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What is a Sourcing Agency ?

Updated: Oct 21

Sourcing agencies are intermediaries with local and global resources that facilitate processes, especially for businesses that experience workforce loss due to the complexity of product sourcing processes. They help businesses find the right suppliers and manufacturers for the products they need.


Businesses may encounter various problems during the procurement processes, such as language, cultural differences, unforeseen situations that may occur in local markets, and legal obligations in the region of supply. In such cases, working with sourcing agencies  with expertise makes their job much easier.


Sourcing agencies are one of the most important parts of the supply chain for small enterprises that venture into overseas production for the first time and well-established companies that want to facilitate global supply processes.


Sourcing agencies do much more than just find products.  The main duties of a good sourcing agency are:


  • Finding potential manufacturers/suppliers,


    • Has a deep understanding of the Local/Global market. This includes information on industry trends, material costs and labor practices. They are generally aware of regional strengths.

    • They have a good command of the business culture of their own region. They are adept at understanding negotiation etiquette and building relationships with suppliers. This is very important in countries where business relationships are predominantly based on personal relationships and trust.

    • Has technical expertise or access to experts who can evaluate a supplier's technical capabilities and ensure they meet certain product specifications or quality requirements.

    • They ensure that suppliers comply with ethical practices, including labor rights, environmental standards and other aspects of corporate social responsibility (CSR). This is especially important for companies that adhere to ethical sourcing policies.


  • Negotiating prices,


    • They have expertise in optimizing the overall cost, which includes factors such as production costs, logistics, tariffs and potential risks.

    • In international trade, where legal systems and business practices differ significantly, they help draft clear contracts that outline vital expectations, deliverables, penalties, and conflict-resolution mechanisms.


  • Inspection of production


    • They monitor the production process to ensure compliance with agreed upon timelines and quality standards.

    • They conduct on-site visits and inspections.

  

  • Ensuring quality control,


    • They manage the sample testing and approval process before mass production, ensuring that the product meets the customer's specifications and quality expectations.

    • Ensures that quality expectations are met with inspections during the production process.

    • Ensures that quality expectations are met regarding final control inspections.


  • Management of packaging and shipments


    • They ensure that the packaging of the products meets the desired specifications

    • Especially for logistics operations from global markets; They have sufficient expertise in matters such as import/export duties, tariffs and other taxes, allowing them to avoid unforeseen expenses or overcome problems that may cause logistics disruption.


For their sourcing needs, businesses choose a sourcing company like Purxhase Sourcing Office, which offers a comprehensive, scalable and professional service. For businesses seeking resources from markets such as Turkey and the Middle East, the expertise of sourcing agencies and their ability to solve complex problems are invaluable.



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