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
different.so 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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