Four Reasons of Engaging Sourcing Agents In Dealing With Suppliers

The existence of traders and sourcing agents is due to the fact that there are many producers who vary in the capability of export, understanding of the global marketplace, domestic company performances and foreign language skills, etc. The international market requires a function to bridge the gap between international purchasers and manufacturers. Nevertheless, while there are numerous purchasers (consciously or unconsciously) dealing with trading businesses, some buyers particularly those with particular technical requirement prefer to hire a local sourcing agent. Why do they shift from traders to a sourcing agent or sometimes not even straight deal with a manufacturer?

1. Better control

With a good sourcing agent, the buyer's interests are fully enacted in a extremely controlled manner. Firstly, with somebody getting deep into the factories, the buyer 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 much more importantly, the sourcing agent can jointly or independently discover out suppliers info and negotiate with the suppliers without any motivation to win an order or sell 1 specific product. Therefore, the purchaser is much more likely to be in a position to find a much more suitable item as he does not get confused by the exaggerated or even untrue descriptions from the trader or manufacturer.

2. Authentic assessment and audit

A sourcing agent can provide the purchaser with full information on registration particulars, official documents, latest photos and written reports about the factory including offices, production lines, warehouses, quality manage station, lab gear, 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 product, whilst the fact is they may not be technically sound or have enough production capacity.

three. Simpler communication

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

four. Price-saving

In the first place, sourcing agents or representatives usually work in a smaller team or merely work alone, whilst trading companies function in bigger offices with multiple departments. The result is the expenditures burdened by the latter are much heavier. Nevertheless, a bigger purpose is the conflict of interests between the trader and the buyer, the trader will never share the manufacturer's info (contact, original price) with the buyers for worry that the buyer could skip the trader and deal directly with the original supplier, in all cases, the trader strikes a deal with the purchasers at a hidden and highest margin, while the sourcing agent functions for the buyer at a clear-set service fees. Coupled with the expense aspect, the price the buyer could get from a trader is much greater than the fees he needs to pay a sourcing agent.

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