Sourcing and Logistics in China

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A Solid Supply Chain

A thriving and successful business that sells physical products relies on a single foundation, and it's the one thing a business must get right; a solid supply chain.

Unbreakable supply chain links start with good sourcing and logistics. If set up correctly, it will act as powerful cogs in the machine that will help to consistently move business forward.

So how does one develop a strong sourcing and logistics foundation? How do you go about building this foundation for your business?

We are here to guide you through the process as we talk about the benefits of good sourcing and logistics, the current trend today, how you can be competitive through it, and what China has to offer among others.
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The Benefit of Solid Sourcing & Logistics

Industries deploying good sourcing and logistics practices will soon discover many opportunities where they can outwit their competitors and save on costs. They can also lessen the risks like unnecessary spend and delivery delays.

Negotiations are the core of sourcing and logistics. Your team must have the skill of communicating and haggling with sourcing agents, suppliers, and retailers.

Eventually, it would lead to cost-efficiency, streamlined processes, and long-lasting partnerships with the best suppliers in the market.

Cost Management

With an exceptional sourcing and logistic service, costs of both buyers and suppliers are well-managed. As the relationship between supplier and purchaser matures, the process is streamlined even more, leading to further savings.

Buyers can negotiate for lower prices. If lower purchase prices are achieved, this can lead to greater profit margins and more affordable options for the end consumer.

For suppliers, it provides a long-term flow of cash as they can foresee the continual selling of their products.

There is a stable partnership between buyers and suppliers. There are no interruptions in business processes as materials are agreed upon.

As a relationship is built between a buyer and supplier, this can weed out certain defects and identify how to improve upon them.

Better Customer Support And Reporting

A good logistics service allows for better customer service. In today’s day and age, people expect quality and fast service.

An experienced logistics service will allow for the process to be optimized and streamlined through experience.

An experienced logistics service can act as a window to the company’s costs. The logistics managers can provide you with historical data.

They can also show you the real-time in and out movement of certain items. Inventory can be kept at a manageable level.

Experienced logistics operators can offer suggestions to cut costs on the flow of goods and the best transportation methods to use.

Trends in Sourcing and Logistics

Prior to the pandemic, reputable and dependable sourcing and logistics was very well-defined. Certain countries were looked to for their sourcing and logistics prowess. Now though, since the pandemic has changed many things, it may be worthwhile to look at the current trends and how these services have evolved to meet new demands.
When the pandemic came it came fast and furious, battering both personal and professional lives. The supply lines of many companies were compromised. Afterwards, the demand for certain items was also affected.

Every industry may be battling these challenges in different ways, but the negative effects affect each other. Employees and customers are also struggling; the former on how to go back to the jobs they mastered, and the latter to afford the higher cost of goods. 

Analysts saw early effects of the pandemic and stated that this would last longer. One major change has been a total overall decrease in transactions. China, the United States, and the United Kingdom are countries that have seen a fall in supply transactions to name a few.

Moreover, countries that have been affected by a lockdown have seen close to none – if any at all – trades. Analysts saw a decline in invoices and orders.

While some factories and services have begun to open, it did little to bolster the inactivity brought about by the pandemic. In short, while the people are willing to work, others are not willing to buy.
The pandemic has also helped to shine a light on certain global supply chain practices. For one, supply chains that were operating using lean manufacturing principles were exposed.

One good example is the healthcare sector. With inventory at a minimum, certain people struggled to procure personal protective equipment.

Another trend was that business owners saw the problem of a single source of their supply chain. Thus, business owners have since decided to diversify and spread their supply dependencies moving forward.

We’d like to believe that the design for sourcing and logistics, regardless of industry, is not pandemic-proof. While the pandemic disrupted everything in a snap, it birthed to innovation. It also made many manufacturers add more requirements from the suppliers they’ll want to transact with.
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China: the Sourcing and
Logistics Center

Choosing China as a sourcing and logistics center has been a steady practice for years now. The reasons for this still stand true today.
As the world recuperates from the pandemic, the export sector now comes back to being a cost-effective option for industries when it comes to sourcing and logistics.

That said, countries like China is one of the top-of-mind partner for most industries with its versatility when it comes to supplies, services, and manpower. Cities and provinces like Shanghai, Shenzen, and Guangzhou are now getting ready to experience back the robustness of the trade they used to enjoy pre-pandemic.

Two very important things that China has is its experience and vast manufacturing capabilities. In an area that is so important to many businesses, the fact that various companies within China know what to do and who to reach out to is priceless.

Apart from that, they also source a lot of raw materials locally. This means that choosing a country other than China may mean you’ll need to source or sample other materials from elsewhere. Best to keep it simple and have everything you need in one place.

Other countries also do not have the same experience and infrastructure that China has. In that case, it may lead to certain delays, which is a common problem.

One other thing to consider though is the effort required in restructuring the global supply chain. China is situated as the sourcing and logistics hub of the world. As such, the current interworking of businesses around the globe already has China at the center of their blueprint.

The effort it will take to restructure is monumental. This makes the endeavor a complicated mass of knots that will be hard and expensive to straighten out.

But China’s experience can lend a hand to sourcing certain products and helping ship them to Amazon. The benefits to using experienced logistics options in China include quick transit times. The time for the product to reach the warehouse is significantly reduced. The faster it gets to the warehouse, the faster you can start selling it on Amazon.

The middleman is also taken out of the equation. You no longer need to spend more time and money on people inspecting your products. In the same way, the risk is also less since you can transact direct with suppliers. If you’d like your products to reach Amazon as soon as possible, direct shipping from China is the way to go.

Because of our connections and relationships throughout the region, Signalytics can help with this.

Our staff can assume different role types within the whole sourcing and logistics process depending on your needs.

All factors of sourcing the right product from the right factory, ensuring quality control throughout production, and quick and affordable transit to FBA warehouses can be managed by our experienced team.

Why Choose China

All in all, choosing the sourcing and logistics for your company is ultimately a very important decision. The decision on how to set up a supply chain takes careful consideration and a prudent business owner doesn’t decide whimsically.

The same goes with your sourcing agent or sourcing company. Manufacturers should look for a partner that has everything you need not just to speed up the process but also to lessen the costs. This points to one country on the list, China. 

The one thing we would like to point out though is that betting on China for your sourcing and logistics has many benefits to it. For one, they already have the experience and infrastructure for what your business needs. That is already makes a huge difference.

There is a reason they have been the go-to country for quite some time now; a simple Google search can provide information about that. China has the manufacturing power, raw materials, experience, supply routes, and overall dominance in the area of logistics to give you and your eCommerce business the right firepower to scale.

China has a diverse market that can cater to a vast number of industries like electronics for their supplies and tooling needs. And the development in many sectors allow you to further save on costs while gaining access to advanced and in-demand items and raw materials.

Now, even retailers across digital marketplaces like Shopify and eBay can take advantage of China agents as their sourcing and logistics partner. Suppliers are now a phone call away while the materials or items can also be delivered to any country in the world. They can even send you initial samples of the products or designs you’d like to avail before you order in bulk.

Need Help with Sourcing and Logistics?

If you need any assistance with sourcing and logistics from China, Signalytics is here to help you. Register now and leverage our vast network to help your business grow.
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