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Garden Products from Vietnam: an Industry in Bloom

Industry Insights / admin / sourcing, Vietnam

Garden Products is a growth manufacturing sector in Vietnam, due to the available raw material and skill set within the workforce. Taking advantage of raw materials and with a strong OEM capability, there are suppliers capable of producing customised pieces whilst assuring high-quality standards at competitive prices.
Certainly, the many favorable conditions within the country make the Vietnamese offering one of the most competitive in Asia.

Why “Sourcing from Vietnam” became a trending topic?

Vietnam is one of the most dynamic and fastest-growing emerging markets. First, it is currently propelled by buoyant export demand and supported by strong foreign direct investment. In addition, Vietnam’s geographical proximity to China and strong political and economic links with Beijing pay dividends. Current cost pressures created by US trade tariffs has seen manufacturers shift production out of China to cheaper locations such as Vietnam. The country benefits from regional trade pacts and a young and educated population. Furthermore, the still cheap and growing labour force continues to attract direct foreign investment.

Garden Products from Vietnam furniture — Vietnam suppliers also have the advantage of having most raw materials available domestically. Natural rattan can be sourced from provinces in northeastern, north-central and central Vietnam.

Five Advantages of Sourcing from Vietnam.

If not already, the latest and increased round of tariffs on China by the USA further augments the demand for companies to move to Vietnam as an alternative to China. Meanwhile, Vietnam has also moved to seize on these opportunities with Vietnamese exports to the US having increased by 36% in the first five months of 2019 when compared to the same period last year. Consequently, with goods valued at 25 billion US dollars shipped into the United States, Vietnam has become the eighth biggest source of American imports.
As a Vietnam sourcing company and a presence on the ground for the past twelve years, we have seen the development and evolution of the manufacturing sector in Vietnam. Now, more than ever, Vietnam should form part of any company’s Asian sourcing strategy.

1. Favourable Geographical Location

Vietnam is one of the top South-Asian countries with almost 3,500 kilometres of coastline. This presents great potential for shipping efficiencies and provides access to neighbouring countries with no access to the sea such as Laos and Cambodia. In fact, Vietnam has a total of 114 seaports, 14 of which are relatively large and named as one of the keys to economic development.

2. A Young and Skilled Workforce in Vietnam

Of Vietnam’s 95 million people, half are under 30. This is in stark contrast to the demographics of many other Asian countries (China in particoular). Vietnam therefore wields a young and dynamic workforce, which combined with low labour rates relative to other manufacturing export markets, makes it a suitable manufacturing destination.

3. Numerous positive trade agreements

Vietnam has signed a number of beneficial trade agreements that act as enablers to the manufacturing sector. Most recently EVFTA between Europe and Vietnam, albeit this is yet to ratified.

4. The best political stability option of the region

Political stability is always a key factor in determining the right country to manufacture in. Vietnam has a stable Government and is seen as one of the most politically stable markets across Asia.

5. A Growing Manufacturing Sector

As well as the more established product sectors in Vietnam (handicrafts, ceramics, furniture, shoes etc), there is increasing FDI within the manufacturing sector and infrastructure leading to the evolution of new product categories such as kitchenware, plastics and Garden products.

Garden Products: Key Sectors and Strengths

ET2C has identified opportunities within the Garden & Outdoor sector exclusively from Vietnam due to raw material availability as well as manufacturing capability already in situ.
For example, Garden furniture manufacturers take advantage of raw material availability in Quy Nhon and locate themselves in close proximity. In addition, because they are located outside the major cities allows them to leverage lower labour costs too.

Vietnam sourcing cocoliner — Vietnam is leader in the production of coco liners and hanging baskets, which exports worldwide

Furthermore, Vietnam continues to attract business from US businesses due to current tariffs on China which will mean costs rising by anything up to 25%. Many Vietnamese suppliers are investing in additional R&D to ensure they have a competitive edge by presenting new designs according to market requirements.

The key sectors in this industry include:

Pottery
Netting
Garden Tools
Garden Gloves
Plant support, Arches & Obelisks
Cocoliners & Hanging Baskets
Garden Furniture

We Are Garden; Come to Vietnam for Garden Products and Outdoor Opportunities

As your Asian sourcing expert, ET2C has identified the Garden Products and Outdoor sector as a growth manufacturing sector in Vietnam. Where necessary, we have developed manufacturing capability at factory level to produce high-quality products at competitive prices. There is now a unique opportunity to source a breadth of products all out of Vietnam.

For more information, please contact us at vietnam@et2cint.com. We will help your business positively bloom!

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How a Third Party Quality Control Service Can Benefit Your Business

Industry Insights, Uncategorized / admin / quality assurance, Quality Control

How a Third Party Quality Control Service Can Benefit Your Business

A third-party quality control service operates as a keystone of your supply chain. Whether you source from down the road or as far as Asia, quality control requires constant attention. When your product must meet certain requirements to sell, verifying the capabilities of your suppliers is critical.
Thankfully, quality control metrics ensure that your decision to source from Asia remains cost-effective. Through early identification of issues and swift implementation of corrective action plans, quality control services deliver sustainable value to their clients.

Why Should You Consider a Third Party Quality Control Service?

When it comes to quality control and assurance, your business should embrace the best services for your product’s needs. Quality control checks give updates for whatever steps in production you choose to inspect. Sometimes that means inspecting materials before they ship from the factory, and other times before production begins, or any number of inspections between the two.
A range of representatives operate inspections in Asia, from in-house to third party.

How a 3rd Party Quality Control Service Can Benefit Your Business list — Third party quality control services ease bias concerns.

With an In-House Inspector at the Factory

In-house inspectors work from within the factory, developing quality control reports at requested moments in production. If you have established the trustworthiness of a factory, then this option is certainly viable. With a continuous improvement methodology and training at the factory level, it is possible to move to a self-certification inspection process that puts the responsibility for quality inspections firmly on the Supplier.

However, there is a potential conflict of interest. Loyalty may warrant that their interests align with the manufacturer over their clients and a costly mistake on the factory floor may be pawned off as certified for importers to discover in their own warehouses.

With a third Party Quality Control Service

Third-party quality control services function as the industry standard for quality control. They are objective and have experience across different product categories, which provides additional added value when it comes to potential product-specific quality issues.
Control parameters play an invaluable role in the performance of quality products. There is little doubt as to the value of a third party quality control service in Asia.

What Quality Controls Do I Need for My Business?

Early audits of factory and supplier capabilities ensure that your partners are capable of fulfilling orders. At this point in the process, you should be examining the methods and metrics of quality control. Manufacturers must demonstrate the infrastructure and technology necessary to identify and correct any errors in production.
Visibility is paramount. Understanding the production process and the materials being used to make your product are key to a successful production. It is important to recognize potential communication issues stemming from your instructions. Every part of your product specification creates a measurable benchmark for a third party quality control service to validate. Once you define a key metric, quality control checks evaluate whether production is meeting those expectations.

Some metrics are already set, like the Acceptable Quality Limits (AQL) outlined in the ISO 2859-1. While your own expectation can aim higher, meeting these baseline expectations can critically impact the salability of your product.
Critically identifying potential issues upstream, on-site, at the factory will remove significant future cost. Once the products have been shipped costs have already been incurred and it is likely that the cost of goods has already been transferred to the supplier. Getting anything back at that stage is problematic at best. Therefore, investing in third party quality control services has a significant benefit to your business and provides a level of comfort that your company’s money is being well spent.

How a 3rd Party Quality Control Service Can Benefit Your Business — Guide your product through the supply chain with peace of mind regarding quality.

Transparency and Accountability

Finding a trustworthy third party quality control service will provide a significant benefit to your business. We at ET2C International understand the necessity for transparency and accountability because they are core to what we do each day.
Contact us to learn more about the role of a third party quality control service plays in your supply chain and the range of services that we can provide.

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Free Trade Agreements – a global overview

Industry Insights / admin / free trade agrements, FTA, global trade

Archaeological finds from 30,000 years ago in the Heart of Europe have unearthed seas shells from the Atlantic and Mediterranean Coasts. It points to our ancestors (Homo Sapiens, to be precise) engaging in some form of barter, or trade of sorts. It is what defines us as Humans and it is no wonder that trade has therefore been a prominent enabler to the development of the human race. Whether it is the broad significance of the Silk road some 2,000 years ago or the emergence of the age of Consumerism this Millennium, trade has always been important.
Trade is no less significant in today’s world. Global leaders constantly look to agree Free Trade Agreements with different jurisdictions to allow the efficient movement of goods and services across country borders. Even with protectionism on the rise, there are Trade Agreements in place that warrant a mention for any company looking for sourcing services.

EVFTA: EU Vietnam Free Trade Agreements

The European Union described the EVFTA as the most ambitious trade deal signed between the EU and a developing country, boasting a reduction of 99% custom duties on products as well as opening up the Vietnamese market to European investors. Initially expected to be signed and implemented by late 2018, the deal has still yet to progress through EU parliament and was only signed by the European Commission in October 2018.

New Era of Trade

EVFTA should mark the start of a new era between Vietnam and Europe, yet while many voice their support, human rights and labor rights concerns have hindered the ratification process. Stakeholders had argued that the EU should insist on human rights improvements before progressing discussions. However, the agreement was signed on the 30 June 2019 by both parties and is now undergoing the required ratification process, which will likely conclude by the end of 2019.
Upon ratification, this agreement will certainly support and create investment opportunities for the export manufacturing sector in Vietnam, which it needs due to current demand and capacity constraints.

USMCA: United States Mexico Canada Free Trade Agreements

USMCA or the New NAFTA was officially signed by all three parties in November 2018 but has yet to be ratified by any of the nations.
In short, USMCA gave NAFTA a slight face lift while keeping many underlying policies the same. Some of the more prominent provisions included a higher percentage of automobile manufacture must be completed within the North American continent, the US gained greater access to the Canadian dairy market, a retention of the dispute resolution system and the addition of a 16-year sunset clause.

Experts expect the agreement to be ratified eventually despite the political and economic stumbling blocks it has faced. In the United States, growing objections to the current Trade policy within the government has stalled the ratification processes. At the same time, US imposed tariffs and quotas and their potential symbolism have both Mexico and Canada concerned. Whether or not USMCA is inherently better than NAFTA is still open to conjecture but the sunset clause allows the agreement to be changed and refreshed while reminding all three parties of its importance. Mexico is an important trade partner to the US, with vehicles, electronics, auto parts and other manufactured goods being exported across the Border. This agreement will therefore be important for the future trade and any sourcing solutions.

CFTA: Continental Free Trade Area

Launched in 2015, the Continental Free Trade Area established a legal framework for free trade among the member states of the African Union. Signed by all but 3 of the 55 members, the CFTA outlays the legal framework for increasing inter-continental trade with the goal of creating a single continental market for goods and services with free movement of business persons and investments. While the agreement will work to establish the largest free trade area in the world terms of participating members, the full realization of the continental free trade area is still under negotiations with a deadline of June 2020.

Introducing A Unified Continent

The implementation of CFTA provides an opportunity for Africa to harmonize its continental trade environment and boost intercontinental trade. As a resource rich continent, Africa not only has abundant land resources but also has a labor supply that could rival Asia. As the African Union aims to decrease the continent’s reliance on extractive exports it looks towards labor intensive industries to employ their large workforce and stabilize their economies. Businesses operating or looking to operate in Africa will benefit from the ability to establish regional supply chains unrestrained by tariffs and recognition of licensing and certification in multiple African countries. CFTA will increase the ease of doing business on the continent and move towards a more economically stable African continent.

AFTA: ASEAN Free Trade Area

Established in 1992, the ASEAN Free Trade Area is one of the largest and most important free trade areas in the world. With the third largest labor force of more than 600 million people and a combined GDP of $2.17 trillion, ASEAN is an important player on the world stage. AFTA aimed to primarily increase ASEAN’s competitive edge as a production base and attract more foreign investment to the region. ASEAN as a whole also has free trade agreements with ASEAN + 3 (Japan, South Korea, China), Australia and New Zealand, and India.

The Implications

ASEAN’s position in the Pacific area offers businesses with operations in the ASEAN region the opportunity to gain easy access to new markets at low costs while also benefiting from simplified export and import procedures. Companies looking to diversify their sourcing locations, ASEAN offers a unique opportunity. This is particularly relevant to any Asia sourcing company or Buying Office in the region as they can take advantage of such opportunities. For example, importing raw materials to Vietnam from China with greater ease and at less cost.

Summary

There is no doubt that Free Trade Agreements oil the engine of global trade. Even at a time when the international political landscape is rife with protectionism and trade disputes (look no further than the current US Administration) having an insight into what agreements are being worked on or in the process of being ratified can provide some steer as to where potential opportunities lie. That said, it remains the case that the outsource manufacturing sector is in a state of flux with regulatory murkiness clouding certainty. Perhaps there may be something we could learn from our early ancestors and the simplicity of bartering seashells.
As trade relations continue to shift and evolve, ET2C continues to identify potential opportunities for our clients through our local presence and broader network. For more information, please contact us.

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Sustainability: The Catwalk and Beyond

Industry Insights / admin / manufacturing, sourcing, Sustainability

Consumers have increasingly taken an interest in sustainability, and this has led to a range of innovative materials being used by fashion brands. This year, eco-friendly, ethical and sustainable fashion has risen to prominence on the industry’s agenda.

And it is about time. ‘Fast Fashion,’ riding the wave of consumerism, has long been chastised for the amount of waste produced by the industry. The statistics are staggering and highlight the issue at hand.

Second to oil, the clothing and textile industry is the largest polluter in the world
The fashion industry contributes 10% of global greenhouse gas emissions due to its long supply chains and energy intensive production
Nearly 20% of global waste water is produced by the fashion industry
20,000 liters is the amount of water needed to produce one kilogram of cotton; equivalent to a single t-shirt and pair of jeans
It takes more than 5,000 gallons of water to manufacture just a T-shirt and a pair of jeans

It’s not just the waste; practices within the industry also draw ire from various stakeholders. Last year, it was reported that Burberry burnt some $38 million worth of stock to prevent it being sold ‘on the cheap’ and to protect the brand.

Sustainability The Catwalk and Beyond Millennials — Consumers increasingly seek environmentally-friendly products.

The result is that innovation has come to the fore. Positive for both the conscious consumer as well as the wider environment. The bright lights have exposed how much water is required to make cotton yarns and the problems associated with the use of microfibres.

Inspiring Innovation

Now the industry is playing with new materials such as‘leather’ made from grape skins or discarded leaves from pineapple production. A manufacturing evolution is underway and more of the mainstream brands are looking at alternative materials to appeal to their consumer base in new and creative ways.

Similarly, the impact that ocean plastic has had on our oceans and marine life has received considerable press coverage over the past 18 months, leading to some brands committing to the use of recovered ocean plastic—Adidas has committed to only using ocean plastic in their uppers by 2024. But the fashion industry is not alone. The average plastic water bottle requires more than twice the amount of water in the bottle to produce the plastic.

There are evidently “hidden environmental costs” across a range of products that the consumer has not been aware of, until now.

More than Material

Clearly, sustainability is not just about the materials, but also about how the products are used, their impact on the environment and people, and how they are discarded. ‘Circularity’ is a concept that a lot of brands and retailers are assessing how to fit within their own business models. IKEA is one such brand that is already undergoing trials to refurbish second-hand furniture for resale.

It is complex and encapsulates a whole range of issues that need to be addressed. How can companies measure the impact of sustainability? Do they have support at government and regulatory level? Which aspects of sustainability are tangible and can be affected by the business and their partners across their supply chains?

There is no point in having a ‘moon shot’ to change the world when a company is paralysed by debt levels on its balance sheet as an example.

Shifting Mindset

Ultimately, companies need to really believe in sustainability at their core for it to be believed by their consumer (look at companies like Patagonia). This is more difficult than it sounds and engagement across all stakeholders is paramount for this to become a reality.

The good news, despite additional investment required to move needle of sustainability, is that it does pay. Philip Kotler suggests that over time, there is clear evidence that a sustainable agenda will generate additional profits that are tangible and add to a company’s bottom line.

Strategic Sourcing Solutions at ET2C International — Choosing sustainability sets your business on a completely different path.

The Manufacturers

Manufacturing must pivot and incorporate new production methods and materials to enable companies to deliver on their consumers’ expectations, which are not always abundantly clear.

There are factories that are investing in their manufacturing plants to enhance their sustainable practices. For example, one factory in Vietnam has such a sophisticated dye treatment facility that it is used to clean the drinking water for the local villages.

New and innovative materials are already being produced and developed in China such as Repreve’s recycled plastic fibres. Packaging factories are also looking at how they use materials, with changes to the plastic being used to more environmentally friendly versions (PVC versus TPU as an example).

Sustainability The Catwalk and Beyond Factory — Re-examining supply chains often reveals opportunities for waste reduction.

Consumerism has grown a conscious and the manufacturing landscape has changed forever. The speed of this evolution will increase and those manufacturers that do not keep up with the pace will lose market share and likely their business in the medium term.

Summary

While the path to sustainability is not evenly paved, there are clear rewards to be obtained. It is well recognized that the current course of production and consumption is not sustainable within the planet’s natural resource limits.

At ET2C International, we value sustainability and are committed to helping clients with sustainability solutions. We are already collaborating with our clients in the arena. For example, we are producing sneakers that incorporate a sustainable element across the entire shoe (and four post-consumer water bottles in each pair) and are also implementing our own ethical code of conduct across all our suppliers to ensure sustainable practices are in place.

For more information or insight on creating more sustainable sourcing, contact us here.

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How Important Is Quality Control Service for Your Business?

Industry Insights / admin / manufacturing, quality assurance, Quality Control, sourcing

A quality control service enables cost-efficient, Asian sourcing with transparency and accountability. If you source from any location that you do not directly oversee, quality control checks and a quality assurance capability are an absolute must.

When your supply chain operates a few thousand miles away, popping into the factory for necessary inspections is rarely a realistic option. But, distance should not lead to a drop in product quality.

Overseas Should Not Mean Oversights

Sourcing from overseas countries introduces a range of new risk factors to an already complex manufacturing process and supply chain. Proper sourcing solutions and active management alleviate these factors to maximize cost-effective quality.

Quality control services act as a filter between each step of your manufacturing process. One common misconception businesses encounter when they seek quality assurance is the idea that such services eliminate all risk.

A quality control service cannot guarantee that nothing will go wrong. Rather, their job is to identify issues early to help determine the best quality solutions. Quality control specialists conduct most final inspections under internationally recognized sampling methodology (AQL). Rather than checking every single piece, inspectors sample shipments for errors.

Strategic sourcing identifies issues early — A professional quality control service can mitigate how costly a mistake becomes.

Why Do You Need Quality Control Services?

At this point, you may find one question running through your mind: If they cannot prevent all possible mistakes, then why bother hiring a quality control service?

Issues will occur and problems will manifest themselves. Quality control services provide the capability to manage these upstream. Once a Quality control specialists identifies an issue, quick implementation of correction action plans ensures that quality products still ship in good time.

When is the worst time to discover a quality problem? Whilst standing in your warehouse staring at the open container. Quality control plays an integral role in preventing such a scenario.

Identifying problems early in the manufacturing process empowers businesses to modify or, if necessary, reject the product upstream (on factory site) to eliminate the additional costs of shipping unsalable goods.

Quality Control Service Bottle Source — Early detection can prevent issues from rippling through production.

When Should You Perform Quality Control Checks?

Depending on your product and history with your supplier, you may choose any combination of the following inspections. Products which carry higher risk factors at certain stages in the process may require more attention.

Hiring a professional quality control service also ensures that audit-level tracking documents record each step of the process.

One of the most important standards is the Acceptable Quality Limit (AQL). The AQL is defined in the ISO 2859-1 as “The quality level that is the worst tolerable.” It is based on a sampling methodology that should identify any quality issues. Over the course of several inspections, AQL testing demonstrates your products’ compliance to industry standards.

1. Raw Materials at the Factory

Low quality materials rarely make high quality products. Raw material receipts secure a baseline for the foundation of your product, particularly when your product must meet government regulations and customer expectations.

If poor raw materials are used, then they will likely impact the appearance, function or chemical composition. This means that for certain product types, if the raw material is not correct, you will not get the product required at the end of the production line. This can be a particular type of yarn in a garment or the type of wood to build furniture. In terms of time and financial risk, raw material inspections can save entire productions from getting reduced to scrap.

It is also a useful check to confirm that lead times any supplier has already committed to are on time.

2. Early Stages of Production

Once goods reach the production line, early product checking inspections can begin. If manufacturers drill holes too wide or cut corners at the wrong angle, early identification is key. This should be based on a risk assessment on the supplier (history, relationship etc) and the type of product manufactured. To an extent, this also focuses on the manufacturing process as well to understand where the potential risks lie.

Like a dress rehearsal, early stage inspections distinguish immediate concerns. Corrections should be adjusted as quickly as possible to maximize the usability of remaining materials.

3. Middle Line Inspections (During Production – “DUPRO”)

Once production is significantly underway, in-line inspections assure that everything still aligns to specifications. Sort inspections may be necessary at this point in the process if inspections identify issues.

4. Pre-Shipment Inspection (PSI)

After production, but before packaging for shipment, inspections of products ensure that you receive products which meet your initial specifications. Typically conducted using AQL, PSI relies on the sampling based on the production volume against the agreed inspection standard. Before incurring the cost of shipping, it is vital to validate your product. PSI represents the last opportunity to accept or reject factory manufacturing before shipping the goods.

How Important Is Quality Control Service — Reduce costs by preventing shipments of unsalable goods.

5. Loading Containers (Loading Inspections – “LI”)

Oversight in packaging specifications can lead to factory-primed goods arriving damaged beyond recovery. Ensuring proper loading of pallets and boxes increases the likelihood of the goods surviving any shipment on the sea. Container seal numbers are commonly provided at this stage to maintain the integrity of the shipment from port to warehouse.

6. Sort Inspections (Any Stage)

If an issue arises at any point in production, sort inspections may come into play. They establish an exact count of which products are affected and which are not.

Sort inspections isolate impacted units and remove them from the process. Only products without the defect move forward.

Which Inspections Does my Business Need?

The best combination of inspections depends on both the supplier and the products’ risk factors. Fragile products, or those which must meet high standards for sale, require more attention throughout their production. Some companies may not offer the inspections best suited to your business’s needs.

Quality control services not only conduct these inspections, but are responsible for compiling data and relaying it to their clients. It is important to discuss how often such information is shared and during which points in production.

Our experienced team at ET2C International is here to service your quality control needs. Transparency and accountability drive us to continually improve our inspection communications capabilities.

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Why Do You Need a Sourcing Agent in Asia?

Industry Insights / admin / Asia, Quality Control, sourcing

A sourcing agent in Asia leverages your company for greater potential growth and success.

Access to the internet positions the world at your fingertips. Timbuktu endures as a place of legend, but its distant landmarks materialize on your screen in the blink of an eye. Similarly, at the press of a button you can connect with manufacturers on the other side of the world.

It is possible to identify ‘partners’ from the comfort of your own home or office, prompting some companies to buy from suppliers at arm’s length. But they miss out on one of the most valuable services in their supply chain. Qualified sourcing agents in Asia introduce expertise capable of saving time and money along every step of the process. From identifying cost-effective sourcing materials to conducting audit-level quality control checks, professional sourcing agents devote care to managing their clients’ sourcing needs.

Why Source from Asia?

Improved manufacturing capabilities and low labor costs cement Asian sourcing opportunities as some of the most cost-effective in the world. Although China has been the dominant force for the past two decades, other regions such as Vietnam and India are developing a breadth of manufacturing.

Sourcing-Agent-in-Asia-Intersection — Sourcing agents help find the best country and supply chain tailored for your business.

At the government level, both China and India have committed to investing in smart manufacturing. Their efforts are developing a manufacturing base for the future that is driving efficiencies through technology.

China

With the implementation of the Belt and Road Initiative and “Made in China 2025”, China doubled down on commitments to increase transnational supply chains and advancing sustainable manufacturing techniques. One of the pillars of modern outsourcing, China has developed complex supply chains across a vast range of product categories.

Vietnam

Vietnam earns recognition as one of South-East Asia’s fastest growing manufacturing nations. With a lower cost base, it has a comparative advantage in certain categories. A wealth of free-trade agreements reinforce Vietnam as manufacturing hub of the future.

India

With a newly elected pro-business government, India is entering a bright era of skilled manufacturing and production. Best known for expertise in textiles and electronics, the nation is expanding their horizons with Prime Minister Narendra Modi’s “Make in India” campaign. Following the recent election, India is now committed to further investment in technology for the manufacturing sector.

How a Sourcing Agent in Asia Can Help You:

Sourcing agents in Asia can help companies of all sizes source in the region. Scalability and breadth of resource is something that is particularly beneficial. Whether you have just started searching or are looking to enhance your vendor penetration and supplier management capability, sourcing agents present opportunities that a direct sourcing model may struggle to find.

If You Have Never Explored Opportunities in Asia Before

You may feel the risks outweigh the benefits to give it a go without any support. There are certainly suppliers (on platforms like Alibaba) that warrant skepticism and may present pitfalls when it comes to product quality. Sourcing agents, especially those with more years of experience, are some of the finest domestic resources for building your new supply chain.

For companies looking to outsource manufacturing for the first time, entering the market with a sourcing agent in Asia that you trust is equivalent to sitting before a judge with an experienced lawyer as your counsel. They know how the system works and will ensure that your interests are protected whether quality or price.

If You Already Source from Asian Suppliers

A direct sourcing model requires ‘on the ground’ management. In whatever guise, having the ability to develop deep and meaningful relationships will put you in good stead in the future. Just as if your company was manufacturing in your local market, there would be an expectation that you would need to visit and have visibility of any production.

Of course, companies are now able to go direct to suppliers across Asia. It depends on resource and capability in the company doing the sourcing. For example, a sourcing company can help bridge the communication and time difference that companies outside of Asia will face.

There is also an opportunity to leverage breadth of resource and expertise which already exists in-house. When you engage directly with suppliers and manufacturers, you need to manage multiple relationships. With a sourcing agent at the helm, what used to be numerous check-ins, six with suppliers and two with third party quality control, reduces into a single meeting encompassing your entire supply chain.

Sourcing-Agent-in-Asia-Scheduling — A sourcing agent in Asia reduces the time and energy required to manage your supply chain.

If You Encounter Communication Issues or Inconsistent Quality

Vendor accountability can be one of the most frustrating aspects of managing your supply chain. If you don’t have visibility of your production until items are fully “produced,” there is a wide margin for error. Miscommunication and insufficient quality control can ruin entire shipments and waste hard earned cash.

Qualified sourcing agents and companies arrange quality assurance checks along every step of the process to ensure early identification of any issues and present viable solutions. From sourcing from certified suppliers to load monitoring inspections, some agents cover your entire supply chain with transparency. Others may only cover sourcing and require clients to hire their own third party services. Be sure to verify exactly which services your sourcing agent is willing to perform.

If You Plan to Expand or Launch New Products

While your current capability might be sufficient for the time being, you might want to grow in the future. Suppliers may not be capable of taking the next step forward due to their own limitations.

Sourcing agents specialized for your industry are well-equipped to help you expand your business. With a wide range of suppliers, sourcing agents can not only manage potential problems upstream at the factory, but also help you consider the best way forward.

Sourcing agents can also play an integral role in enabling companies to scale their businesses. The allocation of resource combined with local expertise can ensure that a broad supplier base is easily managed.

If your company plans to expand production in their five-year plan, now is the time to connect with a sourcing agent.

Supply-chain-solutions — Expanding your production? It may be time to re-evaluate your supply chain for scalability.

How to Choose the Best Sourcing Agent for Your Company

Identifying an agent or company which understands your sourcing strategy and drivers can be a challenge. To learn more about what factors to consider when choosing the best agent for your company’s individual needs, check out our last article here.

We at ET2C International value understand your needs whatever size of the company. We would love to discuss how our team can provide sourcing solutions for your individualized needs. No matter your current sourcing situation, our team can assess your current sourcing strategy and identify potential opportunities. Contact us to learn more about what we can do for you.

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5 Key Benchmarks for Your China Sourcing Agent

Industry Insights / admin / China, Quality Control, sourcing

Evaluating the Effectiveness of Sourcing Agents:

Properly vetting a sourcing agent in China can make or break your supply chain. Identifying a sourcing company with the right connections and a track record for success prevents costly delays and communication pitfalls. While it does cost money to hire a guide, a local perspective minimizes the likelihood of chasing dead ends.

Navigating Supply Chains — Sourcing agents in China operate as navigators for unfamiliar markets.

1. Integrity & Accountability

When it comes to finding the right partner for your company, there is no better option than an organization that has a track record of integrity and accountability. Trust and an ability to develop a long-lasting relationship with a sourcing agent will be integral to the effectiveness of the partnership. This gains particularly importance given the region that you will be operating in.

Whether it is supplier selection or management, product development, quality assurance or price negotiation, you want to be sure that your sourcing is agent is doing the work on the ground that will deliver an upside to your gross margins.

2. Quality Control

One primary concern when sourcing from China is the idea that quality will fall below acceptable parameters. There are factories which will cut corners and deliver products that do not meet expectations. Sourcing from a country halfway around the world creates a wide potential margin of error. Without measured quality-control checks throughout every step of the process, unsatisfactory materials become sub-par products.

While bad business deals do exist, strategic sourcing companies help you to navigate through unreliable sources to find high-quality suppliers and manufacturers. With a sourcing agent in China guiding you to certified suppliers, well-tested with a quality track-record, you can side-step the costly mistake of buying materials you cannot use.

By providing third-party quality control checks at every step of the process, your China sourcing agent should be able to provide an audit-level review of production meeting or exceeding standards. Early correction reduces transportation fees and emissions by preventing unsalable products from ever being shipped.

It is important to make sure that your sourcing company understands the certifications and standards required in the manufacturing of your product to ensure that they are capable of translating your needs to their suppliers and other contacts.

3. Risk Mitigation

No matter how many safeguards you put in place, there is always a risk that things will go wrong. But how wrong depends on the measures you take to prevent small hiccups from swelling into pricey delays. Having a dedicated team of sourcing agents on the ground can be one of the most effective tools for curbing potential error.

China Sourcing Agent warehouse logistics — From correcting a misfiled document to finding a missing shipment, sourcing agents are problem-solvers.

With sourcing agents working in the same time zone as manufacturing, communication with suppliers and manufacturers flows without interruption. At the first sign of unexpected issues, sourcing agents work swiftly to correct anything that needs to be done, from filing amended documentation to mitigating disruptions in the supply chain.

Instead of waking up to an urgent request sent while you were sleeping, you can rest soundly knowing that a qualified team is working to absorb the effects of missteps as they occur.

Business relies on taking not only risks, but well-calculated risks.When evaluating a company’s ability to mitigate risk, it is important to consider what services they offer. Companies with procurement and supply chain management services are more likely to be capable of responding with strategic solutions to issues beyond sourcing alone.

4. Network Strength

The best sourcing companies dedicate years to building up solid relationships with local suppliers and manufacturers, consistently vetting their powerful network of trustworthy partners to ensure that they are certified and capable of fulfilling quality orders.

China Sourcing Agent strategy — With the right supply contacts, your company can maximize its sourcing efficiency.

Relationships take time to develop, but tapping into the carefully cultivated pool of suppliers shortens the distance between both parties. Just as an introduction from a trusted friend can elevate a conversation with someone new beyond small talk, sourcing companies take the tedious scrutiny out of meeting new suppliers.

5. Transparency

Gone are the days in which Sourcing Agents did not disclose the source of the products. Visibility is a must across the supply chain and sourcing agents should be walking you through as much detail as your business needs. For example, Sourcing companies should understand the value of knowing where materials originate, how workers are treated, and frequent updates relating to scheduling. Not only does such information make your supply chain transparent and allow constant supervision, but compiled documentation is easy to track for auditing purposes.

Before employing a sourcing agent in China, it is always a good idea to research which certifications and standards they uphold. Increasingly, from an ethical standpoint, having a granular understanding of where your products are made is essential. You should look for sourcing agents that do not just understand this but also preach this. In such a vast market, there will always be contacts that, in addition to assuring quality, operate in line with your company’s values. You should also get some current client references from similar markets to your own.

Your China Sourcing Agent Should:

Have a track record of integrity and accountability
Assure Certifiable Quality
Deal with Unexpected Issues
Work with a breadth of Suppliers
Exercise Transparency across Production
Understand your sourcing strategy and drivers
Identify any issues early and present solutions

Where to Find Your Sourcing Agent

While it is possible to find independent agents through online searches or trade shows, working with a sourcing company should present a competitive advantage. They will provide the ability to scale your production in a low risk environment whilst breaking down the barriers of managing suppliers directly (culture, language, time zone, market knowledge, product knowledge, etc).

As opposed to a multiple contacts across a range of suppliers, sourcing companies should provide a single point of reference that utilizes their own internal resources to provide you with cover for a competitive price. For more information about how to select the best sourcing company for your business, check out our last article here.

Here at ET2C, we understand the importance of these elements because we practice them every day.

We can be your next China sourcing agent, working tirelessly to manage and enhance supply chains, mitigate risks, and drive efficiencies. With more than 2000 supplier contacts across China, Vietnam and India, ET2C is always looking to identify the best partner for your sourcing needs. Whether you would like to know about anything from reviewing sourcing certifications to introducing full-scale Supply Chain Management, contact us for all your strategic sourcing needs.

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How to choose the Best Sourcing Company for Your Business

Industry Insights / admin / manufacturing, Quality Control, sourcing, Supply Chain

How Do You Find Your Best Sourcing Company?

Now that you’ve decided to explore your supply chain options abroad, hiring the best sourcing company for your business can mitigate costly issues in the supply chain. In a time when customers are demanding ethical, eco-friendly, and long-lasting goods, it is more important than ever to engage in transparent and strategic sourcing.

Unfortunately, even the most environmentally-minded consumer limits how much they are willing to spend on a product. Sourcing in Asia represents an opportunity to fabricate products at reduced prices without sacrificing quality, but hosts a range of latent miscommunications and risks. Thankfully, hiring a sourcing company can save time and diminish liabilities.

Why Should You Hire a Sourcing Company?

Once a company decides to invest capital in any venture, it is worth their while to hire consultants capable of sidestepping costly issues. Just as hiring a lawyer to review a trademark prevents lawsuits, strategic sourcing companies are worth every mistake their clients don’t make. From properly filing documents to exercising local business etiquette, minimizing missteps maximizes profit. Discovering your best sourcing company can also free up your valuable time to focus on other aspects of your business.

How to choose the Best Sourcing Company for your Business logistics — Supply chains are immensely complex and yet, only one aspect of running your company.

Sourcing Country or Countries

This may seem pretty simple, but it’s important to consider the origin of your products based on a complex web of factors. While it may have historically been cheapest to produce your product in China drivers such as local import duties might make other Asian markets more cost competitive overall. Determining the best possible value for your product at your price point requires an understanding of not only local markets, but regional and international markets.

Each sourcing company in Asia retains access to different suppliers and factories. Some are solely market specific and only operate within China or India etc. If you have done adequate due diligence and know exactly which markets best serve your company based on your product mix, a direct to supplier approach may be appropriate. However, if you harbour uncertainties about which country will supply the best value, international sourcing companies provide the opportunity to evaluate several markets at once. This is increasingly important given the current international trading landscape.

Sourcing companies with ties to several countries can also restructure your supply chain should better opportunities in other countries arise. For instance, tariffs imposed on one nation may make another more desirable for lower importation fees, or a country’s government subsidies for products in your industry may reduce costs. International sourcing companies can help reevaluate the supply chain over time to ensure that your business is not over reliant on any one country.

How to choose the Best Sourcing Company for your Business plan — Identifying wasteful points in your supply chain can save both time and money.

What is Strategic Sourcing?

Sourcing is “a strategy in which a business seeks to find the most suitable location for manufacturing a product”. Rapid growth of manufacturing capabilities across Asia and low labour rates drive the region to be one of the most cost-effective for outsourced production.

Sourcing

Before you can determine which is the best sourcing company suited to your needs, you must decide what sort of service you need. Depending on your familiarity with the market, level of desired support, volume of spend, in-house capability and ability to appropriate time and funds, you may want to explore the different options available.

The best sourcing companies spend years developing connections in their regions and when you employ their services, they grant you access to their vast network of certified suppliers and manufacturing contacts; visibility across production should be an integral part of any supply chain given quality requirements. Touching base with a sourcing company before production begins ensures that you acquire an understanding of the realistic capabilities of your manufacturing partners, from reasonable pricing and quality to practical timeframes.

Strategic Sourcing

Procurement is “the acquisition of manufactured goods from an outside external source.”If sourcing alone sounds useful but a little daunting, procurement services take a holistic approach to the process of fabricating of your product. Supply Chain Managers work with you to develop the strategy of how your product will be sourced, assembled, and even shipped. If the thought of messing up the logistics is holding you back, procurement services work with you every step of the way to ensure that the process runs as smoothly as possible.

For companies looking to re-evaluate the efficiency of their existing supply chain or maximize the benefits of a new project, supply chain management relies on personalized sourcing solutions to minimize supply chain disruption, quality defects, and other issues that can quickly escalate.

If you’re not certain which option makes the most sense for your company or you want to understand your options when sourcing from Asia, then consulting with expert sourcing agents can help determine the best path for you to pursue.

ET2C Sourcing Solutions

While a wide range of companies and individual sourcing agents can manage your supply chain, ET2C offers a few unique additional services. We believe in a transparent “boots-on-the-ground” approach for businesses to access their supply chains.

Dedicated Team (“Buying Office”)

Sometimes international companies want a more hands-on approach and our buying office service provides upstream access to their supply chain. Through a dedicated team with the relevant experience, ET2C helps manage the ‘on the ground’ sourcing function in the corresponding Asian market. It is a cost effective way for companies to leverage the benefits of Asian sourcing whilst removing the risks.

Business strategy — “Buying offices” are one of the most hands-on approaches to outsourcing.

Sourcing Teams

ET2C merchandise and quality teams translate expertise across a range of categories that cover China, India and Vietnam. With the option of organized, single-point vendor management entry, companies can reduce time and effort trying to coordinate a series of vendors. A large pool of suppliers and manufacturers drive highly competitive pricing and increased efficiencies. Quality assurance is of utmost importance and ET2C’s partners assure ISO, ETI, and SA800 brand protection compliance.

Whether you’re seeking advice or full-scale Supply Chain Management, contact us at ET2C for all your strategic sourcing needs. We have a dedicated team primed to find sourcing solutions for your company through our network of over 2000 supplier contacts across China, Vietnam and India. Our mission is to deliver long-term sustainable value to our clients’ supply chains that creates cost and quality benefits to their purchase channels from key global sourcing markets, while ensuring the sourcing process is simple, easy, and convenient.

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Innovative Packaging Trends: Reuse or Recycle?

Industry Insights / admin / Innovation, Packaging, Recycling, Sustainability

Companies from Loop to Amazon implement sustainable packaging and sourcing solutions to answer eco-friendly demands from consumers. Two diverging trends currently dictate innovative package design, leaning toward heavy-duty and reusable, or more lightweight and compostable. They both serve different and necessary roles in reducing waste through life-cycle thinking.

Life-cycle analysis of a product’s environmental impact from “cradle to grave” and “cradle to cradle” plays an essential role in a circular economy (Geissdoerfer, 2017). Life-cycle thinking relies on the understanding that producers control the materials, design, and post-use expectations which inspire innovative packaging. Sustainable initiatives require concentrated efforts across a variety of platforms, from advancing compostable and recyclable materials to restructuring supply chains to circulating informational campaigns.

Though it seems counter-intuitive, in a circular economy, lightweight and reduced doesn’t mean less protection. The best packaging ensures that products arrive in the best possible condition to facilitate a sale. Given the choice between a dented package and an intact package, consumers seek undamaged goods.

Shifting to sustainable packaging methods, like all new packaging ventures, requires testing to ensure materials are capable of withstanding the rigors of transportation. After all, damaged goods deemed unsalable are more wasteful than less-sustainable packaging options. In most cases, more energy goes into producing the product than the packaging and loss of product is one of the worst energy impacts designs can generate. If there is no life-cycle of the product, there is no reason to have spent the energy packaging it.

Innovative packaging designs can reduce waste and increase product life-cycle potential.

Reduce Means Reuse

One of the best ways to cut down on single-use packaging is to avoid it entirely. A growing number of companies dedicated to a zero-waste model are popping up around the globe. Zero-waste packaging minimizes single-use plastics in favor of reusable and recyclable materials like metal and glass to mold their containers.

Circular Economy Delivery

Loop’s delivery service rollout in New York and Paris this year is highly anticipated. Reintroducing the milkman model of delivery, Loop supplies subscribers with high-quality, reusable containers of well-known products like Crest and Häagen Dazs in sturdy cloth packaging. Once a product is used up, consumers simply rinse and return their containers in the bag they came in. After pickup, containers are sanitized and sent back full of fresh products.

Innovative packaging challenges in the closed-loop model require durable containers which can withstand use after use. Investing resources to create such products necessitates that their life-cycle outlast single-use recyclables or other renewably-sourced products. Rewarding high consumer accountability when it comes to recycling products at the end of their life-cycle also fuels the sustainable circular economy. While this mindset has a higher associated cost, thinking green is capable of being a sustainable business model when whole-heartedly adopted.

Zero-Waste Supermarkets

As customers grow increasingly aware of the environmental impact of their purchasing habits, demand has produced a wave of zero-waste supermarkets. Founded in 2013, one such chain has garnered much success across France. day by day shoppers bring reusable containers to the store and purchase loosely-stored bulk products like spices, condiments, and rice. For consumers who know exactly how much of an item they require, day by day’s take-what-you-need, use-what-you-take model has the potential to reduce household food waste and keep single-use packaging out of landfills.

Innovative zero-waste stores are trending around the world.

Though shoppers may find themselves throwing out less food, stores must keep careful track to ensure that their bulk supplies leave the shelves before they go bad. Zero-waste blogger “Litterless” maintains a list of United States stores where customers can find products without individual packaging and demonstrates the role of the internet in the growing green mentality surrounding consumer purchases.

Bring-Your-Own-Container

Busy commutes can mean grabbing a quick bite from the rows of prepackaged meals grocery stores and gas stations prepare each day. While consumers still purchase these single-use plastic-wrapped meals, reusable containers are trending in 2019 with eye-catching designs ranked on Spruce Eats, an award-winning food and lifestyle website. As Millennials exercise their spending power, it becomes increasingly apparent that environmentally-conscious companies are capturing the attention of consumers.
Metro Grocery is the first store of its kind in Canada, permitting customers to bring in their own clean reusable containers to be filled with once-pre-packaged fare. While plastic packaging is still available, the store hopes that customers will consider bringing in their containers to reduce single-use plastic waste. Creating a network of stores where bring-your-own-dishes is an option will provide greater motivation to carry reusable containers and cutlery, both fantastic habits in reducing plastic waste.

Reduce Means Recycle

The minimalist approach to sustainable packaging solutions asks companies to reduce as much material as possible without compromising the product. Whether that means cutting down on package sizes or ensuring the recyclability of a product, companies are reexamining every aspect of their supply chains. Creative sourcing solutions are an opportunity for eye-catching design which distinguishes products on the shelves.

Material Matters

While the idea of wrapping food in banana leaves is hardly a new concept, using banana leaves in lieu of single-use plastic wrap caused Rimping Supermarket in Thailand to go viral this March. Incorporating banana leaves, a simple, easily-accessible, and biodegradable product, into a niche once filled by plastic wrap generates a straightforward sustainable package design. While banana-leaf wrapping isn’t easily accessible in other regions of the world, it is a testament to the power of reevaluating the sourcing solutions at a company’s disposal.

Sustainable banana-leaf packaging reduces plastic waste in supermarkets.

Companies like Green Cell Foam are taking a more high-tech approach and developing a considerably more eco-friendly alternative to foam used in shipping. Their innovative foam is cornstarch-based, compostable, and water soluble. With die cut designs, Green Cell Foam calculates exact measurements to minimize resource consumption while ensuring product safety. And once the package arrives, recipients are encouraged to simply add water and watch their packaging dissolve down the drain.

Smarter Shapes

Consumers aren’t just concerned about what sustainably-sourced materials packaging uses, but also form and functionality. Sometimes all three come together to maximize eco-friendly and cost-cutting potentials. Tetra Pak’s Classic 65ml Aseptic Cube, an innovative packaging solution, optimizes storage while minimizing void space. Six tetrahedron-shaped pieces fit snuggly together to form easily stackable cubes.
Creative packaging can not only entice shoppers to unique products, but clever designs like the Classic Aseptic Cube can also increase the number of products that fit on palettes, reducing shipping costs and improving the ecological impact by shipping more products together.

Investing in Consumer Education

People want to do the right thing. They want to recycle what’s supposed to be recycled. But sometimes it isn’t that easy to know what goes where. Recycling carries a mess of rules and varies between cities. How2Recycle labeling is one way brands are trying to standardize the way people recycle in the United States. By providing clear labels which indicate what part of a product should be recycled and how, How2Recycle helps prevents incorrectly disposed trash from spoiling batches of potential recycling. Companies which adopt How2Recycle labels better ensure that their products are properly disposed at the end of their life.

Innovative and simple labeling helps make sure the right products find the right disposal centers.

Determining ideal sourcing solutions depends on the company, product, and the habits of their consumers, but steps can always be taken to diminish a company’s ecological impact. At ET2C International, we are dedicated to helping companies through strategic sourcing. Contact our team of dedicated sourcing agents for more information about how your company can rethink the sustainability of its supply chain.

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The Needs of Omnichannel Retail & Impact on Manufacturing

Industry Insights / admin / Ecommerce, manufacturing, Millennials, Retail

Consumer 2.0

The Millennial and Gen Z consumers continue to shift the expectation on retailers and brands. This evolution is enabled by technology and driven by an almost capricious approach to purchasing products. Buying decisions are no longer solely made based on the product, if at all, but rather on experience (78% of Millenials prefer to spend on experience over product) and online reviews. The rise of influencers and Key Opinion Leaders (“KOLs”) further underlines the importance of peer reviews. As an example, and perhaps extreme, Becky Li, who has a mere 7.5m followers sold 100 minis (as in the car) in 5 minutes.

The pace of change is fast

These ‘consumers’ are looking at their devices more than 30 times per hour. Retailers and brands are therefore looking at a broad range of touch points to capture their attention, which notably is no more than 8 seconds. What is important to these consumers has evolved to the extent the traditional retail model is now largely defunct. This has given rise to a focus on areas such as customer experience, peer influence, seamless expectations and personalisation.
Retail has changed. Sellers have had to adapt how they connect and engage with their customers through a multitude of online and offline mediums. As a result, manufacturers are also having to evolve to best service these changing needs.

Digitalization

The characteristics of omnichannel digitization focus on putting the customer first through digital mediums. Consumer behavior has driven the necessity for streamlined and unified systems on both mobile and traditional platforms. The aim of digitization is to create a flowing process, where the time in a traditional brick-and-mortar store fits seamlessly together with the user’s experience online. According to one survey, up to 49% of US spending occurs through online platforms and 55% of purchases end on an e-commerce platform (Mceachran, 2019).

Omnichannel Retail Shopping — Omnichannel retail will pass much of the retail process to customers, allowing easier access to comparision shopping, letting customers get the best deal possible in seconds.

With no signs of this trend slowing down, businesses must adapt to this new environment by facilitating the integration of the physical and digital world. Imagine a customer using their phone in a brick-and-mortar store, scanning barcodes to compare the many products in stock within the store. Not only will this process decrease the total time commitment a shopper needs to make deciding on a product, it also allows for the business to save money on staff as the customer serves themselves.
Artificial intelligence is being adopted more frequently within the digital arena to further enhance the information and foresight companies wield on their customers.

Data

The use of customer data is now an essential part of engaging with customers on an individual level. Likewise, information from across the supply chain is being used to help the customer make decisions (for example some retailers are giving their customer a choice of which factory to purchase from). Omnichannel marketing allows the collection of information on customers across multiple interactions that businesses can utilize to make the shopping experience both more relevant and efficient. A good example of this is loyalty programs. These allow retailers to not only collect information on every purchase you make but also develop foresight around what you are going to buy based on the time of year and stage in your life. Given shortening attention spans, putting relevant products in front of the consumer is increasingly the only way to create that all important sales opportunity.

Customization

90% of consumers now value individualized products, of which 25% are willing to pay a premium for their unique products. Brands are looking for ways to personalize the experience for their customers and being able to produce and deliver individual products forms a part of this. Technology has been at the forefront of this capability with manufacturers investing in some level of automation and robotics to be able to deliver personalized products. Some of the large sports brands have harnessed additive printing technology (3D Printing) to even print shoes tailored to your actual foot size.
As this need grows, there are also opportunities for retailers to create efficiencies within their supply chain. Through modern technology and omnichannel customer experience, clothing can be manufactured to order. Instead of mass producing a product and holding it in inventory, products are created as and when the customer demands them. The process of customization should ultimately lower costs for businesses and reduce waste on the manufacturing floor.

Sustainability

Conscious consumerism also increasingly forms part of this modern buying decision. The younger generations now have access to information about the products, suppliers and even in some instances who is actually making each product. Radical supply chain transparency is on the rise with large brands committing to publish all their suppliers on line. Alternative materials that are more environmentally friendly because of biodegradability are being looked for as part of companies’ sourcing function. Recycled material (in the past has often had perhaps negative quality connotations) is now becoming mainstream to limit the impact of the product on waste.

This is direct consequence of the level of engagement that omnichannel retailing has enabled. From a manufacturing perspective, omnichannel retail has already proven itself by eliminating tons of wasted materials in traditionally wasteful industries like clothing manufacturing (Hodgkinson, 2018). This is in part via automation and customization processes but further waste can be reduced through demand planning. A tool which allows for businesses to more accurately track demand for products, either by seasons, trends, or other elements. This allows companies to optimize their purchases and supply chain to meet demand, reducing wasted resources and lowering their carbon footprint.

Conclusion

The world of retail is in a disruptive state. The Millennial and Gen Z consumers are more fickle than ever. Brands and retailers are having to engage with them through a variety of mediums to ensure that their offer is both relevant and timely. As retail has to evolve, the back end and the supply base has to likewise adapt. Asian manufacturing has taken up this challenge. China has committed to Smart Manufacturing by 2025 and India has similarly identified technological innovations in manufacturing as an important component of economic growth.
Omnichannel retail has become a necessity in order to capture the consumers’ attention. The aim is to spike the interest of the consumer within that 8 second time frame. It is not a lot of time; less than that of the often referenced forgetful Goldfish, which has an attention span of 9 seconds.

ET2C is a soucing company that understands your needs. For all enquiries on manufacturing in Asia, customization, radical supply chain transparency strategies and other topics, please contact us via our website, www.et2c.com.

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