The Rise of AI in B2B Sourcing: Simplify Sourcing, Amplify Success

Why Sourcing Is An Issue? Here is the background:

Sourcing products can often be a headache. Whether you're searching for the right supplier on Google or trying to request a quote, negotiate terms, or manage logistics on a B2B marketplace, the process will consume your time and resources. Many merchants, especially those who are pressed for time and have limited resources, find that product sourcing is a bottleneck that takes up a lot of your time and energy that could be used to complete more important tasks, especially for the brands that need higher customization capabilities.

Our team spoke with several US retailers recently, and they emphasized that sourcing is very time-consuming. They tried many methods to find the most suitable and reasonably priced suppliers, such as Google search of course, and sourcing on B2B trading websites such as Alibaba and DHgate, attending offline trade shows, and reaching out to local wholesalers and distributors. You might ask them what specific products they sell, making it so difficult to find the right supplier. If you run your own business, you'll find that B2B purchasing isn't like picking something up on Amazon. The unit price will significantly affect your costs; the quantity you require will determine whether a qualified supplier is willing to accept your order. The more complex your customization is, the more difficult it will be to find a supplier that can deliver what you need. Additionally, language barriers can create barriers that force you to choose only limited local options, not only in terms of language but also in terms of culture and expertise. These obstacles make sourcing feel more trouble than it's worth.

Here is an article from?the U.S. Chamber of Commerce ?to elaborate on what a comprehensive sourcing process for small businesses looks like.

9 Steps to Creating a Procurement Process for Your Small Business

Sourcing brings endless phone calls, meetings or online meetings, document exchanges, and weeks of back and forth – simply can't keep up with today's fast-paced environment. This got me thinking: is there a better way?

The Role of Traditional Sourcing Agents

Many businesses turn to outsourcing the job to sourcing agents in hopes of taking some of the burden off. These agents bring valuable expertise and industry know-how, but the rules of the game remain the same. The process remains slow, labor-intensive, and often costly. Far from simplifying communication, agents sometimes add another layer of complexity, turning a direct buyer-supplier interaction into a more complex buyer-agent-supplier chain. When you end up with a less-than-stellar agent, the frustration only increases, making things more complicated.

Challenges of working with traditional purchasing agents:

• Complex communication chain: As I mentioned above, the agent acting as a middleman needs to fully understand the buyer's requirements and communicate accurately and thoroughly with different suppliers; there will be multiple back and forths here, making the process less efficient.
• Long timelines: Even with an agent, the procurement process still includes many unskippable tasks and is subject to the same manual constraints.
• Costly: Sourcing agents require fees and there might be some hidden markups, which add to the already high procurement costs.
• Limited supplier selection: Agents often rely on narrow networks, limiting their access to a wider range of, and potentially better, suppliers.

These challenges made me realize that, for the buyers, the real value of sourcing is in the results, not the process. After all, the goal of any buyer is to grow the business and increase profits – not to get bogged down in the tedium of sourcing.

So, is there a MUCH BETTER way? Of course, there is.

Imagine you don't have to browse tons of websites, collect plenty of data, make phone calls, build a long Excel, chase suppliers, or haggle. Instead, you just send a request in your language. Shortly, you receive tailor-made results: fully-vetted suppliers, competitive even factory prices, and high-quality products customized as you wish, even no need to worry about the logistics, all without hassle.

The Easy Way to Source: AI Sourcing

AI sourcing is changing the game. By automating processes, AI doesn't speed things up—it does the work itself.

• Automation of tedious tasks: AI eliminates the manual tedious work by instantly connecting you with trusted suppliers—no more endless and frustrating discussions.
• Expanded supplier coverage: With AI, you can tap into a vast network of suppliers, ensuring you find the one that perfectly matches your needs—whether you're looking for a niche product or need to make your genius ideas into products.
• Streamlined workflow: AI integrates every step of sourcing into a seamless workflow, significantly reducing the time-to-market.
• Business Agility: AI can provide predictive analytics and valuable insights to help you make smarter, data-driven decisions.

What Does the Future Hold?

Looking ahead, with AI, it's clear that all kinds of work will continue to evolve. How do you see AI shaping the landscape of local retail, wholesale, and cross-border trade? If you were a business owner, what other tasks would you like AI to solve for you? The potential is huge, and the journey has only just begun.

What do you think are the next steps in this ongoing evolution? You're very welcome to join the discussion.