Sourcing is innate in the procurement process. It is what we call the lifeblood of the company. With this in mind, we know that not all materials can be bought in a single country. Hence, how do companies source materials in other countries? Who are they gonna contact?

This article will guide you on what a sourcing agent is. We will tackle their responsibilities and qualities. 

Once you finish this article, you will know how to choose your sourcing agent. You will know how to utilize their talents and skills effectively to benefit your company. So without further ado, let’s start!

What is Sourcing?

Sourcing, as we know it, is the process of identifying suppliers to acquire the materials or services that the company needs. However, it follows a strict process of requirements issued by the company to ensure that the supplier is the best fit to supply the needs of the company. 

Nowadays, there is a growing practice among professionals in the field of procurement called strategic sourcing. It is an approach that puts overall value on the relationship with the supplier rather than its provided materials or services. 

Strategic sourcing is a part of supply chain management and puts emphasis on customized solutions and strategic partnerships.

What is a Sourcing Agent?

A sourcing agent works with a company to help them locate sources of products and supplies for low prices. In simplest terms, a sourcing agent will help you find the right supplier that also matches your requirements. Sourcing agents provide the following services:

• Quality Control
• Supplier Selection
• Market Research
• Price Negotiation
• Shipment Inspection
• Quality Assurance
• Customs Clearance

A sourcing agent can be a single agent or a business that serves various companies. After you select your supplier, the sourcing agent will help you negotiate the terms and conditions to ensure transparency. 

A domestic company may hire a sourcing agent for the purpose of sourcing for the best prices within the country. This is due to the fact that sourcing agents have connections with numerous suppliers that the company needs. 

A company may also hire an overseas sourcing agent. They entrust the agent to locate companies that can work overseas. The sourcing agent will make sure to assess their needs and find the best supplier that matches their requirements. Sourcing agents do this to satisfy the demands of the company.