A buying entity with years of experience in servicing overseas buyers from USA, Europe, Australia, South Africa and Israel, Nahid Trade International (NTI) is represented by its CEO Nipun Nawaz.A buying entity with years of experience in servicing overseas buyers from USA, Europe, Australia, South Africa and Israel, Nahid Trade International (NTI) is represented by its CEO Nipun Nawaz.
Rule of Three
According to me, the three most important factors to be a preferred supplier are:
- How Well-organized and Established the supplier is, and how many workers and machines it has; because if it does not have enough workers, it will not manage to finish the orders on time.
- Financial Strength, and if it has any banking issues or not, is also very important. Without strong financial standing, the supplier will not be able to complete orders and even if it does so, there will be a lot of risk involved.
- Reputation and the Past Track Record.
Sync with Changing Dynamics
The industry is undergoing change to some extent to adjust to the changing requirements of the global apparel trade! We have become substantially adaptable now and have started accepting more fashion stuffs than before as people are interested in fashionable items compared to the basics. Also we have become a lot more flexible in payment procedures; we have started accepting contracts, CAD (Cash Against Documents), and minimum advance and rest CAD as payment modes. All these changes are in pace with the rapid modifications taking place in the apparel trade globally.
The biggest challenge is the ‘Deadline’! The lack of professional commitment is the main reason behind failures in delivering orders on time, but suppliers in general have a bad reputation sticking to the timelines. Timing is of utmost importance in our business. But it becomes almost impossible to maintain dates with our suppliers, as a result we cannot keep our commitments made to the buyers, resulting in delayed shipments.
The future is very good for Bangladesh in garment exports. We are still cheaper compared to many other countries in various product categories. And it is because of this very advantage that we are ahead of our competitors. As per statistics, we are apparently growing every year and if this is the reality, it is very good. But, individually speaking, I think we could have done even better.
Cheaper price is the biggest advantage for Bangladesh and this is something which keeps us in the preferred list amongst the buyers. However, one has to understand that we are cheaper only in terms of basic items but when it comes to fashionable apparels, we tend to lose the preferred tag and this is one area, I think, we need to improve a lot.
Even though a preferred vendor list can help simplify business and give a sense of stability and continuity in supply, many people argue that a modern business shouldn’t restrict itself to only a limited number of suppliers. What these people think is absolutely true. All the big brands in this world may give 70 per cent of their production requirement to the preferred suppliers but for the rest, they always opt working with the one who is not in the preferred list. The buyers also like to compare the services of the new suppliers with the regular/preferred suppliers.
Most organizations rigidly follow a suppliers’ criteria checklist but sometimes vendors’ interests/policies are quite diverse from some of the businesses’ core values. In such a scenario, the supplier must always comply with the requisite and laid down criteria; there is no room to overlook the same. However, there is a probability of ‘if’ here. Suppose a supplier can give a very competitive price and with just the perfect products, I may perhaps check its services once with a trial order and if it does a good work without affecting the business, policies can be altered accordingly.
Maintaining the Edge
To continue being in the preferred list, suppliers have to be more meticulous and sharpen their services in terms of timing and quality. Buyers know the prices very well and if the supplier tries to charge more, this is not going to be acceptable.To be in the preferred list, suppliers must maintain their timing in every aspect of the production till delivery. When you keep your dates and at the end of the production, you deliver 85 per cent perfect products, buyers will be happy and suppliers would continue to be in the preferred category.