Why it is better to hire sourcing agent for sourcing from China?
2007/10/03 19:22 | by SamChan ]
There are two main reasons to hire a sourcing agent to help you source and handle your materials from china; price transparency and control.
Usually when buyers inquire to purchase stone or other building materials from China, There are usually two parties playing a major role for this trade transaction other than buyer. One is the factory and the other is either a trading company or a broker. The Factory provides the production while the trading company or broker provides export service and communication.
Communication services including translating all the material from English to Chinese or vise versa, preparing shipping documents and freight, arranging factory tours when buyer visit to China , and most importantly, calculating the final price for the buyer.
Trading companies usually work closely with several different factories. This has its advantages and disadvantages depending on their relationship with the factory. In general, Trade companies earn margins by marking up products from different factories. Since they rely on the factories, it makes it difficult for them to reject products or demand higher quality since they usually need to negotiate the price in order to add their margins and stay competitive. In other words, they have very little control over the order once it is given to the factory.
Some of the advantages of using a Trade Company are that should issues occur with your product, they usually will try to find solutions in order to maintain your relationship. However, this does take time which risks loss in sales or project delays. Another benefit is that they often are willing to allow you to add other products to your container sourced through them.
As opposed to trading companies, our sourcing services differ in that we are working on be half of buyer/client. We will source appropriate factories for each project without any bias. We will quote factory and or FOB prices with our fees, which are normally 5%, separately. The buyer will know what is going on in the market clearly. Moreover, our sourcing service fees also include inspection services.
Since we do not market nor are not working with the factory, we are able to reject material if the products do not meet your standards. Or we can work as a trouble shooter on be half of buyer should problems occur.
Some of the most common issues that occur during production are as follows:
1. Factory sometimes produce products that are not made according to the agreed diagrams. 2. Factory fails to produce and ship products on a timely basis.
3. Factory is slow to confirm and accept orders.
4. Some products are shipped missing.
5. Factory's own quality control procedures are not good. When we arrive we discovers items that never should have been approved for shipment by the factory.
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