Business

How to Choose a Right Purchasing Agent in China?

In today’s business environment, no business can become competitive unless it has developed an efficient supply chain. Therefore, the role of product sourcing in any business is very important for its sustained growth.

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Today, China has emerged as one of the leading sources of all kinds of products at unbelievable costs and has become a supplier of several finished and raw goods to various businesses of the world. However, procurement from China is also full of challenges unless a company has hired any China buying agent who is aware of the language and understanding of the Chinese market.

There are very sharp differences in the way of doing business in western countries and China. Therefore, while choosing any China buying agent service, you need to keep the following things in mind.

1.     References

For a long-term business association, trust is vital among any international business. The best way to verify the China procurement agent will be to check their qualifications through certain reliable and trustworthy sources from your own country or any other country.

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Any reliable agents will gladly offer references to obtain the trust of potential new clients. Make sure that you ask him to provide a minimum of 3 client references and before entering any relationship check them out.

2.     Manufacturing bases

Prefer to choose your China purchasing agent who is very close to the manufacturing base of the products that you need. These days, in China, nearly every city has an industry and each product that you need may have several manufacturing bases.

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The proximity of your agent to certain industries can surely help out when anything goes wrong during production. Also, it will reduce the traveling cost and other transportation costs.

3.     Verification

You must also verify their qualifications and credit report first before entering into an agreement. Most of the sourcing agents also have an export license in China. You may ask your prospective agent to show their copy of ID card if he is an individual and a copy of their business license if they are a company.

You must verify them with a local government office or do a third-party verification.

Read also: 10 Everyday Applications for Locking Pliers

4.     Kickback issue

When you will work with an individual agent then chances are that he may refer you to a supplier based on what kickback amount he received and may not protect your interests in China.

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Therefore, it will be advisable to deal with a company where they may have certain strict counter-measures to avoid ‘kickbacks. You may also question your agent how they ensure that their employees received no kickbacks.

5.     Quality control management

Quality control has been a major issue while procuring from China a few years back, however, over the years various measures have been taken to control this issue. Therefore, you must ask your agent, what professional technique will he use to manage the quality issues of the product. You may make them financially responsible if any noncompliance is observed in their delivery.

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If your prospective agent can satisfy you on these five aspects, then you may go ahead with a written agreement with them.

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