A Simple Blog about What is Sourcing

A large number of the ceramic product are placed on the display case, some ceramic pans are on the wall
A large number of ceramic products are displayed for wholesale purpose


What is sourcing?


Sourcing is an important part of business, but it can be confusing to understand what it is and how it works.


We understand how difficult it is for people who have no experience in this area to take the first step.


That’s why we wrote this blog!


This blog will provide a simple explanation of sourcing and how it affects businesses. Stay tuned for more information on this topic!


This blog will include the following content

What is Product sourcing?

What is Supplier Sourcing?

How to do service/product sourcing

How sourcing affects the company

What is a product sourcing agent?

How a procurement agency can help you

Why do you need a Sourcing agency?

Sourcing companies in Australia


Importing Companies in Australia
Speech Bubble with Phrase Sourcing Doodle. Illustration on Blue Chalkboard. Advertising Concept. Screaming Loudspeaker with Text Sourcing on Speech Bubble. Cartoon Illustration. Business Concept.

What is sourcing?

Sourcing is a core business function that involves the acquisition of goods and services, typically for business processes such as manufacturing and production.


Essentially, product sourcing occurs when one company buys from another company, often on a relatively large scale. It is also interesting to note that Sourcing refers to the act of buying goods and services, not the activities of the seller.


In any event, global sourcing will always involve two parties – a buyer and a seller. Sourcing is often a critical supply chain management function in many organizations, especially those that rely on raw materials and supplies from other companies to produce their final products.


For this reason, Sourcing and all the processes involved often require a significant amount of company time and resources.


That’s why an increasing number of Sourcing agencies have sprouted in the world.


Companies can hire a sourcing agent to satisfy their sourcing project, saving their time and energy and putting them in the marketing.

product made in China

What is Supplier Sourcing?

Mainly used in the private sector, supplier sourcing is an activity that consists of searching, comparing, and evaluating several potential partners in order to select the most suitable ones.


From the identification of the needs to the signature of the supply contracts, through the negotiations and the quality control of the products: sourcing is an essential step that allows you to identify the suppliers offering the best guarantees for your company (quality, price, and production time).


This meticulous prospection aims to obtain a better knowledge of the economic and technical fabric and to refine your specifications.


A step not to be neglected, because to select the best suppliers, it is necessary to know beforehand precisely what you are looking for, and where to find it.


Are you looking for manufacturers, wholesalers, distributors, or dropshippers, for example? Identifying the right type of partner is important, but not enough: you also need to source it from the right place.


Sourcing suppliers can be domestic or international. In the case of a foreign search, you have more products, services, and manufacturers at your disposal, and can buy directly from the source without going through intermediaries.


The only constraints are the quality control of the goods, the communication with the suppliers, and the shipping delays. However, these limitations can easily be overcome by using a company specialized in global sourcing.

characteristics of good sourcing agents

How to do service/product sourcing

Actually, the core of Sourcing is looking for better product or service suppliers.

An efficient supplier sourcing must go through three essential steps.


1) Search for potential suppliers

In order to identify potential suppliers who can meet the needs of the company, it is first necessary to judiciously identify the geographical area of research and to define its preferences on this subject.


In other words, from which country does the company want to be supplied?


This reflection is essential since the geographical distance with the supplier can vary the transport costs and the delivery times, as well as the prices that the supplier charges.


Sourcing suppliers requires constant monitoring to find the best possible prices, new products, or more favorable delivery or order conditions.


The final goal of sourcing is essentially to allow the company to save resources, which can then be allocated more wisely.

Checklist on notebook

2) Build relationships

Once the list of potential partners that can meet the company’s expectations has been established, it is now time to contact them and establish a dialogue by communicating a call for tender.


The relationship with a supplier is above all a work of negotiation and concessions: as a representative of the company’s interests, the person in charge of supplier sourcing must be able to propose purchase promises to his interlocutor in order to obtain the most interesting rates.


Frequency of orders, volumes, number of references: everything must be done to convince the supplier that the company has the ideal characteristics to become a partner of choice and to establish a relationship of trust, and sustainability over time.


The challenge is to be able to benefit from the advantages offered by a supplier while assuring him that he would have everything to gain by associating himself with the company.

two man shaking their hand

3) Estimate the consequences for the company’s organization

When a sufficiently interesting offer has been received by the company, it is necessary to estimate the repercussions of signing a contract with this supplier on the company’s performance and its cost structure.


The main goal of supplier sourcing is to reduce supply costs, so the entry of a new partner with lower prices will impact the company’s accounting.


The consequences can also be logistical and organizational: a more geographically distant supplier implies longer delivery times that must be anticipated.


The payment terms required by the new suppliers can be different, longer, or shorter, which can have temporary repercussions on the company’s cash flow.

Writing some words about marketing on a whiteboard

How sourcing affects the company

Like many aspects of a company’s management, effective sourcing must be accompanied by a coherent strategy: what results are expected from this approach, and what is the company trying to achieve by signing a contract with one or more new suppliers?


Supplier sourcing fulfills several important missions for the company:


Increase margins

Obtaining more advantageous prices remains the main interest of sourcing.


If the selling price remains the same, a decrease in the supply costs allows the company to increase the commercial margin that it realizes on the sale of a product and thus increase the realized profits.


Increase the number of suppliers


Having several suppliers is a good way to reduce the risks related to supply.


A certain amount of competition between the different partners of a company also guarantees interesting prices and delivery times.

writing something on the notebook


Strengthen or reduce your attachment to a supplier


Depending on the sector in which the company operates, a strong dependence on a supplier can become problematic if the supplier ceases its activity, for example.

Conversely, if the volume of orders is too low, a supplier may decide to abandon its relationship with a company due to a lack of interest.

Create relationships

Regardless of the type of activity, multiplying the number of contacts is essential.


In case of unforeseen events, it is always useful to have alternative solutions in order to avoid delays in production.



What is a product sourcing agent?



A product sourcing agent is a service provider who specializes in helping businesses find and purchase products from overseas suppliers.


These agents typically have extensive networks of contacts with manufacturers and distributors around the world, giving them access to a wide range of products at competitive prices.


In addition to providing assistance with sourcing and ordering, many product sourcing agents also offer services such as quality control, logistics management, and warehousing.


By outsourcing product sourcing activities to an agent, businesses can focus on their core competencies and achieve significant cost savings compared to managing these activities in-house.


Whether you are a startup just getting off the ground or an established business looking for ways to streamline your supply chain, working with a product sourcing agent can be a great way to save time and money.


Product sourcing agents offer a wide range of services that can help businesses find the right products at the right price, while also providing valuable support throughout the sourcing and ordering process.


If you are considering working with a product sourcing agent, it is important to choose one that has experience in sourcing the type of products you are interested in and that has a good reputation within the industry.


The best way to find a reputable agent is to ask for recommendations from other businesses that have used their services.


Once you have found a few potential candidates, be sure to ask them about their experience, networks, and pricing structures before making a decision.


With the right product sourcing agent, you can streamline your supply chain and save time and money on purchasing products for your business.


How a procurement agency can help you

Would you like to know why companies often use procurement agencies? We would like to inform you in our blog about the advantages for you and your company to work with a procurement agency.


The most important information at a glance:


  • Procurement agencies can search more widely and in more detail than you can yourself
  • The danger of fraud is significantly reduced since the quality is examined locally
  • With some agencies, you get a complete package including quality control and logistics



Why do you need a Sourcing agency?

Low the cost of the product

A usual way of procurement in the Chinese market for many companies is to find over large commercial platforms a supplier.


Since suppliers are mostly found in Chinese markets, many buyers usually come across the Alibaba platform.


However, using this platform can be very problematic, especially for inexperienced users.


Many wholesalers on these platforms like to pose as suppliers.


By means of website presence and workshop pictures, they try to fool customers into thinking that they produce the products directly.


This is problematic in that wholesalers often add hidden margins to the prices, which are avoidable.


A procurement agent also has margins, but these are transparent and negotiable.


Therefore procurement agencies represent a genuine alternative for enterprises, which produce abroad since they are not substantially more expensive for it however some are more surely and more transparent.

Sourcing products in China

Product transportation

But not only with the search for producers in China a procurement agency can help you very much, but also with the logistics.


Because there is a lot to consider when transporting the products from China to Australia.


There are different ways to transport the goods – sea freight, air freight or rail transport.


What is best for the particular company and the particular product depends on the goods themselves, the urgency of the product, and the budget of the company.


Because the transport via airplane is very fast, but also more expensive than the other variants.


With these decisions, a procurement agency can help and also with much more, for example with the tariffs in China, so that the enterprise does not have to worry and can look forward to the arrival of their new products.


Procurement agencies cater to individual needs

Are there individual needs for the product – does it have a certain technical complexity or does it require special machinery for production?


If the answer to any of these questions is yes, a wholesaler from a platform will usually find it very difficult to cater to the company’s needs and requirements.


They will offer the product at an increased cost, if at all.


A sourcing agency, on the other hand, can cater to their individual needs and make it happen. By simply communicating with an import agent, who at best has locations in China and Australia, companies can save time and money and focus on their actual business while the procurement agency takes care of everything else.

The problem with the language barrier

It often happens that communication with Chinese suppliers is quite laborious.


Although various manufacturers are equipped with basic English skills, important details can still get lost.


A procurement agency can circumvent this by using employees who speak Chinese and often come from China themselves.


These coworkers speak locally with the producers, in order to clear thereby misunderstandings from the way so that the final product corresponds to the conceptions of the enterprises.


Procurement agencies protect against fraudsters

Fraud occurs in connection with the purchase and production in other countries unfortunately frequently.


A procurement agency tries to counteract this in the best possible way.


With the help of employees close to the supplier, loads can be checked before they are shipped.


If desired, an employee of the procurement agency can also make a recording of the sampling, which provides additional security.


Why do you need a Sourcing agency?

A procurement agency is advantageous in many cases because often a simple, market standard product does not meet the requirements and wishes of the companies.


By a procurement agency also more fastidious products with high quality can be produced in China.


To accomplish a supplier search even can save money, however, time and nerves cost, whereby a procurement agency can provide a remedy.


In a self-executed search, the risk of falling victim to fraud is significantly higher than if a specialized agency does this because the experts look at the factories on-site and talk directly to those responsible.


Especially agencies with offices in Australia and China offer great advantages for companies, as this allows easy communication at all times and there is always someone on-site to take care of everything.

Sourcing companies in Australia

We believe in creating amazing experiences for our clients.


And we’re not just talking about the products or services they offer–we also focus on integrity, efficiency, and growth to make sure that each client receives an exceptional experience from start to finish (and beyond).


We call this “making things happen.” It all starts with great people; which is why 60+ full-time staff work tirelessly around the world to provide you rounded solutions tailored specifically towards your needs as well as those of emerging businesses like yours!


Call us today so we can chat more about how togetherness will create success


China Direct Sourcing

China Direct Sourcing makes it possible for Western companies to deal directly with factories in China – while reducing the risks involved.


We’re an Australian-based agency that has a branch office located domestically and internationally, employing 10 people total!


Our mission is simple: To help you be prosperous by connecting your needs within Asia’s factory system so that we may provide quality products or services at competitive costs without sacrificing customer service excellence along any step of this process- all through our commitment to transparency which remains one core value among many others such as trustworthiness/integrity



We believe in creating amazing experiences for our clients. And we’re not just talking about the products or services they offer–we also focus on integrity, efficiency, and growth to make sure that each client receives an exceptional experience from start to finish (and beyond).


We call this “making things happen.” It all starts with great people; which is why 60+ full-time staff work tirelessly around the world to provide you rounded solutions tailored specifically towards your needs as well as those of emerging businesses like yours! Call us today so we can chat more about how togetherness will create success


We’re your Trusted Australian Sourcing Company. As an experienced business, we know that sometimes you need more than just a partner for sourcing;


It can be hard work to find the perfect product and meet all of its requirements – which is why our team at Three Green will help!


We’ll take care not only with where to find what’s needed (because let’s face it: nobody wants bad batches) but also how best to get them into place on time without breaking any laws or ethical standards along


The Sourcing Co.

The Sourcing Co. has been providing clients with a unique combination of expertise as both suppliers and manufacturers since 2014, offering an end-to-end service for businesses across the world from entrepreneurial startups to global corporations.


In doing so we’ve managed not only their commercial product needs but also take care of every step in production which means they don’t have to do anything other than focus on what really matters: how best to provide our customers with high-quality goods at competitive prices



With our deep industry knowledge, we can help you understand the market and look ahead to make sure your business is prepared for anything that may come its way.  We focus on delivering custom solutions tailored specifically towards meeting each client’s needs with a team composed of seasoned professionals who are committed in helping us achieve success by understanding their fundamental businesses first-hand before tackling any new challenges or opportunities they face along this journey called “business”



With China Sourcify, you no longer need to travel halfway across the world just for a product. We are an international agency that specializes in connecting with local manufacturers and getting any sourcing needs met quickly so your business can be successful without having too much hassle on its plate!

We’re located only one hour away from Yiwu International Trading Market-the most famous marketplaces near Shanghai where all types of trade happen daily; we’ve got access not only through our location but also because we work closely as part of some major companies here such as Walmart and Amazon has grown significantly thanks largely due their robust supply chain practices which require high standards when they deal directly suppliers



India is a country of great opportunity, with over 1 billion people and limitless potential. While it can be difficult for first-time visitors to figure out how they’re going to get things done in such an overwhelming marketplace (especially if you don’t speak Hindi!), there are plenty of companies here that will help make your journey easier – like Agile Sourcing! We specialize not only as traders but also go beyond simply providing access into this vast market; instead working closely together through partnerships & innovation so our customers always have what’s best suited towards them: whether its quality products or services from qualified suppliers at competitive prices…


Procurement Australia 

We’re one of Australia’s most trusted procurement services companies. We’ve been providing high-quality, cost-effective solutions for members and clients since 1985!

For over 30 years we have built a reputation as a leader in negotiating contracts with experience across both private sector organizations and state governments bodies that need our help finding innovative ways how they can expand their business while being sustainable at all times through risk management techniques which include


Assurance engagement banking – financial Modeling & Valuation Analytics amongst others so give us call today





Pangea is your one-stop-shop for sourcing products in Australia.


We have partners across China, the UK, and Hong Kong who will be able to provide you with exactly what it takes so that there’s nothing left out of this equation!


You’ll love how much time savings happens when working together – our team members are boots on the ground ready at all times which means less waiting around as well as more efficient processes overall due to their expertise within different fields such as shipping logistics or quality assurance/controls etc.. And don’t forget about those complicated issues related directly to getting whatever product




That’s a quick overview of product sourcing, supplier sourcing, and how to go about finding the right service or product for your company.


If you have any questions, please feel free to contact us! We specialize in helping businesses find the perfect suppliers and products for their needs, and we would be more than happy to help you get started on your own sourcing journey. Thanks for reading, and we hope this article was helpful.