It's Not About the Money

Production problems, sourcing issues or timing delays are not always directly related to dollars and cents.

Back to the Basics: Sampling Process

A smooth sampling process is critical to successful offshore manufacturing.  More times than not, in the promotional product industry, super-fast delivery times are usually lurking around the corner, so time is not on your side.


(Hey; thanks for stopping by.  After you read this post, visit me over at the new house, http://jacobyount.com - You have a thousand things you can do in your day from work, family and things that are a million times more important than my blogs - but I am very appreciative of the community and any time you spend.  Please remember to leave a comment so we can continue to connection, thanks  ~ Jacob Yount Fri Mar 16, '12)

Smaller Order Pitfalls

“We don’t need a large quantity and the brand needed the goods yesterday”.  Manufacturing for the ad specialty and promotional production industries, this is an often played tune.

Finding a Factory

Importers often comment how they are “interested in finding a factory”.   If you are buying promotional products / ad specialty items, are you sure this is your best bet?

A Lot Like Dining Out

(Thanks for stopping by this post.  After you read this, do me a favor and stop by the new house:  http://jacobyount.com Hope to see you there and remember to leave a comment so I know who is reading!  Much love - Jacob) 


This weekend we went to a restaurant that serves “Western Cuisine”.   I mentioned in a post from last year, that I seldom like to go to the so-called Western places in China.  I wasn’t surprised during this outing…the same ol’ same ol’ rang true. 

But one thing that stood out, is that, especially in the promotional product and branded merchandise realms, managing and supervising production from factories is a lot like dining out in China.

Unity

Back to the conversation I had with the “China sourcing expert”…

I’m going to pick on this guy again.  Not because this guy just deserves being picked on but because he embodies the mindset of most Westerners in the manufacturing business in China.  It’s a mindset that is focused on the short-term.  It’s also a mindset that leads to a multitude of the problems you see with China manufacturing, whether quality issues, certification / health scares, late delivery times, inconsistent pricing or loss of time.

Supplier Love

(photo credit: GR Sipe)

I recently sat in a seminar where a guy, who runs a company in the Western world, which “specializes in China sourcing”, was telling the attendees not to make relationships with their suppliers.  I couldn’t believe my ears.

Reasons Against Doing Small Quantities Offshore

Factories feed off large volumes.
Is your order paying the bills?

In the promotional product and branded merchandise industry:  when is the right time to take your inquiry offshore?   Usually the answer to that question is directly related to the quantity of the order. 

As China, on the surface, is becoming more and more accessible, I can sense confusion among offshore buyers as to what quantity is worth pursuing, what quantity is worth taking offshore and what quantity is worth to bring to the beast that is the factory.  

Artwork Hijinks with the Factory

This happens frequently.  In manufacturing branded promo and gift items;  factories have “trouble” in dealing with the artwork. 

Visit When Possible: check Pantone #'s,
films, application

Most folks working in the factories are not proficient in the software.  In general, they are not proficient in computer use.  These areas of lack, without the proper control, reflect in the branding of your item, which can lead to delays, more cost and, worse case, receiving incorrect goods. 

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…

Dealing with 1st-Time Factories

Remain professional: regardless of what
unforeseen obstacle arises.

Chinese factories are busy.  They have times that are slower than others, but for the most part, their production lines are full year-around.  Next to never are the production lines empty and the workers sitting around hoping to get an order to extinguish the boredom.

On the contrary it has gotten to where it takes substantial effort from the buyers’ side to get a factory to treat them serious.  Unless you have an established working relationship with the factory or unless you’re a very big name, the factory is going to first “feel you out”.   But, in this post-Economic Crisis day and age, even if you are a big name, the factory is still going to work in such a way to determine if you are going to be a valuable customer for them.

Educate your Supplier on the Product

Although fine production line workers, these ladies are not
up-to-date on the latest trends

“Educate the factory on the product???  Is that a typo?  Shouldn’t they be the ones educating the customer?”

The following are areas where your Chinese supplier / factory may be in-the-dark and it’s up to you to shed some light.

Use

Target Market

Life-after-Production 

Skip the Stock Sample Jazz

They're busy producing, not fishing for orders w/stock samples. 

Samples:  You need them.  Without a sample, how will know you the quality?  How can you signoff on the deal with your brand or your retail customer without presenting them with a physical item to hold in their hands? 

Obviously there’s not a sample vending machine inside the factory (although many customers talk as if they think there is one).  The following scenario is not likely to happen.

Customer:  “We’re going to need samples to further confirm the order”

Factory: “Please tell us what size, shape and color and we’ll get those to you right away;  we definitely understand how important samples are.”

Proceed with Caution in Asking for Lower Price

If you want quality, it comes with a cost. 

Keep in mind, for the majority of the time, especially in the promo, branded, retail merchandise industries, when you tell a factory you need a low price;  that directly translates into “I need low quality”.

Lasting First Impressions

Visit factories as often as you can; watch them run samples,
implement changes and show understanding of production requests.

When dealing with a factory be especially watchful when a change comes into play.  (This article is promo / gift industry specific but the concept holds true in any basic dealing with a factory)

Promo Products: Should you Narrow Down your Item Range?

As an overseas promo item importer (supplier, distributer); you know that unless you work specifically in one material, you will not find one or even a handful of factories that can handle your inquiries and production.

1st Entry on a Monday in Suzhou China

Why I’ve been itching to start a blog….