What is a China purchasing agent and why do you need one?
The Procurement Agent is a freelancer, or part of a larger organisation, arranging various aspects of the trade between China and the buyers around the world.
Below I list a few examples of what a purchasing agent can help out with:
• Supplier Identification & Price Research
• Sample & Prototype Development
• Quality Assurance & Quality Inspections
• Social Compliance Audits
• Product Compliance Consulting & Product Testing
• Shipping & Logistics
• Customs Procedures & VAT
How to Evaluate a Procurement and Purchasing Agency in China?
- Product Expertise Knowledge about a product and industry is a decisive factor. First, and an insider has a much more comprehensive product expertise, which is required to understand what makes good quality (and price) for a certain product.
- Offered Services Some offer more of a ‘one stop shop’ solution while others are strictly specialized, only performing specific functions.
- Procedures However, identifying industry leading, and in relative terms, reliable, suppliers is a whole different thing.
What the standard procurement process?
the standard procurement process should look something like this:
1.) Confirmation of product specifications and certification requirements
2.) Supplier sourcing
3.) Initial price research, sample order and selection of qualified suppliers
4.) Initial price negotiation
5.) Audit of qualified suppliers
6.) Final supplier selection
How to work with a purchasing agent?
1. Use a specialized Sourcing Agency or manage the process yourself. You must know which suppliers you’re going to work with, and on what merits they are selected. Vetting ten to twenty suppliers at once is a lot of work, so you better have a specialized partner for this. Suitable for customized products that takestime to develop before they are ready for mass production. As you pay a fixed service fee, the agent has no incentive to cut corners to speed up the process,or convince you to place large initial orders.
2. You are the product expert. Submit specifications and communicate your quality requirements directly with the manufacturer. Otherwise, important details may be lost in translation. In addition, having a middleman between you and the supplier is not only risky, it’s also inefficient.
o a. Find a local, or China based, Compliance Consultant that can help you assess which regulations and labeling requirements apply to your products, in your market.
o b. Submit reference samples to a China-based testing company, for example, Asiainspection or SGS.
3. Use a specialized Quality Assurance agency, for example, Sofest Limited.
4. Use a local Freight Forwarder, with a presence in China. It’s critical that they know local customs procedures and tax regulations.
Have a quote? Visit our site:China Sourcing– http://china-sourcing.com