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Are You Searching for A Suitable Chinese Sourcing Agent in Shenzhen?

by Paloma Gonzalo
in Business
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Are You Searching for A Suitable Chinese Sourcing Agent in Shenzhen?
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Since the last few years, all businesses of the western countries are interested to find certain suitable Chinese company to manufacture their products that has been designed by them. In the present market scenario, where competition has become very tough, every business is looking for cost reduction in manufacturing.

China over the last few years has been able to develop an excellent manufacturing capacity and also having a very cheap source of manpower. As a result, China can beat any other country as far as the cost of product is concerned.

Over the years, quality of Chinese products were questionable, however, now they have also addressed that problem and has emerged as the factory of the world for almost all kinds of industrial as well as consumer products.

However, finding a suitable manufacturing partner or a product source may not be as easy. There are plenty of challenges involved and with the help of any sourcing agent in Shenzhen one can certainly make their search smoother.

These days there are many local as well as western countries working in China as sourcing agent and such agent can be your best bet if you are interested to tie up with any Chinese company to make your business more competitive.

Let us discuss in this post, how you should select your suitable sourcing agent in Shenzhen if you are interested to find a suitable manufacturing partner to manufacture your electronics or any other products.

Before that, let us first know what you can expect from a certain sourcing agent in Shenzhen?

Your sourcing agent can be a person or firm who assists a buyer in locating a suitable supplier or product in a country other than the one where the particular products are created.

Sourcing agencies can assist you in locating the cheapest pricing in low-cost countries if the buyer gives the specifications and criteria, which can often be as simple as a photo of the product.

Product sourcing is a very important service offered by almost all sourcing agents, irrespective of an independent or work for as sourcing agency.

A sourcing agent’s main service is to find the proper supplier for any buyer. In many circumstances, the customer requires the development of a certain new product and, which requires a dependable factory with appropriate capacity.

Negotiating with suppliers is never the same proposition, and dealing with international vendors is much more difficult. Because these agents speak the same language and are familiar with the culture, a local sourcing agency can optimise the benefits for any buyer.

A sourcing agent may frequently serve as a local office, ensuring that production requirements are met and that deliveries are made on schedule. All Chinese suppliers may not accept payments in US currency and for such suppliers, buyers may make payment in US dollars to sourcing agent, and then he will pay the Chinese supplier in local currency.

Some sourcing agencies are also in charge of quality control, however, their knowledge and experience varies greatly. Before working with them, it is critical to inquire about how they will inspect the goods.

Your agent may arrange the most appropriate transportation after the items have been made and quality checked, which may be either by sea, land, or air, based on the weight and size of your goods and also your budget.

How will you choose your sourcing agent?

The following are a few thing to see while choosing your sourcing agent in Shenzhen.

1.Location

It is important to choose your sourcing agent in the same location or nearby location where your Chinese manufacturing partner will be available so that he can easily coordinate.

2. Experience

Choose your sourcing so that he must be having sufficient experience in this profession and has a very good networking with the several related industries in China.

3. References

Try to ask him to supply a few references and any good sourcing agent will never shy away to give you a few references. Don’t forget to call them and get a feedback.

4. Trade license

As per Chinese law, no agent can work without a valid trade license, however, you must make it a point to ask about this and get a copy of his license.

5. Documentation

Ask him to produce a few documentation about shipping or any other relevant document so that you can get a little flavour about his professionalism.

6. Issue resolution

Try to evaluate how good your prospective agent is in resolving any complex issues. You can easily make out while discussing with him on any typical issues.

7. Language proficiency

Make sure that your agent is good in both speaking and writing English besides the local language like Mandarin.

8. Expertise in the related industry

It will always be a great plus point if your agent has working experience on the product that you are interested to deal with so that you can expect a better quality of his work.

9. Business ethics

Many Chinese agents often accept kick back from the Chinese companies before recommending them. You must confront the agent by asking about this.

10. Charges

What kind of payment will be acceptable to your agent is also an important things to ask. There is a good competition among the agent and hence you can negotiate the price.

11. Legal matters

It is very important to discuss the terms and conditions of their service before appointing them and you may seek legal advice too.

Many agents often use your designs and sell it to someone else. So, you must make sure that all your interest is well protected and make a legally sound contract.

Shenzhen, China’s ‘Silicon Valley,’ and is the largest manufacturing economy of the world. If you can discover a good sourcing agent in Shenzhen, there is no halting your Shenzhen sourcing approach. Building great ties with your agency can also assist and enhance your business in case you are in any importing business on a long-term basis.

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