How to Succeed in Direct Sourcing from China

For businesses that want to cut down on the middlemen and cut down on their sourcing costs, direct sourcing from China offers the perfect option. Under the direct sourcing, the businesspeople will go factory direct to the factories in the major Chinese industrial cities and completely cut out the trading companies that are charging insane costs for sourcing companies.

direct sourcing from china

direct sourcing from china

But even direct sourcing from China must be approached with careful consideration otherwise you might end up with lower reliability and high overall costs for your business. If importers from China roll up their sleeves and work harder in managing every aspect of the process, then they can have incredible success rates when it comes to China direct sourcing.

Because you are cutting out the trading companies from the equation, it means you will have to do all that work that the trading companies are doing in order to cut on your costs. Direct sourcing China is particularly a favorable option for those small businesses that cannot afford those high costs charged by the trading companies that are doing the sourcing for you.

Before Direct Sourcing

Before companies begin direct sourcing from China, they would source their products from China using trading companies or trading houses that were based in Hong Kong. Companies had to pay as much as 20% of their cost of their product sourcing to these trading houses but they could also look forward to professionalism in their business along with problem solving and quality control functions. By cutting out these middlemen through direct sourcing China, you are basically assuming many of those functions that they used to perform.

Get assistance on direct sourcing

Direct sourcing was formerly a preserve of the large companies. Today even the small business will be able to benefit profoundly from the great benefits of direct sourcing from China if they can get China direct sourcing assistance. That does not mean you reintroduce the middleman but you are guided to carry out your sourcing and all the associated functions by a consultancy that knows what it entails.

With assistance on direct sourcing, you do not have to pay for the products from China that have been marked up to 10 times thus losing advantage to your competitors, who with assisted direct sourcing, are able to negotiate the right prices for the products that are sourced from China.

Even if you want to carry out DIY sourcing from China, there are certain aspects where you will definitely need assistance in order for your business sourcing to run smoothly. These include the areas such as the match making, tendering of your products, the validation of the lists of your potential suppliers in the Chinese market, the performance of the quality checks and negotiation prices amongst others.

You can decide on the extent of the assistance you will need on direct sourcing and pay for that. Sometimes, direct sourcing companies can help you in many other areas such as shipping and logistics and even conducting the factory tours before you decide to buy a particular product.

Find best direct sourcing from China at http://www.chinese-manufacturer.com/china-sourcing-agent-importsmanufacturing-direct-sourcing/ and get the headache out of your sourcing business.

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