It depends on resource and capability
Chinese sourcing agent
A direct sourcing model requires ‘on the ground’ management. In whatever guise, having the power to develop deep and meaningful relationships will generate good stead later. Just as in case your company was manufacturing with your local market Chinese sourcing agent, there would be an expectation that you will need to visit and also have visibility of a typical production.
Of course, companies can now go direct to suppliers across Asia. It depends on resource and capability within the company doing the sourcing. For example, a sourcing company may help bridge the communication and time difference that companies beyond Asia will face.
There is usually an opportunity to leverage breadth of resource and expertise which already exists in-house. When you engage directly with suppliers and manufacturers, you must manage multiple relationships. With a sourcing agent in the helm, what was previously numerous check-ins, six with suppliers and a couple with 3rd party quality control, reduces right into a single meeting encompassing all of your supply chain.
? Quality Issues. Ask what their procedure is perfect for dealing with any quality points that may arise. Having taken care of Chinese manufacturers for more than 10 years, normally, were very impressed making use of their quality. It’s important however which the agent causes it to become clear on the manufacturer that they may not accept substandard amounts of quality.
? License to Trade. In China, legal requirements is very strict about what a business can and can't do. All businesses should have a license to trade. That license enables the business enterprise to conduct one specific style of operation. They cannot do other items which don’t match the description of the license. Ask to view the agent’s license before you begin doing business with them.
Imagine that when each different supplier requires you to definitely send money separately, this really is painful and risky. The basic element these makes up about accepting forex is which the account is good condition. However, its not all Chinese supplier has the capacity to handle the foreign currency issues. Those who are capable are relatively large suppliers. But will such suppliers match with you?
In recent times, China has strengthened its control over foreign currency, that involves accounting issues, tax issues, and China’s currency exchange money laundering issues.