In Defense of Trading Companies—the honest ones, at least.

I have to admit, I’m trading company. And I'm tired of hearing everyone bad mouth trading companies and then quickly hush up when I enter the room. Sure there are bad apples in the barrel but that is a characteristic that is certainly not unique to trading companies (Enron, Anderson, Mattel’s factories being three examples of companies, consultants and factories with the same issues). So why are trading companies always singled out?I don’t know what your personal experience with trading companies has been but it if the company was doing it’s job it should have been a good experience. Trading companies can and should save you time, money and stress.So, in (my) defense, here are some of the advantages of working with a trading company vs. going to the foreign factory directly.1. We work for you—you (and only you) pay us. We are your rep. We don’t get paid from the factories; Ever. If your trading company takes money from a factory they are not a trading company they are a sales office.2. We take tons of your liability. If the product is bad we are on the hook to both you and the factory. It is in our best interest to get you the quality you want in the timeframes you’ve contracted for. Typically we are paid directly by you and then pay the factory—decreasing your liability (since you are not contracted to the factory for the product).3. We are on the ground and in the factories multiple times each week over the entire course of production. If you aren’t here yourself you absolutely MUST have someone here for you. We are not day-wage hirelings that will just visit the factory to check the job off their list as many 3PQC are. Nor do we receive any incentive from the factory to lower quality standards. So, who better than someone who has a vested interest in seeing you succeed?!4. We have management experience with and a better understanding of logistics within Asia. Our job is supply-chain management in Asia. This is where we spend a significant amount of time on every product—finding, negotiating with, inspecting, coordinating and shipping from multiple factories in multiple provinces in China and countries in Asia.5. We do multiple products and so have resources outside of any individual factory. There is no such thing as an all in one factory for any product—the materials, the labor, the packaging all must come from multiple sources. For example, a bag factory may be great at stitching and finishing. But they will not be great at packaging or printing and certainly don’t make their own hardware or even materials at the same time or in the same location. As a trade company we do products that span multiple industries and know with whom to talk to get better prices and/or more options and/or faster turn around times and/or better quality.6. We have better communications than factory reps. This is better for you talking to us and for us talking with the factory. We have full time native English speakers who also speak Chinese—you don’t want to talk to someone that is guessing at your meaning. Typically the only time you’ll get factory employees with very good English is at trade shows. And when the show is over they’re gone.7. We have a better understanding of international standards—having experience with multiple foreign clients in multiple countries for multiple years. We know what you expect and know the difference between what is standard in China and what is standard internationally. We may not be experts in your specific industry, but you are and we work for you. What we do know is how to apply standards to product, how to test, how to do QC, how to communicate in China and how to manage projects. We won’t waste your time with rounds of sub standard samples—nor will you get a “golden” sample that can never be duplicated.8. We are independent and are not attached to any single factory in any way. The advantages of this position are obvious—there is no conflict of interest when it comes to product standards.9. We can leverage production quantities for multiple clients into cheaper prices for everyone.10. We are focused on getting you the best product possible—that’s how we get paid and how we stay in business. A factory is focused on getting a product done for the absolute cheapest price possible.11. We are totally transparent. We’ll take you to each and every factory and production site that you want to see. You’ll never wonder if something is being subbed out—because if it is, we’ll tell you and we’ll take to the actual production site. We don't want "face" and don't make any profit by showing a nice building but then giving you substandard product from a sub-contractor.12. You already have a job of your own (that you probably work too hard and too long at already), why do you want to do ours? We provide a service not unlike your tax accountant—a difficult job for which many probably think, “If I could just do it myself I’d save tons more money.” Truth is, we often offer a lower price and certainly offer more services than people doing “the China thing” themselves. Do what you do best and we’ll do the same.13. Finally, you know who we are, where our company registration is, what our relationships to the factories are, where the money goes and where our loyalties lie. There is no guessing, “is this guy really a part of this factory or is he a Hong Kong relative?” There is not need to worry if we are going to run away—we are registered in the US, in Thailand, in Hong Kong and in China—we are conspicuously available and have nothing to hide. Unlike a factory sales rep, who can take the money and run, your deposit is not more money than we’ll ever see and it’s not more important than your long term relationship with us. The truth is, it’s much easier for an individual factory sales rep to take off with your money or sell your product to someone else than it would be for a legitimate trading company with multiple clients.A trading company works for you, represents you when you can't be here yourself. It is in our best interest to get you exactly what you expect when you expect it—that’s the only way we get paid!We are Your Branch Office in Asia.