The rise of B2B marketplaces like Alibaba and Taobao has led many to assume the apparel sourcing process has become easier. Contacts can be made as easily as sending an e-mail detailing the specifications of the products you are sourcing. Tell them what you are looking for and they send you a sample of their product. Yet, it is really as simple as that?

Many companies have tried this route with little to no success. These manufactures often request very high minimum order quantities for production, charge for proto samples, and often deliver a product that fails to meet the requirements. Many companies feel discouraged and confused about the sourcing process. Let us take a few minutes to understand why these connections don’t end up working out.

There are four types of players within the manufacturing ecosystem: Large-scale manufacturers, small-scale manufacturers, subcontractors, and agents. The large-scale manufacturers are often older players whom have built a solid customer base. They mostly work with large brands and have facilities all over the world. Small-scale manufacturers are either small because they are new entrants, or are small and remain small because they are still working on landing the bigger accounts. Subcontractors are small manufacturers with no sales team, and mostly work as back-up facilities when the large-manufactures max out on capacity and use them as their own production facility. Agents normally have no manufacturing facility, and partner up with manufactures.

At the beginning of time, let’s say 20 years ago, apparel manufacturers mostly relied on agents to bring in customers. Most manufacturers did not have the sales team to reach out to new customers, and so relied on middlemen. Today, direct sourcing has become the method of choice for most apparel brands. Going straight to the source of garment factory, fabric mill, or even going so far upstream as the yarn supplier. Sourcing directly reduces risk in the supply chain and gives companies maximum control over quality.

The downside of B2B marketplaces is you don’t know which type of player you are contacting. The information stated on their website may be fluffed up, or even completely made up. The supplier whom you think is a large-scale manufacturer may be an agent who may over promise and under deliver because he has no control over the manufacturing process. That is why many times what you ask for is not what you get delivered.

This is why when it comes down to it, sourcing requires a lot of on-the-ground work. You need to be present, meeting new suppliers face-to-face. Visiting and auditing a supplier’s facilities is the only way you can truly know who you are working with. The best way is to consolidate the number of suppliers you have to a number the company can handle. Also, consolidate each sourcing trip and visit as many manufactures as you can on a single trip. In many ways, consolidation is the key to sourcing.

We’ve all been here. In a long term relationship, maybe 4 to 5 years or so. Things were going so well in the beginning, but then it all changed and you are wondering if it is time to break-up and look for someone else. What I’m really talking about is a relationship with your manufacturer/ supplier. The rule of the industry has always been to “stick with the devil you know, and not take a chance with the devil you don’t know”. Yet, sometimes it is just time to move on?

Every apparel brand needs suppliers to manufacture their creative products for them. Back in the day apparel brands had sample rooms within the company or even a manufacturing facility that worked with design on making the initial samples. Those days are gone. Thanks to cheaper labor costs overseas, most apparel companies have worked hard to outsource everything to their manufacturer. The manufacturers have taken the responsibility of creating samples from mere specifications of measurement (lots of numbers) as well as the actual product. They have become the transformers of mere ideas into reality. The added value the manufacturer provides has made them ever more valuable in the supply chain.

Time, money, and effort are spent in finding the right manufacturer for your products. Then come the factory visits, audits, terms and price negotiations. The complete process can take up to a year before you can move on to prototyping your products. Then you place your very first order with this manufacturer, keeping your fingers crossed that it goes smoothly. The first order may have a few hiccups, but the product pieces manage to arrive on time and off they go to the retailers. You pat yourself on the back for finding such a great partner, and hope it turns into a long and happy relationship.

We all wish for happily ever after, but it takes only one crisis to jolt us back to reality. It could be repeated delayed deliveries or quality issues; or the simple realization that the one you thought was putting you first is no longer doing so. New apparel brands pop up every year, and some like Under Armour become sensations that grow like they’re on steroids. It used to be that your manufacturer replies to your e-mails within a day, then it is two days, then weeks of no reply. The reality is, you’ve been bumped from the top of the list. Most apparel brands have a long list of manufacturers they have “phased out” or in literal terms blacklisted. Hopefully you have a few suppliers you currently work with, and are not putting all your eggs in one basket. Sometimes it is quite possible to rekindle old flames if both parties work to identify and resolve the reasons why they broke up in the first place.

Love and sourcing are very much alike. We are continuously hopeful that the one we meet is special and can grow with us in our life journey. You’re willing to work together on all your problems and go through the ups and downs of life together. In return of investing your time and energy in developing a long-term relationship, you receive stability and reliability. We all love a happy ending, and through hard work it will come true.