A sourcing agent may help manufacturing companies get an insight into their factors in China now that travel is restricted due to Coronavirus. The agent acts as a representative of the company.
China is the ultimate manufacturing hub of the world. A combination of resources and cheap labor has seen many companies set up production plants in the country. In fact, most overseas firms ship either complete items or parts from China.
Unfortunately, when Coronavirus hit China and the rest of the world, travel restrictions were put in play to check the spread. This meant that company representatives from parent companies could not travel to China to check their supply chain status or source for raw materials.
This came with some challenges to the said firms. First, they could not ascertain the quality of the OEM parts as they used to before travel restrictions were put in place. Second, they experienced difficulties coordinating supply dates and other information required to get items ready on time. Shipping was also delayed due to extra protocols, either leading to delays or forcing companies to cancel some orders.
A Sourcing Agent Could Help
A sourcing agent assists a company in locating sources of products at the quality and budget required by the importing entity.
Where the company has subcontracted another firm to produce and export goods on its behalf, the sourcing agent may help ascertain the product quality, delivery times to issues like packing and branding. The agent will give companies an accurate picture of what is happening in those factories in China to enable them to adjust delivery times and terms.
The agent-based in China has access to the factories and can act as the representative of the firm until and after travel has been allowed. It helps prevents disruption of the supply chain while ensuring that the parent firm gets good in the right quality, quantity, and on time.