By
Nicole Snow
Through the years, I’ve learned a lot about sourcing goods and materials from overseas. While it does take some finesse, I can tell it you that it’s well worth the effort.
I started my company because I love crafts and wanted to create an e-commerce site to sell imported, recycled hand-spun silk yarn from India. Today, Darn Good Yarn not only gives our customers access to fabulous products, but we also enable 600 women in Nepal and India to use their skills to support themselves and their families, as our suppliers.
Working with a global supply chain can give you the opportunity to offer unique products you may not be able to find domestically. It connects you with people on the other side of the world. And, in our case, it also enables us to make a positive impact on people’s lives while running a successful small business.
Here are my top tips for international sourcing:
1. Make sure the supplier can scale with your needs.
For me, it’s imperative to start by asking two critical questions upfront:
- What is your minimum order?
- What is your maximum output capacity?
Although I never recommend placing a big order the first time you work with new suppliers, you should know their highest estimated output. The last thing you want is to start offering a product, get huge orders, then discover that your supplier can’t deliver. I won’t take suppliers on unless they can meet my projected demand.
2. Negotiate terms upfront.
I always prefer to work with suppliers who are also small business owners, like me. While it’s important to build strong relationships with your suppliers, never forget that you’re making a business transaction. As the customer, you have to negotiate payment terms that are favorable to you. For example, I typically pay 50 percent upon placing the order and 50 percent on delivery.
I’ve found that if the supplier asks for the total payment up front, that’s a sign ...
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For more information
Building Resilience in Global Supply Chains
Why Put it Off Any Longer?
