Global sourcing is the talk of the town these days. More and more companies choosing sourcing services in order to save their time and cost. The global source service fees vary according to the area of work you take from the agent. Therefore, make sure you have clarified the service area and the price before starting cooperation in case of possible disputes.
The primary services provided by most global sourcing companies are the following:
1) Suppliers of sourcing products
This is the primary service of every buying agent to check and choose a supplier that meets the needs of its customers. In addition, they will negotiate with the supplier of the firm on behalf of the buyer to obtain the best possible price for the product and to confirm production details.
However, some buyers may be confused as to whether the agent or supply company should inform the supplier. Some also find agents dishonest or making money without providing information to the provider. Here I explain whether the supplier is provided with information on the buyer, depending on the service model of the supplier.
Individual buying agents
Upwork or Fiverr can find many individual buying agents who are usually paid a fixed fee (up to hours per day) or can be paid a fixed commission for any particular project. This type of cooperation is like finding a supply assistant in a foreign country.In essence, the buyer pays the salary to obtain information from the supplier, so it is the agent’s responsibility to provide the supplier’s contact with its owner: the buyer and the buyer can contact their suppliers to negotiate a price.
Supplying company or agency
In the case of a company or global sourcing agency, they do not inform the supplier directly to the buyer. There are two main reasons for this.
First and foremost, these quality suppliers are their pooled resources (not available on B2B websites), so you can get competitive prices from them. Second, they charge their service taxes a certain percentage of the total cost of the goods, that is, their profit model. (I will go into more detail on how to charge a 5 question sourcing agent or company).
As long as the factory contact information is not passed to the buyer, they are ready to accept him for a factory visit and the buyer has some understanding of the factory’s production capacity. But that usually happens with big orders. If shoppers ask for a lower price, such as $ 1,000 for a shoe or $ 1,000 for a hat, they are less likely to accept a buyer to visit a factory abroad.
2) Monitor production, check the quality and arrange to ship.
After finding the right supplier, it is time to organize the production of the goods. Sourcing agents or companies will help coordinate operations with the plant, monitor the entire production process and ensure that the plant delivers its products on time and the products are of the best quality.
In addition, they will offer a quality inspection service. They will work with a quality control company to inspect finished products and reduce defect levels before shipment.
This is followed by a final stage navigation system that requires a high level of experience. Because, in addition to negotiating the most competitive shipping rates, they also need to tell you what documents and product certificates you need to submit in order to apply.
In addition, most purchasing agents or companies also provide these global sourcing services. Depending on the situation, you can choose any part of your service.
3) Other services
In addition to the above-mentioned basic services, some major professional goods supply companies also offer private label solutions that include, but are not limited to:
- Customize the product
- Customize the packaging or label
- Free photography for e-commerce
Literally, there are good and bad suppliers in this industry. As a result, many buyers are afraid to try outsourcing services. Hence, it is very crucial to find a reliable long-term cooperation agent with a stable supply chain.