The Rapid Imports of Promotional Products
What is Rapid Importing?
One of the most common phrases from 2021 was the “supply chain crisis”. But for most Americans and promotional product experts they really did not understand what the supply chain is and now, how it is crisis. Let me give you the Cliffs Notes version.
What is a supply chain?
A supply chain is best described as an accounting of all the hands in which a product passes and the time it takes from where it is made (a factory for example) and it’s ultimate final destination (the end user or consumer).
This simplified explanation does not take into account the raw materials required to make something, that is a whole other part of the supply chain. If you want to take that into account, and you should, then the supply chain for anything we consume passes through between 10-20 hands along the way.
How Covid-19 killed the supply chain?
There is no simple explanation or specific reason but the top reasons are best described as this. “Covid created large holes in the labor force with lockdowns, factory closures and sickness. Each time a “hole in the supply chain erupted” the ability for the final product to be made and delivered created a delay. Each delay compounding on top of the previous one”
How long will this mess last?
The Guardian newspaper estimates the supply chain crisis will last at least 2 years. I tend to be a little more optimistic, I will say 18 months.
Any way you look at it, what hell you are experiencing at present with your current promotional products supplier is going to last for a whole lot longer.
How to beat the supply chain crisis!
Currently, the factory’s have all the raw materials needed to produce most, if not all of the goods require to make the promotional products needed. The problem with the supply chain, for our purposes, is the hands it passes through and the time it is taking from the source factory’s (primarily in Asia or Latin America) and the consumer or end user here, stateside.
The levels of sales intermediation between the promo factory and you.
If you are buying from a Leeds or an I-Hit supplier there are many levels of sales intermediation in this process. What is sales intermediation? Sales intermediation is best described as “anyone along the supply chain who increases the cost of goods and profits from that increase.
The “big box suppliers” like Leeds have the following. Factory makes a profit, Leeds would have an office in China staffed with dozens of people whose wages and overhead are added to the factory costs. Then there is transit from the major production centers such as Shenzen where it is transferred to the port in Hong Kong. This shipper adds a cost. Then the cost of shipping from HK to another port in the states, say Los Angeles. That adds a significant cost. Then from the port it is unloaded off the ship then put in a transhipment warehouse. Extra cost. Then there is duties and any tariffs. That costs. Then it is shipped to their central warehouse. Another costs. There in the warehouse the goods are handled a number of times to unload, put them on the shelf, take them off the shelf, send to decoration. That costs. Then shipped to you, which you pay for. This obviously costs. Why would you do this?
Going factory direct costs less, saves time.
Your alternative is to go factory direct and let us do all the work. Here’s why this is in your best interests.
We deal with over 100 factory’s that produce over 10,000 different promotional products. When we sell you an order we ship it direct from the actual factory, put it directly onto a plane in the factory’s city and ship it to the nearest airport to you. Then our courier picks it up and delivers it direct to you or your client.
The number of times there is sales intermediation in this process is less than half of what takes place with a Leeds or an I-Hit! Less than half!
This is called Rapid Importing.
By using the rapid importing process there are far fewer steps to get a delay or a snag in delivery. There is no reason to warehouse goods, handle them at a stateside facility for decoration as they are decorated at the factory. Not to mention the cost of decoration at the factory is about 25% of what it costs here.
If you really think this through you will see that going with a rapid importing factory direct delivery not only makes sense, it is the only way to go!