Welcome back to another episode of e-Commerce on Tap, your source for insights into the dynamic world of e-commerce. In today’s episode, Nathan invites a special guest: Stephen Miller, the General Manager of Sourcify.
Join us for an enlightening conversation as we delve into the intricacies of supply chains, the transformative role of Sourcify, and the invaluable expertise Stephen brings to the table.
Stephen’s Journey: From Entrepreneurship to Leading Sourcify
Before we embark on a deep dive into Sourcify’s operations, let’s briefly touch upon Stephen’s background. His journey from an outdoors enthusiast to co-founding a sustainable fashion brand showcases his diverse experiences.
Venturing into raft guiding and skiing, Stephen’s path took an unexpected turn when he and his friend embarked on a journey to launch a clothing brand, building a supply chain from the ground up.
His remarkable journey eventually led him to roles at Izba, where he faced logistical challenges in a corporate setting. This foundation played a pivotal role in the strategic investment that Izba made in Sourcify, ultimately placing Stephen at the helm of this innovative platform.
Unveiling Sourcify: A Revolution in Supply Chain Dynamics
Central to today’s conversation is Sourcify itself – a paradigm-shifting platform designed to empower businesses in navigating the intricate landscape of global supply chains.
Sourcify’s fundamental premise is the realization that forging successful partnerships with factories across the globe can lead to substantial cost savings, operational efficiencies, and a heightened competitive edge. By providing brands with the knowledge and tools to make well-informed decisions about sourcing strategies, Sourcify emerges as a beacon of innovation.
The Power of Buying: Transforming Small Brands into Strong Partners
Stephen’s insights into the concept of buying power offer a vital perspective, especially for startups and e-commerce businesses. The transition from a fledgling brand with limited purchasing clout to a significant player can significantly alter the dynamics of supply chain negotiations.
This transformation stems from factories’ preference for reliable demand and consistency, making businesses with established supply chains more enticing partners. Consequently, establishing a dependable supply chain can elevate smaller entities to valuable collaborators, amplifying their bargaining power and overall competitiveness.
Sourcing Beyond Borders: The Multifaceted Nature of Global Manufacturing
Diversifying the manufacturing footprint by exploring options beyond China is a pertinent topic. Stephen addresses the appeal of countries like Vietnam, Mexico, and India that promise flexibility and risk mitigation. However, he emphasizes a nuanced approach, underscoring the importance of considering product type, compliance requirements, and regional regulations.
Stephen says that you can’t enter the retail market or even bring in your own product if the factory you choose doesn’t guarantee compliance with all international standards. And addressing the elephant in the room, Stephen also clarifies that nothing is wrong and nothing is expected to go wrong with Chinese factory production and shipping from/to China.
In fact, he also lists out reasons why brands can’t compromise their partnerships with legitimate suppliers including production, regulation and compliance standards.
“Anything that’s remotely regulated, (e.g.) if you need FDA compliance, that’s hard to find in other countries besides the US unless it’s China.”
Unveiling Hidden Costs: Beyond Unit Costs to Net Costs
A critical aspect often overlooked by brands is the concept of net costs. While many fixate solely on unit costs, Sourcify adopts a holistic perspective by factoring in freight, duties, tariffs, and packaging.
Sourcify’s expertise in optimizing packaging, consolidation, and freight routing contributes to these cost reductions, ultimately enhancing a brand’s profitability. Stephen talks about how brands can save costs by looking at their supply chain and finding opportunities such as decreasing pick fees, changing freight size or type, etc. (sometimes 1 FCL is better than 2 LCLs).
As the Founder of Sourcify, Nathan recounts the time when a brand dealing with UPS found that just cutting off an inch of the parcel box allowed them to save 20% of their shipping costs.
As Nathan puts it, “So many people just look at the unit cost when they really need to look at the cost to get their product to their customer.”
“News or Noise”: Separating Fact from Fear in Supply Chains
In a thought-provoking segment titled “News or Noise,” Stephen addresses a common concern – the potential for supply chain disruptions due to geopolitical or regulatory changes. Drawing parallels with sensationalized weather reporting, Stephen says, “Choose something in the news and just see. Do you think this is actually a problem or is this all hype because there’s a lot of people being scared?”
It’s clear that Stephen advocates for pragmatic analysis over unfounded fears while pointing out substantial and reasonable attention-demanding aspects such as inflation and overcharges faced over the course of each supply.
While diversification and risk mitigation remain essential, he emphasizes that a complete shift away from China is improbable for most businesses due to China’s entrenched role in global trade networks.
Sourcify: Beyond Sourcing – A Partner in Growth
As we conclude this insightful episode, Stephen underscores the role of Sourcify as not just a sourcing platform, but a partner dedicated to demystifying supply chain complexities.
Sourcify has helped brands reduce production and manufacturing costs while Izba has optimized supply chains for efficiency, resiliency and profitability. Combining their expertise, the two organizations now work to help brands achieve peak revenue generation and cost efficiency.
The platform’s expert team stands ready to guide brands in making informed decisions that drive growth, cost savings, and enhanced competitiveness.
As Stephen puts it, “I know we’re gonna save them money because if their rate hasn’t come down, when containers have gone from $20,000 (during COVID-19) to $2,000 a pop, something’s wrong.“
Empowering Brands Through Informed Supply Chain Choices
The insights shared by Stephen Miller and the revolutionary approach of Sourcify offer a roadmap for brands seeking to thrive in the dynamic arena of eCommerce.
By embracing the power of partnerships, understanding the intricacies of net costs, and navigating the global sourcing landscape with discernment, businesses can position themselves as leaders in the ever-evolving world of e-commerce supply chains.
For those eager to explore the realm of supply chains and unlock the potential of global sourcing, Sourcify stands as a beacon of light and partnership, ready to work for mutual success.
