Sourcing Agents have long been associated with the business in China. A sourcing agent can provide a vital link between a Chinese supplier and a foreign enterprise.
The role of sourcing agents has evolved over the years in China.
You should always try and work with international companies that have been established in China for a long time. Avoid young sourcing agents or those who offer goods at the lowest price.
TCI China has been working with global clients since 2004. We are a European-owned and managed firm with offices in the US, UK, Europe, and China.
Always have the sourcing agent inspected before you do business with them.
What do Sourcing Agents Do?
A sourcing agent’s typical role is to help a client company find suppliers and products that it needs.
The sourcing agent brings value to the client company through its networks of manufacturers and contacts across China.
They use these contacts to connect buyers and sellers.
Sourcing Agents may work with one client or many clients.
Most sourcing agents will specialize in a particular industry or sector.
TCI China has experience across many different types of products and sectors.
So, what is a Good Sourcing Agent in China?
A good sourcing agent should be a problem solver.
You should feel comfortable, confident and so should expect the agent to always be always working to win your trust.
Provide you with a complete supply chain solution from Logistics to customs clearance.
Assisting you to develop new opportunities for your product and service.
They should allow you to send in 3rd Party Inspection Companies such as Goodada Inspections to visit and audit the factories where your goods are being made.
How must does a Sourcing Agent Cost?
Traditionally sourcing agents work on a commission-only basis.
However, international and established firms may also charge a monthly retainer for their services.
It would help if you enquired what additional services a sourcing agent will offer to warrant a retainer.
TCI China brings in a range of extra China Supply Chain Services such as purchase contracts, export licences, market research, and logistics. It also has European and UK based staff to assist you.
So, what are the Problems with using Sourcing Agents?
Using commission-only sourcing agents can become very costly and risky to many purchasers.
A purchaser often ends up paying a higher price – e.g. does the sourcing agent want 10% commission on a $100,000 order or 10% commission on a $90,000 order?
The sourcing agent will only get paid when your order is shipped out. However, they may often put pressure to get the goods out. It can lead to low-quality products.
Sourcing agents are not accountable if anything goes wrong.
Sourcing agents are focused on generating sales to make commissions rather than offering services to protect you and your company.
Over to you…
If you’re
worried you’re not buying correctly from China
fed up experiencing trading problems and need some advice
So contact me, and I’ll be right back to help you clear things up and help you work out a solution.
No pressure, or no obligation to use TCI’s services.
I’m here to help you explore all your options.
