Sourcing means the process of finding suppliers of goods and services. Sourcing is carried out in business in many different areas and for different reasons. The most common use of sourcing is in supply chain management. A business that can find the most competitive suppliers at minimal cost has a competitive edge over its counters in the market.
A sourcing agent is an individual that shoulders all the load of sourcing needs and gives a breathing space to the owner. It is a vital cog in any business because a good sourcing agent will provide the best business solution for trading.
Chinese Sourcing Agent
China is the biggest nation in terms of population and hence the biggest consumer market. All the big nations have their eyes glued on China because if one is able to achieve the goal of entering into the Chinese market then he will do a world of good to his revenue because of the market size. The thumb rule of any business is more sales-more revenue; that’s why every company is trying their best to find an able sourcing agent in the most densely populated nation of the world to give their trade cycle a boom.
A sourcing agent should be a self-motivated individual, a social being having a wide social circle and thorough market knowledge. Only then he will be an asset to a company who is having its eyes set on its goal.
The flip side of the coin is that, most of the leading countries of the world source products from China. The principal reason for this sourcing of products from China is also the population. Because China is having the highest population count, the labor cost is pretty low and since the cost of factors of production is low, the overall cost of production is not high like most of the developed countries.
China is ranked as the biggest exporter of goods and services since 2009 and it overtook the USA in 2013 and became the largest trading nation in the world with exports worth of $1.904 trillion. China exports electrical machinery and equipments worth $901.9 billion and 42.6% of the total exports. The total annual value of China’s exports equates to approximately $1,500 for every Chinese resident. The whole game of product sourcing from China is benefiting the importer as well the exporter because the importer gets the products at a competitive price and on the other hand, China is getting handsome revenue by exporting its products and also it is creating new perspective markets for China to sell its stuff.
China Sourcing Companies
When China is the highest exporter of goods and services, it is bound to have sourcing companies. A good sourcing company will provide all the necessary services that work as a fuel for any business.
The main dealing areas of sourcing companies are
- Finding the manufacturers and suppliers for a product.
- Development of product and assurance of quality.
- Packaging, logistics and freight forwarding.
In this way a sourcing company provides a complete production and marketing solution to its clients so that they have a hassle free experience of business expansion in China.
Human resource is in abundance in China and through a China-based sourcing company; it becomes a cakewalk for any foreign company to use these resources and make huge profits because the production cost is considerably low, due to an abundance of resources.
Most of the cell phone manufacturing companies are associated with the sourcing companies of China to make their products at affordable costs. That’s the reason we see the Made in China tag on every other Smartphone brand and electric goods.
If one wants a best in class global sourcing experience, then give a serious thought to Noviland, a network of 3000 factories and well equipped with other sourcing expertise.