Differences between Chinese Product Sourcing Agent and Traditional Material Procurement

As a new type of material procurement mode, China product sourcing agent has been recognized by more and more enterprises for its cheap, efficient and fast characteristics, and has become a new choice for many enterprises to reduce procurement costs.

First, the daily cost of traditional material procurement is high. In order to ensure the timely supply of needed materials, enterprises must set up special purchasing departments and allocate special purchasing personnel. In order to prevent out-of-stock, large warehouses should be established to store a large number of backup materials.

Secondly, the transaction cost of traditional material procurement is high. In order to procure desirable materials, enterprises must understand the market situation of the required materials, which requires collecting the relevant materials as much as possible, and dispatching special personnel to select several suppliers to inspect if necessary.

Thirdly, the cost of traditional material procurement supervision is high. As we all know, material procurement is the easiest link to breed corruption in all work of an enterprise. Under the circumstances of the buyer's market, the material procurement personnel of an enterprise are often the objects that material suppliers compete for. Therefore, most enterprises, especially state-owned enterprises, have set up supervision departments to supervise the whole process of material procurement in order to prevent corruption in the material procurement process.

This new material procurement mode of China product sourcing agent can survive and develop. First, it is low price, that is, the material price it provides is lower than that of customers when they purchase, which is the premise of the existence of procurement agent. Second, quality, that is to say, the quality of materials provided should meet the requirements of customers, which is the key to the existence of China product sourcing agent. Third, honesty, that is, to enable customers to believe that the materials they need can be sent to the designated location accurately and timely, which is the basis for the existence of procurement agents. This requires purchasing agent enterprises to have a high sense of social responsibility, and China product sourcing agent has the characteristics of cheap, efficient and fast. Highly professional material distribution team and highly specialized management means, and then rely on efficient management, high-quality personnel, can establish a good social reputation.

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