A sourcing agent is a person/company that
helps you to find a better source for your products and supplies from a
manufacturer at lower costs. They are usually paid through commissions from the
sale that takes place.
Purpose of these agents.
They help you in finding an ideal
manufacturer for your business needs. They tend to stand different from the
distributors, because with these agents you can have your requirement
customized as you need and get the quality checks done, before placing an
order.
This can help your product to be 100%
quality assured as you wanted it to be. You do not have to compromise on
anything that is merely available.
These agents have a wide range of
manufacturers network so they can offer you timely supplies, which will help
you meet your business delivery.
The charges that you will be paying for
them, are purely based on the percentage commission for the order being
placed. From the factory price, their
commission percentage will be somewhere between 1 and 10.
Things to know about how they operate?
They will manage your supply chain from end
to end on being hired.
They will spend time with you to understand
your business requirement before beginning their search.
They will visit all the potential
manufactures, and negotiate the prices with them. This saves you time and money
from visiting every manufacturer.
They will get the best quote from all the
manufacturers and submit the report analysis for you to proceed with the order.
They take care of sample checking and
quality checking, before placing orders on your behalf.
After placing the order, they own the
responsibility of getting the supplies to your place. The most reputed ones
take care of all the freight movement involved.
They even take ownership of raising
invoices and getting payments done.
With the supplies being provided, they also
monitor your product and give you valid feedback, to make your product
successful in the consumer market.
Compliance is one important factor, one
must pay attention to. A good sourcing agent will source your supplies only
from the authorized suppliers in the market. Therefore you need not worry about
the legal issues here.
Things to look for in the best sourcing
agent
If you are on the verge to pick the best
for your business need, please make sure that they pass through these 3 key
elements.
Product sourcing – The best in the
industry, will do quality research in finding the best manufacturer who can
fulfill your specific business requirement.
Manufacturing – On the manufacturing front,
they have the benefit of developing a prototype before placing an order.
Importing – Once the supplier has been
chosen, they take ownership of all the freights invoved. If your supplier is
from a different country, they even take care of all the importing processes
and necessary documentation involved.
Conclusion
Hope the above information helps you to
better understand the need of the sourcing
agent and how they operate to support your business need.
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