For most people who start their own business the first question that naturally comes up is “should I hire a sourcing company?”. After all, if you don’t have to monitor and control the entire procedure but instead just want to concentrate on growing and developing your business then it makes perfect sense to hire a sourcing company to take care of everything. However, before you run out and sign up with the first agency you find be sure to ask yourself a few important questions. In this article we will discuss what the answers to these questions should be before you decide to use a sourcing company for all of your business needs.
The first question that needs to be answered before you ever even think about contacting a sourcing companies is “Do I actually need to contact my supplier?”. It might come as a shocker, but more than half of people who search for new business often don’t actually need to contact their suppliers. Often they find an opportunity and then decide that there is no need to contact them. But that is rarely the case. The problem with sourcing companies is that they can only do so much – they can give you an opportunity to find a supplier for your product or services and then they can’t do anything to help you get hold of them Vietnam manufacturing.
Another thing that needs to be decided before you contact a supplier is whether or not contacting a supplier is actually going to improve your bottom line. A better idea is to use sourcing companies to perform all of the work that is required to find you the right products and then sell them to your customer. This way you can focus 100% on marketing your products and getting more customers through your doors. By taking the emphasis off finding the right products, you can take all of the pressure off of the actual sale itself which can do wonders for your bottom line.
The fact is that you don’t just want to pick up a phone and call any old supplier; it isn’t the best way to go about it. The whole point of sourcing products and getting them manufactured is so that you can enter your market and sell them. This is the only way that you can gain sustainable long term success. If you are already in the business then you know that this isn’t always possible. It isn’t common practice to be able to buy raw materials and manufacturer them yourself, even if you have access to factories that specialise in producing your specific goods.
The reason for this is because it costs money to buy materials and to assemble products. Factory based sourcing companies typically only work with manufacturers. These large manufacturing corporations have thousands of employees and thousands of warehouses. Trying to get your supplies from them would almost guarantee that you would have to pay very high labour rates in order to get the job done. The whole point of sourcing your own products is that you are not tied down to a particular supplier. This gives you a great advantage in trying to price match with other businesses, as you will be able to offer your services at a much lower cost than most other firms.
When sourcing products from factory-based sourcing companies you should ask a lot more questions about their operations. Ask how many factory locations they have, and how many of these do they have operational. Ask to see documents relating to their operations, such as their business license. You should also check the health and safety records of their factories and verify that they have adequate fire control systems in place, and that their factories are free from chemicals.