In today’s highly competitive business environment, efficient supply chain management is crucial for the development of your enterprise. China procurement agency is your powerful assistant in optimizing the supply chain.
- 1. What is China Procurement Agency?
- 2. Business Scope of China Procurement Agency
- 3. How Does Procurement Agency Reduce Procurement Costs?
- 4. How Does Procurement Agency Ensure Product Quality?
- 5. How Does Procurement Agency Improve Procurement Efficiency?
- 6. How Does Procurement Agency Provide Customized Services?
- 7. How Does Procurement Agency Assist in Logistics?
Are you troubled by finding reliable suppliers, negotiating prices, and dealing with the cumbersome procurement process?
China procurement agency is here to help you solve these problems. Simply put, a procurement agency is the “agent” in your company’s procurement process. It is a professional service model.
Professional procurement agency companies, relying on their own resources, experience, and professional capabilities, represent your company to complete the procurement of various materials, products, or services.
These procurement agency companies are not ordinary intermediaries. They have in – depth access to the market and are deeply rooted in the supply chains of various industries, with rich experience.
From finding high – quality suppliers, to screening and evaluation, to the subsequent execution of procurement contracts, and follow – up of logistics and distribution, they can provide you with a full range of services.
For example, if you are a clothing manufacturing enterprise and want to purchase high – quality fabrics, a China procurement agency company can, based on its understanding of the textile industry supply chain, help you accurately locate suitable fabric suppliers.
1. Supplier Sourcing and Screening:
Procurement agency companies have a vast supplier database and an extensive industry network.
For instance, when you put forward a procurement requirement, such as needing to purchase a batch of electronic product components, they will quickly search for potential suppliers in the database and at the same time explore new high – quality suppliers.
Then, through the evaluation of suppliers’ production capacity, product quality, reputation, price, and other aspects, they will screen out the most suitable suppliers for you.
2. Procurement Negotiation and Contract Signing:
Price negotiation is a key part of the procurement process. Procurement agency companies will negotiate with suppliers on terms such as price, delivery time, and quality standards.
They are familiar with market conditions and know the cost bottom line of suppliers, and can strive for the most favorable procurement conditions for you.
After that, they will also draft and sign detailed and standardized procurement contracts based on the negotiation results to protect your rights and interests.
Take the procurement of mechanical equipment as an example. Through professional negotiation, procurement agency companies can help you reduce the procurement cost by 10% – 15%.
2. Quality Control and Inspection:
You must be very concerned about the quality of the purchased goods. But don’t worry.
Procurement agency companies will monitor the quality during the production of goods and may even arrange professional quality inspection teams to conduct spot checks at the production site.
After the goods are produced, they will be strictly inspected according to your quality standards.
Finally, only qualified products will be arranged for shipment. For example, if you purchase a batch of food raw materials, they will ensure that the raw materials meet food safety – related regulations and your company’s internal quality standards.
3. Logistics and Distribution Management:
The logistics and distribution link from the supplier’s warehouse to your company’s warehouse is also the responsibility of the procurement agency company.
They cooperate with many logistics enterprises and can, based on factors such as the characteristics of the goods and the urgency of the situation, select the most appropriate logistics method and logistics partners to ensure the safe and timely delivery of the goods.
Moreover, they will track the transportation status of the goods in real – time, allowing you to know the location of the goods at any time.
If you urgently need a batch of production parts, they can shorten the transportation time by optimizing the logistics plan and avoid production stagnation due to the delay of goods.
4. Inventory Management:
Procurement agency companies can assist you in inventory management. Through the analysis of your company’s past procurement data and production and sales data, they can predict procurement needs and reasonably arrange inventory levels.
1. Scale Procurement Advantage:
Procurement agency companies usually serve multiple enterprises at the same time, resulting in large – scale procurement. Take office supplies procurement as an example.
They integrate the procurement needs of multiple enterprises and purchase a large number of office supplies at one time. In this way, when negotiating with suppliers, they can obtain a lower unit price with a large – scale purchase volume, generally reducing the procurement cost by 15% – 20% compared with individual enterprises’ self – procurement.
2. Professional Negotiation Skills:
As mentioned above, negotiation experts are familiar with the cost structure of suppliers and market price trends.
During the negotiation process, they can not only strive for a lower price but also strive for favorable terms in terms of payment methods and delivery time.
For example, by negotiating to extend the payment period from 30 days to 60 days, this can save the time cost of funds for your enterprise and relieve the financial pressure.
3. Reducing Transaction Costs:
When you conduct procurement by yourself, you need to invest manpower and material resources to find suppliers, inspect suppliers, conduct business negotiations, etc., which may take a lot of time.
Procurement agency companies can help you simplify the procurement process, quickly find suitable suppliers, and avoid ineffective inspections and negotiations caused by information asymmetry in your enterprise, saving travel expenses and time costs.
1. Strict Supplier Screening System:
Procurement agency companies have a complete set of supplier screening standards and processes.
In addition to examining basic production capacity and qualification certificates, they will also deeply understand the supplier’s quality management system, production process, raw material sources, etc.
Only suppliers who pass layer – by – layer screening will enter their supplier database to provide products for you.
For example, for medical device procurement, suppliers must have relevant medical device production licenses, quality certifications, and other qualifications, and the production process must comply with strict quality specifications.
2. Full – process Quality Monitoring:
During the production process, procurement agency companies will arrange professional personnel to regularly supervise at the production site.
They will check whether the use of raw materials meets the standards, whether the production process is standardized, and whether the quality inspection is strictly implemented.
Once quality problems are found, they will immediately require the supplier to rectify. After the products are produced, sampling inspection will also be carried out to ensure that the product quality meets the standards.
1. Efficient Information Processing Ability:
Procurement agency companies use advanced information systems to quickly process and analyze procurement information.
When you put forward a procurement requirement, they can quickly match suitable suppliers from the supplier database and obtain relevant product information and price information.
At the same time, they can track the execution of procurement orders through the information system and feedback to you in a timely manner.
For example, when purchasing building materials, they can quickly find suppliers that meet the requirements and inform you of the order production progress, delivery time, etc. in real – time.
2. Optimized Procurement Process:
They standardize and streamline the procurement process, reducing unnecessary approval links and cumbersome formalities.
From the submission of procurement requests to the delivery of goods, each link has clear time nodes and responsible persons.
This can greatly shorten the procurement cycle and improve procurement efficiency. Take the procurement of daily office supplies as an example.
After you submit a procurement application, the procurement agency company can complete the procurement and delivery within 1 – 2 working days.
3. Quick Response Ability:
Procurement agency companies have professional teams that can quickly respond to market changes and your demand changes.
If you temporarily adjust the procurement quantity, specifications, or delivery time, they can quickly communicate and coordinate with suppliers to make corresponding adjustments.
In a market with large demand fluctuations, this quick response ability can help your enterprise adjust the procurement strategy in a timely manner to meet market demand.
1. Customized Solutions Based on Enterprise Needs:
Different enterprises have different procurement needs and supply chain management models. Procurement agency companies will deeply understand your enterprise’s industry characteristics, procurement habits, production processes, etc., and tailor – make procurement solutions for you.
For example, for a high – tech research and development enterprise, the purchased electronic components require high precision and short delivery time. Procurement agency companies will formulate special supplier selection and procurement process solutions according to these characteristics.
2. Flexible Adjustment of Service Content:
With the development of your enterprise and changes in the market environment, procurement needs will also change. Procurement agency companies can flexibly adjust service content according to the actual situation.
If your enterprise expands into new businesses and needs to purchase new materials or services, they can also quickly adapt and provide corresponding procurement services.
For example, if your enterprise starts to get involved in the e – commerce business and needs to purchase e – commerce platform operation services, the procurement agency company can find suitable service providers for you.
1. Precise Planning of Logistics Solutions:
Procurement agency companies will plan the most suitable logistics route and transportation method for the goods according to the weight, volume, vulnerability of the goods, and your requirements for delivery time.
If you purchase precision electronic equipment, which is afraid of vibration and requires a constant – temperature environment, the procurement agency company will give priority to air transportation and match professional shock – absorbing packaging and temperature – control equipment to ensure the safety of the goods during transportation.
For large – quantity and large – volume building materials, considering cost factors, they may choose railway transportation or sea transportation and reasonably plan the loading and unloading locations to reduce transshipment times and transportation losses.
2. Careful Selection of Logistics Partners:
They have established long – term cooperative relationships with many logistics enterprises.
They analyze the past service cases of logistics enterprises to ensure that they can deliver the goods to the designated location on time and safely.
3. Optimization of the Connection between Logistics and Inventory:
While assisting in logistics and distribution, procurement agency companies will also optimize the connection between logistics and inventory in combination with your enterprise’s inventory management situation.
They analyze your past procurement data and sales data to predict the time of goods demand, arrange logistics and distribution in advance, ensure the timely warehousing of goods, and neither cause inventory backlog due to premature arrival of goods nor affect production or sales due to delayed arrival of goods.
For example, before the peak sales season arrives, the procurement agency company will plan logistics in advance according to your enterprise’s sales forecast to ensure the timely supply of raw materials, meet production needs, and ensure the timely launch of products into the market.
Conclusion
If you are still troubled by many problems in the procurement process, you may wish to consider introducing China procurement agency services. If you have any ideas, please feel free to contact us.