How are you able to effectively source products from Asia? What is the importance of using sourcing agents?

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A sourcing agent in Asia leverages your company for greater potential growth and success. It is possible to identify ‘partners’ from the comfort of your own office, prompting some companies to buy from suppliers at arm’s length. But they miss out on one of the most valuable services in their supply chain. Qualified sourcing agents in Asia introduce expertise capable of saving time and money along every step of the process. From identifying and cost-effective sourcing of materials, to conducting audit-level quality control checks, professional sourcing agents devote care to managing their clients’ sourcing needs.


Why source from Asia in the first place?

Improved manufacturing capabilities and low labor costs cement Asian sourcing opportunities as some of the most cost-effective in the world. Although China has been the dominant force for the past two decades, other regions such as Vietnam and India are developing a breadth of manufacturing. At the government level, both China and India have committed to investing in smart manufacturing. Their efforts are developing a manufacturing base for the future that is driving efficiencies through technology. Vietnam earns recognition as one of South-East Asia’s fastest growing manufacturing nations. With a lower cost base, it has a comparative advantage in certain categories.

How a Sourcing Agent in Asia can help you

Sourcing agents in Asia can help European SME companies of all sizes source in the region. Scalability and breadth of resource is something that is particularly beneficial. Whether you have just started searching or are looking to enhance your vendor penetration and supplier management capability, sourcing agents present opportunities that a direct sourcing model may struggle to find.

  • If you have never explored opportunities in Asia before

You may feel the risks outweigh the benefits to give it a go without any support. There are certainly suppliers (on platforms like Alibaba) that warrant skepticism and may present pitfalls when it comes to product quality. Sourcing agents, especially those with more years of experience, are some of the finest domestic resources for building your new supply chain. For companies looking to outsource manufacturing for the first time, entering the market with a trustful sourcing agent in Asia is very important. They know how the system works and will ensure that your interests are protected qua quality and price.

  • If you already source from Asian suppliers

A direct sourcing model requires ‘on the ground’ management. In whatever guise, having the ability to develop deep and meaningful relationships will put you in good stead in the future. Just as if your company was manufacturing in your local market, there would be an expectation that you would need to visit and have visibility of any production. Of course, companies are now able to go direct to suppliers across Asia. It depends on resource and capability in the company doing the sourcing. For example, a sourcing company can help bridge the communication and time difference that companies outside of Asia will face. There is also an opportunity to leverage breadth of resource and expertise which already exists in-house. When you engage directly with suppliers and manufacturers, you need to manage multiple relationships. With a sourcing agent at the helm, you only need to have a single meeting encompassing your entire supply chain.

  • If you encounter communication issues or inconsistent quality

Vendor accountability can be one of the most frustrating aspects of managing your supply chain. If you don’t have visibility of your production until items are fully “produced,” there is a wide margin for error. Miscommunication and insufficient quality control can ruin entire shipments and waste hard earned cash. Qualified sourcing agents and companies can arrange quality assurance checks along every step of the process to ensure early identification of any issues and present viable solutions. From sourcing from certified suppliers to load monitoring inspections, agents can cover your entire supply chain with transparency.

  • If you plan to expand or launch new products

While your current capability might be sufficient for the time being, you might want to grow in the future. Suppliers may not be capable of taking the next step forward due to their own limitations. Sourcing agents specialized for your industry are well-equipped to help you expand your business. With a wide range of suppliers, sourcing agents can not only manage potential problems upstream at the factory, but also help you consider the best way forward. Sourcing agents can also play an integral role in enabling companies to scale their businesses. The allocation of resource combined with local expertise can ensure that a broad supplier base is easily managed.

If you like to know more about souring products, such as components or equipment, from Asia and like to develop an effective sourcing strategy for your organization, please contact us please contact us


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