Business houses, both big and small, are turning to the process of procurement to optimize profit and maintain sustainability. Sourcing is an integral part of the procurement process. The need for sourcing arises due to the fact that not every raw material can be found in one’s own country. Even if it is found, the rate might be a lot higher and it will result in incurring losses at the time of manufacturing. In order to source materials from another country, you need to have a trustworthy person looking after the process on your behalf. This is where the role of sourcing agents comes in. He is the one hired by your organization and is given the responsibility to carry out the sourcing process smoothly in a foreign country. His talent and skill set are specifically designed to help your company with the outsourcing process.
Who Is A Sourcing Agent?
A sourcing agent is the one who looks after the manufacturing process on your behalf and ensures that the process goes smoothly even if it is in another country. He finds locations of products from where they can be sourced at a cheaper rate. The following are some of the job roles included in his profile:
- He oversees quality control and maintains a smooth flow of work.
- He conducts the process of supplier selection and finds the one best suited for your company.
- He does the necessary market research and brings in the changes as required.
- He is an expert when it comes to price negotiation so that you get everything at a minimal price point.
- He conducts shipment inspections and maintains transparency with you throughout.
- He gets the products through quality assurance and crosses out faulty products.
- He takes care of the customs clearance so that the shipping and delivery face no issues.
Either you select the supplier or you hand over the responsibility to sourcing agents. He negotiates the terms and conditions with the vendors and maintains a smooth supply chain. It is via him that your company6 can establish a healthy relationship with the suppliers.
If you are a company that requires domestic products, ask the agent to search for the best prices available within the country. In this case, there are lesser hassles to be tackled. The sourcing agent works for the best interest of your company and finds you the cheapest materials for manufacturing. Similarly, your company can also hire an overseas agent to look after the manufacturing process in the foreign land. These agents locate reliable manufacturing companies and conduct inspections at every step so that the end product is nothing but the best. They find the most trustworthy suppliers and work closely with them so that the demands of your company are fulfilled.
Benefits Of Having A Sourcing Agent
It falls under the job profile of a sourcing agent to know the laws and the cultural background of the country he is dealing with. He effectively communicates with the suppliers and rightly adheres to the rules and regulations. It is with his help that you can hope to find top-quality raw materials suited to your budget or even at a cheaper rate. The following are some of the reasons to hire sourcing agents:
- Having a sourcing agent saves you a considerable period of time as he will handle the task of finding the right kind of sourcing materials. His extensive experience is a boon for your business.
- Given that the agent is multilingual, he reduces that language barrier that might otherwise become a problem while sourcing from a foreign country.
- The agent abides by the cultural norms of the country so that he does not offend the suppliers by saying or meaning something inappropriate.
- With a vast network of suppliers at their disposal, the agent finds the best-suited one for your company. He negotiates the cost as much as possible so that your company runs in profit.
It is due to the agent that you find the right supplier matching your specific requirements perfectly. There are several qualities in good sourcing agents. From being transparent at all steps to communicating effectively with suppliers, they have it all in them to ensure a smooth procurement process. As they have worked in this field for years, they gain enough knowledge to handle any kind of risk that might arise along the way. Owing to their large network of contacts, the outsourcing goes on smoothly. Your company can use the networks to its own advantage and optimize the profit-making part. While finding the right agent for your business might seem like a daunting task at first, it is not impossible once you stumble upon a reliable sourcing agency. The agent will most certainly be beneficial for your business in the long run.