How To Find A Good Purchasing Agent In China?
Posted: Jun 17, 2015
From being known around the globe as the most populated country, China has developed leaps and bounds in the last decade to become the manufacturing giant it is today. With lower production costs involved, more entrepreneurs are heading towards the ‘Land of the Dragons’ for fulfilling their production needs and maximize revenues by saving up on the production overheads.
So who exactly are China sourcing agents and why would you need one during your China dealings?
A sourcing agent is a professional, employed either by a China sourcing firm or who works as a freelancer; assisting companies and individual entrepreneurs in importing fully manufactured products or its component parts from China. Anyone who has ever worked with the Chinese suppliers would agree to the fact that Chinese business dealings would be even more difficult, concerning the huge cultural and regional differences between the west and east parts of the world, if not for the assistance provided by experienced sourcing agents in China.
So, what should one look for while searching for a China purchase agent suitable for their business requirements?
- Experience- Depending on the product and services one deals in, there are some safety regulations to be followed for safe, legal business transactions with Chinese manufacturers and suppliers. An experienced sourcing firm has the necessary expertise and knowledge of product safety regulations among various national markets.
- Area of expertise- It is critical for the business to find a procurement agent who has an expertise in your area of industry. Let us understand this with the help of an example. China holds reign over approximately 60-70 percent of the world’s toy and telecommunications markets, i.e., almost 70 percent of the total toy and telecommunication electronic production occurs in China. While both industries are successful; both have different standards of quality and safety, along with distinct buyer markets.
- Sourcing procedures- Hiring a licensed agent to source from China would ensure the formulation of a well organised and properly executed sourcing strategy. It is fully capable of following the various steps of a standard procurement process, which usually involve steps like:
a. Evaluation and confirmation of product specifications and certification needs.
b. Price research, order sampling and short listing of qualified suppliers.
c. Price negotiations with the suppliers.
d. Audits of suppliers shortlisted.
e. Final selection of suppliers after the audit.
f. Drafting sales agreement between the parties involved.
g. Production and quality control.
h. Final shipping of products.
Apart from the aforementioned points, it is essential for you to remain cautious of middlemen or intermediaries so as to receive high standard services at reduced costs. Remember, sourcing agents in China can serve as either an asset or a liability for your business, depending on your choice of selection.
Hi, I am Jessica Williams and I have a passion for business & finance. I love reading and writing blogs and articles on finance. Follow my blogs to know more