7 Ways to Find Your Best Sourcing Company
First, let us answer the question quickly and accurately.
What does a sourcing agent/company do?
A sourcing or procurement officer or agency is an individual or business who finds the product you want to sell in your preferred country.
Therefore, their main function is to identify qualified suppliers who meet your importing needs.
You will need to start planning the commodities you want to import from China or a certain country, and coordinate with your sourcing agent about it. Then your sourcing agent will search for a perfect supplier right for your needs and handle the rest of quality control to get the goods shipped out to you.
Sourcing the different products and services you need for your company is pretty beneficial in so many ways. It could save you time, achieve great results, and meet the goal of your brand; however, you need to know that it might cost you. Although you'd find lots of sourcing companies everywhere, it would be nice if you know how to pick the right one for your business. You do not want to waste your time and effort in dealing with unprofessional sourcing agents, and you can avoid it in this handful of ways.
1. Have a crystal-clear scope of requirements.
Before you start searching for your potential sourcing partners, you need to define a clear scope of what you need. In this phase, you might want to answer the following questions.
● What are the requirements I have for the sourcing team and supplier that I am looking for?
● What specific scope of services location, language skills, expertise, and payment terms do I prefer?
By answering these questions, you'd clearly have the list of what you need to look for in your sourcing partner. You would want to write it in a document so you have something to look upon when searching for sourcing companies.
2. Define a clear and consensus budget.
Budget could be one of the serious parts of a deal that needs to be well-communicated. No matter where you go, you need to communicate a clear budget because it can ruin your relationship with the vendor and could also affect your business.
In finding your sourcing company, you need to know the volume you plan to have, the amount you are willing to spend for the products, and the cost you are open to pay for your sourcing agent. However, in setting up your budget, do not settle for a fixed rate, instead set a range of costs because price changes could happen unexpectedly.
3. Pick the right type of sourcing company.
There are three types of sourcing companies, and they differ greatly. These are simple sourcing agents, a large sourcing company, and a full-service sourcing and logistics company.
All of these have their own pros and cons and there is no perfect choice. However, you need to think of your needs so you can choose and decide what could be the right type for you. For example, you'd benefit a lot with a sourcing company that has logistics ready because it will lessen the hassle on your part. If you don't know the process of logistics then choosing this type is your perfect choice.
4. Research. Compare. Decide.
There are lots of sourcing companies you'd stumble upon. However, you need to do your research so you can see and filter the most ideal one for you. In this case, research at least 5 to 10 sourcing companies and then browse their site and social media pages to see their business. After completing your list, you might want to compare them from each other based on the requirements you set on the first step. You should come down to at least 3-4 sourcing companies that you would choose from.
5. Check their offers.
Now that you have the rundown of 3-4 sourcing companies, it's time to see what they can offer. You might want to look for their offer when it comes to the price of their products, the payment model, pricing structure, cost of their service, and the different features of their company. After checking their offer, you can now decide who to choose. However, you might want to base your decision on the offer that would benefit and fit you the most. Likewise, ask for their business permits before you start a deal with them.
6. Talk about payments.
Now that you have picked the right sourcing company, you might want to know and negotiate payments. You might want to know if the payment is fixed or if it is negotiable. If the agent you chose is a company, the cost is unlikely to change. However, if it is an independent contractor, there is a higher chance that you can negotiate. Before you seal the deal, you also might want to know if the price will decrease if you reorder in the future.
7. Prepare a document of agreement.
A written agreement is always essential in sealing the deal. The document should contain the things that both parties have agreed on. For example, are the payments and the responsibilities of both parties when it comes to delivery, handling, and quality. Everything should be clear and stated on the document so that when something unexpected happens, you have something to rely on
Selecting a sourcing company isn't as easy as purchasing a product from a shop and paying for it afterward. It's way complicated, which will require a bit of your meticulous side so you can pick the right one. Just don't forget that communication will be your best asset to seal the deal with the perfect sourcing company for your business. Try to keep the above ways before you start your search! Not sure how and where to start? We got your back! Contact us and we will gladly help the best way we can to give you the excellent trading and importing experience.