How To Boost Your Margins By Fixing The Way You Source From Asia — Omer Sasson | What Good Sourcing Does For Profit, Why You Need Backup Suppliers, Why Supplier Checks Ensure Quality, Why You Need Factories Audits, How Culture Affects Communication (#415)
To boost margins, ecommerce operators must rethink their Asian sourcing strategy beyond just price. Key actions include rigorously vetting suppliers, implementing a robust backup supplier system, and conducting thorough factory audits to ensure consistent quality and mitigate supply chain risks.
Key takeaways
Develop a backup supplier strategy with at least 2-3 vetted suppliers per key product to avoid business disruption from unexpected events (e.g., natural disasters, supplier bankruptcy, tariffs).
Implement a multi-phase supplier vetting process: contact hundreds to thousands of potential suppliers to benchmark pricing, then conduct in-depth verification asking the same questions in different ways to confirm capabilities, followed by rigorous product development and sampling.
Always conduct on-site factory audits by a third party to verify actual facility conditions, equipment, and quality control processes, as online representations can be misleading.
When considering alternatives to China, research countries best suited for specific product types (e.g., India for wood/stainless steel, Vietnam for plastics). Explore opportunities to upgrade product quality simultaneously to justify potentially higher costs and increase perceived value.
Don't assume direct factory engagement is always best; evaluate if a trading company adds value through expertise, communication, or broader access, or if direct partnership truly yields better margins for your specific product and order volume.
In this episode, Claus Lauter and sourcing expert Omer Sasson discuss the critical aspects of sourcing from Asia, including the importance of having backup suppliers, the process of finding and verifying suppliers, navigating tariffs, and understanding cultural differences in communication. Omer shares his insights on how to improve sourcing strategies to boost margins and profits, emphasizing the need for thorough research and the value of working with experienced professionals in the ...
Frequently asked about this episode
What does this episode say about cost optimization?
Develop a backup supplier strategy with at least 2-3 vetted suppliers per key product to avoid business disruption from unexpected events (e.g., natural disasters, supplier bankruptcy, tariffs).
What does this episode say about global sourcing?
Implement a multi-phase supplier vetting process: contact hundreds to thousands of potential suppliers to benchmark pricing, then conduct in-depth verification asking the same questions in different ways to confirm capabilities, followed by rigorous product development and sampling.
What does this episode say about risk mitigation?
Always conduct on-site factory audits by a third party to verify actual facility conditions, equipment, and quality control processes, as online representations can be misleading.
What does this episode say about supply chain management?
When considering alternatives to China, research countries best suited for specific product types (e.g., India for wood/stainless steel, Vietnam for plastics). Explore opportunities to upgrade product quality simultaneously to justify potentially higher costs and increase perceived value.
What does this episode say about cost optimization?
Don't assume direct factory engagement is always best; evaluate if a trading company adds value through expertise, communication, or broader access, or if direct partnership truly yields better margins for your specific product and order volume.
