Yiwu China Sourcing Agent

China Sourcing Agent-Yiwu International Trade Co.,Ltd.

Traditional Sourcing  mode problem

Traditional Sourcing Agent  mode refers to  the purchasing department established inside enterprises,  is responsible for the business requirements of production materials procurement, it is our country at present one of the most common material procurement mode. Although the pattern in the protection of commercial secrets of the enterprises supply of raw materials has the advantage, and do not have to worry about credit problem, but the cost is too high.

Traditional Sourcing Mode-overhead cost

Enterprises in order to ensure timely supply of materials needed, must set up the special procurement departments, specialized procurement staff, in order to prevent the emergence of shortage, but also the establishment of large-scale warehouse, storage of large reserve materials. The purchasing department daily expenses, purchase personnel wages as well as the reserve storage costs,  to the enterprise, it is an essential cost.

Traditional Sourcing Mode- high transaction costs

Enterprises in order to buy the desired materials, must understand on the materials required for the market, this needs to try to collect the materials required for the relevant information, need  dispatched personnel to select several supplier inspect. Through the investigation to determine the selected suppliers, but also for material procurement bidding or negotiation. This is a series of work not only are time consuming, and expensive. Moreover, these complicated work sometimes does not guarantee that enterprises will be able to purchase cheap materials, examples of this in reality it is often seen.

Traditional Sourcing Mode- The high cost of supervision
As everyone knows, procurement of materials is the enterprise all work in the most prone to corruption link, below buyer’s market environment, the enterprise material purchase personnel are often the material suppliers to bribery objects. So many enterprises, especially state-owned enterprises, in order to prevent corruption in purchasing link events, set up the supervision department, to the enterprise commodity purchase of the whole process of supervision. In addition, many enterprises for the purpose, in the system of the material purchase of this post were constrained, such as a rotation system, two or three years to change a person, often a person in this position for two to three years, was familiar with the procurement business, when can be handy, again changing of the guard. In this environment, the enterprise material purchase is inevitable in the presence of low efficiency, high cost.

Yiwu china Sourcing Agent advantage and ability: