Top brands are using sourcing agents to streamline their manufacturing processes, keep their costs low, and deliver quality products to their customers - in less time. We can provide customized solutions according to the different needs of customers imported from China. If you found a supplier at alibaba.com, make sure to pay with trade assurance. This is also a question that should be looked at from both sides. Working on your behalf, the agent will negotiate and dedicate their time to finding quality products, manufacturing factories, and prices for you and your company. How To Verify Chinese Companies (13 Free & Paid Methods): Legitimacy, Quality And Capability, AQL Sampling 101: Meaning, Tables, Levels for Inspection, How to Buy and Import Aluminium Windows and Doors From China, Import from China to UK: A to Z Guide | Products, Shipping, VAT and EORI, Need a Sourcing Agent? , China, or another foreign country, you need to find someone to make the product, negotiate prices, manage the actual production, handle quality control, and get your products shipped. USEFULL Completes Production Run of Eco-Friendly Steel Containers. After the goods have been produced and checked for quality, your agent will arrange the most suitable transportation, which may be by sea, air or land, depending on the size and weight of the goods and your budget. The cookie is used to store the user consent for the cookies in the category "Performance". Their experience and skills can help expedite shipping and cut down on expenses, reducing the risk of any delays or unexpected halts in the supply chain. If you can read this far, you must be very committed to your import business. In fact, you may get contacted by potential partners on LinkedIn all the time. For one the finished goods requirements aren't the same nor is the timing. If they are not willing to guarantee performance in some tangible way, then they are not the right partner for you. They do this by locating sources for high quality materials and products at the lowest price. Many things can go wrong, mainly when they cannot oversee their products production. Do you have contacts in the countries where your products are manufactured that you can trust 100%? You should work with a sourcing agent who has been in business for many years and has a proven track record. Doing everything yourself is sometimes the main reason why businesses fail to grow, and outsourcing some of the work allows you to spend more time on sales and marketing. The advantage to working with a purchasing manager is that they have history and experience working with reliable manufacturers. Outsourcing agents serve as representatives for your company. The estimated additional pay is $5,854 per year. We have worked with a number of metal forming manufacturers in sourcing, both domestic and international, since 2005. with getting quotes from different manufacturers to inspecting factories to handling all the nuances involved in manufacturing and shipping. Your email address will not be published. Outsourcing agents are particularly helpful if your manufacturer is overseas. The basic function of every China sourcing agent is to identify, verify, and confirm a supplier that suits the needs of their clients. 30k+ Product Sourced. They play a critical role in ensuring a companys profit margins remain strong. The option of working with a sourcing agent has been around for several years. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Distributors can raise prices to profit from their wholesale purchases, which often happens. Nobodys good at everything, but everybody is good at something. An industrial cluster is a city or town that concentrates on the production of a specific type of product and gathers raw material suppliers, processing plants, trading companies, industry associations, and other related institutions. By failing to prepare, you are preparing to fail. A good sourcing agent can add value to your supply chain, but a bad one can increase your costs and be of no help to you. They keep a list of tried-and-true companies that is constantly developed and compiled over many years. 11) Top 20 Best China Wholesale Websites 12) Difference between Sourcing Agents in Different Cities in China 13) How to Source Products from China? Sourcing agents will ensure that the supplier and/or manufacturer is working to meet your demands within the expected time frame and will give you regular progress reports throughout the importing process. Sourcing specialists are experts in manufacturing and know the ins and outs of their industry. They handle everything then charge you for the final product. What can you do? A good product sourcing agent will always keep you updated on the progress of the process. Working with a partner who can help create and produce your product will make your journey easier and increase your potential for success. A distributor, whether a third party or trader, can be. Communication is known to be the key to building strong relationships. 2. Sourcing specialists also serve as a purchasing manager to help handle tariffs, taxes, importing, and exporting. They play a critical role in ensuring a company's profit margins remain strong. Relying on someone else to find you the best deal and the best quality, while also handling logistic management, saves you valuable time, energy and money. A sourcing agent is an individual or company representing a buyer in finding a suitable product or supplier in an overseas country where the goods are manufactured. After finding the right supplier, using quality inspections to ensure the chosen factory properly manufactures your product is the second most crucial thing a sourcing agent does. Finding your manufacturing partner is a critical step in the product development process, so invest the same passion and focus as you do into research, design, and prototyping. Trusted Network of Manufacturers-The advantage to working with a purchasing manager is that they have history and experience working with reliable manufacturers. A quick online search of off-shore suppliers will pull up hundreds of results. Some do not even reveal they are acting as an intermediary, leading you to believe you are dealing directly with the factory., Gembah has many free online resources, including a, Manufacturing in China: The Power of Relationships, . We also have great background information on production in. The agent charges you $10 and splits the difference of $3 with the factory. Before you work with a sourcing agent, confirm not only where they are located, but also what products they have sourced. According to reputable sources, 90% of sourcing agents get hidden commissions from factories. Additional Reading on Overseas Product Sourcing When your order quantity is more than $1000, consider working with a sourcing agent to find the original factory and reduce supply chain risk. However, even though the benefits of having a single point of contact who knows the local options has significant advantages, it does come with some inherent risks. Risks such as supplier fraud, low-quality goods, delivery delays, non-compliant goods, etc. What is a 1688 agent? Some buyers already have experience importing from overseas, but most of their suppliers are actually trading companies. overseas because there are so many options. Their profit is included in the price quoted to the buyer. Free Download: What is a Sourcing Agent? After all, the buyer cannot place an order just by looking at product pictures, and there is no way to judge the reliability of the suppliers from their websites. You also have the option to opt-out of these cookies. What assurances will the product sourcing agent provide if the supplier falls behind schedule, takes advantage of you, or produces an inferior product? Result-Oriented Manufacturing Sourcing Agent in China That Cares About You JULIE HUTTON, INC. And your sourcing agent should receive payment from you directly only when you pay the supplier. By working directly with the factory, you can, Working directly with a factory, you need to, Working directly with the factory, youll. There are a lot of moving parts and the unexpected is the only thing you can expect. Save my name, email, and website in this browser for the next time I comment. Working with this type of sourcing company gives you little control and has higher long-term costs. We promise to deliver your goods, at the right place, at the . Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Typically freelance sourcing agents in China have an hourly rate of $10-25 and a monthly salary of around $700-1500. If they are not willing to guarantee performance in some tangible way, they are not the right partner for you. They will draft business agreements with nominated China contract manufacturers to create parts, components, or finished. Inform the supplier that youll have a third party inspect the product before making the final payment. In short, they are your representative in the country you have chosen to work in and they are getting paid to solve problems, find resources, and advocate for your best interest. The following are just some of the real world examples of companies that got in trouble by using third-party sourcing agents without contracts to protect them. Find a Reliable Manufacturing Sourcing Agent in China 2022-06-07 Great products are held back every year because inexperienced entrepreneurs have no idea how to manufacture them. Sourcing agents commonly take advantage of uninformed entrepreneurs by manipulating the pricing in the factorys favor and, since they get a percentage, their own commission. Some sourcing agents wont let you know about the factory. View our customer testimonials to see how weve helped companies across multiple industries. With over thousands of parts, that $3 can add up and you, the entrepreneur, have no idea of the non-value-added costs you are paying. Buying agents held important positions in southern China, buying and selling tea, silk, cotton, and yarn for foreign companies. What if I receive a shipment and find that the quantity is low? Others are completely incompetent, or worse, outright liars. A sourcing agent is an individual or company that helps businesses source products in another country. On the other hand, sourcing agents control logistics costs very similar to the method used to source suppliers. As a buyer, can you visit the factory before you place an order? Even though the sourcing agents have quoted competitive prices, the buyers did not place any order because of their own reasons. You need someone with years of experience and suitable systems in place to represent your interest in suppliers effectively. If you dont know anything about the product at all, you can learn the basic product specification through alibaba.com. Can the product sourcing agent provide at least two references from companies similar to yours? Entrepreneurs struggle to find and vet a manufacturing partner overseas because there are so many options. Global sourcing is just one step in the process of bringing your product to market. A sourcing agent gets paid a percentage of what the factory gets paid, making compensation simple. Problems arise because they may also get paid by suppliers. If they dont rave about the sourcing agent, move on to the next one. However, they quote the product price to the customer and receives a percentage commission for supply chain management only after the customer approves the sample and quotation. Your trusted sourcing company in china.One-Stop service help you import from China,Alibaba,1688 to Amazon FBA USA/UK. Sourcing agents act as procurement managers and manufacturing representatives. Different categories of products are usually manufactured with different processes and in various industrial cluster locations. 5. Knowledge of Culture & Developed Relationships-Whether you are outsourcing domestically or overseas, sourcing agents know where and who to work with. There is no requirement that . Lets take a look at what types of companies are using sourcing agents and why they decide to do so. Because they work directly with the manufacturer, they can offer retailers factory pricing. Investing some time with several potential sourcing agents upfront can save you considerable costs and headaches down the road and also lead you to the right supplier. Transparency in the supply chain can be seen in the following questions: If the answer to all three of these questions is no, then your sourcing agent is actually operating as a trading company. Sourcing agents work for the buyer, and all behavior should be in the buyers best interest. A trader is a middleman that fills your order. Another way that a sourcing agent can make money is to find a low-cost, and often low-quality, manufacturer, charge you what quality suppliers would charge, and split the difference with the factory. The best way to get to know them is to talk to the clients theyve worked with. The benefits to buyers of being charged by the hour. 1. One of the key services of sourcing agents is supplier verification, as they usually have local teams in countries of origin such as China and know how to verify Chinese companies. Judging by the name of the sourcing agent, it seems they are only responsible for sourcing, but in fact, todays sourcing agents services include all aspects of the supply chain. Buyers often find a local agent to act as their eyes and ears to verify what the supplier claims and keep a close eye on new product trends from the manufacturing side. As a buyer, there is no standard answer as to whether you should ship your goods with a freight forwarder or a sourcing agent. Some of them may have years of experience working for a trading or China sourcing company. Talk to references in the same or similar industries that produce the same type of product you are designing. Even supermarket giants like Target and Walmart use sourcing agents to help stock their shelves with products. A distributor, whether a third party or trader, can be expensive. Conclusions of the sourcing agent vs. freight forwarder. But is the more services an agent offers, the better? In many cases, the buyer needs to develop a new product and needs a reliable factory with sufficient capacity rather than an off-the-shelf product. The sourcing agent is a popular solution because you may not have the experience or internal resources to work directly with the factory. If you think sourcing and procurement are synonymous with each other or a laymans terms for talking about getting supplies for an organization, were sorry to burst your bubble. FBA sourcing agent is a sourcing agent who specializes in finding suppliers for Amazon FBA (Fulfillment by Amazon) sellers, inspecting the quality of goods, packaging products according to Amazons requirements, before delivering them to Amazon FBA center. A sourcing agent is a person or small business that is your resource on the ground. When youre looking for a sourcing company, youll find that some are based in China, some in the US, Australia, or other countries. Some agents claim to offer 0% commission or 1% commission, but this does not mean that you, as a buyer, will end up paying less. Remember, your sourcing agent is representing you and they are getting paid to take on the responsibility of finding a suitable supplier, ensuring product quality, and making sure you are getting charged competitive prices. He likes to work with clients who are super serious about their businesses. With so many benefits to buyers working with a sourcing agent, is it always better to work with a sourcing agency than a trading company? On the one hand, a sourcing agent can provide access to a network of high-quality, vetted factories and have the potential of saving entrepreneurs time and money. Founded in 1991, our company specializes in manufacturing and sourcing consumer, technical, and industrial products in India and other parts of Asia. Spending time in advance dealing with several potential sourcing agents can save you considerable cost and hassle later and lead you to the right supplier. Do you know how to fix these problems if they occur? They work to find your factory, assist in negotiations, and help fix problems when they come up. 14) China Import Sourcing Agents 15) How to Find China Import & Export Agents 16) Your Alternative Sourcing Choice: Chinese Trading Company 17) The Best 7 China Trade Shows Thats why buyers usually hire sourcing companies to consolidate shipments, check the quality of goods, and supervise the container loading. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. But its fast and easy. 6000+ clients Recommended. The specific costs are related to their charging model and how much they charge for a particular product category. Advantages of working with a sourcing agent over a trading company: Disadvantages of working with a sourcing agent rather than a trading company: Conclusion of sourcing agent vs. trading company. You can look up any domain name directly by using the following URL: If you have a candidate sourcing agent, you want to know what products they specialize in. A third party will find your factory, manage everything, and run almost every aspect of procurement. Depending on their skills and influence, they may even be able to find rare inventory. Relying on an outsourcing agent offers the business owner peace of mind. However, if you already have a clear idea of what products you want, with detailed product specifications and estimated order quantities, a sourcing agent will be more helpful to you. Save my name, email, and website in this browser for the next time I comment. Transparency in the supply chain is the main difference between a sourcing agent and a trading company. These professionals usually have a place in the types of products they handle. Our sourcing service gives you direct supplier contact information. They are an excellent investment, especially for e-commerce operations that want to stand out from the competition. With onshoring, companies don't need to build stockpiles. Gembah has many free online resources, including a guide to manufacturing in China and an informative webinar, Manufacturing in China: The Power of Relationships. We also have great background information on production in Mexico, Vietnam, or India. They can ease a companys access to international imports and minimize the risk of dealing with overseas suppliers. When any unexpected issues arise, a sourcing agent gets to the bottom of the issue and resolves them. Some purchasing agents quote their clients a fixed price for each of their services before working together. You will usually get a more reliable answer this way than if you ask them directly about their main products. Under a percentage commission charging structure, the sourcing agent does not charge for product sourcing services before working. Therefore, most companies operating in multiple product categories will appoint a sourcing agent in China. Fewer Inventory Surpluses. Most sourcing agents in China are based in three cities: Guangzhou, Yiwu and Shenzhen. This sourcing specialist provides various services for international trades. It also helps to monitor the buying agent and assess their legal priorities. As a result, when things go wrong, they often tend to defend the factory, writes, . The way the business model is supposed to work is for the agent to receive a commission based on what you pay the factory. They can negotiate and deliver information more effectively without being mistranslated. If they outsource this step to a third party, it increases costs, potential errors, and is another source of hidden fees and kickbacks. Sourcing (buying/purchasing) agents can be dated back to the nineteenth century when they were known as compradors, a local contract supplier or local manager working for a foreign company in East Asia. Reynold Li is the co-founder of Fami Sourcing who specializes in the field of supply chain management in China. Thats why its essential to find inventory from reliable suppliers at a reasonable price. They work to vet potential manufacturers and determine the needs of both companies. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Whether its an air or ocean freight forwarder, they usually have advantages on certain routes while carrying other routes with so-so prices. Many people choose to work with a sourcing agent, but that doesnt mean you should do the same. Make sure you get the quality you paid for. The commission percentage varies slightly depending on the agents industry of expertise and their level of specialization. It would be best if you remembered that the most crucial benefit of working with a sourcing agent is to get a more competitive price and reduce supply chain risk. As a results-oriented manufacturing sourcing agent, Fami Sourcing is dedicated to helping small and medium-sized companies turn ideas into products and manufacture their private labels in China safely and cost-effectively.
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