THE 2 SIDES OF

THE COIN

I have the luck to be on the two sides of the coin. What do I mean by this is that I been and I am a “Client” and a “Supplier” at the same time. On the client side, it's me developing my own brands, so of course, I’m always looking for the best interest in that business, but in the other category such as  “Services, development and sourcing” for external brands I need to look for the best interest of the supply chain this time.

 

It's super interesting to see that often the client “Buyer” seems to have more importance than the “supplier” since he (The client) thinks has more choices due to the variety of suppliers and agents. That it's correct, but the question is: How many of all of the suppliers is the correct for me as a client and the same question vice versa, since not all the clients are “Good clients”.

 

Same as client, the supplier is not just looking for one time business, money or the short term specially on the startups, due the lack of experience on production process and in the overall business plan, so its takes x 5 even to x 10 times more effort to get to the same result you get with an experienced buyer.

 

On that perspective, if the supplier it's good enough and it's full of projects, will analyze the brand and their business scheme to see if they will take the “Bet” on to see the brand growing. Usually it’s a 2 years period that a good supplier will give a brand to see it grow, if the brand its too complicated (Disorder on internal process, late payments, etc.) and don’t raise their sales, most probably is that brand will lose the “Position” on the factory since will be consider a B client and the production will tend to be late, the service will be lower and even the brand can get fired.

 

YES! Suppliers also fire clients. No matter in what side you are, you need to think that is a project in common, that’s there’s not a real “Buyer or supplier” it’s a “Team” that’s together has a mission to get that project along. It’s the 2 sides of the coin at any business, where all the actors are equally important.

 

Most of the times (And I say as brand owner perspective) we underestimate the relationship with our supply chain, and we are always thinking on a number mindset “Price” and that there always “Another one” that will do it but we need to consider the whole universe of things that happens between, a relationship, trust, understanding, the support and expertise on your requirements and so on that are indispensable assets that nobody tent to quantify.

 

Just remember that no side can live without each other. Take care of your relations and more than “Money-driven”, build a “good and sincere relation” to succeed in the long term.

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DANIEL SPENCER

Daniel, it's one of the first Chilean "Sneaker" entrepreneur, where all he's passion come from.

On March of 2008 -I have left his life in Chile and move to Asia by himself to create Brands & Develop a company who specialized in Sneakers, footwear and Accessories.

Till 2019 Brands & Develop has made products on the sneakers field for more than 4 continents (South America, North America, Europe, and Oceania).