Setting up a procurement department in your country can be expensive and complex for purchasing. An alternative is to partner with a professional sourcing office in China.

Cost Control:

Own Procurement Department’s Costs:

• Salaries: Procurement managers, quality control staff, logistics coordinators, and compliance officers.
• Office Expenses: Rent, utilities, and equipment.
• Training & Development: Ongoing education and certifications.

These costs can be substantial, particularly in Europe and the Americas.

Buying Office in China:

• Fixed Fees: Payment will be made based on the actual order and matters that need to be processed, providing budget predictability.
• Comprehensive Services: Includes supplier management, quality control, logistics coordination, and compliance with purchase.​

SFC’s On-demand service offers a cost-effective solution for sourcing in China, reducing costs and providing more control over the supply chain. ​

Risk Aversion:

Common Risks in Own Procurement Department:

• Unable to arrive at the site immediately to quickly check product quality
• Misunderstanding of the product through telephone or message communication
• Navigating complex international regulations.
• All losses and risks resulting from the department’s mistake shall be borne by own company

Benefits of a Sourcing Office in China:

• Be familiar with the communication methods of Chinese suppliers to avoid misunderstandings; be familiar with local regulations
• Respond to issues immediately to minimize losses.
• Strong relationships with reliable suppliers.​

The global procurement outsourcing market is projected to grow from $4.78 billion in 2024 to $5.52 billion in 2025, at a compound annual growth rate (CAGR) of 15.5%. This growth reflects the increasing adoption of outsourcing as a strategic approach to procurement.

Partnering with a sourcing office in China offers a cost-effective and efficient alternative to establishing an in-house procurement department. It provides access to local expertise, reduces operational risks, and allows companies to focus on their core competencies.​