5 Ways Good Sourcing can Reduce Returns!

Sourcing new suppliers is an expensive and time consuming process not only for the retailer but the suppliers themselves having to gain both ethical and technical accreditation. On-boarding can take as long as six months in some cases so its really important that we on-board the right suppliers for the right reasons, for the long term and not just the coming season. 

Changing the supply base too often leads to poor quality and inconsistency of fit, two of the main reason for customer returns. Many retailers for one reason or another have a huge portfolio of unwanted or under-utilised suppliers which they have on-boarded at some point at huge financial cost. The hidden cost for the retailer is the over inflated returns rate which has spiralled out of control through lack of controls by having too many suppliers.

5 ways good sourcing can reduce returns. 

• Production: quality suffers when the production lines are switched on and off so when on-boarding a new site try and give a continuous run of core style or fabric to keep the production line running on your brand. Contracts given to suppliers intermittenly could lead to poor quality product. Focus on how many suppliers you require and work with them, retailers can be awash with suppliers who can offer far more production time than the retailer can fill.
• Collaboration: building a sustainable collaboration partnership with key suppliers will help achieve long term goals as opposed to short term vision of hawking round product for the best price which can lead to short term commitments.
• Control: build procedures and ways of working with key suppliers to obtain business goals for both parties. The suppliers goals should meet that of the retailers and reflect the robust pre production and in production controls to meet critical path dates at the correct quality level.
• Consistency: Sizing is far and away the main reason for customers returns. Controlling pattern management and grading methods through the supply base is the only way to control consistency of fit. Key suppliers will need to adhere to block patterns and grading increments / methods outlined by the retailer. this approach will help build customer confidence and lower return rates.
• Costings: investigating open costings plays a major role in the quality of the end product, only when both parties have confidence in each other will open costings become a believable document. Cost savings not cost cutting should be the outcome when investigating open costings. Fabric cost can amount to 70% of the product cost so building up a library of fabric ratings and other fixed costs with key suppliers is vital to the quality of the product. This is only effective with long term suppliers who are comfortable to share the information without hiding cost.

Words by John Oates