These days, most US and European companies depend upon the Chinese sources for manufacturing their products. The reason for sourcing from China is mainly due to their cheaper cost of raw materials and extremely low labour cost.
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However, before you go sourcing any Chinese supply it is always prudent to verify your source and know all details about the company. Otherwise, you may end up wasting your money on either any poor-quality product or dealing with a company that can never meet the commitment.
Therefore, it is necessary that you must do a lot of research before you select any Chinese supplier. However, with the language barriers that exist in China, it will be very difficult for any company of the west to deal with a Chinese company and hence a sourcing agent in China can play a very useful part.
If you look for any Chinese sourcing agents then you can come across many of them through the internet. It will be nice to talk to them and quite a few will appear to be too good. However, you cannot simply go by their word.
Rather, you must avoid those Chinese agents who promise you a moon if you ask for it. It is necessary therefore to go for a verified China sourcing company whom you can trust.
Especially, if you are new in the business, it is ideal to look for a trustworthy and reputable Chinese sourcing agent and you need to ensure that you may not end with a scam.
What are China sourcing agents?
Basically, the role of a sourcing agency in China are the following:
- Search for a suitable reliable Chinese supplier for you.
- Help you to deliver products that are tailored to your needs.
- Make sure the quality of products is meeting your needs.
- Ensure that your products are delivered well on time.
- Help you in price negotiation.
- Doing factory audit from time to time
- Ensuring compliance with international regulations.
- Any other special tasks needed for you in China.
A verified China sourcing company can be virtually your business partner in China who will represent your company.
Typical services provided by most Chinese sourcing agents are as follows:
1. Basic sourcing with a certain engagement fee
These are appropriate for clients that desire products that are readily available.
The agent will search through their extensive database of certified suppliers according to their product brief, as well as B2B sourcing websites and Chinese search engines.
They can guarantee their clients at least 3 suitable and trustworthy sources for any goods thanks to their experience.
2. Supplier sourcing process plan
Customers who choose more challenging or high-volume/value projects with lower risks will benefit from this service. Given that big projects require millions of dollars in investment, it is best to choose a reliable provider.
In order to save money and time, choosing proper provider from the start is crucial. This service will come with a thorough document that describes every step of the sourcing and validation process.
3. Quotation process plan
Before beginning the development process, the major goal of this strategy is to estimate the manufacturing cost of an OEM (custom) product. Initial research will be necessary, as well as meetings with the R&D team and perhaps some simple drawings and requirements.
The offered quote is merely an estimate, and its primary goal is to be as precise as possible. Thus, the project’s next step can be planned in this manner.
4. Route to market plan (RTMP)
This will be a document that details each step of the process from the start of the product’s creation until it is released to the market.
Every project is unique and goes through a different development process, thus you will have an RTMP that is tailored to your project.
Sometimes it is challenging to predict costs, in the beginning, making it impossible to produce an exact quote. However, a verified China sourcing company can make this job easy for you.
What are the benefits?
A Chinese sourcing company can offer you the following benefits:
The most crucial factor in a company is this, particularly when working with suppliers who are thousands of miles away. Working with a verified China sourcing company can help you in several ways.
2. Better communication
Although factories are good at creating things, they are typically weak in communications because they lack English-speaking employees and international business dealing expertise. Here, your agent will be very useful.
3. Better payment terms
China factories typically operate on thin profit margins and cannot afford to take any payment risks, so they constantly request 100% TT before shipment.
However, sourcing firms can provide better payment terms since they have more capital invested in the company and a better method of managing risks.
4. Better quality control
Before shipping and during manufacturing, sourcing businesses inspect the products. Typically, their QC personnel is more qualified and independent from the manufacturer, allowing for superior quality control.
5. No limit to product categories
They can collaborate with numerous factories in China to offer you a wide variety of goods. This enables you to procure various goods and send them in the same container.
If you want to import different products, you can save a lot of time and effort by not having to discover numerous suppliers to get in touch with and develop relationships with.
6. Small MOQ
They collaborate flexibly with factories. They can locate domestic suppliers that are difficult for you to obtain by using a variety of sourcing avenues.
7. Easy to get samples
As it is quite easy to obtain samples from factories, the majority of these agents are ready to send them.
8. Quicker lead time
To be flexible with lead times, they can occasionally choose alternate manufacturers with higher manufacturing capacities.
9. Smooth export process
Due to the fact that sourcing firms have export experience and a thorough understanding of the export process, everything runs smoothly and within budget.
With help of a verified China sourcing company, you can easily link with the reliable and best suppliers in China. You may be a new company that is planning to import or need some special product to develop in China a Chinese sourcing agent will be your best bet.