Sustainable shoes are a mainstay within the fashion sector. Whether it be ethics, environment or energy consumption, many brands have sustainability as part of their brand proposition.

Sustainable shoes will continue to grow in importance within the fashion sector. Sustainability has been an increasingly hot topic across many industries in recent years, with customers the world over encouraging companies to do better. For fashion, it means a shift of focus away from fast fashion, which is often quick, relies on low-cost manufacturing and more often than not has a negative impact on the environment (wastage being one element), to sustainable fashion that takes into consideration both environmental and social aspects – and the footwear market is no exception.

 

The Footwear Distributors & Retailers of America (FDRA) defines sustainability in the footwear industry as “shoe design, development, manufacturing, distribution, and selling processes that minimize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers, and are economically sound”.

Market Evolution

There are clear market indicators for the growth of sustainable footwear and clothing, as can be seen across different stakeholders in the supply chain. To start, the consumer’s growing consciousness of the environment and society more broadly is driving retailers to change their product offer. Mostly encouraged by Generation Z and millennial consumers, who are generally more aware of the need for sustainable options in their product choices.

This all feeds back up the supply chain and often into factories across Asia. Over the past five years, the increase in supplier audits has been clearly noticeable. But it is not only around product quality, but more around ethics and employee welfare. Platforms such as Sedex, that share supplier information and audits, are providing buyers with up-to-date supplier audits across the quality spectrum to mitigate the ‘audit malaise’. In fact, from our experience, Asian factories are broadly well placed to meet the needs of Western brands (and their consumers) but it is still important to work with the right partner that is aligned to your requirements.

Even Governments are supporting sustainability initiatives that will underpin this transition within the fashion industry. As an example, the UK government has announced plans for an initiative to launch a waste prevention program, one of the aims of which is sustainable fashion, in its commitment to end the ‘throwaway’ culture. There is also a UN Alliance for sustainable fashion that is focused on coordinated action in the fashion sector, including footwear.
This will all drive change in what is an industry that has over the past decade been seen as wasteful and environmentally damaging. To take it to the extreme, there have been incidents reported of fashion houses burning stock in worth in excess of $30 million to protect it being sold on the cheap.

Sustainable Shoes

Aside from factory ethics, there are some popular sustainable material options that are already widespread within the footwear industry. These are only the start, and there will be more alternatives (it often comes down to an issue of price), but we wanted to highlight some of the most popular sustainable shoe trends in the market:

1. “Better” cotton (BCI – Better Cotton Initiative)

Cotton is a notoriously water-dependent (20,000 litres is required to produce just one kilogram of cotton, equivalent to a single t-shirt or a pair of jeans). BCI principles, therefore, cover a range of key focus areas; minimize harmful effects on crops, efficiently use water and protect water sources, emphasize soil health, protect natural habitats, ensure fiber quality and promote fair working conditions. The material has been adopted by numerous leading brands (H&M, Adidas, Nike, etc.) and its share in footwear manufacturing keeps growing exponentially. The cotton can be used for the shoe upper (sneakers, espadrilles, etc.), laces.

2. Recycled rubber

The material comes from post-consumer discarded vehicle tires and virgin rubber items abandoned in landfills: using recycled rubber creates a substantially smaller (by a factor of up to 20 times) carbon footprint as compared to using virgin plastic resins. Recycled rubber in footwear is mostly used in shoe soles, rubber shoes – rubber wellies, flip flops, etc.

3. Ocean plastic

In recent decades, plastic waste has accumulated enormously both on the ground and underwater; the ocean is filled with discarded plastic items threatening the normal life of various ocean ecosystems. To tackle this problem, with the help of fishermen, volunteers and other organizations, footwear brands committed to ocean fabric development work to collect marine debris from the ocean and beaches to produce the raw material fibers and fabrics. There is a multitude of brands that currently offer ocean plastic sneakers Adidas, Puma, Nike as well as small brands like Soludos among many others).

4. Jute

Jute is a natural fiber that comes from the plant of the same name. It can be twisted like yarn or braided like a rope and formed into variety of shapes (mainly for shoe soles). Below is an image of a pair of shoes where the shoe sole is made of jute.

5. Cork

Cork is made from the bark of the cork oak tree, the material is solid but very light which makes it especially good for orthopedic shoes. This material is natural, renewable, and good for the environment – it is one of the MOST sustainable materials available today. It is mostly used for shoe soles; another popular option for this material that is growing in popularity is cork leather – and it looks great too!

6. Honorable mentions

There are other materials that deserve a mention as part of the sustainable shoes movement but are not quite as widespread at present within the fashion industry. These include Sugarcane, Hemp, Coconut coir, Bamboo, and Wool.
Fortunately, there are companies now that are passionate about the environment preservation for future generations, supported by an ever-growing customer base deciding to go green. The footwear sustainability trend is only expected to grow and expand. One of the leading companies in this field is Allbirds, whose motto epitomizes this new brand direction within the field of sustainability:
“Mother Nature is our muse. Building on her handiwork, we’re finding new uses for materials that exist right in front of us.”

Summary

At ET2C we care deeply about the environment and are doing what we can to understand more about sustainability and what it means to us and our clients. Whether it is shoes, fashion, packaging and many other sectors, we are here to help you. For all your sustainability requirements, please contact us at contact@et2cint.com.

Indoor Garden Trends point to much greater demand for indoor plants and vegetation as people have re-imagined and re-engineered their inside space.

Indoor garden trends have reacted to the past 18 months of the Pandemic, as it has made us all rethink our inside space. With the Lockdowns and restrictions on venturing out that many of us have experienced, it is not surprising that there has been a greater appreciation of the internal environment. The emergence of the ‘Plantfluencer’ underlines the growing consumer appetite. Indoor garden, visual statement and interior plant styling are also increasingly common hashtags that can be found on social media.

Indoor Garden: Just a Trend?

Plants and vegetation are central to this trend, and it is not only the aesthetic. There are several studies that point towards the connection between plants and human well-being. Not only do plants improve air quality (they produce oxygen via photosynthesis) but simply make people happier and healthier. In the US, there is a trend of ‘grow your own food’ increasing in number on social media. Ready to grow and edible gardening kits are therefore popular options that can be used inside the home.

Of course, though, the aesthetic remains an important element of indoor garden trends. Hybrid design (a functional place like café or store with greenery and indoor plants added, for example) is becoming more common place. Studies do show that customers are more likely to spend time and drive longer distances to shops and restaurants that capitalize on this design aesthetic.

Indoor Garden – Product Accessories

So how does this translate at a product accessories level? What are these green-fingered consumers buying to support this need? We have pulled together 5 key areas that we are seeing in the market:

1. Natural materials – Basic shapes and neutral colors

To compliment the plants, consumers are buying neutral colours and in natural materials. Sustainability very much aligns with nature and plants, so expect opportunities to also present sustainable themes on material to the consumer. We are seeing a range of materials for indoor plants from cork pots and sea grass baskets to washable kraft paper and hand painted clay pots. Such items have a certain timeless feel and can outlast the often short-lived interior design trends.

2. Propagation Stations

With the growing trend of Hydroponic techniques, there have also been an increase in hydroponic planters being sold in the market. Hydroponics involves growing plants (usually crops) without soil, by using mineral nutrient solutions in an aqueous solvent. The planters can act as an interior statement given they can display bulbs and plants without hiding them in the pot. In fact, hydroponics can accelerate the growing process by 30-50% and is being adopted in some ‘sustainable kitchens’ as a result.

 

3. Self-watering pots and sticks

For those people who do not have as much time to care for their plants, there are self-watering pots and sticks now being sold. These are particularly relevant for the younger generation of gardeners who have less experience of gardening. Watering from the roots up will help maintain the correct water level without drowning the plants in the process.

4. Vertical Garden

Placing plants on different levels can help to recreate natural patterns and environments. This helps break up space through the use of vertical planes. Plant holders, hanging baskets and wall planters can help to achieve this effect. Bring the urban jungle into your home!

5. Modern Look/Minimalist Design

Less is more. The consumer is looking for simple designs (geometric, 3-dimensional with black/white/grey simple matt finish). Also, metal galvanized containers are very popular and the product has to be compact and lightweight.

Summary

We have already done a lot of work with our clients on these types of product accessories. At ET2C, we have people on the ground in multiple markets that are working with suppliers already producing these categories. Whether it be local skilled craftsman involved in the manufacturing process or innovative tools for some of the materials (like composition cork), we have you covered and can help your category grow! For all your product needs, please contact us at contact@et2cint.com .

 

Quality control is a valuable part of any supply chain process and will give you visibility of the product quality prior to shipment. There are some common pitfalls to avoid though and navigating these should save both time and money.

Quality Control (QC) is a process that considers all aspects of manufacturing a product. This includes aspects such as vendor capability, management, and, of course, product quality. Preventing mistakes and product defects at the source provides the customer with reassurance that their shipments are to the requisite quality level. The last thing that anyone wants is to be shipping a quality problem. This will inevitably be costly and difficult to correct once the ship leaves the Port!

QC is a useful tool to manage product quality on-site at a factory.  Certainly, it is important to make sure it is done correctly. With so many companies leveraging the benefits of Asian supply chains, having this visibility ensures that the risk of quality defects is mitigated. However, there are some common areas where companies make simple mistakes.

Quality Control: 5 mistakes you should really avoid

Below is a short summary of 5 common mistakes that can lead to quality issues:

1. Skipping the Samples Approval

Part of benefiting from upstream quality control is about the ‘set-up’. For example, clearifying what the quality level is and being able to reference this during any QC process is paramount. Before mass production, it is therefore imperative that you check the product you have required. When manufacturing products in Asia, you should always implement a “gold seal sample” process.

This means having identical development or pre-production samples made, and signed by all parties (factory, client and agent) and then retained by each respective party for reference as and when required.
This sample is the result of an approval process and is essentially the “go-ahead” signal for production. This is particularly important for any quality control inspector to be able to check the bulk pieces against. The ‘Gold Seal sample’ represents a perfectly made product that is in full alignment with your product quality standards.

2. Providing inaccurate Product Specifications

Similarly, it is important to set out as much detail with the product specification. Even with a gold seal sample in place, having documented and signed off (by all parties) the product specifications will provide evidence of dimensions, function, any printing and packaging some of which may not be covered by the Gold Seal sample.

When it comes to dealing with your manufacturers, specificity is key. This is particularly important where language and culture need to be bridged. For example, ‘This Way Up’ printed on a box for a fragile item is obvious for English language speakers. However, where English is not widely spoken, don’t be surprised if it isn’t printed the right way around. It is therefore important to reduce the margin of uncertainty and be clear and never assume anything.

Even for repeat orders, a specification sheet can clearly detail the materials used which will prevent cheaper substitutes. It is the base documentation for your product, so the more detail the better. The product specification should also include certain physical or chemical standards required which may require a testing house to do some lab tests.

By defining every detail in an official document, no excuses can be made when a shipment does not meet your standards.

Specifications should cover dimensions, product images, material used, components, function, colours and pantone references, packaging details, print artwork, certifications, standards, labelling and packaging way. Once all aspects of your product are documented and you have a gold seal sample, the subsequent quality control process can be overlaid much more effectively.

3. Not identifying the Quality Risk Areas

Understand your product and the potential quality issues. This may be based on past experience or just recent results with an incumbent supplier. Taking into account the quality risk, it is possible to target specific areas of the manufacturing process to proactively eliminate issues as they occur at earlier stages of the production. Of course, the financial and commercial risk of quality issues arising will need to be taken into account at the same time. For example, you may have just landed a large new client account and the quality needs perfect.

At each step, the workflows and the purpose of quality control are quite different. Here are the main QC services that you can consider:

1. Factory Evaluation
2. Sample Development Consulting
3. Product Standard Consulting
4. During Production Inspection (DUPRO)
5. Pre-shipment Inspection (AQL test) (PSI)
6. Pre-shipment Inspection (piece by piece checking)
7. Loading Inspection (LI)
8. Product Checking List Development.

Certainly, they are all important and, as your company needs might vary, some quality checks are even more important than others. A quality risk assessment will allow you to select which quality control audits are implemented.

For example, the factory evaluation will identify potential issues with the supplier that may in fact stop any further work or product development. Or implementing a pre-shipment inspection will help catch any issues before it is too late, saving you time and money.

4. The QC Inspector as the ‘Policeman’

Quality needs to be about collaboration. There needs to be a move away from the quality inspector as a ‘policeman’ who comes in and performs a tick the box exercise. Certainly, factories might tell you that they have internal QC methods and procedures that result in very low defect rates. Clearly, an independent pair of eyes would still be beneficial and add a level of objectivity. But, the more the factory can understand the quality requirements and the more the inspector can understand the manufacturing process, the better placed all parties are to identify quality issues and correct them.

This works back up the manufacturing process and should encourage continuous improvement methodologies to address a process/machine/employee that is causing a defect and make the necessary changes or adjustments.

This collaboration is very much distinct from the inspector being too close to the factory managers. To this extent, the objectivity has to be maintained so as not to create any conflicts of interest. Also, often third-party inspectors bring with them experience across different product categories, which provides additional added value when it comes to potential product-specific quality issues.

5. Ignoring the Data

Often the quality control piece is seen as transactional; the goods have passed and the focus shifts to the next production run. Rather companies need to take the time to step back and look at the data. For one supplier, looking across multiple shipments over a period of time may identify one particular quality defect that is an issue. It should then be possible to speak to the factory and through a root cause analysis identify what is driving this particular issue and implement a corrective action plan to address it.

For example, if loose threads are commonly featuring on your pre-shipment QC reports for some cotton upper shoes, then working with the factory to remove this quality issue will save time and cost. Additional checks could be implemented during the sewing stage to reiterate to the workers that the threads should be properly trimmed. Likewise, you could implement internal QC on the production line as the shoes move down the conveyor belt to cut any loose threads still showing.

Looking for third-party quality control services?

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.

With our own dedicated quality team across Asia, we look to deliver the visibility you need to sign off shipments. We are already investing in technology to enhance the service we provide our clients in this arena. For more information, please contact us at contact@et2cint.com.

Sourcing Market Insight: Inflationary pressures are feeding into global supply chains but what does this mean for sourcing strategies?

Sourcing Market Insight – Overview

The global trade equilibrium is no longer balanced. The Pandemic initially plunged the world economy into cardiac arrest. Then, as individual markets applied their own Covid recovery plans, trade certainly picked up. But it is the disjointed nature of this recovery that is now driving supply and demand imbalance and leading to challenges in sourcing markets.

Inflationary pressures

Sourcing markets were already in flux, with strategic shifts occurring as companies looked to ‘de-risk’ their global supply chains and enhance supply chain resilience by looking at complimentary sourcing markets for their factories. The recovery in certain markets combined with devastating second, third and fourth Covid waves in others, is pointing to demand outstripping supply across multiple sectors. The result is inflationary pressures feeding into the supply chain; whether it is freight rates, commodities, labour costs or operating costs, prices are likely going in one direction for the foreseeable future, and that’s up!

In this week’s article, we are looking at what this will likely mean for sourcing markets, and whether this will accelerate the current shift away from a ‘China plus one’ sourcing strategy.

Global Commodities

Given any product cost is heavily correlated to a commodity price, it is a good place to start. Whether it is cotton through to copper, raw materials are on the rise as any Asian factory will readily tell you. Broadly, this upward pressure is likely to be for a sustained period. This is due to a combination of factors, both structural and due to short term supply constraints. The recent Producer Price Index (‘PPI’) data pointed to factory gate prices increasing 6.8% in the year to April, according to China’s National Bureau of Statistics. This increase is largely driven by rising commodity prices, with the raw materials component of PPI up 15.2% over the same period.

Although some of this rise is linked to the recovery of the global economy, some is more centred on shifts in demand oversupply. To take copper as an example, the metal has some industry analysts and CEOs pointing to a 50% rise in copper prices to $15,000 per tonne by 2025. Copper is a particularly good conductor and is therefore used in electrical wiring. With economies like China committing to build millions of new homes, there is heightened demand. In addition, many Governments around the world are committing to greener energy alternatives, and this will require more copper for the infrastructure. This at a time when copper prices post 2008 have been low and not allowed mining companies to invest the capex required to bridge the long-term supply gap of 8.2M tonnes by 2030. Demand is outstripping supply. The same is true of other metals, such as aluminium and iron ore (China is reducing output due to the removal of polluting industries). Such commodities may therefore have some time to go before prices begin to subside.

Freight Rates

On sea routes out of Asia, there is a continued expectation that rates will hold at high prices, albeit not quite as high as pre-CNY when there was significant demand for space. This is due to container equipment shortages continuing to be a problem, which is leading to space shortages as companies look to ship transpacific or to Europe. The fallout from the Evergiven Container ship in the Suez Canal will continue into May and June and is only exacerbating the capacity constraints.

Sustained high freight rates will inevitably impact landed cost, and for larger items – such as furniture – this can become prohibitive after a sustained period. We are already seeing some retailers deciding to hold shipments until rates subside to make the landed cost workable. Looking at the current market, this may be some wait, and it may be a better option to look at alternate ways of shipping the goods (such as overland by train), which take longer but are more palatable from a cost perspective.

Global Sourcing Sentiment

It, therefore, appears that inflationary pressures are here to stay over the medium term at least and these collective higher costs are already filtering through to shelves in the West. So, what does this mean for the Sourcing market?

QIMA, the Quality compliance provider, has recently conducted a survey across 700+ businesses on what global sourcing looks like in 2021 (“After the Storm: A Look at Global Sourcing in 2021”, March 2021), which draws out some valuable insight. These can be summarised as follows:

Pre-pandemic sourcing trends are still in effect.

Global buyers are continuing their move to more regionalized sourcing strategies increasingly across China, India and Vietnam.

Vietnam & India dominate China’s regional competition.

Both markets have gain popularity with Vietnam featuring particularly higher when ranked against China for US respondents (for example 33% of US Furniture is now coming from Vietnam).

Buyers reluctant to significantly cut ties with China.

China still retains its positions as the most important manufacturing partner for many of the businesses surveyed.

EU Brands are stepping up Near Shoring again.

This is a trend particularly relevant for the EU with a focus on Turkey. US businesses seem more reluctant to move away from Far East Sourcing.

Two-thirds of buyers globally are eager to continue sourcing diversification to mitigate risks in 2021.

Broadening the supply base is seen as a way of mitigating market risk and disruption.

Although this survey was conducted in March, we anticipate little change to these trends. In fact, we have been pointing to companies looking to reduce reliance on any one market where possible for the past 8 months and see little reason to change our opinion.

We would, however, anticipate broad price increases to the consumer which will help offset the freight and other commodity price rises. Even though wage inflation has generally been stagnant over the past couple of years, it remains the case that one result of the Pandemic is that savings rates in the UK, US and EU have increased dramatically. For example, the population in the UK is sitting on an estimated £180 Billion of savings since the start of the Pandemic with £3 in every £10 saved. There is, therefore, scope currently for retailers and brands to push prices to the consumer, and as the savings are spent this is likely to the case. There appears little scope for suppliers to absorb further cost increases, as they have done over the past couple of years.

Summary

Although price increases are already feeding into global supply chains, we generally expect these to be passed onto the consumer across categories. We do not, therefore, see any wholesale change to longer-term sourcing strategies. We continue to see companies embedding greater resilience into their supply chains by market diversification.

At ET2C, we look to provide our clients with sourcing market insights across our manufacturing bases. With offices in China, Vietnam, India and Turkey, we are well placed to deliver sourcing solutions to meet your needs. For more information. please contact us at contact@et2cint.com.

Wearing a face mask is still one of the safest ways of preventing further spread of the coronavirus.

While many countries are experiencing uncertainty due to unclear Government guidelines and fear of a second/third wave of infections, the case numbers remain persistently high across many places across the world. In the United States, for example, there has been an average of 50,000 cases per day in the past week. At the time of writing, in New York and California, more than 1 million people have been infected.

The ‘R’ number (reproductive rate) still sits above 1 in 20 US States. Some states have had to re-impose limits on the number of people in confined spaces (such as offices) and gatherings as well as inter-state travel restrictions.

Meanwhile, the virus is evolving, impacting not only high-risk patients but also young people, previously more resistant to the contagion. Aside from social distancing measures and washing hands regularly, wearing a face mask is still one of the most effective ways to protect people from further contagion (primarily to stop those with the virus being able to spread it).

DIY face mask: is it safe enough?

It is important to remember that the protective masks are not all the same. Different types of masks offer different levels of protection. In particular, homemade masks that do not include any particular filter are not so effective. Already in 2013, research by Public Health England demonstrated that a surgical mask stops transmission 3 times more effectively than a homemade mask. In the last couple of months, we have been working with our partners across Asia to provide a range of Cloth Masks that could represent a more sustainable alternative when compared to disposable products, while assuring some additional protection from further contagion.

Cloth Masks from Vietnam: The Sustainable Alternative

Although at the beginning of the Pandemic protecting peoples’ health was a clear priority, this has now changed and there is a now growing focus on the impact of disposable PPE products on the environment. The Mediterranean already has ‘Covid Waste’ of disposable masks and gloves overlaying the usual cans, bags and disposable cups.

A cloth face mask is certainly a more sustainable option because it is washable, reusable and recyclable. A perfect choice for many consumers that care about the impact they have on the nature around them.
In Vietnam, several textile businesses have been dedicating their production lines to antibacterial masks and Nano Silver Masks to help combat the virus. If you want to choose a sustainable alternative to surgical masks, without sacrificing a level of protection, these cloth masks are a great option for you.

3-PLY Droplet Resistant Antibacterial Face Mask

Material: 100% cotton. You can wash it (up to 30 times) and dry for reuse.
The 3 integrated layers offer great protection against airborne particles and droplets containing viruses and bacteria. The nose adjustable clip helps keep the mask fit to the face. Anti – UV and water-resistant, the internal layers are dust-proof and antibacterial, blocking 99,98% of bacteria. There are two sizes available: S for kids and M for adults.

Nano Silver Mask

100% Cotton, this mask has 3 integrated layers.
The middle layer is treated with Silver Nanotechnology that works as a safety filter. In fact, it eliminates small particles of bacteria that pass through the outer layer of the mask.

Nano Silver technology is an antimicrobial colloid composed of silver nanoparticles stabilized by a polymer that exhibits excellent antimicrobial efficacy across a wide spectrum of microorganisms.
While Silver inhibits the oxygen exchange in bacteria and kills it, this technology has been can enhance that effect.

Looking for Fabric Face Masks? We can help!

We are working with our partners in Vietnam to provide a range of Cloth Masks to combat this deadly virus. In addition, we do have other medical products for the healthcare sector should they be needed to protect peoples’ health. For all enquiries, please contact us for more information at coronasupplies@et2cint.com .

Back in February, the world was watching the Far East (predominately China) as the onset of this Pandemic took hold of economies and lockdowns were implemented. Albeit over Chinese New Year, companies’ Asian supply chains were shut down and the return of workers remained an unknown.
Now to today, over the past 5 months, this virus has spread widely infecting some 13 million people globally. Moving from Asia to Europe, the Americas are now the epicentre. The number of infections has risen by 1 million in just 5 days. This has led Tedros Adhanom Ghebreyesus, Director General, WHO to comment, “too many countries are headed in the wrong direction”.

Whereas Asia is now operating relatively normally within their own borders (China has just announced GDP growth of 3.2% for the second quarter suggesting a V shape recovery), Western markets are hampered by lockdowns and a resultant shift in consumer behaviour. In addition, with borders shut, companies now find themselves locked out of their Asian supply chains. What does this now mean for Asia Sourcing strategies or specifically companies with no buying office in Asia?

The New Asia Sourcing

We have always said that being close to your suppliers is paramount, in whatever guise, to leverage the benefits of buying from Asia. Therefore, we thought it would be useful to run through some ideas of how to manage your suppliers in this current environment:

1. Sourcing new Factories

Should you need to identify new factories, then it is important to look to a local partner who you can collaborate with to visit the sites, engage with the owners and undertake the pre-screening work that you are not able to currently do. This will provide greater visibility and allow you to still go through an objective onboarding process.

2. Quality Control

More than ever, it will be important to use third parties to conduct inspections (inline and final) to ensure that the products being produced are to the quality standard you require. If you usually take TOP samples, make use of high resolution photos as a means to saving money in this tough business environment.

3. Use Technology

Technology, and its use at a corporate level, is something that this Pandemic has certainly accelerated. Certainly, using communication tools can help you get closer to your suppliers. Likewise, digitization of supply chains has been accelerated to better manage data and metrics particularly when access has been restricted.

4. Plan B

Should something go wrong with a particular production, it would be advisable to have an option (“Plan B”) of getting people to the factory to work through and resolve any issues. Again, a local QC house, or Sourcing company may be able to help. Trying to address a matter at arm’s length may end up causing more issues than solving the problem.

5. Limit Risk Exposure

Given that budgets are currently restricted, where possible, identify the suppliers and products that carry the most risk. This may be around the value of an order, the strategic importance for your client, the type of product or even the terms (upfront terms) but it will ensure that you are allocating what resource is available as best as you can.

Virtual Buying Trips

As part of our commitment to our clients, we are already working with our clients on Virtual Buying Trips. Depending on your time zone, we have been setting up and managing meetings with clients’ factories. Also,  we are taking clients to new factories via Zoom and Teams. Our staff are on-site and walk you through the production as well as play an integral part in the discussions with the factory management. No more long journeys or waiting for your train and all from the comfort of your own home!

Summary

We hope that this Pandemic will be brought under control in the shortest possible time. The new normal for Asia sourcing needs to rely on an upstream capability being put in place as well as use technology to take you to the factory gates. For all your sourcing needs, please contact us at unlockAsia@et2cint.com