How to find Best Sourcing Agent for Your Business from China?

POSTED ON 28th July, 2019

China is the world’s largest manufacturing hub for low cost and mass production of goods. With emerging trends and techniques, China is rapidly moving from medium to high tech manufacturing of complex products while maintaining value and quality according to the customers’ needs and demands.

The country manufactures everything from a needle to the airplane at affordable costs and in a variety of qualities keeping in mind the price/quality ratios of different importers outside China. Products made in China are popular worldwide, which has led to increased imports from China. Many businesses use it as a global sourcing tactic to buy spare parts and other goods from China at a lower cost and resell in their own countries or internationally through Amazon or eBay etc.

Wholesale importing from China is a tough task, and wastes a lot of time and money. Finding an affordable and qualified manufacturer in China according to the needs and requirements of the company is quite a process. To import any product from China in a bulk amount,  initial steps are to find the best product and its manufacturing factory. Sample consolidations, contract, and price negotiations are other crucial steps in this process.

Innovative Products

 

Quality and Inspection:

After placing the order of the desired product, supervised production is also necessary for quality inspection and quality control in China factory. Product evolution, shipping, logistics, and dispute management are some other steps of overseas import that make wholesale shopping from China a tiresome activity. Especially for newbies in the business world, the import process is extremely confusing, complex, and costly. The expected profits can be lost by delayed transit times, unexpected delivery costs at various steps, duties and regulatory fees, and custom clearance issues.

Traditionally it was the activity of large businesses to import products from China. This was because they have the resources and experts to visit the factories in China and buy their desired materials and products. However, purchasing from China can be much easier when any sourcing agent is involved.

Sourcing Agent:

A sourcing agent is the one who selects the qualified suppliers, picks the right products, negotiate a price to the lowest possible cost, handles the product inspections, and assists in the shipping and logistics of the products. Nowadays, small and medium-sized businesses are importing high-quality products from Chinese manufacturers through Chinese sourcing agents.  Even larger businesses have also started opting sourcing agents to import products from China to save their time and additional costs associated with travel, accommodation, visa, and other expenses of the experts traveling to China.

Medtronic is one of the largest manufacturers in medical technology. The headquarter of the company is located in the US. The company was founded by 1949 by Earl Bakken. The company collaborates with world best-renowned organizations to bring more enhancement in medical technology.

China’s medical exports have reached $3.6 billion in the year 2017. The medical device market is now becoming one of the largest industry in China. To import medical technology-related equipment from China, Medtronic can hire a local US-based sourcing agent, a regional sourcing agent, a sourcing agent from far east who knows more about Chinese markets and western clients or a sourcing agent based in mainland China.

Importing from China

Local Sourcing Agent

Koncrete Imports Llc is a US-based sourcing company which was established in 2010. The company operates from Chicago. The inception of the company was to establish themselves in the import/export industry. Koncrete Imports LLC imports products from Bangladesh, India, China, Pakistan, and France.

Koncrete Imports LLC is keen to deal with their clients fairly, and for that, the company is involved in assisting manufacturers and producers with international transactions and getting the best prices to its consumers. Medtronic can hire Koncrete Imports as their local China sourcing agents to import medical technology-related products from china.

In the current business environment, every organization is trying to maximize their profits while at the same time, maintain a healthy and strong relationship with the supplier/manufacturer. The main objective of Koncrete Imports LLC keeps into consideration to maximize the long term profits and try to increase their market share by developing strong and healthy relationships with suppliers. The next step is to identify potential suppliers in China. According to the government of china there are around 6000 domestic pharmaceutical companies and around 14,000 domestic pharmaceutical distributors.  Choosing a single organization from a huge list of medical companies is not an easy task for any US-based company.

Koncrete Imports LLC can choose an organization which provides the quality pharmaceutical product at a competitive price. According to the U.S law, it is essential that medical products which are imported from different regions of the world must comply with FDA rules and border protection requirements before, during and after importing into the U.S territories. Koncrete Imports LLC can review that custom and border protection requirements In addition to the FDA.

Koncrete Imports LLC can use its working capital for payments and insurance of the products. Finally, Koncrete Imports LLC will receive the shipping advice and arrival notice from the Chinese company. Moreover, the Chinese company will also provide export documents to Koncrete Imports LLC. Hence the tiresome process of importing goods from China for Medtronic can be handled by Koncrete Imports LLC.

Disadvantages

The disadvantages associated with hiring a local US-based sourcing agent to import from China include higher price, delay in the process, lesser flexibility, and possible miscommunication that may happen in case of customized products. The sourcing agents cannot exactly communicate the requirements to the Chinese manufacturers, and hence, the factory does not understand the customized product well.

Manufacturers are likely to make mistakes during manufacturing because of lack of product specifications, especially in the case of customized products. Another disadvantage is that the local sourcing agent will try to skip the sample review step and show photos of the products to secure the deposit. The product is then ordered online to save the expenses of the factory visit. The local sourcing agent will never like to spend extra money on regular visits to the manufacturer in China to check the product development. Thus, the quality of the product is expected to be compromised.

Regional Sourcing Agent

Medtronic can also hire a regional sourcing agent such as from the UK to import from China. China Sourcing and Supply is a UK based sourcing agent founded in 2003 provide a diverse range of supply chain management solutions to customers throughout the world.  They have close relationships with chemicals and pharmaceutical machinery suppliers in China. The greatest benefit of all is that sourcing agents based in the UK usually have some kind of representation in Asia. China Sourcing and Supply have offices in UK ad China with both English and Chinese speaking people to look after all stages of order from manufacturing to pre-shipping inspections to ensure the delivery of desired products.

This makes them suitable for Medtronic to import customized products from China through their UK based China Sourcing agents. China Sourcing agent selects ISO accredited manufacturers to meet the standards of Sedex Members Ethical Trade Audit for the shipping of products. The best part about hiring them as regional sourcing agents is that they will place manufacturing orders only when the company approves factory samples and relevant certifications are approved for the products.

Medtronic can take services of China Sourcing and Supply as their China sourcing agents for their medical technology related imports. Prior to placing the manufacturing orders, the UK based China Sourcing, and Supply will first confirm product specifications, requirements related to artwork and packaging, certifications, and order quantities. Then they will confirm the factor ISO standards such as production capabilities, factory experience, etc. to select manufacturers that best fit for your requirements.

This makes the import from China easier for Medtronic as all the legal issues will be handled by the China Sourcing agent. The benefits of hiring them as a sourcing agent include minimum risk, quality assurance, insurance, and swift custom clearance of the products. The quotes to import from china are delivery duty paid. The company will also negotiate with different manufacturers and factory suppliers to get the best possible factory rates and freight handling prices for their product.

Disadvantages

There are some disadvantages of working with a UK based sourcing agent to import products from China to the US. When products are imported from China to the UK, the additional costs that are to be paid include import duty, VAT, and destination charges. Also, the transit time to the UK can delay your import to the US. The transit time in the UK includes 28-35 days on the sea and approximately 3-10 days for customs clearance and domestic logistics. Once the products reach the UK warehouse, then it will be able to leave for US shipment. Due to Brexit, there are new rules and regulations for imports from countries outside the European Union. There is an import license on each product category, and hence, the companies need to check the availability of import permissions for their product to be imported from China via the UK based China sourcing agent.

Sourcing Agent from the Far East

Medtronic can also hire a sourcing agent from far east to import from China. An example of Hong Kong-based China wholesale sourcing agent is Iris. It is a multinational sourcing agent that deals in almost all consumer products from China including household appliances, garden tools, and kitchenware, and other hardware, consumer electronics, electric appliances, beach products, and bathroom and living room items.

China has countless factories to produce consumer products at different prices, but there are many challenges associated with the import from china. Whenever it comes to bulk overseas import from China, many factories overpromise their clients to get their business because they know that quality inspection will be not very regular. The factory owners compromise on quality to cut down additional expenditures associated with the shipping and logistics of the products. There are also communication problems if you can’t speak Chinese.

Iris sourcing agent serves to bridge the gap between the client and the Chinese manufacturers and suppliers. They understand the western client’s needs and requirements, the trends in the Chinese and the global market, the attitudes of manufacturing companies and suppliers in China and the global challenges related to the management of shipping and logistics. With the help of experienced team members and on the ground partners, Iris sourcing agent manages the entire import process from beginning till the end including the handling, branding, production, development, and delivery of the required product anywhere around the world.

For Medtronic, Iris can become an invaluable partner in quality management from idea to product delivery and can make sourcing of medical technology-related products from China easier for them. The services of Iris sourcing agent to import from China starting from consultancy about the product dimensions, aesthetics, colors, functionality, and materials to find out the best options for the company. Iris will find out the best medical technology-related equipment as per the requirements of Medtronic.

Next step for import from China is supplier sourcing, which is based on evaluating suppliers for their reliability, quality, safety, and standards that best match needs and requirements of Medtronic. In addition to supplier sourcing, price negotiation is also a part of this process to help the company choose the best price-quality product. Iris can also help in brand building by adding identity to the product through manual design, artwork ideas, packaging, and much more. As soon as the product development beings, the sourcing agents at Iris starts inspecting the quality control to meet the expectations of the company.

In-line reports and post-production reports are provided to ensure the quality that is demanded. Iris also provides services in the consolidation of products for overseas shipment. Whether all the items are ordered from one manufacturer or from multiple factories, Iris will always come up with the most cost-effective ways for consolidation and shipment of products.

Disadvantages

Despite all the advantages associated with Iris, a Hong Kong-based China sourcing agent, there are some drawbacks that can not be ignored while choosing the sourcing agent to import from China. One of the major drawbacks is due to the totally dissociated laws of Hong Kong and China. Chinese law does not allow a Hong Kong company to operate legally in China. Neither the company can hire employees from the Chinese mainland, nor it can export products directly without custom clearance. The on-ground presence of a Hong Kong-based sourcing agent is much less than that of a Chinese based sourcing agent, and hence the control of these sourcing agents on suppliers is also reduced unless they visit the suppliers regularly.

China-Based Sourcing Agent

China is leading the world as a country to source products to be sold on Amazon and eBay, but the fact is that importing products from China is still a troublesome process for non-china-based companies and sourcing agents. The challenges faced by China sourcing agents and importers include language and cultural barriers, business etiquettes, corruption, and intense competition in the Chinese market. To build strong business relationships in China, it is necessary to understand the Chinese culture, social roles, pubic perception, and self-esteem in China. The key element here is mutual trust.

Chinese manufacturers only do business when they know that you have what they want. This implies the fact that China sourcing agents based outside the Chinese mainland will have less influence on the manufacturers in China. This can result in incorrect items, delayed deliveries, poor quality shipments, and even sourcing agents charging extra for duties, travel and accommodation costs for extra time spent on customized products.

Due to language barriers, distance, problems with recourse and payment security, intellectual property protection, and high risk of scammers, sourcing from China becomes complicated for overseas import. However, this opens gates for China-based sourcing agents to import products from China. To import from China, it is essential to find a sourcing agent who is capable of cross-cultural communication, has a deep knowledge of China’s culture and foreign trade industry, understands the western culture and the needs and requirements of foreign importers.  In this case, the best solution is to hire a sourcing agent based in China mainland who understands the Chinese culture better than any other non-Chinese importer.

Sourcing Captain is the best choice

Sourcing Captain is the most reliable sourcing agent in China that will solve all purchasing and import-related problems. The founder of the company, Gary Qiu, belongs to China and is aware of the Chinese culture and business traditions in china. Based on the work needs, Sourcing Captain provides ten free services in the procurement field. From sourcing consultancy to product sourcing, supplier sourcing, best product quote, sample review, inspection, warehousing, shipment coordination, supply chain management, and finally order track and update, everything is free of cost and highly reliable to import products from China.

Many Sourcing agents based in China or overseas charge an upfront consulting fee only to let you know about purchasing products from China. Sourcing Captain provides this service free of cost and lets the customers communicate with the expert to know about the product they are looking for. This will make it easier to import the required product from China within desired price/quality ratios.

Sourcing Captain also provides free of cost product search service on customer’s demand. Supplier search and communication is a big task in the process of importing from China. Based on the customer’s needs and requirements, Sourcing Captain establishes supply channels involving specific suppliers related to customers products. This service is usually charged by other sourcing agents, but Sourcing Captain also offers this without charging any additional penny.

Sourcing Captain takes the lead when it comes to the best-priced quotes for the products. The best supplier is selected according to the origin of the supplier and the relevancy to the product requirements, and then three free quotations are formed for the customer to select the best price for a final quotation. Sample review is another big advantage of choosing Sourcing Captain as China-based sourcing agent for import from China. Once the offer is accepted by the customer, Sourcing Captain sends a free sample of the product for review and order confirmation.

Product inspection ensures quality products to meet customer’s demands. Unlike many other China-based sourcing agents, Sourcing Captain charges no additional fee for this service and beats the rest here. Sourcing Captain also takes the lead in multiple purchases and provides the services of a free warehouse to store different products for uniform delivery.

This saves the cost for multiple shipments in case of multiple purchases. Even the company wants to purchase multiple lots of the same product and save them for a single delivery; sourcing captain will provide the free warehouse service. International shipment requires coordination during the logistics and delivery operations. Overseas sourcing agents may charge many extra dollars for this service, but the sourcing captain is here to provide you with another free service for shipment coordination. For the long term, purchasing needs Sourcing Captain provides free supply chain management service.

The sourcing experts in the company will regularly visit the suppliers to communicate, analyze, and evaluate order operations and product quality to ensure stability in the customer’s order supply chain. Our product procurement commissioners will track the orders and regularly update the customers for complete satisfaction. Hence choosing Sourcing Captain as China-based sourcing agent will be the best decision ever for a hassle-free and affordable import from China.

Supplier sourcing is not a regulated industry, so, there are no set standards for sourcing agents. A sourcing agent can be an invaluable partner or a useless middleman when importing products from China. Therefore, it is a must to determine the best sourcing agent when you are planning to import from China and here Sourcing Captain can be the choice for you when it comes to importing products without additional services costs.

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