First Steps to Sourcing

When starting your sourcing project, first you should conduct some serious research to save your time and money. Therefore, here are 9 tips for you:

  1. Make sure your supplier is a manufacturer, wholesale supplier or a broker.
  2. Know the place where the factory really located.
  3. Draw up a contract with your supplier. A written contract outlining terms and conditions of your relationship will help to avoid disagreements or disputes that pop up later on.
  4. Monitor the time of year you are importing.
  5. Hire a really good transport pro, they will make the right questions, prepare documentation, arrange for payment and make timely deliveries.
  6. Watch for unexpected surcharges.
  7. Beef up your finances and consult with your banker about best payment options.
  8. Strive for landed costs and pay attention to a port of exit, entry and delivery point. Use internationally agreed Inco terms (International Commercial Terms) to reduce the risk of delivery problems or misunderstandings.
  9. You do not need a license to act as an importer; however, some items require a license or permit from various government agencies in order to be imported.