There are three different platforms to sourcing products. Buying organisations need to define what their business model is and how their process operates, never expect the supplier will understand your business model and process.
Sourcing from Asian suppliers generally leads to various ways to incentivise the sale which some believe is a regular part of business, but others may say fraud. Greasing palms to garnish a business deal is an age-old affair globally, is it ethical no, but it happens regularly
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?
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 preliminary discussions with potential new vendors or third party partners, it is advisable to have a confidentiality agreement in place to protect intellectual property or what may be considered information that you do not want competitors or business partners to know. This first step must be considered as a general course of action to protect Confidential Information.
The Supplier Terms and Conditions intend is to ensure all suppliers who manufacture your companies product comply to all business requirements to delivery fit for market product from a price, delivery and quality perspective. These Terms and Conditions are extensive in content, are China centric and serve as an example only.
Everyone is tempted to select a vendor purely on price, but it is only one factor in the evaluation process. You should never select a vendor based solely on price.
Select vendors that have specific experience with the type of project that you’re undertaking, having technical expertise and capabilities unique to the market, brand and product. You don’t want to be a vendor “guinea pig.”