It is due to disrupted supply chains and trade conflicts. Companies worldwide might also find pricier goods yet not as quality as Asian products.
Sourcing from Asia is an excellent alternative to sourcing from developed countries.
Various Asia countries serve as an extensive production base. They can produce affordable and quality goods to fulfill your local market.
This article will share the advantages of sourcing from Asia.
You’ll also learn how a good sourcing agent can improve your supply chains. Let’s get rolling!
Why do you source from Asia?
Most companies are sourcing products from Asia for various benefits.
Here are the benefits you get by sourcing from Asia:
1. Affordable & Quality Goods
Asian countries focus on cost-effective and quality goods to increase your profits.
They make good quality control based on high technical standards.
2. Intensive Labour
Your supplier from the Asian country also often has a massive workforce.
The manufacturing ability of these manufacturers could enhance your supply chain.
You can get large quantities of product from Asia to fulfill huge demand.
3. Experienced in Transportation
These trading companies are also experienced in exporting for your industry.
They have expertise to handle transportation activities.
For example, the customs and product regulations. It will save you more hassles on shipping and customs.
4. Vast Choices of Products
You’ll get a range of choices from these Asia trading companies.
They have a comprehensive list of Asian suppliers and products for your industry.
You can choose the best items for your preferred product category.
5. Policy Advantages
The Asian countries have policy advantages when compared to the Western manufacturers.
The government supports their production, shipping, and other trade policies.
You will be satisfied with the sourcing process from Asia.
Suggested reading: Best 20 China Manufacturing Cities
The advantages of different Asian countries/cities.
Asia remains the sourcing strategy for companies all over the world. Let’s take a look at the benefits:
China
China goods are affordable, high-tech, and unique.
You can find quality goods in large quantities, even for customized products.
China suppliers also allow flexible payment terms and consolidation of private-label goods.
The top China exports: electrical equipment, toys, sports equipment, furniture, apparel, and footwear.
Hongkong, China
You can communicate easily in Hongkong as most locals are fluent in English.
This city has a strategic location. It also has a highly skilled workforce with international experience.
It mainly exports: electrical machinery, office machines, other machines, apparatus, and appliances.
Taiwan, China
Most Taiwanese businesspeople can speak fluent English.
They manufacture products of high value even under low-cost production.
Besides, it also has a high production capacity for any customization and innovation.
Top Taiwan exports: electronics, plastics, and household goods. They also have little textiles and agriculture products.
India
India is the alternative supplier country to China. It has a massive workforce and affordable pricing.
You will find fewer communication problems. It is because people in India speak fluent English.
The main India exports: chemical goods, valuable metals, fabrics, minerals, and machines.
Indonesia
Exporters in Indonesia enjoy low labor costs besides a large young labor force.
Its political stability also reduces your risks of imports.
Their primary exports: mineral products, fabrics, metals, rubbers, and plastics. You can also access animal and vegetable bi-products here, as well as machines.
Malaysia
Malaysia ranks well in ease of doing business.
Companies can buy affordable goods with no value-added tax (VAT). It is also located strategically with skilled laborers.
Malaysian top exports: machines, chemicals, metals, and mineral products. There are also plastics, animal, and vegetable bi-products here.
Thailand
With quality infrastructure, Thailand can make business and shipments arrangements at ease.
Thailand 4.0 also changed the manufacturing base with more advanced technology.
Thailand’s top exports: transportation, machines, and metals. You can also find plastics, rubbers, chemical products, and foodstuffs in Thailand.
Vietnam
It is a top substitute country from China sourcing.
Vietnam has low labor costs, a young workforce, and fast-growing exports.
Their foreign-friendly policy and geographical advantages are attracting more clients.
Vietnam’s major exports: machines, plastics, rubbers, metals, and vegetable products. Besides, it also has textiles, headwear, and footwear.
Suggested reading: TOP 70 Best China Sourcing Agent Company
Suggested reading: China Import Agent
How can Asia sourcing agents help you?
Hiring a sourcing agency could be helpful to the supply chain of your business.
Affordable and Quality Goods
The agents can help sourcing products for your business.
You’ll access a fair price, good quality, and high manufacturing capacity.
You can save more money too, even after adding the fees for sourcing agents.
Negotiation Coordination
The right sourcing agent could be the liaison between you and the supplier.
These agents have commercial knowledge and access to a reliable network of suppliers.
Your agent also tells your requirements clearly to the supplier team without language barriers.
Technical Assistance
These sourcing agents are good at technical assistance at the same time.
Buyers can rely on their agent to deal with contracts, payments, and delivery.
They can even handle quality control on your samples and orders.
Lowered Risks
Businesses save more hassles by hiring sourcing agents from the Asian market.
They can lower the risks of your company in your entire supply chain.
One-Stop Sourcing Solution
Your agent can arrange custom declarations and import licenses for your business too.
They can even process overtime charges and consolidated cargo for you.
Want to find the Best Souring Agent from Asia?
Leeline Sourcing help you find factories, get competitive prices, follow up production, ensure quality and deliver products to the door.
How to distinguish the reliable Asia sourcing agents
It is essential that you differentiate a good sourcing agent for your business.
Here are some ways you can verify them:
Business License
You should always look for a licensed sourcing agent with professional certification.
For example, those with Certified Supply Chain Professional (CSCP) could be more reliable.
Expertise and Experience
It is vital to search for those with years of experience in your preferred industry.
They must be professional for quality checking services. These services are for the technical requirements and specifications.
Your sourcing agent needs to know how to verify a contract and enhance your supply chain.
Knowledge About Regulations
A good sourcing agent should know the regulations well.
They should not solely rely on “guanxi” / relationships. It is to avoid improper business activities.
For instance, the import license, business process, labor laws, medical regulations etc.
Testimonials
You can also identify their credibility of services via testimonials and comments online.
Check if they have a professional website with fluent English. You should also look at a good company reputation.
Language Proficiency
Your sourcing agent must be fluent in the local language of your supplier and you.
They need to have the technical backgrounds to prevent miscommunication.
Suppliers Network
Usually, an experienced sourcing agent has a wide variety of supplier networks.
You’ll access more choices in product sourcing on different quality levels.
Flexibility
Your sourcing agent should be near the manufacturers.
It will save you more cost and get you quick updates on time.
Transparency
The costs and manufacturing process need to be transparent during the business.
It is also important that they arrange visits to the factory upon your request.
Predicting the future of sourcing from Asia
Sourcing from Asia has undergone an ever-changing situation since the 2020’s disruption.
Compared to the past, brick-and-mortar businesses are declining.
More clients focus on e-commerce activities in 2022, after the COVID-19 pandemic. They prefer the adaptability to be new and sustainable technology.
The supply chain has changed from the traditional one to the digital supply chain.
Many companies aim to reduce more carbon footprint by digital sourcing. It is applicable in materials, manufacturing capabilities, or transportation.
The companies worldwide also prefer cost-effective locations closer to the supplier base.
They prefer quick product development, more precise forecasts, and lesser downtime. All these help achieve faster delivery as they wanted.
Companies over the world are also in search of a one-stop solution, be it wholesalers or retailers.
They choose partners to fulfill planning on supply and demand.
Besides, these companies also focus on sourcing, logistics, and manufacturing.
FAQs
What is the complete process to source from Asia?
You need to tell your potential manufacturers your technical specifications and quality requirements.
It includes your design, batch sizes, volume, packaging, and price.
Then, choose a reliable production company.
Your company should arrange commercial invoices and contracts with them. You must know their lead time and payment methods.
How to source products from Asian suppliers?
Retailers can research online via search engines or social networks like Reddit and Facebook.
Besides, online platforms like Global Sources have extensive information about suppliers.
Trade shows are ideal as a ground presence to know the quality of their materials.
You can also hire a trading company from Southeast Asia as your sourcing agent. A good agent saves you hassles.
How to ensure quality control when sourcing from Asia?
Companies can travel to China to inspect by spending some travel expenses.
Otherwise, you can hire an inspection team based on your target import country.
To save costs for quality inspections, hiring a third-party inspection company is ideal.
They help to inspect the manufacturing company of your preferred industry.
How long does it take to get my orders delivered to me?
It is crucial to have timely delivery to ensure a smooth supply chain.
In this case, you should allow 10 – 12 weeks in order to get your goods in hand.
You also need to choose a suitable shipping method based on your cost and urgency.
Sea transports are cheaper but longer, and air transports are faster yet pricier.
Final thoughts
To adapt to the new norm, importers all over the world must find good product sources.
In this case, Asian countries are good choices to source products.
Many countries in Asia can fulfill the demand of Western customers. They have large production capacities.
You can also access good services, excellent product quality, and affordable prices here.
Consider finding a reliable sourcing agent or other trading partners to save hassles. They help coordinate the process for a better supply chain.
I hope this article helps in your journey of sourcing products from Asia.