A Breakdown on Trade Companies_ the Bad and the Ugly

This is Part II.  Part I covered “the Good”.  Notice these are not blanket statements about trade companies but comparing the Good vs. the Bad and a bit of focus on the ugly.  Because it can get ugly…and ordering offshore isn’t like putting coins into a vending machine, it takes serious effort.  Now to resume our regularly scheduled broadcast… 

Companies will promise the world
...you'll get more than you bargained for

The Bad: Many trade companies are not very specialized in one area.  They fail to maintain strong contacts with their factories.  Your order risks being outsourced every time afresh, to a factory they haven’t dealt with in the past.

A Breakdown on Trade Companies_ The Good

Good Trade Companies: Better than Working Factory Direct

Vendors in the overseas promo industry, whether in USA, UK, Australia, S. Africa, when buying from China, they normally buy from a trade company.  Many people label these types of companies as traders, brokers or agents.  Technically there is a difference in the 3 terms and this article is primarily focused on trade companies. 

My weathered opinion is if you are an overseas supplier or distributor in the promo industry and you want a solid China contact, then you need to rely on the trade companies.

Know What’s Happening with Your Order

Typical Holiday Door Coverings

Chinese New Year:  for all practical purposes it’s here if not knocking on the door. 

We had an order to be rushed out, ahead of schedule because the workers were hurrying to rush home.  I don’t blame them.  The workers in factories, for the most part, work very hard for very low pay.  This is the time of year, they want to kick back, go to their hometown and slip away to a time period that was simpler, easier… They spend time with family, play cards, share memories with loved ones and for 20+ days forget about production lines, money issues and the obstacles they encounter day-to-day. Most of them have the basic goal of providing for their families that are usually in a distant city.    

Who’s Controlling Your Supplier’s Supplier?

Imagine:  there are a total of 3 suppliers providing input into your offshore project. 

Color Mixing is Sensitive: Good to be on-hand
to assure proper matching

Your supplier is only…let’s say…assembling the item.  He’s buying the material from a material vendor (dyed and specified to pantone color) and print isn’t done in-house.

The delivery time is urgent and quality, of course, is important.  You’ve hashed that out with your supplier, you’ve seen samples, and confirmed them and now ready to go with production.  You feel like your supplier has a clear understanding on the important issues and will tightly control the production time and adhere to delivery requirements.  

Then you hear one of the following phrases or receive an email with one of these phrases…

Due-Diligence: Developing a Product Offshore (Info, Material, Price)

Don't Expect Factory to do Research, Legwork
~ Do in Planning Stages

Here’s a list of basic steps in sourcing a customized item or developing a non-existing product.  This stuff is very basic but easy to overlook and with the frequency I see overseas importers/buyers not do this, you would think it’s rocket science.

 Keep in mind non-existing could mean an item the factory doesn’t currently produce (non-existing to the factory’s capabilities) and for them it will be a first-time run.  Also this could mean tweaking an existing product but requiring quite a bit of change, creativity and design legwork.