By Guest author 30 March Font size Email Print. In many cases going direct to the right manufacturer will indeed result in the best prices. However, there are also a number of reasons why this may not be possible.

In contrast, sourcing through a trading company can open up a whole new world of factories that a retailer or brand would not normally consider, and yet can be as equally competitive.

These factories don't have a sales team and rely solely on the trading company to provide business. It's then about the relationship that the merchandiser trading company has with the owner of the factory. Sourcing is about being flexible.

There is no one way to make a garment — and there is no one way to source it either. Therefore, the decision on whether to go direct or not must be determined according to short, medium or long-term business needs, as well as key sourcing criteria. For example, a direct and indirect approach in terms of factory selection was taken for an active sports brand requiring technical outerwear, mid-layers, base-layers, T-shirts and accessories, but which lacked a development and production team.

The brief was to provide quality, but on key product lines a volume price was needed. Ultimate Juice Company is not just about price, but the ability to Nasty Gal Sold Company the right route from source to customer.

Business owner Mr Zhu empowers his teams of merchandisers to develop their own business — often in competition with each other — which works favourably for the buyer. Many customers still come through third-party trading companies across Asia, without realising the order is going direct to Dishang.

Dishang has technical outerwear manufacturing capability, as well has offering greater flexibility in terms of manufacturing volumes. Apparel Trading Company direct to its wholly-owned units is not an option, and its relationship with external factories quite often means it will still be cheaper.

As a supplier, therefore, Dishang is capable of producing the complete range across a diverse supply base that is either wholly-owned or operates as a trading company.

Meetings at trade shows must always be followed up by a visit to the factory, and in this case it was a pleasant surprise. Developing a range in this factory has been a success by shortening lead times, improving quality and increasing speed to market. It works well because the factory actually fulfils the role of many trading companies, but takes away an additional layer and cost. Bangladesh based Signet Enterprises Limited Trading Company is a specialist trading company that focuses on sourcing, quality and compliance.

With sales in excess of 25 million garments a year, the company employs a team of over staff — Apparel Trading Company which 90 are involved with compliance and quality control.

An in-house sample team means samples can be turned around extremely fast, as well as enabling Signet to establish quality requirements and truly understand the actual cost of the product. Signet then uses its fabric sourcing team to seek the optimal fabric for each client.

In addition, a team of merchandisers works with around core factories, enabling it to provide a fast, quality-driven, compliant service. It also has a wholly-owned shirt factory. The company combines a no-nonsense approach to delivery and quality of product Zion Brewing Company exceptional pricing, combined with duty-free savings from Bangladesh to the European Union EU.

All of the above routes have their strengths and weaknesses, and determining the one that best suits each brand can depend on a number of factors. It is also important to have a clear sourcing strategy and then the ability to adopt short, medium and long-term goals that enable flexibility and change. Sourcing is not just about price, but also quality and service. He has also developed 'The Spyder Sourcing Tool, which helps sourcing managers to evaluate their short, medium and long-term goals.

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Finding the best route from source to customer is a constant challenge As margins continue to be squeezed, one question often asked by sourcing managers is whether or not to use a trading company.

Surely, the argument goes, dealing direct with a factory is the best route to better prices and quality. Sourcing consultant Philip Worrall explains why this is not always the case.

It's full! Freight costs can also be reduced as product shipments are consolidated; Terms of trade can be readily agreed, including open credit; Quality inspection agreed to AQL 2. Trading company Bangladesh based Signet Enterprises Limited Trading Company is a specialist trading company that focuses on sourcing, quality and compliance.

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