shares, sample costs, materials, capital, early laps - do not know where to start?
or A simple step-by-step guide to get your product manufactured.
o How to decide which provider to use
or Where to find the best producer for your design
- Fairs, online sources, agents.
or The pros and cons of hiring and agent vs. go straight.
or the facts about the quality control, commissions, fees and more.
, or do you need including letters of credit, shipping options, brokers and codes.
All of the above assumes you have done your market research in terms of design, competitive research, distribution, etc.
Phase I :? What is involved in the production
get the product developed and the market can be up to 80% of the turnover of a company!
The scope of this supply chain includes more than you think:
or organization and financing, sales, design, purchasing, procurement of raw materials / production / finished products, transport materials , the distribution and the final accounting to determine the cycle of success.
Typical problems include:
or delivery delay (= canceled orders), of poor quality, the same financing, packaging that does not fit standard, packaging that leads to the break, the design without taking account the costs.
If you know what to look for in advance, you can save a lot of trouble.
Phase II: Organisation and financing
This is one of the most important aspects for some of the following reasons ...
or retailers want to clear 30 or 60 but it can pay off later than 6 months.
manufacturers want a deposit, advance payment or pay at the end of processing.
This means that you are existing funding is the inventory of the retailer and the producer's output. Unless you can not negotiate better terms.
or high minimum print runs means money tied up in production or stock that can not be spent on marketing, sales, salaries or make rent. Effective management of production to ensure less time between design and production / distribution allows a closer following of trends and less cost as the money to finance the product is returned faster (eg. Zara, H & M)
this is usually the biggest problem of new businesses.
Phase III: SALES - Selling large customer of samples is one of the best ways to reduce the risk of failure
or large retailers buy products for the holidays in February for a September ship date.
o Manage inventory to be sure not to produce items that will not sell and for which there is no demand.
or necessary funding often as larger stores will buy thousands of dollars meaningfully product ... you thousands of dollars in front production costs
o You may be able to negotiate better rates for production and financing if you have pre orders -cleared be used as collateral.
or If you do not have pre-orders, you will have to time your production so that the production is finished as close as possible to send the date of goods to minimize inventory costs ,.
Phase IV: Design / Packaging
Understand the inputs to decrease markups, the additional costs
or Trimmings that manufacturers source for you from under-parties will marked by the manufacturer assortments plan well - can be the death of you because of the stock costs, (a shirt size 0-14 means significant inventory for an article)
or package to make good merchandising, packaging and efficient delivery, and fulfill imports and material requirements (eg FDA, the instructions for cleaning, fiber content) have a detailed specification sheet to help the process of monitoring and quality control including:
- product, features , use, materials, dimensions, sizes, colors, Standards, Packaging shipping Methods, Special instructions
Step V: purchases - Streamline the purchase of commodities
Some companies purchase goods or almost finished and customize to make it their own - lower costs and faster delivery because the factory probably makes for others. Only drawback is less differentiation.
seals can sub-source or manufacturer, but will charge a markup. Some manufacturers sub-source 50-60 material suppliers.
efore you buy in bulk, make sure that the seals will be vital in samples and with manufacturers of machinery or process workflow. And make sure that you can re-order the same materials.
o Make sure to leave enough lead time (more than what was said or think you need) for the purchase of materials, such as a delay element can hold up the entire ride.
Step VI: Sourcing - The best way to find the right source for you
or establish production goals: scalability, outsourcing, specialized equipment, etc. Review domestic and international options - if you start with small amounts is best to start at the national level.
or Determine if you want to hire and agent (international) or contracting production.
- An average production contractor in New York costs $ 500 / week and help source, management and quality control ( "QC").
- An agent will also source, manage and quality control, but usually charges 8-15% and not have to deal with quantities less than thousands.
or The best way to find manufacturers and agents are online, trade shows and referrals.
or review process of production and list of important control points for monitoring the process (this will be different for each type of product so you need to create your own).
Phase VII: Shipping - Understand inputs to decrease markups
or units - countries like China have different quotas for different fibers. This is not so much a problem if you are doing small runs and just starting out.
or Broker - can help assess shipping options and should be able to assign harmonized tariff codes for the goods to you. This code determines the levels of the duties paid for a single item. For example, a silk notepad from China has 0.4% of the tariffs, 20% roll jewelry, shoes 37.5%.
or options - use the international maritime transport, as it is 3-10x cheaper. Under 150kg you can use air. On the domestic front, shop around! Prices vary drastically.
or letter of credit - a letter of credit is set by the bank to confirm that you have the amount needed to pay for goods, shipping and duties. When something goes wrong- you're usually screwed.
Step VIII: Distribution - Ensuring cost of distribution is factored in to final price
or physical distribution : SAMPLE PRICES
Setup fee account or - $ 99
or order Processing - $ 1.85 per order plus $ 0.30 for each item in the order
Expenditure or carrier (UPS, USPS) - actual fees
or luggage - $ 10.00 per cube space of 4'x4'x4 'per month. A SKU for each cube.
or insurance - $ 30 a month to $ 50,000 in inventory.
or monthly fee - a minimum $ 99 or Actual Fulfillment Bill.
or selling: Site, or Trunk Show trade show costs
- standard 10'x10 'booth at the New York Gift Shop is about $ 4,00 + electricity, moving fees, and everything you buy to make your stimulating stand
Step IX: Final Accounting and auditing - review the cycle to determine profit - as the costs of measuring up to the medium?
or to transport imports should reference the 20% mark up the cost of the product. The cost of the product landed (charge upon arrival in your warehouse) must be 50% or less than the sale price you get for it.
or extra 50% will go to operating costs, marketing and distribution, general and administrative.
or find a perfect source is not a foolproof solution - things happen, the producers go to our business, or to find more great clients, or your key account representative. who assured quality every time can just decide to go for something different!
or You should always keep looking for new suppliers as backup or as an option if your business improves enough to expand.
RESOURCE
Production books: The tried and true production Bible is:
Apparel Manufacturing Handbook, Jacob Solinger. Media coil. 1988.
An excellent source is: The Compliance Handbook Seller, David Seoul. Fashiondex.
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