A sourcing agency or company looks for dependable suppliers and partners to produce products that are tailored to the client’s needs. These are high-quality lavish products or products with a focus on low cost, where the standard must be reliable, but does not have to meet the highest requirements.
Agents in China will be tasked with a variety of activities, ranging from arranging for Western consumers to meet with Chinese suppliers in-person to procure a product on behalf of a client (company). Some of the activities include price negotiation, internal control, manufacturing plant audits, compliance with international legislation, logistics, and other activities.
When businesses directly source from China it is regarded as a significant advantage in terms of having lower prices in work by multinational businesses. Various brands take advantage of this opportunity, and the high quality has made Chinese manufacturing a staple of rising production. Because of the low labour cost, product sourcing companies see it as advantageous to supply a wide range of products from China.
Benefits of Sourcing from China
Low Labour Cost
China has a population of approximately 1.39 billion people, making it the world’s most densely populated country. Since the supply of employees exceeds the demand for low-wage employees, the law of supply and demand dictates that salaries remain low. Furthermore, until the late twentieth century, the majority of Chinese were rural, middle-class, or impoverished, until internal migration shifted the country’s rural-urban distribution. These newcomers to industrial cities are eager to work multiple shifts for low pay.
Moreover, various government laws enable employers to maintain excellent work standards without having to raise labour costs. Most of the employees have years of coaching or knowledge in their respective fields. As a result, as a buyer, when you directly source from China, you don’t need to spend time or money on training.
A product sourcing agent can also assist in the search for low-cost, but capable labour. In other words, you won’t have to deal with any complications or waste time looking for suitable labours.
Extensive Supplier Base
Western companies can benefit from China’s extensive network of suppliers, which is why so many of today’s productive businesses directly source from China items such as textiles, electronics, toys, mobile phones, etc. businesses can also work with sourcing agents because they have such an extensive provider base at your disposal. These companies will use their years of cultural awareness, knowledge, and relationships to help you import goods from anywhere in the world.
For example, the Yiwu market is a wholesale market that has around 40,000 shops compromising all kinds of goods in the market. The best part is that these shops can also take minimum orders of 1-2 cartons.
When it comes to outsourcing, customers are frequently forced to deal with multiple parties, like middlemen, resulting in delays and higher sourcing costs. When it comes to procuring products from China, though, you’ll directly source from China.
In China, the OEM business is fiercely competitive. As a result, most manufacturers prefer to deal directly with customers to avoid the higher costs of middlemen. In certain circumstances, you’ll only need to work with one product sourcing agent, making it easier to get to the bottom of things quickly.
Through online marketplaces like Alibaba, direct visits to different traders’ markets in China, or the assistance of an experienced sourcing agency, you can easily connect with a reputable and experienced supplier or their representative agents at international trade fairs.
Freedom to Make a Choice
You don’t have the freedom to check the operating terms and conditions when you choose local suppliers. You only need to inform your provider about the specific product. If they live up to your expectations, you will receive the requested product, otherwise, you’re only disappointed.
However, with Chinese product sourcing, you can visit factories in person and inspect their working conditions. You can also choose from a variety of factories and discuss your requirements. As a result, when you directly source from China, you can select the appropriate products as well as the specific facilities that produce them.
Improved Scaling Abilities
China’s infrastructure is well-established and robust. Most Chinese manufacturers have years of experience and extensive knowledge of global supply chain management. These qualities allow businesses to scale up production as and when required.
For example, you can boost your sourcing product from tens of thousands to over millions in a matter of days or weeks. Of course, the length of time it takes to scale up depends on a variety of factors, including the nature of your product and the availability of raw materials.
Furthermore, most manufacturers’ regulations do not require customers to place large bets on the Minimum Order Quantity (MOQ). MOQ requires you to pay for cheaper pricing, allowing start-ups and small businesses to start purchasing items in modest quantities.
Excellent Product Quality
Chinese products are commonly referred to as “use-and-throw” products. However, this is frequently not the case. Many small and medium firms have already discovered suppliers who provide high-quality Chinese-made products.
In truth, most suppliers have years of active manufacturing experience and hence fully comprehend the manufacturing process. They also know where to get good-quality material most easily and least expensively possible, and they already have the machinery necessary to maintain a high-quality standard.
In addition, you’ll enlist the help of a sourcing agency for quality control to ensure that the product meets your quality standards and technical specifications. Most aspiring and experienced producers are aware of this. As a result, they’re more than willing to comply with product quality inspections at various phases of the manufacturing process.
Choose a Sourcing Agency
When hiring a local sourcing agency, all the hassles are all taken care of –
- Increase efficiency while saving time and money.
- Find high-quality items at a reasonable cost.
- Avoid miscommunications caused by linguistic and cultural disparities.
- Onsite audits and certificate verification to avoid scammers
- Minimization of risk.
Even if your company is new in the business or requires specialised merchandise or large numbers, a Chinese sourcing agency will connect you to the decent and experienced suppliers in China.