In a recent LinkedIn post, Jean Ng 🟢 challenges the conventional view of sourcing commissions, reframing them not as a fee for closing a deal, but as essential insurance against catastrophic business risks. The post details a client conversation that prompted Ng 🟢 to re-evaluate the true value of sourcing partners.
“The sale is not the work. It’s the finish line after a marathon you never saw.”
Jean Ng 🟢 argues that the significant effort and expertise involved in sourcing, particularly in unfamiliar markets, often go unseen by clients who focus solely on the final transaction. This perspective, Ng 🟢 explains, overlooks the extensive preparatory work that prevents costly errors down the line.
The Unseen Labor of Sourcing
According to Jean Ng 🟢, the period before a contract is signed involves a rigorous process that shields clients from potential disasters. This includes:
- Thoroughly vetting numerous manufacturers, many of whom are eliminated due to failing basic audits.
- Negotiating favorable terms that result in significant cost savings on unit prices.
- Identifying and mitigating potential compliance risks that could lead to severe regulatory penalties.
- Coordinating logistics, arranging samples, and meticulously stress-testing quality standards.
As Jean Ng 🟢 points out, these actions are crucial for de-risking the supply chain. The client’s question, “Why should I pay you before the sale closes?” highlights a common misconception about the sourcing professional’s role.
“This means the ‘payment’ isn’t for closing a deal. It’s for preventing the deals that would have ruined you.”
Sourcing as Risk Mitigation, Not Just Procurement
Jean Ng 🟢 emphasizes that sourcing in new or complex markets is far more than simple procurement; it is a sophisticated exercise in risk mitigation. Entering foreign supply chains involves navigating hidden dependencies, understanding local regulations, and adapting to varying quality standards.
The High Cost of Supplier Failure
The consequences of a single bad supplier relationship can be devastating, leading to production delays, compliance violations, and reputational damage that far outweigh the initial contract value. Jean Ng 🟢 asserts that a sourcing partner’s primary value lies in their ability to identify and exclude these high-risk suppliers.
“When a sourcing partner eliminates even one catastrophic supplier from your options, they have already justified their fee.”
The benefits of better pricing, faster timelines, and smoother logistics, in Ng 🟢’s view, are secondary advantages built upon this foundation of risk avoidance. Without expert guidance, companies venturing into unfamiliar markets face significantly higher failure rates with their initial supplier relationships.
Rethinking the Value Proposition
Jean Ng 🟢 concludes by posing a critical question to businesses: is a sourcing commission an upfront cost or a form of insurance? The data suggests the latter, with companies lacking local expertise experiencing substantially higher failure rates. By highlighting these points, Jean Ng 🟢 encourages a deeper appreciation for the strategic importance of skilled sourcing professionals in safeguarding business operations and financial stability.
📝 About This Content
This article is based on insights shared by Jean Ng 🟢 on LinkedIn.
📅 Originally posted on March 4, 2026 | View original post on LinkedIn →