Six Common Global Sourcing Mistakes Businesses Often Make – And How a China Sourcing Company Can Help
One of the most common mistakes business owners make in their sourcing process is to neglect building relationships with China sourcing companies early on in the process. Many don’t realize that an experienced China sourcing company can be just as helpful when it comes to selecting products and suppliers as they are when it comes to negotiating prices and ordering products at the end of the sourcing process.
This blog post will explain six common mistakes businesses often make – and how a China sourcing company can help.
Compromising on Quality
They come at a lower price, you should avoid that temptation. If your clients find something wrong with your product, they will not only lose their confidence in you but also have a bad impression of your brand.
By compromising on quality, you can cause more problems than benefits. Therefore, if you really want to save money while sourcing products from abroad, it is important to educate yourself about how to choose a reliable supplier in order to get high-quality products at low prices.
You must be willing to put your money into selecting a professional outsourcing company for your sourcing needs rather than going for cheap options that might cost you much more down the road.
Not knowing where to look
As you begin to consider sourcing from foreign countries, your mind is likely flooded with questions. Where should I source? What country provides these kinds of products? How do I evaluate them? One common mistake people make is not having an effective plan for finding suppliers that meet their needs and expectations.
Choosing a small business, large corporation or other type of organization can have lasting implications on your supply chain—you don’t want to limit yourself too soon in your search for quality overseas partners. Instead, spend time looking at all potential sources before settling on one or two potential partners. You may be surprised by what you find in unexpected places!
Underestimating the effort it takes
Not all companies are prepared for how difficult and involved it can be to do your own sourcing. Many aren’t even aware of just how much goes into finding reliable suppliers and negotiating contracts with them.
If you haven’t worked with international partners before, then you might not know that there are additional hurdles to jump through, from shipping delays to language barriers. Before approaching a China sourcing company, have an idea of what kind of time commitment is required.
Incorrectly negotiating with factories
Negotiating with suppliers requires an understanding of both your business needs and theirs. Unsurprisingly, many buyers make incorrect assumptions about these issues and end up negotiating poorly. As a result, they leave money on the table while paying too much for production.
A sourcing company that specializes in working with Western brands can help you avoid these mistakes as well as handle everything from negotiations to shipment to provide you with maximum value for your budget.
If, on top of all that, it turns out that sourcing from Asia isn’t cost-effective for your particular product, then no harm done: You can focus your attention elsewhere without doing additional research or wasting any time learning about a market you won’t enter.
Letting your competitors find the right supplier first
When you need to outsource your manufacturing, it’s tempting to hand over all of your sourcing responsibilities to someone else. It can seem logical: let a professional handle it for you. What could go wrong? After all, when you outsource manufacturing to China, an experienced China sourcing agent will already have relationships with dozens or even hundreds of factories and suppliers.
But while outsourcing may be great for some parts of your business, don’t outsource your knowledge! If you don’t know what questions to ask when interviewing suppliers, then how will they know how they’re going to solve your problems?
The best way to find success in importing from Asia is to work with someone who understands the region and its business practices. We are an international sourcing company, providing products to businesses around the world. By working with us, you’ll have access to years of experience, as well as connections within China and Asia. Our contacts will ensure your orders reach their destination safely and quickly, giving you more time for what matters most—growing your business!