Insights · Case Study · Global sourcing

From Product Idea to International Production

2 min readBy Strahinja Jovanović

How to run international product development so the expensive mistakes surface early

The Challenge

Custom product development across international markets is a chain of decisions where early mistakes surface late and cost most: after the deposit is paid, after the production slot is booked, sometimes after the container is on the water.

That timing is what makes sourcing errors a different category of problem from most operational ones. There is no version of the fix that is cheap once the goods exist.

The Solution

We ran the process so that the expensive questions get answered while they are still cheap to answer.

Supplier discovery and qualification across China, Vietnam, Thailand, Mexico and the EU, with manufacturing partners serving some of the world's leading premium home and kitchen brands. Samples treated as a process rather than a souvenir. Landed cost modelled properly, because the most dangerous number in eCommerce is a margin calculated from the supplier invoice. Purchase price is what you pay the supplier. Landed cost is what the unit actually costs by the time it can be sold.

And one filter that does more work than any checklist: structure. Every factory says yes to volume. The ones that resist a structured buyer are answering your most important question early, and for free.

The Results

Key results

  • Eleven products taken from idea to production for a single client
  • Packaging redesigned until air freight cost the same as sea freight, so the lane can be switched to air whenever timing demands it, without the landed cost moving
  • Buffer stock held at the supplier rather than in the client's own warehouse, so continuity improved without the working capital following it
  • Product development run end to end across five sourcing regions
  • Sourcing decisions made against landed cost, not purchase price
  • Supplier qualification structured so unsuitable partners self-select out before the deposit

The value here was not a lower price. It was continuity. Sourcing programmes are usually sold on savings, and savings are the first thing you give back when a container is late. What actually changes the business is a lane that still delivers when something goes wrong, and a supplier who is already holding your buffer while it does.

What you can apply

Treat samples as a process, not a souvenir. Model landed cost before you model margin. And notice how each supplier responds to structure. The suppliers worth working with respect a structured buyer. The ones who resist structure are answering your most important question early, and for free.

About this project

  • Service: Global sourcing, supplier qualification, product development
  • Regions: China, Vietnam, Thailand, Mexico, European Union
  • Duration: 30 days
The decision this leaves you with

Model landed cost before you model margin, and judge every supplier by how they respond to structure rather than by how fast they say yes to volume.


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