Having the best-fit payment terms is an important part of the supplier management process, but what are the best payment terms for my business when working with Asian apparel suppliers?
Do you only evaluate the seller shipping or delivering the goods to your door or do you manage the full supply chain to reduce risk and build brand integrity?
When evaluating suppliers, both services orientated and manufacturing, when you first meet the potential vendor and based on the immediate surrounding your gut forms a first impression.
When starting business with a new supplier think of them as a new employee, they can have a vast amount of experience in the given product category but they will be unfamiliar with your buyer’s process and methodology, they will need to need to go through an induction trial period so both buy and seller develop a solid business understanding.
Ensureing there is the correct level of quality managment and compliance to manage your supply chain, achieve business and brand value is critical in todays ever competitive market. Are you or your team prequalifing suppliers to ensure quality and social compliance goals are achieved?
Supply Chain Solutions No.11 – Are the Suppliers Sample and Development facilities capable of meeting your Product Mix?
There is a substantial number of small to medium manufacturers that are not geared to handling a high product mix in sampling and development. Understand the supplier’s sampling output per month versus your demand.
If your company produces multiple product styles per year, and the quantity is low versus a company that produces high volume that is replenished for either short or longer term periods, the capability and capacity need of the manufacturing facility will be different.