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Why you need a sourcing agency in China and avoiding payment risks

By Weintrade   |   23 Jun, 2017
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id="pre">pre{margin:.5em 0;padding:.4em .6em;border-radius:8px;background:#f8f8f8;}</style><style id="loading">.loadingclass{display:inline-block;cursor:default;background: url('js/lib/ueditor/dist/themes/default/images/loading.gif') no-repeat center center transparent;border:1px solid #cccccc;margin-left:1px;height: 22px;width: 22px;} .loaderrorclass{display:inline-block;cursor:default;background: url('js/lib/ueditor/dist/themes/default/images/loaderror.png') no-repeat center center transparent;border:1px solid #cccccc;margin-right:1px;height: 22px;width: 22px;}</style><style id="anchor">.anchorclass{background: url('js/lib/ueditor/dist/themes/default/images/anchor.gif') no-repeat scroll left center transparent;cursor: auto;display: inline-block;height: 16px;width: 15px;}</style><style type="text/css">body{background-color:#ffffff; background-image:; background-repeat:repeat; background-position:0% 0%; height:3112px; }</style> </head><body ><p style="text-align: left;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Which kind of products you may want to import from China is an essential question one may ask and also whether you can finally find a suitable factory, because you cannot find suppliers for every product. &nbsp;This is the main reason why foreign importers fail to find factories in China to suit their needs and requirements.<br/></span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">There are numerous facts, opinions, and misinformation about the issue of sourcing agencies in China. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">This article helps to outline the business reasons why China makes an attractive manufacturing destination and why companies continue to source factories there and why you need a sourcing agency to facilitate sourcing for your products.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;China’s supplier base is incredibly expansive. While the country imports a substantial portion of sub-components and materials from other countries, a great deal of assembly work for consumer products is done in factories in China. Sourcing apparel, textiles, consumer electronics, plastics, toys, car products, and lasers – China offers manufacturing networks supporting a very wide range of industries. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">This allows the country to achieve economies of scale because larger clusters of factories are surrounded by clusters of supporting factories, which helps to push every factory’s costs down and make supply chains more efficient. If you want to source a manufacturing contract for a product, chances are you can find one in China. Whether it is the right contract manufacturer for your company is a question that needs to be answered.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;This is why the question why you need sourcing an agency comes to mind. Finding your own suppliers in china online comes with a lot of high risks that must be considered.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">In recent years, more companies are continuing their sourcing of manufacturing and establishment of factory facilities in China with the primary purpose of being located within the vast commercial opportunity that China’s growing economy presents. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The sourcing agency will inform you about the manufacturers which supply the products you need. It is one of the most important aspects of procuring from China. You can come across numerous suppliers in China. The agency will do a proper research before asking you to buy from a particular supplier. The following points have been highlighted to be considered when considering why you need an agency in China:</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt; text-align: center;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 16px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;">Eradication of communication barriers</span></strong><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;"></span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 18px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;"><br/></span></strong></span></p><p style="text-align: center;"><img width="503" height="300" src="https://img.weintrade.com/attachment/blog_content/2017/3d847986d11b4ee9b454f0b6d334c75e.jpg"/></p><p><br/></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Most of the Chinese sourcing agencies are professionals trained in several languages that make it easier to communicate with their clients and understand client requirements in all languages, but mostly in English.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">However when you opt to communicate in any language of your choice the sourcing agency is willing to meet your demands.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">On the other hand, finding your own factories and suppliers online may seems to be pretty advantageous but you are likely to face communication challenges since most of these factories find it difficult to communicate in any other language except their native one, so it will be very prudent to contract a good sourcing agency for all your inquiries.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Since your aim is to procure quality products from the Chinese market or the suppliers, most suppliers may not be able to do an assessment on the quality demands or on whether the style of the product is adapted to the western style, you may therefore need a good sourcing agency to spare yourself from all these headaches. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The sourcing agency mostly has offices across China who will send representatives to the suppliers. These representatives can check the quality of the products and inform you.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt; text-align: center;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 16px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;">Competitive price advantage and avoiding payment risk</span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;"><br/></span></strong></span></p><p style="text-align: center;"><img width="600" height="281" src="https://img.weintrade.com/attachment/blog_content/2017/12d34502839646f8b389c634b1c65801.jpg"/></p><p><br/></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The sourcing agency performs the task of informing you about the manufacturer and which suppliers and products meet your needs .China is known to be one of the most populated countries. There are a lot numerous suppliers in China. The agency will do proper research and give you a competitive price before asking you to buy from a particular supplier.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The agency you hire will do a background check on the company before you place your first order. Examine trade taxes, local tariffs and international authorizations to import from China. &nbsp;With trade regulations on the rise, the agency offers you the needed information so you can be able to make a cost analysis. If the analysis shows that you have to pay a high amount of money as import tariffs, you may opt for other legal strategies to import.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt; text-align: center;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 16px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;">Managing Risks</span></strong><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;"></span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;"><br/></span></strong></span></p><p style="text-align: center;"><img width="613" height="428" src="https://img.weintrade.com/attachment/blog_content/2017/39dad27195094ee5b2eeb43474e30117.jpg"/></p><p><br/></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Sourcing agencies in china can help in risk management. Close supplier relationships can help companies identify and resolve potential problems quickly. If you have financial problems towards your orders, alternative suppliers could be offered by the agency to meet your demands and ease your fears and risks. Most sourcing agencies give out a list of suppliers in their selection process and also offer you a lot of information to be looked at and keep records off. To make the product sourcing process manageable, you need to store the important information such as: Certification compliance, Product specification compliance, Pricing, Product sample costs, Production time, Quality Management System Procedures.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt; text-align: center;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 16px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;">Document preparation</span></strong><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;"></span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;"><br/></span></strong></span></p><p style="text-align: center;"><img width="600" height="370" src="https://img.weintrade.com/attachment/blog_content/2017/7d1f12d99cd34e36aac775b3978ab5c5.jpg"/></p><p><br/></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Usually sourcing agencies will help and guide you through all your documentations and Chinese businesses prefer to trade and write documents in Chinese language, this would be solely the responsibility of the agency and all the documentation would be sorted out by them which would also be translated into English to ease the import process.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;Neither you nor the supplier will have any problem in understanding the deal and your requirements.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt; text-align: center;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 16px;"><strong><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-weight: bold;">Maintaining the business relationship</span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;"><br/></span></strong></span></p><p style="text-align: center;"><img width="513" height="311" src="https://img.weintrade.com/attachment/blog_content/2017/150d6cf253a544f9a153ce70dc90678e.jpg"/></p><p><br/></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Doing business in Asia requires believing and maintaining good and sound relationship. For a business start-up it is advised to create a bond with a good agency and the suppliers. It is always better to keep and not to abandon an agency or suppliers in order to ensure some cash in future. A good relationship with the sourcing agency can make the procurement from China an easier process than you can think of. It will take absolute responsibility and control, which help you earn much in your business.</span></p><p><br/></p></body></html>
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