Reasons for Engaging Global Sourcing Agents in dealing with suppliers
Trading companies and sourcing agents are necessary because there are numerous manufacturers, all of whom who vary in their capabilities. You will find manufacturers with different strengths in fields such as exporting, understanding of the global market, domestic business performances and foreign language skills to name a few. Traders and sourcing agents help to bridge any gaps between international buyers and manufacturers.
However, while there are countless buyers dealing with international trading companies, some buyers choose to purchase locally instead. This is especially the case for those that have technical requirements. Some would even choose to deal directly with the manufacturer without going through any agents.
Here are some reasons why it is a good idea to use global sourcing agents over other options.
1. Better Control
With a good global sourcing agent, the buyer’s interests are fully enacted in a very controlled manner.
Firstly, with someone getting deep into the factories, the buyer has better control of the production, delivery and after-sale service. They can also make sure all the follow-up information they receive is accurate.
Secondly, and more importantly, the sourcing agent can find suitable suppliers independently and without a motivation to choose a particular product. This means the agent is more likely to find a product and manufacturer that serves your needs best. Their experience will also mean that they can ensure descriptions and claims are accurate.
2. Authentic Assessment and Audit
A global sourcing agent can provide the buyer with full information on registration details, official documents, latest photos and written reports about the factory. This can include information on offices, production lines, warehouses, quality control stations and lab equipment etc. They will also be able to assess the manufacturer’s qualifications, credibility, production capacity and technical expertise.
Without such an agent, it would be easy for manufacturers to falsify claims regarding their production capabilities and overall suitability for the job.
3. Easier Communication
A good global sourcing agent is a person will be fluent in more than one language. They will also have technical knowledge regarding your products and know what is required from manufacturers.
They will be able to work on behalf of the buyer to assess suppliers, negotiate the price and terms, undertake trouble-shooting, request follow-ups, ensure problems are dealt with and help enhance the overall business relationship.
4. Lower Costs
Trading companies will often employ many staff and operate from large office buildings. Sourcing agents, however, will tend to work alone or in a small team. This helps to make sourcing agents the more affordable option.
What’s more is that a trading company is likely to keep the trader’s information confidential. This is often done to try and prevent the buyer from skipping the middleman and going through the manufacturer directly. This means that the buyer may never have all the complete details regarding price etc. For all the buyer knows, the trader could be adding a considerable margin onto the price for themselves. This, in addition to the higher operating costs, means the trading company is likely to be the more expensive option.
5. Global Sourcing Agents Often Represent the Supplier
An agent will provide immediate access to the best suppliers and most trustworthy companies that offer the most relevant expertise. Some global sourcing agents also offer engineering services and lend a hand in the development of new products. They can also keep an eye on the international market to find the best rates for you. International agents will also be able to deal with translations and also make arrangements for site visits. They can also deal with multiple suppliers when needed.
Above is just a few of the reasons that an International Business should use a global sourcing agent. It might take some time for you to find the right agent, but the benefits you will reap will make it well worth the effort.