If you are looking for a sourcing agent to extend your operations into emerging markets, you are at the right place. Dragon Sourcing is one of the leading procurement service providers in the industry, helping companies all over the world manufacture and source products from emerging and established markets. Our sourcing agents are some of the best in the industry and strive to offer long-term sustainability and profitability to our clients.
Get in touch with our customer representatives to know more about the sourcing process and how we approach the procurement process for different industries.
Why sourcing agents?
Procurement as a business operation is highly unpredictable, especially when sourcing from overseas locations. There are far too many variables involved that organizations must navigate, including market volatility, price fluctuations, logistics, etc. In emerging markets, the risk is higher as there are no company representatives present on the ground to ensure that the product vision is realized. Firms intending to source directly from such markets are averse to setting up their own procurement offices to run operations internally.
However, such procurement risks can be mitigated substantially if you know what you are dealing with in the first place. The process becomes much easier if you are working with sourcing agents – your local representatives in overseas markets. They are one of the most effective ways of finding the most suitable supplier, eliminating the risks associated with shortlisting suppliers using unreliable methods.
Why choose sourcing agents over distributors
There are certain benefits to working with sourcing agents over distributors. Let’s take a brief look into why working with sourcing agents can be beneficial for your organization.
- Product range
One of the most noteworthy benefits of working with sourcing agencies is the product range on offer. Compared to distributors, who only have a specific range of ready-made commodities, sourcing agencies provide you with the option of finding the appropriate suppliers for a wide range of products. A professional agency like Dragon Sourcing is supplier-independent and will help you connect with the best manufacturers for all sorts of products and designs.
Distributors purchase products wholesale and sell them at a marked-up price, which leaves no room for customization for your company. On the other hand, sourcing agents have contacts with a wide range of suppliers who can create any product as per the buyer’s specifications. Dragon Sourcing follows a comprehensive set of instructions when evaluating suppliers in overseas markets, ensuring that you are only introduced to suppliers that can supply your exact requirements.
As mentioned earlier, there is no cap on what the distributor charges for their inventory, meaning the marked-up prices can vary significantly. Dragon Sourcing works closely with your internal teams to evaluate the suppliers on multiple criteria. Our experts can help you negotiate better contracts so that you get the best value for your money without compromising on product quality. You will work directly with the factories and we will not charge mark-up fees over the factory rates.
Working with sourcing agencies also leaves the door open for prototyping. During the acquisition stage, two or more competing teams can develop prototypes for your designs. You can then go with a supplier who can produce your requirements at an affordable cost without cutting corners. Dragon Sourcing will also help conduct quality control to ensure that only the best products reach you and your customers.
- Quality control
Dragon Sourcing has established quality control standards that ensure only the best products reach customers. We evaluate suppliers on multiple criteria, which include corporate social responsibility, ethical sourcing, financial stability, QCD, long-term feasibility, etc. You will not get the same results when working with distributors as they only deal with finished products and have little to no say when something goes wrong.
Pragmatic tips for choosing the best sourcing agents
- Find agents local in the target market
It is always better to work with sourcing agents who are local in the target market or have vast prior experience dealing with similar product routes. Local sourcing agencies can easily communicate with suppliers in their native tongue, ensuring that your product instructions are carried exactly and nothing is lost in translation. Such sourcing companies also have a wide network of suppliers and you will get a better deal for your products.
- Better to work with agents adept in similar categories
When selecting sourcing agents, it is ideal to work with agencies with considerable experience dealing with familiar markets. Sourcing agencies familiar with your market will know how to navigate the laws and regulations for import/export, meaning there is a lesser chance of logistics disruptions.
- Check sourcing agent work portfolio
Always check the work portfolio of sourcing agents to get an idea about what they are exceptionally good at. For instance, some sourcing professionals are better at negotiating contracts, while some are better at quality control.
If you want to know about how Dragon Sourcing is the ideal partner for your sourcing needs, get in touch with us at the earliest.