Many had projected that China would overtake the United States as the world’s greatest economy in the twenty-first century. China is still considered the cheapest country for American manufacturers and merchants to acquire products or parts, despite the fact that the relative cost of manufacturing there has increased recently.
Online search engines like Bing or Google and a few B2B sourcing platforms as given below are the fastest and most affordable ways to begin looking for a product sourcing from China.
- Global Sources
These websites feature thousands of providers, and by narrowing the search results to only those listings marked as below, you may speed up your search and find more reliable sources.
- Gold member
- Verified supplier
- Onsite supplier
- Accredited supplier
Additionally, positive reviews provide some proof that the supplier is reliable. Some B2B sourcing platforms have approved suppliers and blacklisted service providers. Alibaba, for instance, has a list of prohibited users.
Dealing with suppliers directly for product sourcing from China sounds like too much work and risk, you can hire a China sourcing agent with experience who works on commission.
These agents are able to identify, validate, and facilitate communication with suppliers. Their charges may be between three and ten percent of the buying price.
Despite the fact that sourcing agencies might handle some of the “hard work,” such as locating and vetting suppliers, you should still be actively involved in the purchasing process.
Sometimes, commission-based sourcing brokers lack the knowledge or sophistication necessary to efficiently manage production and quality control or ensure that transactions are carried out at a reasonable cost.
Be mindful that often commissions received by sourcing agents from Chinese manufacturers, which may also be disguised.
How sourcing service can benefit you?
Hiring a sourcing agent who offers a variety of services is the best option, if you want someone to assist you with the full process of product sourcing from China from beginning to end. They can help you by doing the following activities:
- Supplier identification
- Quality control management
- Supply management
- Price negotiation
- Shipment and logistics management
- Many other sourcing matters.
Although sourcing service providers charge specific costs for handling buying transactions, there are benefits and drawbacks to take into account. A sourcing service provider can spare you the trouble of finding and vetting suppliers, production inspection, product quality control, and logistical planning.
However, by employing such a service, you forfeit the chance to gain knowledge of the Chinese marketplaces. Expect greater upfront charges at the start of the transaction because utilising a sourcing service provider is more expensive than dealing all by yourself.
Opportunities for buying products from China
Manufacturing process outsourcing has become a crucial component for the majority of global enterprises. The significance of a procurement strategy that includes local purchasing and sourcing from low-cost countries has increased in order to compete in an increasingly competitive worldwide market.
Many businesses have effectively cut manufacturing costs by outsourcing their production tasks to Chinese manufacturers with the help of a China product sourcing agency.
This has helped them maintain and secure the following benefits even while the economy is slowing down while withstanding competition. Savings from procurement have had a significant impact on firms’ bottom lines.
- New Concept in successful China product sourcing operations
- Help in finding reliable Chinese manufacturers
- They can offer management of the end-to-end manufacturing as well as sourcing processes
- They also deliver quality inspection services as well as a complete logistics solution
Thus, by providing flexible and specialised solutions, these China product sourcing firms aid in the bottom-line growth of your company.
China has provided businesses all over the world with advantageous business prospects, unrivalled development potential, and a low-cost supply of high-quality goods and services.
Due to its membership in the World Trade Organization, it is regarded as a valuable sourcing partner and benefits from a favourable labour market, which benefits both the manufacturer and the supplier.
Thus, the establishment of operations in China by sourcing firms from around the world is not unusual.
You can choose a procurement service provider who will manage the process of acquiring goods from China on your behalf for a cost.
We suggest you take a look at Procurementfreelancers.com, a specialised marketplace for freelancers created to link organisations with sourcing experts from all over the world.
What are the criteria’s for selecting Chinese Sourcing Company?
Here are some considerations you should make when choosing a provider of procurement services for your company for product sourcing from China.:
- The company must provide a full range of product sourcing services, including
- Supplier identification
- Management of quotations
- Product development
- Contracting and supplier selection
- Quality control management
- Supplier development
- Logistics management.
- The company sources throughout China instead of only the traditional industrial hubs located in the Shanghai- Beijing-Shenzhen axis.
- A network with fully-owned purchasing offices allows the agency to make purchases in other low-cost nations (if necessary) in order to diversify the Chinese supply base.
- The team has gained the sourcing expertise necessary to seamlessly connect with your organization’s sourcing process and has knowledge of the categories that need to be bought.
- Make sure the business can overcome obstacles and hazards associated with sourcing goods from China and persuade a company to switch suppliers from a stalwart foundation in high-cost sectors to a new base in low-cost sectors.
- Their team is equipped with the interpersonal and project management abilities required to work with all of your company’s key stakeholders and win their trust.
- Addressing and controlling the risks related to sourcing from China is crucial. Companies that source goods in this nation take the necessary precautions when acquiring qualified labour or supplies. A potentially profitable way to reduce these risks and guarantee procurement success is by hiring skilled personnel at a procurement service agency.
So, while you are looking for a certain agent for product sourcing from China you must keep in mind all these considerations in your mind. With careful selection of a sourcing agent in China can surely help you in improving your bottom line in the longer run.