Product sourcing refers to the process of finding, ordering and receiving the products you need for your business. These products might be the parts you need to be able to make products. Or, it might mean the packaging and materials you need for preparing your products for sale.

Products can be sourced from virtually anywhere that manufacturers goods, but China is one more the most popular locations.

Here at the Sourcing Co, for example, our team has an extensive network of almost 1500 suppliers. We are based in Guangzhou, the manufacturing heart of China, with sales offices in Brisbane, Australia, Port Moresby, Papua New Guinea and Ho Chi Minh City, Vietnam. We have additional service providers in the Philippines, Indonesia and India.

Because of this extensive reach, we can use our global supply chain and shipping infrastructure to streamline significant product sourcing at an unrivalled speed.

Finding the right supplier requires research and effort. You might want to begin by asking other businesses where they source their products from.

Undertaking a basic Google search for research might leave you overwhelmed with the options – many of which might be poor options. So keep an eye out for trade shows and expos, as both of these events can provide excellent opportunities to meet people who can help you with sourcing products.

If you have the experience, knowledge, language and time, then working directly with a factory means you will probably save money. Working directly with a factory gives you the opportunity to completely control arrangements and output without having a middleman involved.

However, managing a relationship with a company overseas requires an investment of staff time – we estimate anything upwards of 3-5 hours a day, per supplier! [Please confirm you agree with this]

With the complexities in laws and language, factory direct sourcing is simply not an option for most business owners.

A trading company is a business that operates as an intermediary between buyers and manufacturers.

Unlike manufacturers or producers, trading companies do not engage in the actual production of goods. Instead, they buy products from the manufacturer and then re-export them.

A sourcing company, by contrast, helps you find and obtain the products you need, by researching your options through international markets and presenting you with the best options for your business.

Sourcing companies can ensure you have access to products at the price and quality you need and with any unique attributes that you require. Unlike a trading company, sourcing companies do not try and sell you products – instead, they connect with you with reputable (and ethical) suppliers in the market so you can get the best deal possible.

Whatever type of product you are after, and no matter how obscure it might seem, there will be a sourcing company out there that can help you.

At the Sourcing Co, our networks that can help us find the products used in every industry. We work with manufacturers to create ready to sell products, as well as base products that can be personalised with your brand messages. We can also source the parts and packaging that you need to prepare your products for sale.

Our range includes (but isn’t limited to):

• Building, display and neon signage
• Packaging and promotional products
• Electronics, automatic parts and tools
• Gym, fitness and recreational products
• Textiles and garments
• Hospitality and homewares
• Appliances and machinery

The role of the sourcing company is to act on your behalf with manufacturers of the products you require. The sourcing company should be able to give you information about the manufacturer, and may even attend the factory or manufacturing site to meet with owners.

The sourcing company should provide you with information about the following sourcing considerations:

• Unit cost of products
• Discounts available for bulk and large orders
• Minimum order numbers
• Timeframes for production and distribution
• Lead time for new products

Before you commit to using a sourcing company to help you obtain products or materials, it pays to do your research and clarify the terms and arrangements of your relationship.

We suggest asking any potential sourcing company the following questions:

• Where are you located?
• How long have you been in business?
• How many customers do you supply product to?
• What similar customers have you worked with in the past?
• How many suppliers do you have access to?
• Do you have a niche or speciality product type?
• How do you report back and how frequently do you report back to your customers?