Sourcing Made Simple
Locating and selecting specific individuals or businesses as per set criteria is a technique that is known as sourcing. Companies can carry out sourcing for different areas of businesses, as well as for unique reasons. Supply Chain Management (SCM) is one of the most common sourcing requirements. The process involves identification and subsequent assessment of potential manufacturers, and then engaging with the manufacturer providing the best value.
Vital sourcing requirements
1.Prices on offer must be competitive
2.At every step of the sourcing process, communication needs to be crystal clear
3.Product quality needs to be guaranteed
4.Only qualified manufacturers must be chosen
5.All services with respect to sourcing and inspection should be available
China is widely regarded as the manufacturing hub of the world, with products from here being supplied to every corner of the world. But just like any other part of the world, businesses and individuals have to shortlist manufacturers based on quality here as well. This is exactly where the judgment and expertise of a highly efficient Chinese sourcing company comes in. Such services can help a large variety of businesses run successfully over several years.
Why go through a sourcing agent?
Many business startups may find it to be difficult to source from China due to a variety of reasons. Some of these reasons are:
Hiring a local company or group for sourcing the manufacturer is a better bet since it will not be bogged down by any of the above challenges. A large list of manufacturers will always be visible online, but getting down to the best ones is likely to be a tough nut to crack for an outsider. At the same time, one cannot ignore the importance of Quality Control, which has to exceed end user expectations.
Check business ratings online
Not just products, but even companies are rated online these days. The sourcing company will also have a rating on the Internet, across various websites. A closer look at them will give a general idea of how the sourcing company is being perceived in the market. Select such a company only when the overall rating is positive and market reputation is high, so that the services are always of a high quality.
Buying from China has proved to be advantageous for businesses around the world. They have been able to enhance international competitiveness and have also been able to greatly enhance their main businesses. To make this happen, major companies have had to tie up with reputed sourcing organizations and create effective procurement strategies.
Bank on a highly dependable network
Sourcing Chinese companies have an excellent network among the manufacturers and other groups involved in the entire SCM cycle. A company should look to leverage this network and be able to procure items through them. Now there are different ways to reach out to this vast sourcing network-
1)Internet- This is the most cost effective way to search for sourcing companies, and is widely known. A large number of them are listed here and one can also carry out streamlined searches.
2)Use of social media- Fewer sourcing companies make use of social media as compared to other methods as a whole. However, one may come across forums and pick them from there, but do keep in mind that the information here is often unverified.
Although the sourcing agents will always help identify the suitable manufacturers, companies using them must remember to keep track of the transactions. The organizations also have to be careful while enforcing contracts with manufacturers, although sourcing agents may be able to provide assistance. Most of all, nothing can take away the fact that the organization has to carry out thorough research before sourcing.
The process of sourcing
Here are different steps in the sourcing process, although they may vary slightly from one organization to another:
1)Receiving price quotes- The best quotes are collected from a large pool of Chinese manufacturers
2)Reviewing the sample- Once the final quote has been accepted, physical samples are collected from the manufacturers and are sent to the customer for approval
3)Completing a trial run- Based on the approval, a trial run with a few products is carried out. The critical part of the project is discussed with the manufacturer, and the same quality is ensured by the sourcing company.
4)Start of production- Once the customer feels confident and assured, mass production is started. QC professionals monitor quality during production.
5)Commencement of delivery- Door-to-door deliver is carried out as per the customer’s demands, whereby forwarders pick up the products. Besides this, custom clearance, certification, documentations, and product clearance are also handled.