Choosing the correct provider might be perhaps the hardest decision a procurement department needs to make. The right supplier implies that your products and services are followed through on schedule, that you are receiving the ideal cost to address issues, and that the quality is in accordance with your standards.
On the other hand, committing an error while picking a supplier can influence the fulfillment of your expectations to your clients and the organization’s notoriety.
A strategic approach to choosing suppliers can also help you to understand how your own potential customers weigh up their purchasing decisions.
What is Product Sourcing?
Product sourcing companies serve as a mediator between a client and supplier. They specialize in the import of goods from different regions of the world on your behalf. They find the best sources at the most competitive prices internationally and locally.
Where To Find Wholesale Product Suppliers?
Finding the right supplier for your business can be a challenge. Online is the most ideal approach to find providers like manufacturers and wholesalers. Joining industry events and exhibits are another way to find suppliers and examine their products and services. The key factors in choosing a supplier are outlined below.
Guide in Successful Product Sourcing
JOG International Ltd. created an approach you can follow that should help you make the right choices and decide what you need in a supplier, identify potential suppliers, and choose your supplier. Product sourcing doesn’t stop once the product is sourced — maintaining the quality and integrity of the product is essential, as well as strengthening the relationship with the supplier.
1. Know your product
If you are looking to import from China it is vitally important that you understand the specification of what you require as much as possible. Varying factory suppliers have different options so it may be dangerous to gravitate to the cheapest one. We must compare products on a level playing field. It is a case of “fail to prepare, prepare to fail”. A lot of things can go wrong if you do not understand each component or material required to ensure you are selecting the right product for your company & your products.
Don't be swayed by sales pitches that aren't relevant to your needs - if you know your product well there is less risk of this happening.
2. Contacting potential suppliers
Spend time on research. Choosing the right suppliers is essential for your business. Don't try to save time by buying from the first supplier you find that may be suitable. It is important to email & speaks with around 5 potential suppliers, this can be very time-consuming to really understand the company type & the product offering. The more time you can spend on this task the better your chances of success are. It offers you a good snapshot of what your sourcing from China outcomes is likely to be. If your time is better spent looking after your customers then engage a 3rd party supply chain team.
3. Ask for advice & Always ask for samples.
A lot of people & businesses have first-hand experiences of sourcing from China so it is always helpful to try and learn from that. Listen & read about successes and failures in equal measure, success is rarely a straight line. A common element of these stories will tell you it is important to ask for samples from suppliers especially when dealing with smaller items, you can compare and contrast them easily.
4. Price isn’t everything
If you are in a new business, one of the most important factors to consider when selecting suppliers is price and affordability. However, cheapness does not always represent the best value for money. If the quality of your supplier's product or service is poor, you will inevitably incur extra costs for your time, returns and replacements. You will also risk losing business with any delays that result. If you decide to pass poor quality on to your customers, you risk damaging your business reputation for the long term. Find a balance between price & quality.
5. Reliability
Many business owners don't even know where to begin because it is complicated and time-consuming to find a reputable sourcing company. There are many unreliable and fly-by-night operators in this sector.
A company's track record is a good indicator of the service you can expect. JOG International Ltd. is one of the market leaders in sourcing from china supply chain solutions and we guarantee that we can deliver the right goods or services on time. Large suppliers are generally reliable because they have enough resources and systems in place.
6. Stability
One of the important requirements of every supplier is financial strength and stability so they can meet all your requirements. Look for experienced suppliers who have been in business a long time. Since JOG International Ltd. has been in the industry for almost two decades you can expect a long-term relationship with us.
7. Location
Always think about location when choosing suppliers. The most successful companies source globally in order to achieve cost benefits and synergy effects. The resources are obtained irrespective of the location, wherever they are available in sufficient quantity, at the required quality, and at the optimum price. Against this background, China remains to be as attractive a sourcing country as it was three years ago in spite of the economic changes that have happened in China.
How to ensure good results?
It is important to keep track of the supplier's results. Establish a clear line of communication with your company and conduct frequent performance evaluations, which will come in handy when contracts are up for renewal.
Whether you’re seeking advice or full-scale Supply Chain Management, talk to us now for all your strategic sourcing needs. The core element of our business is sourcing from China for our clients. The company motto is trade with trust and we make a point of dealing in good products from good people. These are key ingredients that we have nourished over the past 16 years.
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