For any retail buyer, sourcing products regularly to stock their shelves is an integral part of the business logistic. Nowadays, the Consumer-Packaged Goods (CPG) sector allows retailers to look at multiple product sourcing companies to get the right product for their shelves at the best price. This article will inform you about product sourcing and what steps you should follow to successfully get good quality products at a low cost from a reliable supplier.
Define Product Sourcing
In simple terms, product sourcing is finding those products you want to sell in your retail store, buying them from a reliable supplier, and reselling them through your store.
How to Find the Product Suppliers?
There are innumerable product suppliers worldwide. As a retailer, you should know that no single supplier can fulfil the demand for all the products you put on your shelves. Therefore, you should find multiple suppliers for sourcing products. To find the suppliers look at the following sources.
- Supplier website.
- Online supplier platforms.
- Trade shows.
- References.
Once you have found suitable suppliers, the next step is to successfully source the right products at great prices from a reliable supplier.
Easy Steps to Procure Goods from Product Sourcing Companies
Sourcing products from a third party can be challenging; therefore, retailers should follow specific steps sequentially to smoothen the procurement process. Here is a list of steps that can make the procurement process easier.
- Research, What Type of Product You Want to Buy
When looking for good and reliable product sourcing companies, you must first figure out what products your business needs. Do comprehensive market research to find what products will work in certain stores. Also, check which products are in high demand and whether the latest trends can cross into other product categories. This research will provide you with the correct information to make an informed decision when negotiating with suppliers. If the sourcing company knows about your product details, they will be able to provide you with the best solution.
- Contact All Potential Suppliers
Once you know what kind of product you need for your business, you must contact the shortlisted suppliers you have gathered from your online research. Request them to send you their quotes, samples, information about a specific product, or any other details to help you identify the best-suited supplier for your requirements.
- Compare the Suppliers
Once you have the samples and quotes from different product sourcing companies, it is time to compare their offers. Once you have made the comparison and have a list of suppliers ready from whom you want to procure products, you should sign a contract with all the details written down. The agreement will help both sides to know about their roles and responsibilities.
- Keep Open other Suppliers’ Options Also
You should have a list of suppliers from where you can procure the same kind of goods. Multi-sourcing options will ensure that you always get the best price in the market. The multi-sourcing option also allows you to compare the qualities of the goods procured and choose the best one for your business.
Conclusion
Sourcing products is not a straightforward process. You must regularly check the content you are getting from the supplier to maintain the quality and integrity of the Consumer-Packaged Goods. You should also constantly look for new suppliers to get an even better deal to improve your bottom line.