Establish your needs before building your programs.

Your employees are your most important resource: their appearance and dress can make a profound impact on their ability to provide the service and productivity you depend on to make your organization successful. This is the third and final part in our three part series on what to consider when developing employee uniforms to meet your needs. The three articles cover the three most important components of any uniform program: Part 1. Uniform look and branding, Part 2. Uniform design as it affects productivity, Part 3. Uniform sourcing and fulfillment logistics. Read on for tips on how to successfully source and fulfill your uniform programs.

Establish Your Needs –

In order to properly design your supply and fulfillment chain, the first thing to do is fully establish your uniform needs from the perspective of understanding: who needs what uniform goods, how much volume you will consume annually, as well as what fulfillment infrastructure you need in place to get your items to your corporate locations/ employees. All of these needs will be dependant upon your corporate structure, the number of corporate locations, the number of total employees in your organization, what sorts of work your employees do and so on. Obviously, the complexity of the above combination of factors will differ for each organization.

The reason that understanding all of these factors is so important is that they will significantly impact everything from garment choice, to pricing, to inventory levels (read inventory costs), and to  your chosen shipping methods. The end goal of this portion of planning your uniform sourcing and fulfillment chain is to end up with a proper high-level map that will help you understand what available options will allow you to provide the most value and flexibility in your program.

Flexibility Versus Savings –

There is a definite correlation between volume and cost.

There is a direct correlation between volume and cost savings. It is possible to leverage high-volume purchasing power through sourcing and production overseas. Savings of 40-60 percent are not uncommon when compared to the costs of domestic production. Plus, it is much more affordable to develop and produce completely-custom uniform pieces overseas. There are two things to remember, however, when considering offshore sourcing: a.) overseas sourcing requires much larger minimum orders (typically in the thousands) and b.) overseas sourcing typically requires lead times of 90-120 days. Domestic lead times, by comparison, typically range from 48 hour to 15 days.

Which options you choose will need to be based on your total annual consumption. For most companies, sourcing an entire uniform line is out of the question due to the high inventory levels it would require. Oftentimes, the solution is best approached by identifying which items will have the highest turn/consumption rates and source those. Items that do not have a high turn rate, or change frequently, can then be domestically sourced to reduce inventory costs and maintain program flexibility.

Minimizing Inventory Costs and Maximizing Program Value –

One of the major mistakes many companies make is to order too much of either one item, or a combination of items in the quest to capitalize on volume purchase opportunities. What typically happens in these cases is the customer is forced to sit on these items until they are used up. This causes several serious problems: a.) Inventory costs build over time, thus undercutting the initial cost savings b.) The organization is prevented from being able to change or update its uniform program, even if the look is outdated with the current company image c.) The organization has a difficult time finding a new promotional partner who will help with program in which there is a plethora of pre-existing inventory (there is no money in helping a company move inventory that was not purchased through them). It is not uncommon to find an organization that is trapped in a situation where they are bleeding money in held inventory, wearing three year-old uniforms with outdated logos, and stuck with their vendor who pushed them to over purchase (and many vendors WILL push you to over purchase).

Inventory has a cost s well

Get Your Uniforms Where They Need To Go –

One-location organizations are generally pretty simple to manage from a fulfillment perspective. It is when you are looking at multi-location or even multi-national organizations that the complexity increases. Typically, these sorts of solutions will involve a combination of different shipping methods and distribution patterns. For illustration let’s say, a multi-national organization needs uniform garments shipped to Central Europe, Russia, the U.S. and Canada. In this example the organization has distribution centers in Russia the U.S, and office locations in Central Europe and Canada. One solution would be to arrange for overseas sourced uniform goods for Europe and Russia to be shipped directly to the Russian Distribution center, whereas the US promotional partner would service all U.S. and Canadian orders. In addition, for lower-volume goods, the U.S. promotional partner would organize quarterly consolidated orders of lower-volume products for the Russian and Central European locations, thus being able to proactively stock uniform items to those locations while defraying volume and shipping/tariff costs to the overseas locations.

The above example is just one possible solution to the problem, there are other, more flexible options available, but again, flexibility and cost often come in direct proportion to one another. The final choice will always be dependant on your needs as an organization. What is most important in this regard is to find a promotional partner who truly understands the complexities of both large and small scale distribution channels in order to help you maximize your program’s value and meet your needs.

There are many factors to take into account when developing a uniform program for your organization, and each organization is unique in its needs. The trick is not to just create a uniform program, but to create on that provides the most value for the money in the areas of branding, productivity, and flexibility. For more information on what to consider when designing and developing your next line of uniform goods, please call us at: (800) 588-7111 (and talk to your sales rep), or email us at: customerservice@powertexgroup.com.

What you need to know about getting items produced domestically

As we discussed in last month’s news letter, the process of choosing promotional products can be daunting. Between the thousands of possibilities, the color combinations, and many customization options, it can be difficult to choose just what you want, much less where and how it is produced. In this month’s article we will look at the benefits and disadvantages of domestically sourced goods. If you missed last month’s article on overseas sourcing you can catch it here. When choosing your next promotional item, it will be very important to weigh the advantages of each before making your final choice.

MasterCraft Domestically Sourced Goods

The Basics of Domestic Sourcing:

1. Domestic goods have shorter turnaround

Most domestic suppliers can deliver finished domestic goods within two weeks. In certain cases, customized goods can be delivered within 5 business days! Of course, this depends on many factors, but it is possible given the right circumstances.

Because they are shipped from on US soil, the delivery process usually takes a matter of days as compared to months or weeks with overseas goods. This can significantly affect programs that depend on inventory. If your program requires stock of a certain item, and you can get that item replenished within weeks instead of months through domestic sourcing channels, then it becomes apparent that you can to hold far less in inventory for a domestically sourced good versus an overseas sourced good. This, in turn,means you need not tie up unnecessary resources into a huge stock of inventory.

2. Smaller minimum quantities

Generally speaking, domestically sourced goods have far lower minimums than overseas sourced goods. For example, domestic sourcing is well suited for someone who is looking for 48 to 500 tee shirts. While you can always order large quantities domestically, it is usually better to consider overseas sourcing for larger quantities due to the cost savings associated with overseas production.

Lower minimum quantities combined with faster turnarounds are a great combination for those who are looking to; a. run a smaller one-time promotion, or b. maintain a constant supply of a “consumable” product without the need to manage large levels of inventory.

It should be noted that, depending on the type of product, higher minimums are not always the case. You should consult with your promotional partner for advice on which avenue you should choose, as there will likely need to be some sort of research done as to your particular minimum quantity needs before making a decision on this issue.

3. Competitive, yet higher priced than imported goods

Can-Am Domestically Sourced Goods

Cost is one area where domestic channels generally lose out to overseas sourcing. Overseas sourcing, depending on the product can net savings of 30-40% over domestic sourcing. That being said, domestic goods can often be very competitive when you consider companies like Powertex often have preferred pricing due to our ability to leverage the sheer volume of products we buy with major vendors domestically. For providers like us, we can pass huge savings to our customers through using preferred vendors, thus minimizing the cost difference between overseas providers and domestic providers.

4. Huge selection, many options to choose from

There are a surprisingly large amount of quality domestic promotional product providers in the U.S. The key is knowing what types of items to look for where. Partners like Leeds provide a wide array of accessories and novelties, while SanMar and River’s End provide an unparalleled selection of clothing and headwear. With ample options for customization, the odds of you finding the right promo at the right price are very good.

Powertex Group has, over the years, developed relations with a long list of what we term as “Preferred Vendors”. The vendors on this list have to satisfy a number of criteria including; wide product selection, high quality standards, competitive pricing, quick turnaround, and ample inventories. Through these main core vendors, we have developed a catalog of thousands of customized promotional products to choose from.

Mathews Domestically Sourced Goods

5. High Quality Production

As was mentioned above, our Preferred Vendors are all held to the strictest quality standards. Like anything else, there are high quality producers, and there are those that don’t always deliver what would be expected. The most important thing is to have a strong promotional partner that knows the difference, and can guide you though identifying your vendor partners.

It is very important to balance all of the factors when considering what types of products to order and where you will be producing. Each option has its own unique set benefits and drawbacks to consider in the equation. It is important to consider your own unique circumstances needs when weighing your decision. As a promotional partner, it is Powertex Group’s responsibility to help guide you thorough the process of choosing your goods and the method of production

Again, if you missed it, be sure to check out last month’s article on the basics of overseas sourcing to learn more. If you are interested in ordering or researching custom promotional products for your next project, contact Powertex. Our professional staff will help you identify whether or not custom domestically produced promotional products are right for you. Give us a call today at (800) 588-7111, or email us at: customerservice@powertexgroup.com. Visit us at: http://www.powertexgroup.com.

What you need to know about getting items produced overseas.

MasterCraft Custom Sourced Merchandise

The process of choosing promotional products can seem daunting at first glance. With thousands of possibilities, all of the color combinations and customization options, it can be easy to become a bit lost. Add to that the production, financing, and shipping logistics, and it’s enough to make your head spin. Fortunately, with the right promotional partner to help guide you through the process of choosing your product and choosing the right production method, you can vastly simplify the process. In this month’s article, we are going to touch on overseas sourcing in particular, and the basics of what you need to know when considering whether to produce overseas or not

The Basics of Overseas Sourcing:

1. There are longer lead times on overseas sourced goods

In the first two points, we will discuss the major drawbacks of overseas sourcing. These are critical to consider when deciding when considering where to source your items from.

The first of the major drawbacks associated with custom products is the extended lead-time. It is estimated that between the design, the sample production, the actual production, and the delivery, the process generally takes 90-120 days to complete. At times, however, different delivery options, different processes, or even different materials can drastically reduce delivery times, sometimes shaving precious weeks off the project.

You will need to evaluate whether 90-120 days lead time is right for you. If you are maintaining inventory of an item, you will obviously have to keep more in stock to last for longer periods of time. Many times, organizations will prefer to tie up less money into inventory and will spend more to produce their items domestically.

Weathershield Custom Sourced Merchandise

2. Expect higher minimum quantities

As a general rule, overseas sourced products will almost always have much higher minimum quantities in order to produce. It is most definitely not suited form someone who is looking for 48 tee shirts. It is most often suited for larger orders.

It should be noted, however, that depending on the type of product, higher minimums are not always the case. You should consult with your promotional partner for advice on which avenue you should choose, as there will likely need to be some sort of research done as to your particular minimum quantity needs before making a decision on this particular issue.

3. Save money, typically upwards of 30% versus domestic production

Overseas sourcing’s huge advantage over domestic sourcing is very simple, cost. Overseas factories typically have very competitive production costs normally netting you savings of up to 30%, and sometimes yielding savings of 40% on up, depending on the product. Dealing directly with overseas producers cuts out the middleman, and cuts out the warehousing costs associated with most domestic suppliers, and that savings gets passed directly to you.

You can also save big by working with the producers to custom produce your item more cost effectively. Many times, changing a material used in the construction, or making a slight design change can make the item more cost-effective to produce.

Overseas sourcing is a booming business, with global competition. In order to survive, producers have to have competitive pricing while not making sacrifices in quality. This combination bodes well for the consumer, as it drives the prices down, while promising proper quality controls.

4. Customize your items to make them uniquely yours

The second most important benefit to overseas sourcing is the sheer amount of control you gain over the finished product. You can run the gamut from producing a stock item, to designing your own product from the ground up, depending on your needs.

Most overseas produced items are variations on a theme. For example, a popular style of hat may be produced with custom colors and a custom path on the front, while keeping the original design in tact. Many other projects, however, are designed and built as 100% custom projects.

5. High quality standards

Like everything else, there are the high quality overseas producers, and there are those that don’t deliver quality products as consistently as the probably should. The trick is knowing which ones to source from. When you know where to go for overseas sourced goods, the quality is equal to, or even superior to domestically produced goods. Our organization, for example, has developed list of preferred sourcing partners across the globe who have, year after year, consistently delivered quality goods at competitive prices. Each of these partners has an on-the-ground quality control unit who works directly with our organization to make sure the quality standards are being met.

Ski-Doo Custom Sourced Merchandise

Overseas production is not for everyone, and it is not for every project. It has its own unique set benefits and drawbacks versus domestic production. In any project such as this, be sure to consult your promotional partner to make your final decision. A good promotional partner should provide you with the best options for your project, and help guide you to the best decision based on your needs.

In next month’s newsletter we will present you with an analysis of domestic sourcing, and compare it’s strengths and weaknesses against our overseas options. If you are interested in learning more about custom promotional products, contact Powertex. Our professional staff will help you identify whether or not custom overseas-sourced promotional products are right for you. Give us a call today at (800) 588-7111, or email us at: customerservice@powertexgroup.com. Visit us at: http://www.powertexgroup.com.

When hundreds of thousands of choices just aren’t enough…

Mathews Custom Sourced Cap

The promotional products industry sports thousands and thousands of of promotional product possibilities. Almost any product or gift you can imagine is available through the vast global network of producers.

Almost.

It’s a fact that no matter how many products there are out there, there will always exist a need for something that just isn’t currently offered. You may need a key chain in the shape of your logo, a custom bobblehead doll, or you need a custom shirt made, color matched and stitched to your specifications. Inevitably there may come a time when you will need to get your project custom sourced overseas.

When getting involved with custom promotional items, there are some simple things to keep in mind:

MasterCraft Custom Source Jacket

1. It may not be as expensive as you think.

It may surprise you to learn that, at times, it may be as much as 40% cheaper to get your product custom sourced. Yes, you read that correctly, up to 40% cheaper. On average, depending on the project, you can expect savings of around 30%. One of the beautiful things about overseas sourcing is that you cut out much of the supply chain distribution process. You deal almost directly with the producer, and the producer ships directly to the customer. There are no middlemen or warehousing costs involved.

The producers can also offer their expertise on how to cut costs during production. Many times, they can suggest a slight change to the design or a change in materials that can save you big.

Overall, depending on what you want to produce, it can be surprisingly inexpensive to get your promotional products custom made. There are many cottage industries springing up, specializing in particular custom promotional products. The area is growing, and prices are dropping. 2. Your imagination is the limit.

The amount of customization is incredible. From materials, to colors, to design to functionality, to any other variable you can think of. The final product will be, as much as physically possible, built to your exact specifications. According to “The Counselor”, a promotional products industry magazine, “With today’s technology, practically anything can be created from scratch.” If you have a totally unique idea that you want to make a reality, then you can, in all probability, have it made.

3. You get higher quality.

Overseas-sourced products often have the reputation of being lower in quality than stock items. This is patently untrue. Because the items are made according strictly to your specifications, you can be sure that you are getting exactly the quality you want. Plus, the factories that deal in custom products often have the strictest standards for product quality.

4. Plan ahead and be patient.

One of the drawbacks associated with custom products is lead-time. It is estimated that between the design, the sample production, the actual production, and the delivery, the process should take 90-120 days to complete. At times, however, different delivery options, different processes, or even different materials can drastically reduce delivery times, sometimes shaving precious weeks off the project.

5. Slightly higher minimums.

Ranger Boats Custom Sourced Items

Because you are having your own custom promotional item built, you will encounter slightly higher minimum quantities for your orders. The higher the amount produced, the less and less the fixed costs will affect the price per item. Instead of ordering minimum quantities in the dozens, you will likely find your minimums in the hundreds. This isn’t always the case, but slightly higher minimum quantities are generally the rule. For most companies, this isn’t too much of a problem, though. Many times, all it takes is a minor adjustment to the ordering routine in order to enjoy the benefits of custom sourcing.

Just remember that custom promotional products aren’t necessarily out of reach for you or your clients. It may not always be what’s right for you, but if you are planning a long-term promotion, it might be beneficial to explore the world of custom promotional products.

If you are interested in learning more about custom promotional products, contact Powertex. Our professional staff will help you identify whether or not custom sourced promotional products are right for you. Give us a call today at (800) 588-7111, or email us at customerservice@powertexgroup.com. Visit us at: http://www.powertexgroup.com.