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Zhejiang ShiningHub Co., Ltd.
Zhejiang ShiningHub Co., Ltd.

What is an Innovative Sourcing Company?

04 Jul , 2024

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1. What is a product procurement?

Product procurement refers to the process or activity where an enterprise, organization, or individual purchases raw materials, semi-finished products, finished products, or services from the market to meet their daily production or business needs or specific requirements.


A business activity where an enterprise acquires products or services from the supply market as resources under certain conditions to ensure the normal operation of production and business activities. Product procurement directly affects the cost structure of the enterprise, the stability of the supply chain, and the market competitiveness.


The process of product procurement usually includes demand analysis, supplier selection, contract negotiation, order execution, delivery and acceptance, settlement, supplier management and other links:


Demand analysis: Determine the procurement requirements, including quantity, quality, specifications, etc. Demand analysis usually needs to be considered in conjunction with the company's production plan, inventory level, and market demand.


Market research: Understanding the suppliers, products, and pricing options available in the market for initial screening.


Supplier selection: Based on research results, potential suppliers are selected and evaluated. Evaluation criteria typically include the supplier's reputation, production capacity, quality control ability, delivery ability, price, etc.


Contract negotiation: Conduct contract negotiations with suppliers to clarify both parties' rights and obligations, including delivery time, quality standards, payment methods, after-sales service, etc.


Order execution: According to contract requirements, place purchase orders, track the execution status of the orders, and ensure timely delivery.


Delivery and acceptance: The products delivered by the supplier are inspected to ensure that they meet the quality and quantity requirements stipulated in the contract.


Payment settlement: Payment settlement shall be conducted according to the payment method and time stipulated in the contract.


Supplier management: Evaluate and provide feedback on the performance of suppliers, establish and maintain long-term cooperative relationships.


2. What is an innovative sourcing company?

Innovative sourcing is a revolution and enhancement of traditional procurement models, encouraging the integration of innovative thinking and technological means into the procurement process.


Innovative sourcing refers to a procurement method that emphasizes the introduction of new technological concepts, technical manuals, and scientific methods during the procurement process, to enhance procurement efficiency, reduce costs, and improve the quality of products and services.


Innovative sourcing is not just about the application of simple new technologies or platforms, but also focuses on the impact of procurement activities on the overall strategy and operational performance of the enterprise.


Innovative sourcing generally involves the following aspects:

Process innovation

By optimizing the procurement process and reducing intermediate links, efficiency is improved. For example, adopting an electronic bidding system to shorten the bidding time; using an automated procurement system to increase the speed of order processing.


Management innovation

By introducing advanced management models, the level of procurement management is improved. For example, the use of Supplier Relationship Management (SRM) systems strengthens cooperation and communication with suppliers; the use of Supply Chain Management (SCM) systems optimizes the overall efficiency of the supply chain.


Technological innovation

By introducing new technologies, the transparency and accuracy of procurement are improved. For example, big data analysis technology is used to optimize procurement decisions; blockchain technology is used to achieve full traceability of the supply chain.


Collaborative innovation

By strengthening cooperation with suppliers, we jointly engage in technological research and development and product innovation. For example, we work together with suppliers to develop new products and share research and development results and market risks.


Sustainable innovative sourcing

Promote sustainable development by implementing green procurement. For example, give priority to environmentally friendly materials and products to reduce the impact on the environment; cooperate with suppliers to promote green production and transportation.


Our focus on innovative sourcing is aimed at paying attention to innovative strategies or methods, in order to improve procurement performance as much as possible and enhance the market competitiveness of enterprises.


3. What is an innovative sourcing company?

In the global context, when we talk about "innovative sourcing company", we often refer to innovative sourcing platforms or innovative sourcing enterprises.


Innovative sourcing companies generally refer to those that actively adopt innovative concepts and technologies in their procurement operations, driving changes in procurement processes and management models, and are committed to providing innovative sourcing solutions and services.


These companies usually utilize digital tools, big data analysis, artificial intelligence, and other advanced technologies to optimize the procurement process, improve transparency and efficiency, and focus on sustainable development and social responsibility. They usually have rich procurement experience, professional procurement teams, and advanced technical support, which can help customers achieve optimization and innovation in the procurement process.


4. What are the general characteristics of an innovative sourcing company?

If you are interested in the innovative sourcing company in the procurement field, you can pay attention to the procurement company or agency with the following characteristics.

Innovative sourcing companies usually have the following characteristics:

Innovation driven

Always take innovation as the core driving force for development, continuously exploring new sourcing concepts, methods, and tools to adapt to the ever-changing market environment.


Technology driven

The innovative sourcing company widely applies advanced technological means such as big data analysis, artificial intelligence, and blockchain to improve the efficiency and transparency of the procurement process. For example, big data analysis is used to analyze procurement history data and market trends to optimize procurement decisions; artificial intelligence technology is used to automate the procurement process and reduce human errors.


Process optimization

Continuously optimize and improve the procurement process, reduce unnecessary steps, and enhance overall efficiency. For example, adopt an electronic contract management system to achieve electronic signing and management of contracts, reducing the use of paper contracts; implement an intelligent supply chain management system to optimize all aspects of the supply chain and improve overall coordination.


Supply chain collaboration

Attach importance to the cooperative relationship with suppliers, and through the establishment of long-term partnerships, jointly carry out technology research and development and product innovation. For example, collaborate with suppliers to develop new products, share research and development results and market risks; conduct market research with suppliers to optimize the overall efficiency of the supply chain.


Sustainable development

Focus on environmental protection and social responsibility, by implementing green procurement and sustainable development strategies to reduce the impact on the environment. For example, give priority to environmentally friendly materials and products, promote green production and transportation; cooperate with suppliers to promote green production and transportation, and improve the sustainability of the supply chain.


Flexibility and adaptability

Has strong adaptability and flexibility, able to quickly respond to market changes and adjust procurement strategies. For example, according to changes in market demand, timely adjust procurement plans; according to changes in the supply chain, flexibly adjust supplier selection to ensure the stability and flexibility of the supply chain.


Customer First

Guided by customer needs, we are committed to providing innovative sourcing services that exceed customer expectations, helping customers achieve their sourcing goals and enhance overall operational performance.


5. What new trends does the innovative sourcing company bring to industry peers?

The innovative sourcing company has promoted the following new trends:


Digitalization and intelligent sourcing company transformation

Driven by digitalization and intelligent technology, the innovative sourcing company is leading the procurement industry towards a higher level of intelligence.


By utilizing advanced information technology, the procurement process is simplified, and procurement decisions become more scientific and accurate. The digitalization of the procurement process is achieved through electronic procurement platforms, intelligent contract management systems, etc., to improve efficiency and transparency.

For example, by adopting an electronic procurement platform, the procurement process is automated and digitalized, improving procurement efficiency; by using an intelligent contract management system, electronic signing and management of contracts are achieved, reducing the use of paper contracts.


Data-driven decision-making

Utilize big data analysis to optimize the procurement strategy and improve the scientificity and accuracy of procurement decisions.


For example, by utilizing big data analysis of procurement history data and market trends, the procurement decision is optimized; by using data analysis technology, supply chain management is optimized to improve overall efficiency.


Supply chain transparency

Through close cooperation and information sharing with suppliers, customers, and other partners, procurement activities become more efficient, transparent, and controllable. The whole process of the supply chain can be traced through blockchain technology and other means, improving the transparency and trust of the supply chain.


For example, by using blockchain technology, the entire process of the supply chain can be traced to ensure the quality and source of the products; by using the supply chain management system, transparency and traceability of each link in the supply chain can be achieved, improving the transparency and trust of the supply chain.


Sustainable procurement

As the global focus on environmental protection and sustainable development continues to increase, green procurement is gradually becoming the new trend in the procurement industry. More and more companies are emphasizing environmental protection and social responsibility, promoting green procurement to reduce their environmental impact. For example, they preferentially choose environmentally friendly materials and products, and promote green production and transportation; they also work with suppliers to promote green production and transportation, enhancing the sustainability of the supply chain.


Flexible supply chain

Enhance the elasticity and adaptability of the supply chain to cope with uncertainty, and improve the stability and flexibility of the supply chain. For example, establish a diversified supply chain to reduce dependence on a single supplier; through flexible supply chain management, improve the elasticity and adaptability of the supply chain, ensuring the stability and flexibility of the supply chain.


Customization and personalized demands are prominent

Against the backdrop of increasingly diversified consumer demands, innovative sourcing companies place more emphasis on providing customized and personalized procurement services. By gaining a deep understanding of customers' business needs and procurement preferences, they offer tailored procurement solutions to customers.


6.Example of a Leading Innovative Sourcing Company

One exemplary company in the field of innovative sourcing is TradeAider. TradeAider is a sourcing group integrating our wholly owned factory, sourcing agent and quality assurance services into comprehensive services, providing efficient sourcing help to our valued clientele for over 30 years, based on over 2,200 partner factories in China and other countries.


TradeAider's wholly owned factory specializes in the production of sportswear and outerwear. It's Nike approved, BSCI and WRAP certified, and has been producing for Nike, Converse, Ellesse and other well-known brands since 2006.


As an efficient sourcing aggregator driven by visionary goals and missions, TradeAider's core strengths comprise the founder's dedication and extensive experience in global trade and manufacturing, a proficient team of experienced merchandisers who foster seamless communication among buyers, manufacturers, and strong quality control and product development specialists throughout the production cycle, assisted by the creative TradeAider App to ensure the successful order control and quality control for any orders placed by buyers with TradeAider.


These, coupled with the vast network of over 80,000 quality control and product development specialists worldwide, a global presence with thousands of factories situated across diverse countries and regions – including China, South East Asia, the Indian Subcontinent and Eastern Europe, has made TradeAider a unique group capable of providing our best possible sourcing services to ensure our esteemed clientele to receive better products with lower cost, high quality and timely deliveries, over the past 26 years.


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