What is a Sourcing Agency and How Does it Benefit Your Business?
If you are running a business, whether small, medium or big, you very well know that in the procurement process, sourcing is essential. But not all materials can be purchased from within the country. Therefore, how do businesses acquire materials from other nations? Who will they contact? This article will direct you on what a sourcing agency is and its roles and responsibilities.
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What is a Sourcing Agency?
A sourcing agency is an agency that assists its clients with finding sources for products and supplies at sensible market costs and with specific quality principles. For instance, a sourcing agency can help you locate a Chinese manufacturer that meets your specifications regarding price, quality, and delivery. So, even if you are new to the business and do not know anything about sourcing, you can easily contact Chinese wholesale suppliers with the help of a sourcing agency.
What are the Functions of a Sourcing Agency?
A sourcing company’s primary responsibility is to locate manufacturers or suppliers for an e-commerce company, but their duties may extend beyond that. A sourcing agent typically provides the following services to their customers:
Sourcing Products, Suppliers and Manufacturers
The sourcing agent would first need to evaluate the buyer’s requirements. The agent can now make a list of the best prospects and let you choose the ones that are best for your business once everything is laid out. A sourcing agency will not only assist you in compiling a list of potential suppliers, but they will also assist you in looking for products and suppliers that offer the best prices and are capable of producing excellent outcomes. It is the agency’s responsibility to locate a supplier that offers high-quality goods at a price that is within the buyer’s price range.
Monitor the Production Process
After selecting your supplier or manufacturer, production is the next step. A reputable sourcing agency oversees and coordinates the entire production process from beginning to end. They ensure that the items are made on time to avoid undesirable postponements and check whether the provider has satisfied all of the purchaser’s requirements.
Quality Control
A sourcing agency will perform quality control in addition to monitoring the production process to ensure that the products are made of high-quality materials. Additionally, this is done to ensure that the supplier did not omit any production steps. The sourcing agency can identify the defective products by inspecting them and, if possible, replace them before shipping. Quality control can be carried out at random or the agent can personally inspect the factory in its entirety.
Perform Shipment Process
The sourcing agency would perform last-minute inspections to ensure that the products are properly packaged before they are shipped to prevent leaks and breakages during shipment. They would also make sure that the correct quantities and labels are on the products. The next thing to do is plan out the process of shipping once these have been cleared. The products may be shipped via air, land, or sea freight, depending on the weight and size of your orders and your budget. The shipping provider’s track record should be taken into consideration when selecting the best international shipment service. The agency’s work does not end with selecting the shipping company. When you deal with a supplier overseas, it is also their responsibility to inform you of any additional paperwork that may be required for customs clearance. Moving the goods quickly and without risk requires this.
Who Should Work With a Sourcing Agency?
The following people can gain the most by working with a sourcing agency.
Those who have never imported before: There is a lot of paperwork involved in the process of importing goods from other countries. While it is definitely something that can be learned, working with a reputable company that already has experience and connections can be very beneficial.
Companies with numerous categories of products: If you are working with an enormous number of product categories, your supplier requirements will also go up, which can be a regular work in itself. Working with a sourcing agency who can source and deal with numerous providers for you allows you to focus on other significant ‘income creating’ tasks.
Retailers and large supermarkets: Large supermarkets and retailers deal with thousands of different products, making a strong supply chain and strong relationships with suppliers essential to their success. At this point, collaborating with a sourcing agency becomes practically mandatory.
Those who sell specialized products: Sellers dealing with specialized products especially while sourcing from abroad, frequently require a specific cultural etiquette. Take, for instance, the pharmaceutical industry in China, it will be hard to contact Chinese wholesale suppliers without inside information and experience dealing in the Chinese market, a sourcing agency can be unimaginably valuable to your business, in this case.
Conclusion
It is essential to acknowledge that there are both excellent and undesirable sourcing agencies. Having said that, you shouldn’t be afraid of using a sourcing service for your company. Simply put, you need to approach it carefully. A good sourcing agency will play an essential part in your supply chain management, assisting you with getting the best prices for your items, while also dealing with follow up processes and the complicated shipping procedures. Your company can greatly benefit from finding the ideal sourcing agency.
