Using sourcing agents could save your business. China is the world’s largest manufacturing economy in the world. Home to millions of factories, it employs over 85 million people in the manufacturing industry. As a result, it has become very difficult to source reliable suppliers.
Finding the right suppliers is crucial for the longevity of your business. If you encounter a supply issue, your entire business could be over. What would happen if your supplier decided to close overnight? Would your business still survive? Your entire business is in your supplier’s hands.
Here are a few reasons why using a good sourcing agent could just save your business.
1. Time is Money
As business owners, we know that time equals money. Finding a reliable supplier you can trust can be a tedious task. There are hundreds of thousands of suppliers available online. As a result, it’s impossible to know which supplier is going to deliver without a lot of trial and error.
We’ve encountered businesses who have tried hundreds of suppliers before they found a supplier who could deliver. The time you take requesting samples, going back and forth with suppliers could set you back months, if not years.
Using a sourcing agent completely eliminates this. Sourcing agents not only speak the language, they have existing relationships with the suppliers. Because of this, they can ensure the timeliness of your production won’t be jeopardised.
2. Peace of Mind
The distance between yourself and the suppliers puts you in a tough position if a problem arises. As a result, hundreds of thousands of foreigners are scammed each year by suppliers. And there’s not much anyone can do about it. It’s hard enough to find and trust a supplier in your own country, let alone thousands of miles away.
Imagine this. You have a new product launch next week. You’ve collected thousands of pre-orders for this product and everybody is patiently waiting for its release. Your delivery finally arrives the day before launch. You open the delivery and find the products are so far from the samples you received from them previously. You are unable to use any of the stock you just received. Would your customers wait another few months for you to fix your supply issues?
Having a sourcing agent will ensure your complete peace of mind. Not only are they as close as possible to the action, they’re in the perfect position to physically review the suppliers themselves, review your products and make recommendations.
3. Sourcing Agents can Negotiate
Only a small percentage of all manufacturers and suppliers in China are online. This often means that sourcing agents have contacts to produce smaller quantities for a better price.
In addition to this, negotiating on pricing with your suppliers are essential. If you want to maximise cost-efficiency and profits for your business, you’ll need to negotiate. Let your sourcing agent do the negotiating for you. With local representation, sourcing agents may be able to negotiate better prices and lower minimum quantities.
4. Competitive Advantage
Finally, you’ll have a competitive advantage if you use a supplier that isn’t listed on one of the major supplier websites. These marketplaces have become saturated and everyone is drinking from the same pool. Using a sourcing agent increases your chance of finding a reliable supplier. One that isn’t mass producing your same product. Your products will have superior quality from a supplier that hasn’t had your product cookie cut a million times. Don’t let your business suffer because your supplier couldn’t delivery quality products.
Sourcing Agents act as your trusted and local guides. Their sole jobs are to invest their time and efforts into sourcing you reliable suppliers. Ones that you can trust and who can grow with your business.
Save time, minimize costs and maximize your profits. Contact us to speak to an agent today!