The Best Knowledge about Sourcing

The Best Sourcing Knowledge

First of all,you need to know what is SOURCING?

In business, the term word sourcing refers to a number of procurement practices, aimed at finding,

evaluating and engaging suppliers of goods and services.

Now you know Sourcing is not just to find a product ,It is about finding ,and evaluating suppliers

goods and service .

Finding a good product maybe easy ,but finding a good supplier is not easy ,because you are

dealing with human beings, they are different in personality ,their skill ,knowledge,experience are you need to check out not just the product ,but also the service.

Tips 1. Know more about supplier’s factory

You need to know more about supplier’s plant/factory ,this is a way to identify whether they can

produce a good product or not .check list such as :is the factory clean ? how big is the factory ?do

they have a QC process ? how is their product package ? you may ask them to provide pictures to

support their answers .

Tips 2 .Negotiate the price

When you find the product ,you need to compare the price from 2-3 suppliers ,checking the

specification with price ,and negotiate the price even one cent .pls negotiate the price after the

supplier giving you quotation with all specification ,otherwise supplier may change to a lower

specification while provide you a lower price .

Tips 3. Calculate the landed cost .

You need to know every cost element ,local delivery cost ,shipping cost ,tariff ,VAT ect .then

you will know how much is the final product cost at your end . that is a good way to know if this

product can be good sell or not .

Tips 4. Make agreement with supplier .

Instead of losing money by getting a defected product or losing money on the delaying

delivery ,you better sign agreement with the supplier , talking every condition and terms .

Tips 5 . Write down everything on the PI (invoice)

You need to write down every detail on the paper instead of talking the agreement.Such

as :color ,material ,dimension,Delivery Date ,Down payment , currencies rate ,Balance

amount ,package ,trade terms ,delivery , and estimate CBM as well (CBM means Cube meters,you

need to know how much space it takes in the container ) .

Thank you !


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Buying agent #building material #

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