PREFERRED SUPPLIER
Building Relationships
R A J AT G U H A, AM I T GUP TA AND R AJ EEV TYA GI
Partners, Arielle Sourcing
W
e are an 11-year-old company
specialising equally in
apparel and home furnishing
products. Our endeavour is to offer
end-to-end sourcing services to our
overseas clients by coordinating,
merchandising and undertaking
quality control for every purchase
from the country to give complete
customer satisfaction by providing
hassle-free business experience.
We carefully design and select
our products with an eye for the
smallest details and something
special that makes each item
unique. Over the years we have
developed a business methodology
based on principles of synergy and
cooperation.
For us anyone who can do 80% of
our products is a preferred supplier
because he has the right attitude
and flexibility to meet all demands of
our customers – flexibility in price,
quality, quantity and last-minute
changes. He is a supplier who is
not looking at profits on an order-
to-order basis, but as a year-long
relation with booked capacities.
Today in our business world
there are many people in the
chain and anything can go wrong,
so if our supplier is not flexible
enough to make these last-minute
changes he is not the person
we would like to work with. A
‘preferred supplier’ is one who
will work on smaller quantities,
larger quantities or even a
combination of both; in fact, ready
to support us so that we can
generate business. There may
be commitment and ideological
fights on day one (with regard
to delivery dates, cost, etc.), but
once agreed upon, a ‘preferred
supplier’ is one who stays true to
the commitment made.
Price is definitely not a
consideration today because cost of
money and losing delivery is so high
that one cent here or there would
not make a difference to majority
of exporters working on smaller
quantities. Price matters for volume
buyers/suppliers. We are not losing
business on cents, but because
of rigidity of approach to support
change.
We are willing to risk our relation
with buyers if we feel that the buyer
is being unreasonable and the
supplier is right. As a principle, we
never take sides. We support buyers
if they admit to a mistake and do not
get into a blame game but honestly
seek our help in getting the orders
shipped. Our preferred supplier
is a factory who understands
and supports us on fulfilling our
commitments.
There have been times when our
support to the supplier has been
extended in sharing losses if we
feel that the supplier has taken a
hard blow, which was unexpected.
The reality is that it is no longer
a buyer’s market, but then it is
also not a supplier market. It is
a market of collaborations and
partnerships where both are honest
in the relation and no blame game is
happening.
India has emerged as a customer-
specific destination; it cannot serve
everyone. On the other hand, China
and Bangladesh have positioned
themselves as being a preferred
destination for most buyers. In this
scenario, India is not going to grow
exponentially, but it will not die out
either. Its strengths will keep it alive!
Here entrepreneurs first want to
see the business before investing,
but growth does not happen like
that. In Bangladesh they work
the other way round, so they are
grabbing business. Risk taking
capability is less in our country
because in reality they talk of ‘ease
of businesses. There is no flexibility
in policy. There is no support and we
spend most of our time manoeuvring
around policies and not on
constructive activities.
Buyer wants to work in the
established hubs, until the eco-
sphere and infrastructure is created
in new centres, low-wage rates are
not enough to make an impression.
So, we have to make improvement
in the factories. Labour component
in total cost of product is just about
12%; why are we only looking at that
component…; there are many other
areas that can be improved to get
the advantage.
Uncertain global scenario has
further impacted the growth of
this industry, more so as fashion
is required on the shelves at a
certain pre -determined time. Today
transparency in business is much
greater… so while we love that
part…we do not want to adapt to
the changes brought about by the
complexity of the business. That
is where the concept of flexibility
comes about; if summer comes one
month late then suppliers should be
willing to make changes to fill the
gap.
Industry size has shrunk, but
business is growing, because those
who have the right attitude are
getting the growth, so the business
is changing hands. Fresh blood with
creative ideas needs to be injected
and this does not merely means sons
and daughters… Also, not MBAs
from other domains, but people who
can work on fabrics and fabrication,
and not confuse you with power
point presentations…
What is missing is the passion
for the industry. People at the top
must know what they are making,
who are the retailers and who are
the competitors and at what price
the products are selling in retail.
“I will get back”, has no meaning
unless it is backed by a deadline
commitment… buyers want updated
information fast and people on the
other side of the phone should have
them ready!
www.apparelresources.com | JULY 1-15, 2017 | Apparel Online India
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