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Smart sourcing from Asia – finding and managing suppliers

Smart sourcing from Asia – finding and managing suppliers
October 1, 2018 IEC Group

“Sourcing managers need to know 10 big sourcing lessons learnt the hard way during my 15 years in
Asia about how to find and manage the right supplier among the thousands on offer,” Hong Kong based
sourcing expert Brian Garvin will tell audiences at Melbourne’s International Sourcing Expo.

The managing director of B. Garvin Sourcing and executive account manager at PassageMaker, Mr
Garvin will offer his insights as part of a three-day seminar program during International Sourcing
Expo from November 20 to 22.

Mr Garvin said he would address five keys to successful sourcing:
1. Finding the right supplier
2. Due diligence – is your vendor a legitimate supplier?
3. Project management
4. Quality
5. Contracts – protecting your interests with non-disclosure agreements, purchase orders and
intellectual property.

While the principles of sourcing textiles, apparel and footwear remained the same as in other
regions, Mr Garvin said there were some vital differences when it came to Asian suppliers.

“For example, rather than using a US style of non-disclosure agreement (NDA), we use a NNN
Agreement written for China,” Mr Garvin said.

“The three ‘Ns’ that make up a China NNN agreement are: non-use, non-disclosure, and noncircumvention.

“Non-use means the Chinese factory agrees by written contract not to use your idea or concept or
product in a way that competes with you, the disclosing party.

“The next ‘N’ in a China NNN agreement is non-disclosure.

“In most instances, you need not be terribly concerned with your Chinese counter-party making your
secrets public.

“Non-circumvention is the third and last ‘N’ and its importance varies with the situation.

“Your Chinese factory knows you are purchasing product from it at the China price and then adding a
big margin before you sell the product in a foreign market.”

While the threat to intellectual property was well-known, Mr Garvin said there were a host of other
factors to consider when selecting and managing a supplier.

“Anyone considering sourcing from South East Asia needs to have a thorough understanding of how
to find the good suppliers and avoid bad ones, how to place small orders, avoid scams, negotiate
purchase orders, monitor orders and what to do if things go wrong,” he said.

Brian Garvin will feature among the local and international experts presenting Global Sourcing
seminars during International Sourcing Expo at the Melbourne Conference & Exhibition Centre from
November 20 to 22. Other topics will include ethical sourcing, the Modern Slavery Act, insights into
the main Asian fashion supply industries and even WGSN’s Denim Trend Forecast 2020.

Browse the three-day program and secure your seat here.