What does a sourcing company do?
A sourcing company works to implement a detailed set of procurement rules and regulations that are mainly aimed at locating, assessing and engaging the suppliers for goods to be purchased. The sourcing company normally gathers a professional team for purchasing, quality assessment, management etc. The team usually has knowledge in multiple languages, both local and foreign. The main tasks that a sourcing Company does include:
Product Sourcing involves finding and locating of products to be sourced to the client. A sourcing company act as the middleman between the supplier and the client. They specialize in importing goods from foreign countries on the behalf of local businesses. During product sourcing, the company usually tries to find out the best sources which have the best competitive prices in the international market. This helps to save businessmen significant product costs, an essential factor in making of profits.(Related article:How To Minimize Risks When Import Products From China)
2. Order monitoring
Once the products to be sourced have been identified and purchases made, the next step a sourcing company will engage in is order monitoring. After the ordered products have reached a certain milestone e.g. a certain shipment time, it is important for the sourcing company to notify their business client. Similarly, if the order is going to get delayed or there is an expected delay in shipment date, the company has to issue alerts to the client which may be in form of telephone calls or email notifications.
3. Quality Control
Quality Control is a system that has been established to ensure that the quality of the products being sourced meets the customer’s or client’s requirements. The set-out procedures and measures have to follow an established order. A product sample is usually checked against the set specification or benchmarks. Quality control helps to ensure that any error or defects are fully eliminated or they are minimal. This helps to ensure that the product is consistent.
The Logistics of a sourcing company is a comprehensive management and organization of the flow of products from the point of origin to the where they are required in order to meet the requirement of the business corporations or customers. The details of logistics include the type of product to be shipped e.g. electronics, construction equipment, beauty products, foodstuffs, animals, and the mode of transport i.e. by air or by water. It also includes abstract items such as information and time.
After the product has been packed and transported, the sourcing company has to check with its client after the delivery. The packaging, security and quality requirements of the products have to be confirmed to ensure that the products the client has received are what they had ordered.
The advantages of the sourcing company
The benefits of a sourcing company are numerous and they include:
1. Local Presence
Sourcing companies are stationed locally although they outsource their products internationally. As a client, nothing can be compared to having a close and trustworthy agent who is available locally at any time. Their local presence means that you can handle your business with them in a local manner. This helps to cut down the costs that you would have been used to search for the products that you require and the costs involved in the shipment.
2. Access to Prices
A sourcing company can be termed as the overseas agent. They have direct access to prices of products from the source. They also deal with importation costs such as import duties, taxes, and tariffs. In regions where corruption is rife, a sourcing company can easily navigate through such complications. Overall, a seasoned sourcing company has access to original financial information from the factories they network with. The company can negotiate with the supplier, ask for discounts and other relevant deals which the client may not have a direct access to. This will helps the client to get goods in an affordable manner.
3. Time Efficiency
A seasoned sourcing company will be efficient in the delivery of items. They know multiple businesses and they have a formidable network hence they have great channels of communication which they can use to place requests for orders. Their business professionalism and knowledge in multiple languages help to save time. Furthermore, the sourcing company’s good coordination skills and great business sense will overall help to improve the time efficiency.
A sourcing company has a greater understanding of the product quality as well as the rules and regulations of the foreign country. Sourcing requires extensive research hence the company can be relied upon to locate the appropriate company and to choose quality products. They can inspect companies to check if they meet the production standards and this may include ethical evaluations such as labor conditions, environmental pollution etc. The company will assess your product needs and they match them with the relevant supplier thereby ensuring that the quality of the products that the client wants are met.
Asia is one of the regions in the world with a lot of corporations which require the use of sourcing companies. Some of the entities that need to use a sourcing company in Asia include:
• Small and Medium-Sized Enterprises which are constantly putting massive efforts in sales and marketing of their products but they are lacking when it comes quality and purchasing of products.
• Groups, businesses or brands which carry out complex operations such as re-packing and product pooling.
• Buyers who are involved in business dealings that span across multiple industries and they need to deal with a particular number of traders and factories.
• All companies which are involved in certain types of market niches, those that are very adamant in ensuring that there is a tight control of production, brand protection, design protection as well as quality management of their goods.
Overall, sourcing companies do not only offer sells services, they are also specialized in process specific services and their main interest is usually their clients. Their focus is on the cost of the product, quality and also associated risks.
If you have any more questions about sourcing in China, please do get in touch so we can assist you in getting the right information.
Leeline sourcing company is involved in different sourcing business that will help your company’s grow, and make your international business better.
No matter how big or small your orders are, we will help you source quality and affordable products, and we will ship them directly to you.
• Product Sourcing: With over 10 years experience in this field, our team will keep your mind at peace, and you will be sure that the products are supplied through a responsible supply chain.
• Amazon FBA sourcing service: We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses. Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.
• Business and sourcing ideas: If you walk into our office, we will share business and sourcing ideas with you, even if you are importing yourself, our ideas will help you avoid mistakes that will be costly to your business. Our advice will surely help your business turn out better.
We will keep updating new resoures about hot selling item in china, if you are planning to open your online shop and don’t know what kind of products to choose, welcome to subscribe our articles, we will give you some sourcing inspiration.