Build Your Trusted Supplier Database
For buyers, Tradegood isn’t just another eCommerce platform; it is the ultimate one-stop-shop where you can find just about any product from any industry.
However, in order to be truly successful on Tradegood, you need to be intelligent from the very onset. The global sourcing arena is now more competitive than ever. With so many suppliers out there and plenty of information on the internet, buyers have found it increasingly harder to identify the right suppliers.
Although Tradegood simplifies the process to some extent by helping buyers to verify suppliers, you still have a huge role to play in identifying your suppliers. The supplier directory has more than 1,400 manufacturers. In order to pick the right manufacturer, you need a carefully thought sourcing strategy. A structured decision-making process can help you assess factors that could impact upon the supplier’s ability to “fit in” with your particular needs
Factors to consider
Here are 5 factors to consider when developing a sourcing strategy using the Tradegood’s Verified Supplier Directory;
1.Do the supplier’s products meet required standards?
The first thing you need to do before making a manufacturer your long-term supplier is to check the supplier’s qualifications. A capable supplier should be an expert in the field and have a clear business strategy. Specifically, you should ensure that imported goods meet your country’s product standards. Remember that each jurisdiction has different regulations regarding toys and other children’s products. Ensure that the supplier can provide goods that meet these standards.
2.Aggregate orders to enjoy lower costs
It also helps to choose suppliers based on your company’s size and existing structure. Since most companies enjoy economies of scale, a popular trend is to aggregate orders in order to enjoy lower prices. This requires that you become highly selective with your suppliers and immediately eliminate suppliers with poorer matching profiles. It also helps to strategically utilize dual sourcing as a sourcing strategy. This will help the business to effectively mitigate risk because, in the event of a disruption to the supply chain, you can soften the blow of losing one supplier by ramping up business with the second manufacturer.
3.Order from the same region
Many times buyers make orders for more than one product which may not be necessarily manufactured by the same manufacturer. If this is the case and you need to find two or more suppliers for the various products, consider finding all your suppliers from the same city/region. Among other benefits, you could significantly save on shipping costs.
4.Choose suppliers in cluster regions
Also, you should be aware that certain industries tend to be concentrated in particular cities or provinces. For instance, if you’re shopping from China, you’ll realize that there is a high concentration of textile suppliers in Xiamen, electronics suppliers in Shenzhen, and toy suppliers in Shantou. A manufacturer based in a particular cluster is likely to have better access to skilled workers, components, and logistic services.
Other than the hard factors discussed above, buyers also need to consider a variety of soft factors. This is because, even if the supplier has the technical capacity to produce the items as required, such a capability is rendered useless if that supplier cannot fully corporate with you in your product-development efforts.
There are several other criteria for selecting suitable suppliers. For instance, you should always choose suppliers who regularly attend trade fairs in the U.S. and Europe as this shows that the manufacturer goes out of their way to find out what potential buyers need. This broad spectrum of factors, if incorporated in the company's decision-making process, can allow you to establish successful relationships with the most suitable manufacturers.
Once you have captured all these factors, you’re set to go. Develop a supplier database that suits your needs; containing only suppliers that you deem suitable to your business. Then, when you’re ready to source, all you need to do is visit your database. You can also favorite suppliers based on past experiences.