You Should Know This – Risk In Choosing A Sourcing Agent And How To Avoid It

The lack of professionalism in sourcing agents is a big concern for all global buyers, it has been a so controversial issue that people have heated debate over the pros and cons of hiring a sourcing agent. Numerous buying offices and sourcing agents themselves tend to accuse the conduct of taking kickbacks, and after doing so they shift the buyers’ attention to their own services and advertise that they will never resort to this unethical behavior. However, it should be admitted that all of them are in essence agents, and they are all likely to fall into this lapse, but few of them shed much light on solutions to this issue. The difficulty is simply due to human nature. For example, some of them may have mixed feelings when they offer the quotations to their clients, they may ask themselves, “I found so amazing a supplier for my client, and they get so good price, shouldn’t I deserve something more?” “The packaging and shipping cost me so much, and it took me a quite a bit of effort in talking to this supplier, do I work for my clients simply to make ends meet?”

A common practice is that some suppliers willingly give sourcing consultants or translators an amount of hidden commission in order to win the order or the latter asks for kickbacks from the suppliers, however, this practice is not only unethical and unprofessional, but also practically unsustainable, because although unlikely some day the suppliers could tell the truth to the buyer, the sourcing agent would find himself a mere tool for the suppliers and, even worse, end up being no long trusted by the client.

The best and very likely the only solution is to facilitate a sustainable system that enables the sourcing agent to be fully integrated into the buyer’s virtual office. The client should treat the sourcing agent as a colleague or employee with absolute sincerity, while the sourcing agent should treat his client as his employer with absolute loyalty.

The sourcing agent can try some of the methods below:

1. Provide payment proof for each and every transaction with the suppliers and shippers. This may include photos of receipts, Alipay/Wechat transfer screenshots, bank slips, etc. In this way, the original total cost in procuring the goods can be easily tracked and calculated.

2. Present detailed contact information of all the suppliers and shippers to the client. Moreover, when the client needs to communicate with them for any clarification purposes, if the suppliers do not understand English, the sourcing agent should offer translation help to facilitate the clarification process.

3. Say no to any form of hidden commission from the suppliers, stay impartial and objective in choosing suppliers for the client’s requirement.

4. Always stay answerable and open to the suppliers, deliver the buyer’s requirements to them in a timely manner, show to the suppliers that the buyer’s interests are physically and constantly represented.

5. At the client’s request, make tours to the suppliers for quality checking, pre-delivery inspection, trouble shooting, technical support, etc and make sure the suppliers fix all issues concerned with the goods before and after the delivery of the goods.

The buyer can try some of the methods below:

1. Offer a reasonable sourcing fee.

2. If possible, help the agent create an Email ID in the name of the employer’s company so he can more convincingly represent the buyer in dealing with the suppliers, likewise, the creation of a business card can also do the same purpose.

3. Cover the expenditures including costs generated in packaging, domestic shipping cost, traveling expenses, etc at the agent’s end.

4. Motivation measures: As the cooperation reaches a highly stable and mature level, it could worth consideration to offer retainer fee or performance bonus to the agent based on savings achieved.

The Reasons Why You Need The Assistance Of Professional Business Consultants

The business consulting method mainly includes working with clients to solve their vital business issues while assisting them in making better decisions in business. In this field of consulting, a business consultant mainly works closely with the clients so that he/she can come with an exact picture of how the present business rules are, what the future requirements of business are and the necessary steps that are required to do the gap analysis between future and present state and can offer the best options to close that gap. Consultants mainly work best for those people or organizations, who come with clearly defined objects or projects.

Most of the startup companies have a common statement about these consulting services and as per them, these are mainly meant for the established and large businesses. But this is not true. Actually, business consulting is capable of improving the efficiency and the performance of companies of almost all sizes, whether it is a start-up or an already established one. For both types of businesses, the business consultants offer high-quality information and well-informed advice on different topics on empowering firms to get the highest potential and commerce.

In this content, you will find the reasons why it is a must for the business owners and entrepreneurs to consult with the business consultants to run their businesses properly.

    1. The market is changing continuously: There are different catalysts, which can dramatically change both the industrial and commercial landscapes. In case a company is not ready for that shift, it will be left behind. Factors like decreasing market share, tightening environmental regulations and emerging IT innovation work as the accelerators that drive companies to change. And to help them in dealing with all the changes, the business consultants offer the companies advice on almost all types of matters related to the authority of the company starting from overseeing the workforce development to acquiring new tools.

 

  1. Honest opinion and information and the major tools to success: For those companies, which are eager to do long-term business goals, it is important to be aware of the areas, which should be focused on and for what reason. It requires an honest opinion and advice along with detailed information, which is necessary to make the right decision. Running a business successfully is not about depending on the instinct, gut reaction or luck. Rather, it is mainly about realistic analysis, careful calculation and practical strategy development- as a whole, the things with which a business consultancy can guide.