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In today's global scenario, sourcing agents are generally located in low cost countries. Countries who wanted to gain competitive advantage from low cost countries like China, Thailand, Vietnam, and so on for purchasing components, raw materials, or products and services, employ a sourcing agent to represent them in that country to find, select, and negotiate with suppliers.

Functions of sourcing agents:

Sourcing agents help in locating factories that are a perfect need for your business requirement, in addition to identifying better suppliers who are punctual, trustworthy and provide efficient services. They also briefly provide you an outline of the prices and how they can be negotiated with suppliers. They also teach you the way you can place orders with your suppliers. Other functions performed by sourcing agents include dealing with currency issues and terms of payment. Some agents do factory inspection to ensure that they have high standards and conditions of production, and some may even inspect finished goods before they are shipped to you.

What to look for when choosing sourcing agents:

Souring agents are also called purchasing agents, who acts like a middlemen between 2 companies, typically in different countries doing business. They help manage relationships between the 2 companies by overcoming language barriers if any, and act on behalf of the interest of the purchaser according to the agreement. However, choosing the right agent is not an easy job. The following steps will help you understand what to look for when choosing an agent for your job:

a. Good understanding of the country or location:

One of the most important factors that should be considered in selecting an agent for your sourcing requirements is to find someone who has profound knowledge of the location or country you are intended to do business operations. The agent you choose should also be well-versed with your industry requirements.

b. Bidding skills:

Another important skill to consider is the skills and knowledge of an agent to bid from various factories for your business requirements. The agent should maintain good ethical practices, and also make sure he/she do not have any specific financial ties with any factories. Do business with someone who can do business with maximum efficiency.

c. Terms of agreement:

Make sure the agent you choose should sign a non-disclosure agreement with you, before you share any confidential information with him. Only after signing the agreement, you are advisable to share him the necessary information relating to product specifications, measurements, drawings and other information.

Where to find a sourcing agent:

Professional sourcing agents can be found online, which is one of the easiest ways to find an agent for your business requirements. Other sources may include trade shows, and getting referrals from friends or colleagues doing similar business. Before selecting one, arrange for a personal interview with the agent to question him/her about years of experience in the particular field. Also, ask for referrals, and get information on fee details, services offered, knowledge in the area in which you are intended to do business, and finally ask for details about other businesses in which he is working currently as an agent.