ICORP GROUP · INSIGHTS
Supplier Risk in Corporate Gifts: Checks Before OEM / Custom Production
Premium works with deadline, such as product launching, new year gifts or event kit, often have no space for a lot of shipping. Risk from the Supplier should be assessed from before PO is not waiting for production and then it finds that the material is not available. The production capacity is not sufficient or the sample with different facts.
1. Check if the Supplier does what it really wants.
Don't just look at the pictures in Catalogue. It should be questioned whether it is manufactured by itself or Outsource. Any part has any material, color, size, or branding technique and does it ever work closely? The ability to match the Requirement is more important than having a variety of products but process controls not.
2. Sample Reflecting Real Production Method
Examples made in a special way, just one piece may be more beautiful than a lot of products. It should be questioned whether the sample uses the same material and process as Mass Production or not. If different, it should be known how the difference will affect Finish or quality.
3. Capacity to be related with number and deadline.
A supplier that performs well with 100 items may not be able to produce 5,000 within the same timeframe. Assess production capacity, queues and peak-season demand before confirming the timeline, especially for multiple SKUs or multi-stage production.
4. MOQ and raw materials clearly
Some suppliers receive low MOQ but use available stock materials. If you need to order a particular color or material, MOQ may be increased. It should be clearly determined which part is the MOQ of the product. Which part is the MOQ of the material or packaging so that there is no further added cost.
5. Communication Quality is a risk indicator.
Fast-reply suppliers are not always good, but the supplier that provides incomplete information changes frequently or does not confirm specification, literally, is more risky. Custom work should have clear documentation from Artwork, Sample, Quantity, Packing to Delivery Instruction.
6. Quality Control must be specified before production.
Agree on acceptance criteria, inspection points and the handling of rejects or defects before mass production. Do not wait until everything is complete to decide which variations are acceptable.
7. Set a Backup Plan for Critical Component
If the product uses a specific material, a particular box or parts from a single Supplier, you should know if there is an Alternative or not. And if the entry is late, how to adjust the design or timeline. A pre-scenario thinking helps to make decisions faster when a problem occurs.
8. The lowest price should not be the same Criteria.
The risks from rework, delay, air freight or new production can make the cheapest Supplier the most expensive option. Total Cost should be assessed with Capability, Reliability and Communication.
Supplier Assessment Good Coal 5 Stories
- Really made according to Specification or not.
- Do you produce the desired amount?
- Sample, Mass Production or Not
- How to manage the QC system and defect?
- When a problem occurs, are there options and clear communication?
ICORP provides strategic Sourcing, Supplier Comparison, Sample Coordination, Production Coordination and Quality Control to reduce the gap between Buyer and Supplier in Corporate Premium and Custom Merchandise activities.