Why Start Ups and E Commerce Companies Should Work with Global Sourcing Specialists


China and Asia sourcing, building competitive advantage. Learn how working with a global sourcing specialist can help your startup or e-commerce business gain a competitive advantage in the global marketplace



China and Asia sourcing, building competitive advantage

There is no doubt that China has become the manufacturing hub for the world. With its vast labour pool and manufacturing capabilities, China has been able to offer lower prices and higher quality products to businesses all over the world. For many categories not dealing with China can put your company or brand at a distinctive disadvantage versus your competitors.

Many companies have spent time looking to build a China+1 sourcing strategiy or remove China entirely from their supply chains. However, this is proving very difficult to achieve as many alternative sourcing destinations are either much more costly or have a factory base with high levels of Chinese investment.

China and Asian sourcing markets are the only solution for many companies but the complexity of dealing with supply partners in a distant time zone are many and varied and can create huge supply risk.

The challenge of sourcing from Asia-finding a balance of Risk v Reward

For smaller companies or start ups, working directly with Chinese factories can be a daunting task. Whilst the competitive benefits of Global sourcing especially from China are well known and recognised There are many challenges that smaller companies face when dealing directly with Chinese factories, such as language barriers, cultural differences, and complex legal and regulatory requirements, time zones and business communication expectations.

These can sometimes prove insurmountable in their complexity and leave companies without product or with product that does not meet their quality and compliance standards.

Global Sourcing companies adding value to your business

Sourcing companies can help businesses overcome these challenges and ensure that their procurement process is efficient, effective and compliant. A sourcing company can act as a middleman between a business and a Chinese factory, and can provide a range of services, such as:

  • Identifying and vetting a range of potential suppliers
  • Negotiating pricing and terms
  • Managing the supply chain
  • Ensuring product quality
  • Handling logistics and shipping
  • Ensuring transparent and smooth communication between client and chosen factory partner

By working with a sourcing company, smaller businesses can free up their time and resources to focus on other areas of their business.  Particularly the brand focusing on consumers, clients and demand generation. They can also benefit from the expertise and experience of a sourcing company, which can help them to avoid costly mistakes navigating the Asian supply markets.

Quality and Compliance Issues a major sourcing and supply issue

One of the biggest challenges that smaller companies face when working directly with Chinese factories is ensuring product quality and compliance. It also the area that will damage sales and brand reputation if it goes wrong in your sourcing.

Chinese factories are notorious for their copycat products and poor-quality control. A sourcing company can help to mitigate these risks by conducting audits of Chinese factories and ensuring that they meet your quality, ethical and social standards.

In addition to quality concerns, smaller companies also need to be aware of the complex legal and regulatory requirements for doing business in China. A sourcing company can help to ensure that businesses comply with all applicable laws and regulations, including those related to product safety, labour practices, and environmental protection.

ET2C International Global Sourcing and Procurement specialists

ET2C are a leading Global Sourcing company with over twenty years’ experience working with our clients. Our team of 250 colleagues are based in seven offices in key sourcing markets across Asia Including three offices in China in key provinces.

We work with our clients to make their global sourcing simple, becoming their bridge to their supply partners. Where time zones, language, business communication expectations or QC can become challenging.

Our team of experts can help you build and deliver your sourcing strategy and ensure you are working with the right factory partners. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges. If you would like to explore sourcing opportunities within China or any Asian market or to discuss your future supply chain challenges. Please contact@et2cint.com


Benefits of Working with Global Sourcing Companies

There are many benefits to working with a sourcing company, including:

  • Increased efficiency: Sourcing companies can manage the supply chain and handle logistics and shipping, freeing up businesses to focus on other areas of their operations.
  • Improved quality control: Sourcing companies can conduct audits of Chinese factories and ensure that they meet quality standards.
  • Reduced risk: Sourcing companies can help businesses to avoid costly mistakes and comply with all applicable laws and regulations.
  • Cost savings: Sourcing companies can often negotiate lower prices with Chinese factories than businesses can on their own.

How to Choose the right Global Sourcing Company to partner with

When choosing a sourcing company, it is important to do your research and choose a company that has a proven track record and that you can trust. You should also make sure that the company has experience in your industry and that they are familiar with the Chinese market.

Conclusion : Sourcing companies can be a valuable asset to smaller businesses that are looking to procure products from China. By working with a sourcing company, businesses can save money, improve efficiency, and reduce their risk.

Here are some additional tips for smaller companies that are working with sourcing companies:

  • Be clear about your needs and expectations.
  • Communicate regularly with your sourcing company.
  • Monitor your sourcing company’s performance.
  • Be prepared to negotiate.
  • Don’t be afraid to change sourcing companies if you are not satisfied.

By following these tips, smaller companies can ensure that they are getting the most out of their relationship with a sourcing company and that their procurement process is efficient, effective and compliant.

Summary the value of sourcing companies to grow your business

Many start up companies and emerging brands source products and components from China and other Asian markets. In many cases not sourcing from China can put you at a severe competitive disadvantage.

Whilst the benefits are very clear what can be challenging is the complexity, language and time zone barriers and ways of working that are part of a global sourcing strategy.

Using a sourcing specialist company can ensure you mitigate any potential risk, build supplier relationships and have total visibility on supply chain.

Enabling you to concentrate on growing demand in your home markets

If you would like to know more about global sourcing or managing and mitigating risk in your supply chain please drop us a a line at contact@et2cint.com we will be happy to talk you through our experience and case studies.

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