Online Sourcing is Good Sourcing Solution and
Can Save Costs and Ensure Reliable Suppliers!
The Canton Fair is one of the world’s largest trade shows and is held in Guangzhou, China, every spring and autumn. The event is now celebrating its 58th anniversary. It is usually divided into three phases, with each phase geared towards specific commodity groups and the relevant suppliers, manufacturers, and traders, and serves as an ideal place to meet and network with Chinese traders.
More than 22,000 exhibitors are expected to participate. It can be overwhelming for first timers if you don’t plan ahead, and you would probably have difficulty finding the right partner. There’s also no guarantee that you will find legitimate suppliers on the spot. Even scammers take advantage of this event to engage in fraudulent deals, and documents can be faked, too. However, verifying the products and certifications of each supplier is costly, whether in terms of money or time. But if you don’t verify things in advance, it may cost you much more than you can afford in the future. In view of this, attending a trade fair may help you to explore new market trends and technology, but is not an efficient or foolproof way of finding reputable and reliable suppliers.
E-sourcing facilitates the process of searching legitimate suppliers and manufacturers who can satisfy both your country’s product certifications and the supplier’s certification requirements. This is a growing trend for companies of all business sizes and industries, and there now exist secured online platforms, such as Tradegood, enabling buyers, suppliers, and manufacturers to connect, verify, qualify, and communicate on a cross-border basis.
Benefits of E-sourcing for Overseas Buyers
The benefits of e-sourcing include the ability to build a stronger supply chain, regardless of whether you prefer to do business virtually, or whether you prefer to personally meet suppliers at the Canton Fair, or to do both.
Breaking geographical boundaries – E-sourcing, provides an efficient means of connecting overseas buyers with Chinese suppliers. It allows buyers to communicate with potential suppliers, without having to spend thousands of dollars on a lengthy trip around the various Chinese supply centers.
Connecting power – one of the most notable e-sourcing success stories is the case of Danchil Jewelry Co., Ltd, an Yiwu-based firm specializing in accessories, and Ganz, a Canada-based toys, gifts and accessories company. The former utilized Tradegood, its online sourcing community, and responded realistically to the queries of interested overseas buyers until they located Ganz. Each party got what it wanted—contact with the right supplier/buyer, which then developed into a long-term relationship.
Low cost price tag –imagine how low cost sourcing benefits you in locating suppliers and manufacturers who can provide you with quality products at competitive prices. The above-mentioned companies didn’t just enjoy the fruits of finding the right connections; the firm was able to find the quality designs and products it wanted to sell at cheaper prices and Yiwu discovered the effectiveness of cooperating with the Tradegood Buyer Development team.
Verification process – an online platform helps overseas buyers find legitimate and certified suppliers and manufacturers. The list of prospective candidates can be quite long, and the search can be time-consuming. However, one must clearly verify everything to ensure that the suppliers are complying with the country’s product specifications and legally operating in accordance with the government’s policies. With third-party sourcing platforms, like Tradegood, which provides assistance in supplier verification, the systematic verification process mitigates the risk of dealing with scammers and illegal manufacturing firms.
Here is what Henry Y. Fajardo, managing director of Matrix Source Industrial Co. Ltd., wrote after using the Tradegood professional sourcing service: “Having Tradegood vet the suppliers and send us prequalified lists of suppliers saves lots of time and money for us as buyers. This process is SOOOO much better than going to the Canton Fair or other regional fairs without any knowledge of the suppliers we are meeting.”
So, do we stick with the traditional approach of frequenting the Canton Fair or do we move forward to e-sourcing? Of course, this will always depend on your supply management strategy. While the fair is a constant reminder of sourcing’s business culture, you should try e-sourcing as part of your global sourcing expansion and enhancement plans.