MANY IMPORTERS MAINLY DEAL WITH JUST A FEW PRODUCT CATEGORIES. JUST A HANDFUL OF MANUFACTURERS COVER 80% OF THEIR NEEDS.
But yet, most of them make the same mistake: they don’t make an effort to improve their existing suppliers. On the other hand, they spend time sourcing from NEW factories for little savings and briefly training them regarding their requirements, and eventually taking risks on the first orders from a new source. As with any new business relationship, be sure to perform adequate due diligence before entering any agreements or remitting payment.
Any better idea? Sure.
A supplier development program generally follows 4 basic steps.
When choosing a factory to partner with, you should always look for the following attributes:
- Proven knowledge and experience. Also verify their reference list for the item you are sourcing.
- Technical capabilities. The factory should already be producing goods or products that are very similar to your own. This ensures that they understand your market and minimizes the risks.
- Reputation. Do you know anyone that has already worked with them? How was their experience? It’s mandatory to find a factory you can trust.
- Select the right suppliers for your need
Because so much can go wrong, the vetting process is crucial when you’re choosing a factory. Here are some important questions to ask:
- What kind of experience do you have in this industry?
- Who are the clients you’re currently working for?
- What is the turnaround time to produce my product?
- What are your minimum order requirements?
- Can you provide recent proof of inspections or third-party audits?
- Do you subcontract work to other factories, or is all the work done in-house?
- What are my payment options? Is a deposit required?
- Do you make materials in-house or outsource?
- Can you handle the sourcing of materials, or do I need to provide my own?
