What is a sourcing company?
What does a sourcing agent or sourcing company do and how they help companies find suppliers overseas?
A Sourcing Company or a sourcing agent helps a company find sources for products and supplies at a low cost and/or of a certain quality or attributes. Some may represent a few select factories or serve multiple companies. At Cosmo, we have no exclusive contracts and search for the best factories for a company.
Sourcing companies and agents work to get clients the best price for whatever product they need and meet quality standards.
They ensure the factory or supplier can produce and deliver the product in a timely manner. Knowledge of multiple languages including any local language, as well as local business customs and norms is essential. A sourcing company or agent should have good business skills and the ability to manage multiple projects at one time. Sourcing companies should be expected to create a long-term, stable and valuable contract and relationship with the supplier. Both sides should be happy to work with a good sourcing company. At Cosmo, we pride ourselves on creating such relationships.
A good sourcing company assesses the needs of the client and finds factories and suppliers that can best meet their needs, ultimately resulting in a purchase order. Companies and individuals want a sourcing company or agent to locate a company they can work with overseas. Cosmo and other reputable companies can also inspect a company in person and confirm that they can meet a companies needs.
In addition, Sourcing companies should be able to address ethical concerns as well, including working conditions and pollution. Cosmo will deliver a detailed report including photos and copies of necessary licenses and certificates. Cosmo is committed to ensuring that our factories have decent working conditions and adhere to any environmental standard that the client request and we operate on the belief of a fully transparent supply chain <<Better wording?>> We even go beyond that with our Clean Waves initiative which seeks to locate and clean up plastic waste before it reaches the ocean and we can use those recycled plastics in our products (link)
Traditionally with sourcing companies, pay is on a commision basis–an average of 3-5% of the purchase order. At Cosmo, we offer a flat rate pricing plan for most items, designed especially for people who sell items on Amazon FBA (Fulfillment By Amazon). While it's a common practice for sourcing companies to hide their supplier's contact information, Cosmo offers transparency and the ability to pay the factory directly. This creates open communication, and because our fees are billed separately. By billing separately you know the exact amount that is going to your supplier, and you can know that you are getting the best possible price.
Sourcing companies and sourcing agents should be able to deal with issues including import/export duties, taxes, tariffs as well as any local and international norms.
A sourcing agent or company should be able to move goods quicker, cheaper and with less risk through the entire international supply chain. This is also important in countries with large bureaucracies so that they can reduce the red tape and avoid any troubles in countries with rampant corruption.
Ultimately a sourcing agent should save a company more money by using them than they receive. Cosmo generally believes that we should deliver at a minimum 5 times our value. So if you are paying us $1,000 we should be expected to save you at least $5,000 on a total project cost. A good sourcing strategy should seek advice and quotes from multiple sourcing agents and companies in order to find the one that can serve you the best.
Want a professional to help?
Cosmo has been helping Source products from China, Vietnam and more for years. If you’re interested in hiring a sourcing company feel free to Contact Cosmo for all your sourcing needs at Info@cosmosourcing.com or visit our Product request page. Even if you do not need any sourcing service feel free to reach out to us and we will answer any sourcing questions that you may have. Thanks for reading!