Tag: Risks of International Surcing

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Sourcing Agent vs Sourcing Company? Make Your Decision Wisely | BlinkGlobal

So you have decided to source from overseas. When companies and businesses decide to source from overseas, their only objective is to benefit from the competitive markets existing in other parts of the world.  As per the findings of Harvard Business Review and other research publications, certain countries have an inherent advantage in succeeding in particular industries. This is because their home environment favors those industries. However, international sourcing is also a risky maneuver as a lot of your money is at stake. You are not physically present at the location and your money is in a foreign land so you do not have full control over the process. Sourcing agents or sourcing companies deal and communicate with suppliers on your behalf. They are supposed to ensure transparency and make decisions that are right for you. You can either partner up with a sourcing agent or get onboard with a full-fledged sourcing agency. The choice is yours but we want to give a holistic view of how sourcing agents and sourcing companies operate so you can make your decision more wisely.

Sourcing Agents

In a nutshell, a sourcing agent is a freelancer hired on a fixed fee or commission to source products for you. Since they are typically freelancers, they can be found through sites like Upwork and Elance, referrals, or they may approach you via cold contact through email or social media, such as Facebook/LinkedIn. Sourcing agents are present in the country where you want to source from, meaning you can meet them virtually. A sourcing agent will get you quotes from different factories and suppliers, establish a deal, and ship products to your home. The problem with sourcing agents is that they have no reputation to uphold. If things go wrong, it’s very hard to hold them accountable. They are in another country and you cannot just walk into their office and give them tough looks.

Sourcing Companies

Sourcing companies have a vast network and global diaspora of agents with specialized backgrounds in various industries and extensive experience in global trade. The procurement officers have forged long-term relationships with reliable sellers to get the best products at an excellent market price. Here are some benefits of sourcing companies:

Global Reach & Limitless Industries

Sourcing companies have global reach and they have agents around the world. They have connections with manufacturers across various industries.

They Provide Complete 360° Sourcing Solutions

They provide 360-degree services that include:
  •         Supplier Research & Factory Audits
  •         Contract Negotiations & Verifications with Analysis
  •         Order Monitoring, Product Development & Dispute Management
  •         Quality Control, Inspection & Reporting
  •         Logistics, Shipping Consultancy & Payment Management

Quality Assurance

As opposed to sourcing agents, sourcing companies have a reputation to uphold. They ensure high-quality products and monitor the production process while also running quality assurance tests. Reliable sourcing companies such as Blink Global, offer clients a fair comparison of different vendors based on their terms of production, quality, and pricing.
Any questions? Get in touch with us today!
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Difference Between Cargo and Freight – What’s Best For You? | BlinkGlobal

Freight and cargo is the most widely used terms in the business and commerce sectors. Many entrepreneurs confuse freight with cargo and vice versa. Generally, the two terms can be used interchangeably, but in supply chains, the two terms cannot be cut from the same cloth as it may cause confusion.

In this post, we are going to compare freight and cargo. What both terms stand for and the differences and similarities between them.

Cargo:

The term cargo refers to the shipping of goods and supplies via sea or air. Cargos are usually sent on ships and planes. For a certain shipment to be classified as “cargo” it has to travel over large bodies of water, meaning going from one continent to another. Cargo vessels and planes are meticulously designed to carry bulk quantities of goods and raw materials across the world. The term cargo is often used when discussing international shipping.

Freight:

As opposed to “cargo,” the term freight refers to the shipping of goods and supplies via roads or railroads. This shipping typically uses tractors, trucks, and railroads, hence the terms freight truck and freight trains. For a shipment to be classified as freight, it has to remain on the land. While some goods may be moved across a country via air, it resorts to being freight as it resumes travel overland.

The Term Air Freight

As we mentioned earlier, goods are classified as freight when they travel across the land but lately, we have also seen professionals using the terms “air freight” and“sea freight,” which is also commonly accepted as correct usage. This is primarily because the term freight is also used for the payment when certain goods are being transported.

It must be noted that mail cannot be classified as freight as it generally does not include commercial goods. The right term for mail, whether it be bundles of letters or packages or parcels, is cargo. Mail is never referred to as freight, whether it is transported via air, land, or sea.

Difference Between Cargo & Freight

The main difference between the two is the medium and vehicle of transportation. Cargo is usually moved by large vehicles, such as vessels and cargo aircraft, whereas frights are usually moved by smaller vehicles such as trucks and vans. Like we mentioned earlier, the term freight also refers to the cost/payment of the goods being moved from here to there, cargo does not refer to anything else except goods or products. 

Freight Solutions by Blink Global

Ocean freight is the most cost-effective solution for shipment on a large scale. At Blink Global, we have partnered with the world’s leading shipping and container transportation companies to provide you the most efficient, reliable, and cost-effective services. Get in touch with us today!

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Minimizing The 3 Major Risks of International Sourcing | BlinkGlobal

There is no debate in saying that the benefits of international sourcing are endless. Manufacturing capabilities that sometimes are unavailable domestically and availability to cutting-edge technologies that exist in certain markets make international sourcing a wise choice.

However, with great opportunities come great risks. Owing to the rapid changes in the global market environment, potential risks and uncertainties are now also part of the game. It is very important that you understand these risks, make a scientific assessment, and then analyze if international sourcing is the right choice for your business.

So what are the common risks and dilemmas? How can organizations minimize these risks and optimize the benefits of international sourcing without jeopardizing their investments and supply chains?

Unexpected Delay in Shipping:

Various factors can cause expected delays in shipping. Shipment delays can pose some of the most serious constraints to business operations. The most common factors include vessel delays, disruption in logistics, as well as lack of coordination of the freight. If you are transporting via sea, be prepared for things like bad weather, shortage of space in the vessel, and port congestion.

Solutions include advanced planning and not relying on the vendor-provided ETA but calculating the expected delivery time yourself. Calculate the probable transit time considering the possible delay factors such as weather conditions, holidays in various parts of the world and then make a plan based on the evaluated factors. Experts suggest adding at least one week to the expected transit time as a provision to the unexpected delays.

Quality Risks:

Quality assurance remains the biggest concern as you cannot monitor and manage the manufacturing process in a foreign land. If the supplier compromises on product quality, your whole investment can go down the drain. Quality risks can occur due to serval reasons such as lack of communication and misunderstanding. It’s not that suppliers overseas are some fraudsters ready to rob you but it’s often the lack of communication that results in unintended consequences.

One way to evaluate the supplier’s capacity to meet your quality requirements is by asking for a physical product sample prior to placing a real order. Many suppliers volunteer sampling requests as it demonstrates their seriousness and depicts that they are truly up to the task. You can also consider virtual product samples. It can either be a 2D rendered image created in Photoshop or sophisticated 3D product samples that can be tested in a digital environment.

Unexpected Costs

International sourcing is a popular choice because it is cost-effective but there are certain hidden cost factors that you must be prepared for. The most common is the fluctuations in the foreign exchange rate. Moreover, the cost of delays, losses in transit, an unexpected rise in transaction costs, contract management costs, legal discrepancies, and many other factors can contribute to the rising costs of international sourcing.

The best way to counter cost risks to sit with an expert or someone involved in international sourcing and do in-depth research of the suppliers across various locations. Take time and develop a deep understanding of the process and spot all underlying cost risks. Moreover, it’s always wise to spare a margin for unexpected expenses.

BlinkGlobal – Your International Sourcing Partner

It’s wise to partner with a reliable sourcing company as they have import and export agents that have expertise in cost reduction and quality assurance. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. BlinkGlobal is ready to help you!