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Written by Ray Jia
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Saturday, 06 March 2010 15:05 |
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For many reasons, a traditional middleman or agent would like to hide the sources from the buyer. This is the cause for many frustration around China sourcing: mistakes, misinterpretation, delay in responding, being stuck, losing negotiation power, not being able to bring about continuous improvements, the developed sources gone with the agents...
- Keeping the buyer away from the supplier so that the buyer won't skip purchasing through the agent. Well that means, the agent does not believe he/she can add value to the supply.
- The agent has deals with both sides and doesn't won't the buyer and the source talk.
- The agent takes advantage of the trust from the buyer, and only select the supplier that offer good terms for himself/herself. He/she is afraid to expose the source, to the buyer, which is not as capable as a competitive one would have been.
In all cases mentioned above, the agent isn't acting on behalf of the buyer as an agent should be. he/she represents his/her own interests or the seller's interests. That means his/her benefits are less aligned with the buyer who employs him/her than with the other side.
Sourcing companies that offer transparent sourcing services represents the buyer's interests and are only aligned with the buyer's benefits. Following are the advantages of this approach.
- Communication is much more efficient as the buyer talks directly to the source.
- Direct relation helps individual product developments.
- The buyer and the source can work together to identify improvement opportunities, which would be possible in the other case.
- The buyer and the agent can work together to strategically manage the suppliers for the best benefits of both parties.
- Competitive suppliers are selected instead of the suppliers who offer the best deals for the agent.
- Issues are solved much faster than the case where there's an barrier.
- The developed supplier relationships become very valueable assests for the buyer.
When you are selecting a sourcing partner to work with, make sure you understand from them how they are supposed to expose the sources to you and what are the business relationship between the agent and the suppliers. Only trust specific facts but not over promising "no problems".
- Will you provide the contacts of the suppliers?
- Will you recommend switching the suppliers when it is determined that there's better ones out there?
- Am I allowed to talk directly with the suppliers?
- Do you receive any commission from the supplier? Ask the agent to sign an agreement on this important point.
- How many suppliers do you contact for a typical projects? Do I have access to the process documentations? Can I be involved if I choose to? Can I audit the process if I require?
Even if these questions are answered perfectly, you still need to continuously monitor and evaluate the true relationship set up among that parties and see if the model is deviating from what is supposed to be.
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Last Updated on Saturday, 06 March 2010 15:43 |
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Written by Ray Jia
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Thursday, 04 March 2010 11:02 |
March 2, 2010 -- Shenzhen-Mar-2-2010-Sourcing Spectrum has moved its offices from East Shenzhen to Golden Central Tower 909, Jin Tian Road 3073, Futian District, Shenzhen, China on Mar 1st, 2010.
Since its inception, Sourcing Spectrum has been rapidly developing its international sourcing capabilities by designing new tools, adopting innovative processes, acquiring sourcing talents and accumulating experience from working with its growing clientele. To have easier access to suppliers, metropolis facilities and closer to Hong Kong, the port through which overseas clients came to China, Sourcing Spectrum decided to relocate its office to the new address.
Sourcing Spectrum helps small and middle sized companies identify, select, develop and manage sources from China. Talented and experienced sourcing professionals are now helping designer brands, retailers, marketing firms, product destributors and entrepreneurs around the globe, by applying effective, straight forward, flexible and transparent processes, engineering expertice, world class customer service philosophy and state of the art collaboration technologies. Sourcing Spectrum is registered in Hong Kong and operates from Shenzhen, the most innovative city in China. For more information, please visit our website at: www.sourcingspectrum.com |
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Last Updated on Friday, 05 March 2010 02:05 |
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Written by Administrator
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Tuesday, 13 October 2009 14:53 |
Guangdong province will certify door and window products by matching their energy-conservation characteristics to their proposed application.
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Last Updated on Tuesday, 13 October 2009 14:57 |
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Written by Administrator
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Tuesday, 13 October 2009 14:36 |
GENEVA — China said Monday that it will ask the World Trade Organization to examine whether European Union charges on imports of Chinese steel fasteners comply with international commerce rules.
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Last Updated on Tuesday, 13 October 2009 14:41 |
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Written by Administrator
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Thursday, 17 September 2009 08:17 |
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China is one of the world’s largest battery suppliers with as much as a 40 percent share of global output. The majority of companies are based in Guangdong province, which accounts for more than 50 percent of total output.
Suppliers in the country produce the entire range of cells and battery packs, with alkaline, lithium, sealed lead acid, NiCd and NiMH units leading the line.
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Last Updated on Thursday, 17 September 2009 08:28 |
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