It is common sense that we can reap the most benefits out of a stable flow rather than on-and-off interactions, right? Correct! Similarly to connections between human beings, also when talking business there are plenty of advantages when we make the effort to create a long-term exchange with your accessories sourcing partner.
First of all, there is the trust issue: a successful business - like a successful friendship, although the metaphor can sound unflattering for the latter - is based on confidence. As a matter of fact, the more founding values and selection boxes we’ll have already checked once, the less time we will spend re-verifying and the less energy we will waste in keeping on the “suspicious mode” daily.
Secondly, let’s not forget all the hassle risk... Bags & accessories are a field of great complexity, since a broad variety of materials and different types of workmanship are involved. Every time you evaluate a new bag sourcing partner, you will indeed have to re-examine the whole chain – down to the metallic trim maker, the plastic details factory, the lining and padding vendors, etc.
That can be done by yourself, traveling to all the locations of the multiple Tier-2 suppliers, or directly combined at the new Tier-1 supplier’s production site, yet still you will have to check all the components again as the new partner will utilize their own trusted sources – which looks and technical features may differ from your previous ones. And of course, the more Tiers (levels of supply chain) you created, the more complex the reallocation will be.
A Bill of Materials related to a bag can contain over a hundred components, from a dozen different suppliers! From main materials (fabric, leather) to trims (metal, plastic) and packaging (polybag, paper, silica gel). Also, did you know that a bag Paper Pattern can be made of over 90 cuttings? Now automated systems help with archiving and operating them, yet the ownership of a certain pattern stays in the factory that created it, and it can be bothering – when not cumbersome – to re-create a certain style from scratch, maybe never achieving the exact same look & feel result again!
At this point, you will surely want to prioritize stability and transparency in your supply chain, in order to maximize product development effort and ultimately protect your margins! To achieve this, just follow three simple steps:
This way you will have optimized the use of your precious resources at the very best.
Enjoy your business and see you out there on the market!
by Elena R.
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