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China Sourcing Company – Benefit Your Company’s Bottom Line

Global sourcing has evolved at a rapid pace and western companies are increasingly choosing low cost countries for finished goods and components at unbeatable prices. A number of companies have established sourcing offices in several Asian countries especially China while others are choosing the services of a China sourcing company to implement low cost procurement strategies. These sourcing companies help in giving access to best quality resources available locally. Purchasing from China has allowed companies to increase their international competitiveness and most importantly, focus on their core business. Over the past few years, China has been named as the “factory of the world” and is an appealing option for any business seeking cheaper raw materials, semi-finished and finished products for profit improvement.

Revenue growth at reduced costs remains the number one priority of business owners across the world. However, both tasks appear to be challenging in this global business environment prone to upheavals and frequently shifting customer demand changes.

China Sourcing Company – Cheaper, Easier and Safer

There are a number of China procurement companies that help provide tailor-made sourcing and supplier verification services. Their reliable network reaches out to the best suppliers in China and the in-house team will use their experience and expertise to ensure that you make the best use of purchasing from China opportunities, mitigate associated risks, minimize expenses and secure transactions for a reliable supply chain in China.

Buying Agents in a Globalized World

Outsourced manufacturing has become an integral part of most global businesses. To operate in an increasingly competitive global market, a sourcing strategy that involves buying locally combined with sourcing from low cost countries has assumed great importance. A number of companies have been able to successfully lower manufacturing costs by moving their production operations to Chinese manufacturers with the help of a China sourcing company. This has helped them withstand competition, survive and reap profits even in the event of an economic slowdown. Procurement savings have influenced bottom-line results of companies significantly. Further, companies have been able to boost their revenues by reinvesting these savings while they carve a substantial market for their products when they extend highly competitive pricing to their clients.

Purchasing from China – How Experts Help

  • They find reliable Chinese manufacturers
  • They provide  management of the end-to-end manufacturing and sourcing processes
  • They deliver quality inspection services and a complete logistics solution

Thus these service providers help bottom-line growth for your business with flexible and tailored solutions. China has offered favorable business opportunities for companies across the world with an unbeatable growth potential and as a low cost source of high quality products and services. It is a valued sourcing partner (as a member of the WTO) and enjoys a favorable labor position, which is advantageous for the manufacturer and the supplier. It is thus not unusual that sourcing companies from across the world have begun operations in China.

If you are looking to hire the services of a sourcing company in China, you need to decide on a business model according to your organizational objectives. You can choose a trading company that will position itself as a buyer-reseller and make a margin on the product being sourced. You could otherwise opt for a procurement service provider who will charge a fee (either on a commission basis, fixed fee of mixed commission and fixed fee) for managing the China sourcing process from end-to-end on your behalf.

Here are some of the criteria that you should keep in mind while selecting a procurement service provider for your business:

  1. Does the company provide an end-to-end sourcing service that includes supplier identification and prequalification, quotation management, auditing, product development and testing; contracting and supplier selection, QC management, logistics management, payment and supplier development?
  2. Can the company source into the whole of China and not only in the traditional industrial regions of the Beijing-Shanghai-Shenzhen axis?
  3. Is the company capable of sourcing in other LCCs (if required) through a network of fully owned buying offices in order to challenge the Chinese supply base with alternative suppliers?
  4. Has the team developed procurement process expertise to integrate effectively with the procurement process of your organization and do they have knowledge of the categories that need to be sourced?
  5. Will the company be able to offset risks and barriers associated with low cost country sourcing and also be able to convince an organization to change suppliers from a traditional base in high cost countries to a new base in low cost countries?
  6. Do you believe that the team has the necessary project management and communication skills required to interact with your buyers and other key stakeholders in your company and gain their confidence?

The risks associated with China sourcing need to be addressed and managed. Sourcing companies operating in this country take sufficient precaution in procuring materials or trained manpower. Leveraging experienced staff at a procurement service company is a potentially attractive strategy to mitigate these risks and ensure sourcing success.


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