Why can Product Sourcing Agents reduce Purchasing Costs for the Company?

Companies are facing increasingly fierce market competition. In order to survive and develop, they must reduce costs and increase efficiency in their business activities, and operate in a more strategic way. Corporate procurement is often plagued by the following problems:

(1) Inefficient product selection process

(2) Time-consuming manual order manipulation

(3) Irregular procurement, prone to corruption

(4) Expensive inventory costs and purchase costs

(5) Lengthy procurement cycle

(6) Complex procurement management

(7) Difficult to achieve strategic governance of procurement

Choosing product sourcing services is undoubtedly an effective way. As a new type of material procurement mode, product sourcing agents will continue to be recognized by more companies for their low-cost, high-efficiency and fast characteristics, becoming a new choice of many companies to reduce procurement costs. 

For product sourcing agents, the key to survival in the market is whether they can purchase cheap and high-quality materials for their customers. Therefore, low-cost operation is a common strategy adopted by procurement agency companies. In fact, purchasing agency companies do have such advantages and capabilities.

Advantages ofproduct sourcing agent:

(1) There is still room for cost squeeze in the material procurement process.

(2) Product sourcing agents can better save direct purchasing costs.

(3) The product sourcing agent can better guarantee the quality of the purchased materials.

(4) Product sourcing agents can provide faster services.

(5) Product sourcing agents can effectively prevent corruption in material procurement.