcing company with a list of requirements. Thus, their search for a suitable supplier will be more informed. The more information a sourcing company has, the better. For instance, your budget should be well-known to the agency. Therefore, they can use their bargaining power to convince suppliers to sell to you at a good price.
- Following Up on Production
When the sourcing company finds a suitable supplier, production starts. Since the company represents you as the client, it ensures proper coordination with the factory. That means they monitor the entire production process.
The client also entrusts the sourcing company with checking the output quality before shipment. It is not uncommon to find some imperfections. However, sourcing companies reduce the chances of low-quality production.
- Shipping
Sourcing companies move goods quicker because they have all the legal documents ready. Moreover, they deal with export and import duties, tariffs, and local and international regulations. Dealing with foreign laws needs experience and certifications such as the CE, COC and RoHS.
Apart from the services mentioned above, some sourcing companies go ahead to customize the products by labelling them and offering e-commerce services.
Consider getting a sourcing company if you:
- Lack importation expertise
- Deal with multiple product categories
- Are a large retailer
- Deal in special product categories such as medicine
Small and large businesses benefit from sourcing services in many ways. It might feel challenging to trust a company with your production needs. However, doing business overseas is no walk in the park. Therefore, hire a credible sourcing company to handle all the aspects above and many more.
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