What is the difference between factory procurement and foreign trade sourcing agent company, which one is better?

With the increasingly globalized economy, cross-border procurement has become a key link in corporate operations. Because choosing the right procurement can not only save huge expenses for the company, but also complete the project better; companies can choose different procurement methods according to their own needs. Among them, direct procurement with factories and procurement on behalf of foreign trade sourcing companies are two Common patterns. This article will provide an in-depth analysis of the differences between these two procurement methods so that companies can make informed decisions when choosing.

Factory direct purchasing

Factory procurement, as the name suggests, refers to the act of purchasing directly from manufacturers. The advantage of this method is that it can reduce intermediate links, reduce unnecessary costs, and at the same time better control product quality and delivery time. For some companies with large demand and high requirements for product quality, this is an ideal procurement method. But that is only an ideal state, and reality is often difficult to achieve.
Advantages of factory direct purchasing:

Disadvantages of factory purchasing:

The factory products are relatively single and have great limitations. One demand may require multiple factories to support it. It takes a lot of time and labor costs for customers to find factories themselves.

1. It is difficult to find suitable first-hand factory supply directly from the factory. Many times, the agents you encounter are factory agents who are similar in nature to the agency companies, but they still have a single product. You may even encounter level 3 agents or scammers, which costs a lot of money. The price/performance ratio is not high.
2. Lack of understanding of the local environment, poor communication and low efficiency. There are too many factories, making it difficult for overseas customers who are not familiar with the Chinese market to choose. Choose a good factory, then agree on the number of orders, and then go to factory design and production… The whole process takes too long, which inadvertently causes time and labor costs. Difficult to estimate.

Purchasing company purchasing agent

A foreign trade procurement company is an organization that specializes in international procurement services. It helps companies find and purchase high-quality overseas resources through professional market research and supply chain management. The advantage of foreign trade procurement companies is that they have a global procurement vision and rich resource channels, and can provide more diversified procurement options. For those companies that want to expand into the international market, cooperating with a foreign trade procurement company is a good choice.

Disadvantages of purchasing from purchasing companies:

1. A certain service fee is required
2. The lower the product price, the less cost-effective the service fee is. When the price is lower than 2,000 US dollars, choosing an agent to purchase is less cost-effective.
   

Advantages of procurement agency procurement:

Foreign trade companies can quickly collect market information. The performance of the same product is the same, but the quality, grade, specifications, etc. can be diversified to meet the needs of different customers. Foreign trade companies have strong supply chain management and resource integration capabilities, and can establish good cooperative relationships with suppliers, manufacturers and other partners, provide one-stop shopping services, and save customers from cumbersome procurement processes.

Foreign trade companies have received professional training, and their salespeople have better service awareness. Whether it is pre-sales, during sales or after-sales, they will “monitor” the entire process and respond to customer needs in a timely manner.

The foreign trade company will select factories for customers based on their complex procurement plans of multiple categories. Customers only need to submit requirements, place orders, and set delivery dates. The rest of the work can be handled by the trading company, saving customers effort and peace of mind.

Suggestions for selecting foreign trade sourcing agencies and factories:

Foreign trade factories are the manufacturers of products. They are responsible for converting raw materials into finished products and have professional production capabilities and technical strength. Foreign trade companies usually have rich sales channels and networks, are familiar with international trade rules, policies and market demand trends, have strong supply chain management and resource integration capabilities, and can establish good cooperative relationships with suppliers, manufacturers and other partners, and provide One-stop shopping service saves customers from tedious purchasing processes.

1. If you have plenty of time and rich purchasing experience, you can directly connect with the factory to save costs.
2. If time is urgent or you don’t have much experience, it is very wise to choose an agency procurement company. No experience is required to achieve the procurement effect of more than 10 years of experience, and it saves worry, effort and money.

If you are looking for a sourcing agent, you can contact us directly. We will definitely help you solve your purchasing problems quickly and efficiently, with very good cost performance and affordable prices.