Are you wondering if you should hire a sourcing company? It makes sense if you’re planning on growing and expanding your small business over the long term. However, if you’re just starting out and need to get things rolling quickly then sourcing companies can be a problem. In this article I’ll discuss the benefits of sourcing, the pros and cons and where to find good sourcing companies.
The first benefit of sourcing is that you’ll save money. This is because a good sourcing company will provide you with access to raw materials in bulk at competitive prices so that your overall costs will be much lower than those of your competitors. The key is to find a provider who has plenty of experience so that you don’t end up spending more money than you would on your own supplies. I realise that this is easier said than done. So many companies just look at the cost of getting materials from their suppliers and go with the minimum they see available. This is not always the best option.
The second benefit of sourcing is that you’ll have access to a wider range of products than you would get if you only used one supplier India manufacturing. Many factories and industrial clusters don’t even have a single supplier who they regularly buy from. They could be buying from the same factory or warehouse but sourcing from different plants around the country. This can lead to a problem where some parts may already be available from one factory but not another.
The third benefit of using a good sourcing company is that you’ll have the peace of mind of knowing you’re buying from a credible and reliable source. Many factories and industrial clusters don’t really have the time or resources to identify which sourcing companies they should use. A good sourcing company will do this for them, ensuring they get only the best products at the best prices. It’s often best if you use a two sourcing company model instead of one because if one supplier falls out, the other will step in to fill the gap quickly and effectively.
There’s a final benefit to sourcing companies – they can act as your own sales and marketing team. Most people are too busy trying to get the best products and have too little time to actually visit the factory or warehouse themselves. If you can find a good sourcing agent to source you from, then you can meet with your engineers and manufacture a line to find out what sort of products are available and how you should set up your production lines to make sure you get the best price and the best quality. This can be invaluable when you consider that shipping costs can eat up much of what you save with your own equipment and machinery.
One of the advantages of using a specialist sourcing company for your China goods is that they can provide access to the best resources in China. Many of these companies will have extensive experience in many of the manufacturing phases of your chosen product. This means they will be able to source products at the best possible prices and deliver them on time. Because China is emerging as a manufacturing giant, it’s also a buyers’ market. Your chosen specialist supplier will be well positioned to tap into this market.