Posted on Wed, Feb 22, 2012 @ 07:43 AM
That’s the title of a recent story that ran in Material Handling & Logisitcs by Tom Andel which caught our eye. Far too many of the customers that come to DirecSource admit they’ve lost control of their supply chain. From raw material sourcing to manufacturing to shipping and logisitics there are so many moving parts that companies now must keep track of to ensure they stay on-time and on-budget.
At DirecSource – managing the supply chain for our branded partners is our business and we couldn’t agree more with what Andel says:
If there were a company listed on the New York Stock Exchange called “Your Supply Chain,” your broker would probably urge you to stay away from it. Too risky. And many corporate executives across the country agree—their supply chains are risky. According to a survey by McKinsey & Co. of more than 600 C-level executives across a range of industries worldwide, more than two thirds of respondents said that supply-chain risk had increased over the last three years, and they expected it to continue increasing over the n
ext five years—especially in the following areas:
• Global competition
• Complex patterns of customer demand
• Financial volatility
• Global markets for labor and talent
• Exposure to differing regulatory requirements
• Environmental concerns
A quarter of the respondents to the McKinsey study said they aren’t prepared for more pressure from global competition and more complex customer demand patterns. And 37 percent are unprepared for the other four areas. More recently, Dr. Jeff Karrenbauer, president of INSIGHT, a supply chain analytics and consulting service firm, commented on the effects of rising tensions between the U.S. and Iran.
“Open conflict in the Strait of Hormuz would be a nightmare for supply chains throughout the world, raising the cost of raw materials, manufacturing, transportation, warehousing, inventory…essentially every component of a supply chain,” he said. “We still find that the majority of companies have spent little or no time planning for such contingencies. That is astounding, troubling and frankly, a significant management failure.”
To read the rest of Andel’s Story click here.
Posted on Sat, Feb 18, 2012 @ 07:56 AM
No matter how great your invention or product development is –there are critical decisions you’ll make that will directly relate to the success or failure of your great idea.
Choosing the right manufacturing partner is the first of a series of critical decisions you’re going to make to bridge the gap between product concept to product completion.
With that in mind, we enjoyed Karen Klein’s story “Find A Manufacturer for Your Invention” in Bloomberg Businessweek.
Determine how your product will help its target market and whether distributors will carry it. Then explore online for potential investors.
DirecSource works with a range of companies spanning from medical device companies to brands that make product for mothers and infants as well as brands in the outdoor, fitness and lifestyle markets. In each case, critical decisions are made relating to the type of factory we place those brands in. Providing complete project oversight we take the responsibility to ensuring that the plant’s we choose have the manufacturing capabilities to ensure that the vision of the product developer or the inventor is delivered with the final product.
Here is Klein’s story:
Last year, my invention for people with troubled feet was patented as an alternative to foot surgery. I would like to have a manufacturer reproduce about 100 pairs of my prototype so I can test the market and see how well it does. Where can I find a U.S. manufacturer to do this? —P.J., New York, N.Y.
Many inventors have great ideas, but like you, they need help taking steps toward commercialization, production, and distribution. Particularly with a medical or health product, there’s quite a hurdle to get from invention to market, especially when you may have to compete with the huge research and development budgets of such household name brands as Medtronic (MDT) or Nike (NKE) to do so.
Your first challenge is to successfully answer three questions, says Bill Donohue, vice president of Genedge Alliance, a Virginia-based affiliate of the Manufacturing Extension Partnership, which operates as part of the U.S. Commerce Dept.
You have to let your potential customers know: what exact problem your invention solves; what about it will entice distributors to carry it and customers to buy it; and finally, why they should believe you and the promise you’re making.
“Answering those questions is not easy at times” for entrepreneurs, Donohue says. For instance, in order to prove your product is a viable alternative to surgery, you’ll need to have an independent organization—preferably academic-oriented—run third-party clinical trials. The trials would compare results from your device with the surgical procedures it is designed to replace.
Those trials can take years to conduct properly and will likely be expensive. “There may be a need to evaluate alternative materials of construction and design characteristics to come up with the right combination of comfort, durability, and affordability. This may require specialized knowledge in orthopedic mechanics, as well as engineering design,” Donohue says. It’s likely that you may find yourself partnering with established companies in this industry or seeking funds from outside investors such as venture capital firms, he says, to get your product launched.
Since you’ve got a patent, start by visiting MEP’s marketplace hub, where you can evaluate thousands of prospective manufacturing partners. You can get questions answered and find low-cost coaching help to develop a commercialization plan for your product through the Industrial Technology Assistance Center of New York City, or the New York state MEP affiliate in Albany.
You might also consider attending the upcoming MEP conference in May, in Orlando, Fla. While such gatherings can be expensive, entrepreneurs often find that in-person exposure to ideas, processes, experts, and potential collaborators can speed them along through the learning curve tremendously. Good luck!
With over 25 years experience contract manufacturing in China and well over 500 factories in our supplier and manufactuer network, we’ve specialized in providing complete solutions to companies of all sizes who are looking to craft the best products in a range of industries spanning from toys to medical devices as well as fitness, outdoor and lifestyle products.
Posted on Mon, Feb 13, 2012 @ 08:17 AM
Do you fear that your products are being knocked off?
A recent report in CNN Money identifies the Top 10 counterfeit goods, according to the US Customer and Border Protection which seized 25,000 shipments of counterfeit goods that were making their way in to the US last year. The total value of the goods was $178.9 million.
Among the leading items that were knocked off last year:
- Electronics - $39 Million worth of goods were seized with a street value of $101.2 million.
- Shoes - $25.3 million worth of goods seized with a street value of $97 million.
- Clothing - $14.8 million with a street value of $126.3 million.
- Toys and Games - $7.6 million with a street value of $26.9 million
To read the report in CNN money click here.
We mention this because one of the many services DirecSource offers its customers is comprehensive project oversight which reduces the likelihood that your company’s products will be knocked off during the manufacturing process in China.
DirecSource employs over 70 business professionals in Asia who provide management and oversight specific to your project.
Individual disciplines range from designers and engineers to material sourcing specialists, quality control supervisors to production managers, packaging engineers and shipping coordinators. Our experienced staff ensures quality and reliability with every order.
Posted on Sat, Feb 04, 2012 @ 03:40 PM
There are right ways to do things, wrong ways to do things – and our favorite – New Ways!
Following in the footsteps of the old adage that says there are no stupid questions – we enjoy, and encourage, our team at DirecSource to look for new and creative ways to do things.
Sometimes it doesn’t work and we learn there is a reason “it’s always been done that way.” But – sometimes we find out that by encouraging out of the box thinking we’re able to save tens or even hundreads of thousands of dollars on the development of a new mold. Or - we’re able to improve the durability of a new handbag for mother. Or, perhaps, we discover a way to shave weeks off of the product development cycle by changing something in the development process.
We honestly think the ability to question and challenge old school methods is something that truly makes DirecSource unique. With that in mind, we loved the recent article byHarvey Mackay in Inc., Magazine called: How To Accomplish The Impossible – Genius Sometimes Just Mean’s Not Realizing That Something Is Impossible.
A college student arrived a few minutes late for his final exam in mathematics. The room was quiet, with everyone working hard, and the professor silently handed him the test. It consisted of five math problems on the first page and two on the second. The student sat down and began to work. He solved the first five problems in half the time, but the two on the second page were tougher. Everyone else finished the exam and left, so the student was alone by the end of the time period. He finished the final problem at the last second.
The next day he got a phone call in his dorm room from the professor. “I don’t believe it! You solved the final two problems?”
“Uh, yeah,” the student said. “What’s the big deal?”
“Those were brain teasers,” the prof explained. “I announced before the exam that they wouldn’t count toward your final grade, but you missed that because you were late. But hardly anyone solves those problems in so short a time! You must be a genius!”
“Genius” sometimes means just not realizing that something is impossible.
Some days you have to wonder how you’ll do all you have to do. You'll ask whatever made you think that you could challenge the incumbent players in your industry, let alone create a company that could one day be worth something. Those days are inevitable, but they pass. And when they do, you're usually left with a sense of pride that you have greater capacity for achievement than you realized.
Every successful entrepreneur faced doubts, both within and without: Steve Jobs was fired from Apple. Fred Smith of Fedex was told his blueprint for overnight delivery was wildly impractical, and Jack Bogle of the Vanguard Group was told his idea for a financial services company owned by its shareholders was doomed to failure.
The only antidote is to believe in yourself and your idea–but mainly in yourself. After all, every business plan is wrong in its original form: A good part of entrepreneurial genius is being able change quickly. Jennifer Hyman of Rent the Runway, for example, originally thought her business was about saving frugal women money on their workday wardrobes. After watching one of her customers try on a couture gown, though, she realized she was in the business of helping women realize their Cinderella fantasies. Ideas change, but the entrepreneurs don't.
And what gives entrepreneurs the ability to pull off the impossible, is belief. Belief leads you to ask “what’s possible?” and then follows that question with “what else is possible?” You have to do this in your business, if you intend to survive. A positive attitude, creativity and determination combine to create genius.
Former First Lady Nancy Reagan recounts a story about the genius of the Greatest Generation. “Once, at the University of California, a student got up to say that it was impossible for people of her generation to understand the next generation of young people.
‘You grew up in a different world,’ the student said. ‘Today we have television, jet planes, space travel, nuclear energy, computers...’
“When the student paused for breath, Nancy said: ‘You're right. We didn't have those things when we were young. We invented them.’”
Mackay’s Moral: What could you accomplish if no one told you it was impossible?
To read the entire article click here.
To learn how DirecSource can help you find new ways to reinvent your supply chain click here.
Posted on Sat, Feb 04, 2012 @ 09:25 AM
When’s the last time you rolled up your sleeves and took an honest, hard look at your supply chain? Do you know how efficiently its working?
If your company outsources your product manufacturing there may be ways that DirecSource can help improve your business – either by finding new and unique ways to cut costs or working with your team to put systems in place that allow you to sleep at night.
Our mission is to work with emerging brands giving them access to our diverse network of material suppliers and manufacturers in China resulting in Turnkey Solutions, which address the complete range of Supply Chain Management solutions.
DirecSource services have been proven to reduce sourcing, production, oversight and delivery costs, which have led to significant reductions in operating expenses and the flexibility to reallocate resources toward business development efforts.
Over the past 20 years, we have developed an independent network of trusted partners who provide us access to a broad range of Raw Materials, diverse Manufacturing capabilities and Design Flexibility. So, whether you make medical products, products for MIT (Mother, Infant, Toddler) or sports, fitness and outdoor products, we have factories in our network that specialize in your category.
We carefully vet all of the factories that we work with through an extensive audit process and we have our workers on-site monitoring the production of your product line. Keep in mind, however, the factories we work with are all independently owned entities. DirecSource does not represent the factories; we represent you!
To learn more ho DirecSource can help to improve your supply chain click here
Posted on Fri, Feb 03, 2012 @ 12:28 PM
The New York Times recently accused Apple of knowing that Foxconn, the largest manufacturer of electronics in China, was abusing workers and did nothing about it. You can read the report here.
According to the Times, report surfaced after an anonymous Apple executive told the Times, "We’ve known about labor abuses in some factories for four years, and they’re still going on. Why? Because the system works for us.”
As you can imagine - the story has caused an uproar at Apple forcing CEO Tim Cook to issue several statements defending Apple’s manufacturing process. In an email to employees, Cook noted:
- “We are focused on educating workers about their rights, so they are empowered to speak up when they see unsafe conditions or unfair treatment. As you know, more than a million people have been trained by our program."
- “Every year we inspect more factories, raising the bar for our partners and going deeper into the supply chain. As we reported earlier this month, we’ve made a great deal of progress and improved conditions for hundreds of thousands of workers. We know of no one in our industry doing as much as we are, in as many places, touching as many people."
What caught our eye here at DirecSource was the mere fact that the CEO of a major company like Apple was even put into a position of having to defend the company’s manufacturing practices.
At DirecSource, we put all the factories we work with through a rigorous audit process and we continuously monitor factory conditions to ensure that the CEO’s of the company’s we work with are not put in the position that Tim Cook has been put in.
Should an accusation be made accusing one of the factories about working conditions – we partner with you to provide you with all the necessary documents from our audit process - as well as testimony about what we saw during our many visits to the factory. As Tim Cook learned, anyone can make accusations – what’s important is that there is a system in place that quickly helps to separate fact from fiction.
To read more about our risk management policy click here.
Posted on Wed, Jan 25, 2012 @ 02:58 PM
Looking to get a handle on the year ahead, leading sporting goods trade publication Sporting Goods Business surveyed a dozen industry leaders to get their thoughts on what lies ahead in 2012.
Included in the overview were executives from the Sporting Goods Manufactuers Association, Moving Comfort, Keen Footwear and Timberland just to name a few.
Also included in the story was DirecSource COO Ed Ring who noted that after
imrpoving on its infastructure last year the company is set up to take advantage of growth opportunities in 2012. In the overview, Ring said:
"As a leading producer of goods in the sports, fitness and outdoor maretkplace, we're seeing that the brands we work with are very bullish on 2012. We saw an increase inproduction during the 3rd and 4th quarter of 2011 as we produced goods that are shipping for Spring 2012. Looking further ahead, the early indicators suggest that Fall 2012 is expected to be even stronger as brands appear more confident about what they are hearing from their retail partners. Direcsource, with
offices in the US and China, has made significant investments over the past six months in new infrastructure, data management systems and key personnel to help manage the anticipated growth."
Posted on Thu, Jan 12, 2012 @ 07:31 AM
Direcsource is excited to announce an ongoing series of articles examining the supply chain and things many brands overlook when producing their goods. This series will cover issues of importance in:
- Choosing and managing The Right Factory
- Tools and tips for Raw Materials Management
- Avoid Counterfieting and keep your Brand Integrity
- Careful Product Engineering can tip the scales in your favor
At Direcsource, we spend a lot of time working with our customers and auditing the factories we work with to ensure every customer is put into a position that allows them to succeed.
We've built our business by ensuring that our customers do not get caught in a "crisis" that may range from learning the factory they've been working with just filed for bankruptcy or learning that the workers are not being treated the way you were led to believe they were being treated.
In this first story we address some key points that should be looked at when looking at your overall supply chain. Let us know what you think!
Episode 1: Is It Time For Your Supply Chain Check-Up?
DirecSource was built by creating partnerships with our customers. We understand that for us to succeed - our customers have to succeed.
When we start talking with a new customer, it’s imperative that we learn everything about their product development cycle – and sometimes we find many of the things they are doing are being done exactly as we would have done them ourselves.
But, more often than not - we find there are many ways we can improve their product supply chain process – and save our customers time and money. Our process looks at everything from second and third tier resources that suppliers and manufacturers are using to shipping and delivery contracts.
To read the rest of the story and learn how to get a supply chain check up, click here.
Posted on Tue, Jan 03, 2012 @ 09:47 AM
Representatives of DirecSource, a leading supplier of sourcing and manufacturing services, will be in Las Vegas January 15-22 to attend a number of industry leading trade shows. DirecSource representatives will be handing out casino poker chips to individuals who book appointments in advanced.
During an appointment with a DirecSource, exhibiting companies will learn how DirecSource:
-
Promotes brand integrity
-
Provides confidence in supply chain sourcing
-
Ensures quality control standards and reliability
-
Implements social initiatives
Brands that are interested in learning more about DirecSource’s services are encouraged to book appointments that will last no longer than 20 minutes. Those who book an appointment in advance of the show will “pick a chip” from a hat that contains poker chips ranging from $25-$100.
Click here to Book an appointment with DirecSource at the Shot Show, Army Navy Military Expo and AVN Show.
DirecSource provides complete access to a diverse network of global material suppliers and manufacturers. DirecSource services address the complete range of supply chain needs, from comprehensive project oversight to on-time delivery.
DirecSource is a leading global supply chain solutions company providing sourcing, manufacturing, logistics, shipping, warehousing and fulfillment services. To learn more about DirecSource please visit www.direcsource.com or contact Ed Ring at edr@direcsource.com
Posted on Wed, Dec 28, 2011 @ 05:08 PM
Congratulations to the US Immigration and Customs Enforcement office (ICE) in partnership with Homeland Security Investigations for the seizure of more than 327,000 counterfeit items that carried a manufacturer's suggested retail price of nearly $77 Million.
The seizure followed a six week operation called Holiday Hoax II that targeted stores, flea markets and swap meets where counterfeit goods have found a market.
"We've been working very hard to ensure that are customers products don't face the threat of counterfeiting and we're excited to announce even tougher standards later this year that our partner factories must meet," said Ed Ring, COO of Direcsource, a global supply chain expert that offers brands a network of suppliers and factories.
Direcsource works with brands to source, manufacture, ship and fulfill products. "One of the things we're most proud of is that we allow our customers to sleep at night. They know that we work with only the top factories and they know we're on the factory floow watching their products get made - without fear of counterfeiting," said Ring.
The recent Holliday Hoax II raid spanned 66 cities across the United States as well as Seoul, South Korea; and in 55 Mexican cities.
"Counterfeiting remains a significant problem that demands strong enforcement efforts both here and abroad," said ICE Director John Morton. "This year's success during Operation Holiday Hoax was as a result of the close partnership with the governments of Mexico and South Korea, and I'd like to thank them for their continued assistance in this fight. Together, we've dealt a significant blow to counterfeiters worldwide while making a positive impact on American jobs here at home."
"U.S. Customs and Border Protection facilitates about $2 trillion in legitimate trade annually while enforcing U.S. trade laws that protect the economy, and the health and the safety of the American people," said CBP Commissioner Alan D. Bersin. "This important work is accomplished through close partnerships with the trade community, other government agencies and foreign governments."
Between Nov. 1 and Dec. 16, ICE HSI special agents and law enforcement officers seized counterfeit products in the United States, including toys, cell phones and chargers, handbags, DVDs, perfume, integrated circuits, wallets, computer software, and sports jerseys. Thirty-three people were arrested and charged with trafficking in counterfeit goods.
To read more: http://www.sportsonesource.com/news/spec/spec_article.asp?section=2&Prod=2&id=41095&utm_source=Listrak&utm_medium=Email&utm_term=http%3a%2f%2fwww.sportsonesource.com%2fnews%2fspec%2fspec_article.asp%3fsection%3d2%26Prod%3d2%26id%3d41095&utm_campaign=Outdoor+Business+UPDATE+-+Petzl+America%2c+ComScore%2c+REI+Foundation%2c+Ugg...