Procurement Consulting Firms - China Sourcing Agents Can Save Your Company Time and Money

A procurement consulting firm, also known as a sourcing agent, helps companies find the most cost-effective products to import and distribute throughout the world. With their expertise and China sourcing agents specifically, they can save your company time and money by identifying the right factories to work with as well as negotiating pricing, costs and production timelines. This guide will help you decide if this type of service is right for your company and how you should use it once you’ve decided to start utilizing it.

S

What is a sourcing agent?

China sourcing agents, also called procurement consulting firms, are a great option for companies looking to find product at the best possible price. 

Procurement consultants work with the company's buyers to determine what products they need, and then find a manufacturer or supplier in China that can provide those products. The agent will take care of all negotiations with the suppliers, as well as any problems that might arise.

Benefits of using an agent

A procurement consulting firm is an agent that connects companies to a variety of suppliers, primarily in China. 

A China sourcing agent can save your company time and money by taking care of sourcing the right products at the right price, translating contracts, facilitating payments and deliveries, providing quality control services (including inspections), and local knowledge of Chinese customs regulations, as well as more. 

A China sourcing agent is an expert in the business with experience negotiating with suppliers so you don't have to spend hours researching prices or navigating paperwork. They can even conduct on-site visits to inspect facilities before any orders are placed.

How it works

Many companies don't know where to start when it comes to sourcing products in China. This is where procurement consulting firms come in. A procurement consulting firm will create an account with a sourcing agent in a certain region which will then provide the details of all the factories that are available for your company to negotiate with. 

The agent will even handle all of the necessary negotiations for you, so you can concentrate on getting your product made. They can save your company both time and money by doing all of this leg work for you.

How to find the right agent

The best way to find a sourcing agent is to start with your network. It is important to find an agent that has experience with companies in your industry, as this will ensure they have the knowledge necessary for success. 

The ideal agent should be able to provide references from other clients who can attest to the quality of their work. 

Once you have narrowed down your list of potential candidates, it is important that you set up interviews with each one so you can get a feel for their personality and how they operate. 

A good interview should include questions about the process they use when sourcing, what kind of products they typically source, what their fee structure is, how many years of experience they have in sourcing and whether or not they are willing to sign a Non-Disclosure Agreement.

The most important characteristics in an agency partner

Finding a good sourcing agent in China can be a difficult task. You want to find someone who is knowledgeable, but not too expensive, professional, but still down-to-earth. It's important that you feel comfortable working with your agent on the phone. 

Look for someone who will give you their honest opinion about the products they offer and how much money they think it will save you. 

Finally, make sure your agent speaks English fluently enough so that you can communicate effectively with them. Once you've found a reliable sourcing agent, then it's time to get started!

Sample contract template for independent contractor suppliers.

Independent contractors are hired to work as a consultant, not an employee. This contract shall be considered terminated automatically if the contractor is no longer available for the agreed-upon hours per week.

The contractor agrees that he/she has read this contract in full, understands its contents, and will abide by them. If he/she does not understand any portion, he/she agrees to ask for clarification before signing this contract. 

The contractor acknowledges that this contract cannot be changed or altered by either party without written consent from both parties.

References and resources

The internet is a great resource for finding suppliers and potential partners, but it does not replace the need for a qualified agent. The difference between sourcing on your own and working with an expert is the assurance that you will find what you need and get it quickly. 

A procurement consulting firm can offer invaluable insights and expertise to help guide you through a complex process. Working with one of these firms can also save your company time and money by streamlining the process, removing unproductive steps, sourcing globally, and leveraging their experience. 

They have vetted suppliers with which they have established relationships that provide quality products at competitive prices.

Final thought

A procurement consulting firm can help companies take the lead in their sourcing process. A company's own employees are often too busy to handle sourcing themselves, so a third party is necessary to make sure that the company is getting the best deals possible. 

They also have relationships with factories in China, which increases their level of expertise in negotiating for better prices on bulk orders. A procurement consulting firm will generally have an initial consultation where they will evaluate your needs and develop a plan for how they can meet those needs. 

They will charge a flat fee or percentage of what you spend on goods sourced by them, which helps keep costs down. Plus, they will provide you with regular updates throughout the process so that you know what is happening at all times.