Four Factors of Engaging Sourcing Agents In Dealing With Suppliers

The existence of traders and sourcing agents is due to the reality that there are many manufacturers who differ in the capability of export, understanding of the global marketplace, domestic company performances and foreign language skills, and so on. The global market requires a role to bridge the gap in between international buyers and producers. Nevertheless, while there are numerous buyers (consciously or unconsciously) dealing with trading companies, some purchasers especially these with specific technical requirement prefer to employ a nearby sourcing agent. Why do they shift from traders to a sourcing agent or sometimes not even straight deal with a manufacturer?

1. Much better manage

With a great sourcing agent, the buyer's interests are fully enacted in a very controlled manner. Firstly, with someone getting deep into the factories, the purchaser has a much better control of the production, delivery and after-sale service, and he can make certain all the followup information he receives is true and proved. Secondly and more importantly, the sourcing agent can jointly or independently find out suppliers info and negotiate with the suppliers without any motivation to win an order or sell 1 particular item. Consequently, the buyer is more most likely to be able to find a much more appropriate product as he does not get confused by the exaggerated or even untrue descriptions from the trader or manufacturer.

two. Authentic assessment and audit

A sourcing agent can provide the purchaser with complete info on registration details, official documents, newest photos and written reports about the factory such as offices, production lines, warehouses, quality manage station, lab equipment, etc to access the factory's qualifications, credibility, production capacity and technical expertise. But traders can send any information to the buyer or even claim they are producers of any item, whilst the reality is they might not be technically sound or have enough production capacity.

3. Simpler communication

A great sourcing agent is a individual with sound English fluency and understanding, common technical knowledge, business assessment, logistics, item style and international viewpoint. He can work perfectly on behalf of the purchaser to access suppliers, negotiate the cost and terms, do difficulty-shooting, order adhere to-up, coordinate in urgent times, and lastly, enhance the business partnership with the supplier.

four. Cost-saving

In the first location, sourcing agents or representatives generally function in a smaller group or simply work alone, whilst trading businesses work in larger offices with numerous departments. The result is the expenditures burdened by the latter are a lot heavier. Nevertheless, a larger purpose is the conflict of interests between the trader and the buyer, the trader will by no means share the manufacturer's information (contact, original cost) with the buyers for worry that the buyer could skip the trader and deal straight with the original supplier, in all instances, the trader strikes a deal with the purchasers at a hidden and highest margin, whilst the sourcing agent works for the purchaser at a clear-set service charges. Coupled with the expense factor, the cost the buyer could get from a trader is much higher than the fees he requirements to spend a sourcing agent.

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