Sourcing agents: how do they increase the profitability of an international business?

In today’s international business market where competition is so fierce, the importance of choosing the best overseas or overseas sourcing agents has taken the front seat. Due to the experience of different countries in different fields, such as manufacturing, product creation, etc., it has become more and more difficult to keep up with them.

Many trading companies, regardless of their size, constantly check and place the utmost importance on questions such as “Are we getting the best price quotes for the source we are using? Are sourcing materials and products purchased from the best possible source?” “

To avoid all these potential complications and have a clear picture of the source, most international companies are using the expertise of sourcing agents both nationally and internationally. The following information sheds some light on the important role of sourcing agents and how they can help your business develop both nationally and internationally.

sourcing agent

A good purchasing agent must be able to reduce at least 20% of the general expenses of the purchasing department. This includes both hidden costs and standard costs.

Standard Costs – Some of the standard costs that a sourcing agent should be able to reduce include, but are not limited to, freight, shipping insurance, customs fee, import tax, dock fee, etc.

Hidden costs – A good sourcing agent should also be able to minimize some of the hidden costs, such as contract fees when hiring a new supplier, costs of visiting the supplier, fees incurred due to shipping delays, increased custom fees due to documentation inappropriate or due to some missing documents, anti-dumping fees, shipping terminal delays due to congestion, etc.

International purchasing agents

Good international agents make the international sourcing process as easy as a domestic one. These global sourcing companies often offer services like taking care of the entire offshore manufacturing process along with purchasing. International business transactions are made easy with global sourcing companies as they are well versed in all such processes.

IBs often do not hesitate to pay an additional ten or twenty percent on the agreed price to these agents, due to the following benefits:

International sourcing agents often represent the supplier

Provide immediate access to the best providers and trusted companies that offer the most relevant experience in minimal time.

Some of the global sourcing companies also offer engineering services and assist in new product development.

Keep an eye out for price quotes from various around the world if necessary.

International Agents, in addition to managing international communications, also handle translations and arrange site visits at appropriate times.

Sometimes they can also become purchasing agents or project managers for projects that require multiple suppliers abroad.

The ones mentioned above are just some of the benefits that an International Business can enjoy when hiring a good agent. So it might be a good idea for you to try one of these national or international agents on your next project and reap the benefits that come your way.