Tag: Value Chain Management

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Our 5 Tips For Negotiating With Large Suppliers | BlinkGlobal

There are powerful suppliers in nearly every industry. These suppliers have a great influence and have stringent demands which make it difficult for small businesses to work with them. Most of the time, small businesses prefer to weigh their options and work with suppliers of their scale. However, there are circumstances when businesses have to work with large suppliers as being established and having greater access to funding, these suppliers can cater to your exact demand in minimal time.

Like mentioned earlier, working with large suppliers can be very difficult as they have stringent Minimum Order Quantity (MOQ) requirements and often charge more than their competition. If you want to work with large suppliers overseas, it is wise to consult the sourcing experts as they have the expertise in dealing with suppliers of all sizes.

In this article, our experts give some tips to negotiate with large suppliers and create win-win deals.

Bring Value to Your Suppliers:

Large suppliers generally have the tendency to exploit the situation and hike prices without any repercussions. You can manage the power imbalance by fostering a relationship that is not just based on financial transactions but also on trust, value, and goodwill. Make the suppliers feel the part of the business and provide them the opportunity to expand into new markets with your referrals and connections.

Sign Up for a Long-Term Contract:

The best way to get the supplier on your terms is by signing a long-term with a supplier. Large suppliers are looking for long-term contracts and partnerships and if you ensure a supplier that you are going to work with them in the future, they’ll compromise and might offer you discounted prices and cater to your other requirements.

Timely Payment is the Key

If you want to get a supplier on your terms, timely payment of the bills is necessary. Timely payment gives the supplier peace of mind, that you are a reliable customer and are you’re easy to work with. To establish credibility, send an advance amount for your orders. However, do not pay for everything upfront. If you are unable to settle the payments on time, inform your supplier about the situation timely, and get a new date from them.

Be Proactive Than Reactive:

Your relationship with a supplier is just like any other relationship, it can go wrong anytime soon. The problem with many small businesses is that they start to manage unpleasant situations when they occur. The damage control measures may often consume a large amount of your time and resources and most importantly, hurt the relationship. Rather than being reactive, it is wise to be proactive and take preemptive measures to eliminate all the bugs that can spoil the relationship in the future.

Partner up with a Sourcing Company

The best strategy is to partner with a sourcing company. An experienced sourcing company like Blink Global has vast experience in dealing with large. We have helped clients get the best products at competitive rates. Our agents also deal with industry-specific suppliers and are masters of creating win-win solutions.

 

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This is Why You Should Always Sample Products From Overseas Suppliers | BlinkGlobal

If you are someone with prior experience in sourcing from overseas, chances are that you already have familiarization with the sampling process. Samples are a standard element in the overseas sourcing process. It helps international buyers analyze the reliability of the supplier, spot their strengths and weaknesses, manage the quality risks, and determine the turnaround time. In a nutshell, sampling helps you analyze if a certain supplier is truly up to the task and can fulfill your quality expectations. At BlinkGlobal, we provide our clients with a thorough consultancy on the sampling process. We get a lot of queries from our clients pertaining to how the process works. In this article, our experts answer some of the pressing questions that are often asked by the clients.

Who Pays For The Samples?

As the quote goes, “there are no free lunches”, similarly, there are no free samples. Samples cost valuable time, effort, and materials. Suppliers are going to charge you and even if you provide the assurance that the cost of samples will be adjusted when you’ll pay for the real order, chances are that you will still have to bear the costs of shipping from the supplier’s country to the United States. Suppliers that charge you for samples are generally interested in doing business and are serious vendors.

How many samples will I need?

This is subjective to the product and industry you are dealing in. As a general rule, we help our clients get 2 -3 rounds of samples. The purpose of rounds of samples is to uncover the gaps in specifications and help you get the product you want. Suppliers invest their time and money so we recommend you to be very specific from the beginning and don’t change your demands in the middle of the process as it can lead to confusion and mistrust.

 Are 3-D rendered Samples Effective?

Asking for physical samples from 2 to 3 suppliers can cost you a lot of money. You can cut that expense by asking for digital samples. 3D rendered samples are becoming very popular in international sourcing as they can be tested in a digital environment using different tools and software. The downside of 3D samples is that you still can not be sure of the materials and the supplier’s ability to produce the product with minimal turnaround time.

Can I send the Samples to the Supplier?

Yes. At BlinkGlobal, we also suggest our clients to send samples to the suppliers with notes mentioning key requirements. This will give the supplier an idea of your perspective and make their and your life a lot easier. Either the supplier will totally replicate the sample or come up with an even better design. In any case, it will eliminate the communication barrier as the sample will tell itself what you expect. 

Get Consultancy from Blink Global

At BlinkGlobal, we have made international sourcing easy and hassle-free. From initial consultancy to sampling to shipping, we do it all so you can relax and focus on your core competencies. Leave the procurement to us and let our experts manage your supply chains. Give us a call today. 
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5 Devastating Mistakes to Avoid When Sourcing From Overseas | BlinkGlobal

Sourcing is the latest buzzword in the manufacturing and the supply chain. As the business environment is becoming more and more competitive, companies are trying to maximize their gains by sourcing raw materials or finalized products from cheaper destinations. As per the findings of Harvard Business Review and other research publications, certain countries have an inherent advantage in succeeding in particular industries. This is why more and more cost and quality conscious businesses all over the world are turning to overseas sourcing.

However, international sourcing is also a risky maneuver as a lot of your money is at stake. You are not physically present at the location and your money is in a foreign land so you do not have full control over the process. At BlinkGlobal, we help our clients get the best solutions when sourcing from overseas. In this article, our experts share 5 mistakes that you must avoid when sourcing from overseas.

1. Choosing Vendors Without Research

Right vendor selection is the most crucial decision that you need to make when sourcing from overseas. The most important factor to consider when selecting suppliers is to first make sure that they are able to provide what your business actually needs, rather than randomly selecting suppliers who just want to sell.

A good way to get a reliable supplier is by seeking recommendations from your business acquaintances or you can also look for online reviews about different suppliers. Suppliers also have certain rules and requirements like minimum quantity and advance payment. Be an informed consumer and ask important questions like shipping time frame and shipping charges as well as legal requirements such as taxes and duties.

2. Paying Everything Upfront

Since many suppliers offer discounts on paying the total amount upfront, many buyers fall for the temptation which can be risky. If you have a long-term relationship with a supplier, getting a discount by paying everything makes sense but if you are dealing with a certain supplier for the first time, it’s better to obtain credit terms from the supplier. It will encourage the supplier to ensure quality and make the deliveries on time. While developing the contract, clearly mention the specifications and expectations.

3. No Information Security Program

If you have to pass data and sensitive information to your vendor, it is important to make sure that the vendor has an information security program in place. Moreover, the program should highlight its capacity and strengths to protect sensitive information. The program must include administrative safeguards such as strong password requirements as well as physical safeguards such as Account lockouts.

 

4. Not Asking for Product Samples

Don’t hesitate, ask for product samples. Product samples depict the supplier’s capacity to cater to your quality requirements. Most of the vendors will agree to this and will let you inspect the quality of the product. This will also help you analyze if the product can meet your customers’ expectations.

5. Choosing Sourcing Agent over Sourcing Company

Sourcing agents or sourcing companies deal and communicate with suppliers on your behalf. They are supposed to ensure transparency and make decisions that are right for you. Sourcing agents are essentially freelancers with no reputation to uphold. Sourcing agents are present in the country where you want to source from, meaning you can meet them virtually not physically.

Sourcing companies have a vast network and global diaspora of agents with specialized backgrounds in various industries and extensive experience in global trade. As opposed to sourcing agents, sourcing companies have a reputation to uphold.

Let’s Talk!

Reliable sourcing companies such as Blink Global, offer clients a fair comparison of different vendors based on their terms of production, quality, and pricing!

 

 

 

 

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Top 4 Benefits of Outsourcing Your Inventory Management | BlinkGlobal

If you are a business that gets its raw materials shipped from overseas, you definitely understand the importance of inventory management. There is no debate in saying that effective inventory management is crucial for staying competitive and profitable. However, inventory management is a gruesome and time-demanding task and despite the availability of cutting-edge technologies, many enterprises, both small and large still struggle to manage their inventories efficiently. 

The lack of expert in-house inventory management specialists is the premier reason why many enterprises fail to properly take on critical aspects that include ordering, restocking, storing, and inventory forecasting. This is why businesses have turned to 3PL (3rd Party Logistics)  for inventory management.

Professional supply chain companies provide inventory management services that are backed with experience and cutting-edge technologies that help businesses prosper.

Here are some benefits of outsourcing your inventory management:

Real-Time Inventory Counts

Many 3PL provide you with real-time counts. This can help you track your manufacturing and sales in real-time, and spot potential losses and leakages. This can also help you prepare for the future and predict if your current stock is optimized for future needs. 

With the help of professional consultancy, you’ll be able to produce and deliver the right quantity of products that can easily cater to your customer base rather than overproduction or underproduction that can cause your troubles.

Reduced Operational Cost

The upfront cost to establish an efficient inventory management department may require hundreds and thousands of dollars. For startups and companies with low revenue, putting up an inventory management infrastructure may mean comprising on other areas such as marketing, or packaging, etc.

3PL partners have already invested in infrastructure development that provides the most cost-effective solutions. Moreover, they have expertise, knowledge and the skill to optimize transportation, reduce operational costs, and provide better inventory management.

Risk Mitigation

Partnering up with a 3PL also provides you with peace of mind as they take all necessary measures to ensure the safety of your inventory. This is a big advantage and a wise move to make your supply chains more resilient and risk-free. 

They provide insurance coverage and also estimate the financial impact of possible losses and develop mitigation contingency plans against events such as theft and natural disasters.

Focus on Other Business Aspects

It’s hard for a small business to be good at everything. There are always certain strengths and weaknesses and if inventory management is an area where you seem to be not doing well, let the experts handle the depart. This will let you focus on your core competencies and utilize your strengths to the fullest level.  

Inventory Management is a time-draining task and by outsourcing, you can utilize those precious hours on other important aspects such as marketing, customer support, PR, and innovating your products and services. Focus on your core competencies and make your company more productive.

About BlinkGlobal

Your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. Get in touch today!

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4 Things You Should Know About Air Freight | BlinkGlobal

90% of the world trade is carried by sea. Maritime transport is the most cost-effective way to mobilize goods and raw materials around the world. However, maritime transportation of goods takes a lot of time and if you want to get your goods shipped ASAP, air freight seems like the obvious choice.

Despite how appealing it seems, air shipping is not always that convenient. We are listing four important things that you must know about air freight.


  1.   Air Freight May Not Always Get Goods Delivered ASAP

Time is the most important factor why many businesses decide to choose air freight over sea freight. However, air transport is not always reliable as the air traffic is very vulnerable to weather conditions. Flights get delayed when the weather is not certain. Since air traffic can be affected by adverse weather conditions, you must always be prepared for unexpected delays.


  1.   It Can Get More Costly Than You Think

Many business owners realize that air transport is costly but often find themselves asking, “How costly can it really be?” Well, it turns out that it’s very expensive and can get 10 times to 100 times more expensive than maritime transport. Airfreight is regarded as the most expensive mode of shipping. Air freight rates are so high that it usually isn’t practical for transporting low-value products.


  1.   Be Careful With the Packaging

If you are shipping internationally, your cargo is going to have to be properly packed for the long, arduous journey. Many business professionals believe that air shipping is totally safe for the cargo but it’s important to remember that just like ocean shipping, your cargo is going to be handled by different people multiple times during transloading and other operations. So it’s imperative that you put in the time and money to make sure that it’s packaged properly. It is wise to apply ample amounts of padding and add more protective layers to give your cargo the extra cushioning it needs.


  1. Air Freight Isn’t Very Eco-friendly

Lately, we have seen large corporations taking on “green” initiatives as there has been a great deal of scrutiny on businesses to pledge to sustainability with more eco-friendly operations. While major environmental risks such as oil spills are also associated with oceanic transport, the carbon emissions in air freight are guaranteed. Air transportation poses a more consistent threat to the environment so if your business has or wants to create an impression of eco-friendliness, air freight is certainly not a wise choice. 

About Blink Global

BlinkGlobal is your next Global Sourcing Partner. We excel at B2B industrial and consumer products with centralized procurement and precise delivery. We are ready to help you make the right decision, get in touch with us today!

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3 Things You Need To Know About Ocean Freight | BlinkGlobal

Maritime transport is crucial to the world economy and global supply chains as over 90 of world trade is carried by sea. Maritime transport is the most cost-effective way to mobilize goods and raw materials around the world.

At Blink Global, we provide our clients with all types of freight options but for shipment over 100lbs, we recommend our clients to opt for ocean freight. It is the cheapest and the best option as shipping by sea scales well. For instance, a shipment of X lbs might cost you Y$; whereas a shipment weighing 100X lbs might cost you only 20Y$, making it the best option for transporting in bulk.

However, for someone who is new to international trading, ocean freight may appear a little intimidating. In this article, we are addressing 3 of the most common and pressing concerns that our clients have about ocean freight.

  • You Don’t Need to Book a Full Container

This is a basic concern that many people have. There are two types of options in maritime logistics: LCL and FCL. FCL, or a full container load, is a shipment process where you get a full exclusive container for a single shipment. In FCL, your cargo space is not shared by any other cargo. However, in LCL you do not get an exclusive container, instead, you pay for the share of the space you use. With LCL, you are not required to book for a full 20 or 40-foot capacity container.

  • Customs Clearance at Ports Isn’t That Complicated

Many people believe that customs clearance at seaports is way too complicated compared to airports. A good freighting partner such as Blink Global will make sure that you meet all of the legalities, have adequate clearance documents, and have paid all the necessary fees beforehand. Meeting all of these simple pre-reqs will ensure a smooth passage of goods from the port authorities.


  • Pricing is Not Complicated

Calculating ocean freight is in fact easier than air freight or land freight. LCL shipments can be expensive in terms of price per unit. However, since you are not required to book a full container, you can ship limited goods at a fair price. For LCL shipments, the freight is calculated in terms of the volume your shipment will acquire (for exceptions like fragile or extremely lightweight cargo, the pricing may be different).  For FCL, you have to pay a flat price for the container.  

About Blink Global

We’re your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. Get in touch with us TODAY!

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Minimizing The 3 Major Risks of International Sourcing | BlinkGlobal

There is no debate in saying that the benefits of international sourcing are endless. Manufacturing capabilities that sometimes are unavailable domestically and availability to cutting-edge technologies that exist in certain markets make international sourcing a wise choice.

However, with great opportunities come great risks. Owing to the rapid changes in the global market environment, potential risks and uncertainties are now also part of the game. It is very important that you understand these risks, make a scientific assessment, and then analyze if international sourcing is the right choice for your business.

So what are the common risks and dilemmas? How can organizations minimize these risks and optimize the benefits of international sourcing without jeopardizing their investments and supply chains?

Unexpected Delay in Shipping:

Various factors can cause expected delays in shipping. Shipment delays can pose some of the most serious constraints to business operations. The most common factors include vessel delays, disruption in logistics, as well as lack of coordination of the freight. If you are transporting via sea, be prepared for things like bad weather, shortage of space in the vessel, and port congestion.

Solutions include advanced planning and not relying on the vendor-provided ETA but calculating the expected delivery time yourself. Calculate the probable transit time considering the possible delay factors such as weather conditions, holidays in various parts of the world and then make a plan based on the evaluated factors. Experts suggest adding at least one week to the expected transit time as a provision to the unexpected delays.

Quality Risks:

Quality assurance remains the biggest concern as you cannot monitor and manage the manufacturing process in a foreign land. If the supplier compromises on product quality, your whole investment can go down the drain. Quality risks can occur due to serval reasons such as lack of communication and misunderstanding. It’s not that suppliers overseas are some fraudsters ready to rob you but it’s often the lack of communication that results in unintended consequences.

One way to evaluate the supplier’s capacity to meet your quality requirements is by asking for a physical product sample prior to placing a real order. Many suppliers volunteer sampling requests as it demonstrates their seriousness and depicts that they are truly up to the task. You can also consider virtual product samples. It can either be a 2D rendered image created in Photoshop or sophisticated 3D product samples that can be tested in a digital environment.

Unexpected Costs

International sourcing is a popular choice because it is cost-effective but there are certain hidden cost factors that you must be prepared for. The most common is the fluctuations in the foreign exchange rate. Moreover, the cost of delays, losses in transit, an unexpected rise in transaction costs, contract management costs, legal discrepancies, and many other factors can contribute to the rising costs of international sourcing.

The best way to counter cost risks to sit with an expert or someone involved in international sourcing and do in-depth research of the suppliers across various locations. Take time and develop a deep understanding of the process and spot all underlying cost risks. Moreover, it’s always wise to spare a margin for unexpected expenses.

BlinkGlobal – Your International Sourcing Partner

It’s wise to partner with a reliable sourcing company as they have import and export agents that have expertise in cost reduction and quality assurance. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. BlinkGlobal is ready to help you!

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Value Chain vs Supply Chain: What is the difference? | BlinkGlobal

Value chain and supply chain are two of the most widely used jargon in the business and commerce sectors. Many entrepreneurs confuse value chains with supply chains and vice versa. The difference between the two is apparently very subtle but there is a big difference.

In this post, we are going to look at value chains and supply chains. What both terms stand for and the differences and similarities between the two terms.

Supply Chain

In a nutshell, Supply Chain refers to the integration of all operations involved in the process of manufacturing, sourcing, procurement, conversion, logistics, and warehouse management. Supply chain activities comprise the flow of information, products, and funds between all the stages of creating and selling a product. From procurement to management to logistics, every step is a part of the company’s supply chain.   

It’s important for any organization to keep their supply chains moving as disruptions can have major repercussions. Here are the major functions of supply chains.

  •         Raw products procurements
  •         Product development
  •         Logistics
  •         Operations
  •         Distribution
  •         Resource Management

At its very base, the primary concern of supply chain management is to effectively manage the supply and demand equilibrium while delivering the products at the right time, place, and at the right cost. Proper supply chain management can help organizations reduce consumer costs and increase their overall profits.

Value Chain

In a nutshell, value chain refers to a series of business operations and creative measures that an organization takes to add value and utility to the goods and services offered by the firm. The concept of value chain comes from both a branding and business management perspective. The process involves experimentation, interpretation, and improvisation to cut back on the shortages and work with people involved at different stages of the chain.

Value chain tends to be traced in the opposite direction to the supply chain.  Value chain essentially flows in reserve to supply chain starting from end customers and going all the way up to the manufacturing and procurement of raw materials. Here are some major functions of supply chains.

  •         Finding new and better raw material
  •         Innovate and improve manufacturing processes
  •         Simply packaging
  •         Improve delivery
  •         Quality assurance

Spotting shortcomings and maximizing the new opportunities can help any organization have a competitive edge over players in the industry

The Main Difference between Value Chain & Supply chain

In simple layman’s terms, the ultimate difference between a supply chain and a value chain is the most apparent fact that supply chains do not involve value addition. The supply chain is all about keeping the supply and demand cycle optimized whereas value chains are about optimizing the supply chain for quality and adding value to make the products more presentable and resourceful for the clients.

About Blink Global

Your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. We are ready to help you make the right decision with our Price Audit Services. Get an estimate today!