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Chris Bell

Top 4 Costly Mistakes to Avoid When Sourcing Internationally.

As the need for international trading increases, business owners and importers make critical mistakes especially when doing China sourcing or when getting products manufactured by Chinese firms. These blunders can cost a good amount of money or time. You may be well contented with the way you are sourcing and importing your products, however, behind the scenes there could be unnoticeable mistakes that are stealing your precious time and money.

If you are not an expert in finding and managing overseas patners, you should ensure you get a sourcing agent to deal with:

  • Finding, screening, and qualifying new suppliers;
  • Help in developing new products/style with vendors
  • Continuing management of the supplier affiliations (communication, quality control, freights follow-up).

Below is what seems to be the most common mistakes that business owners need to avoid when assessing sourcing agents and working with them. You may also read the 13 Tips You Should Keep in Mind When You Are Thinking of Outsourcing from China

  1. Poor first impression

No need to rush! First things first, prepare a presentation for an inquiry. You don’t need to rush to get a real quick quote from suppliers. Avoid posing the last question to a potential Chinese supplier before both parties give a brief introduction of their company and the requirements.

Meagre presentation of yourself and your business won’t bring you compassionate suppliers or good quotations. Business is about swapping things that each party is willing to. In order to get a healthier result, a roundabout approach could be a better method. What impression you present plays a vigorous role in supplier’s grading on you. Moreover, it defines how supportive they will be.

  1. Unreasonable anticipations

It is good to know that even the experienced and best sourcing specialist will have a difficult time getting you cheap prices, quick shipments, and consistently incredible quality. If a sourcing agent promises this to you, you are not talking to a specialist. You should know what is most significant to you, and plan for that reason. For instance, if you categorically need on-time and great quality products, then you cannot work with the inexpensive companies on the market.

  1. Picking a sourcing agent based merely on price.

Yes, it is true price is something to be considered for any business continuity but this is by far the most common and most terrible mistakes that you can make. In today’s business world, where incremental margin changes can factually make or break productivity, it’s crucial to be more sensitive when it comes to price. However, it is also essential to be price-understanding. Very low prices should largely serve more as a red flag than as an incentive. Inexpensive prices are often accompanied by cheap products, impassive vendors, or faulty or dangerous materials.

  1. Failing to work with insurance companies

Today, there are many different insurance options. Cargo insurance can offer shield against dangers of physical loss or damage to freight from outside cause while sipping, be it by land, sea or air. Accidents happen like damages, stolen, ship crash etc. It’s not a high likelihood but not a zero possibility either.