Tag: Procurement

What is a sample order and why order one?

A sample order is an order you place when you find a potential and suitable supplier. It contains one or a few units of an item you want to buy in large quantities from your manufacturer. This process generally occurs before the production operation begins.

While it is not a mandatory process, we recommend you not skip it: a sample order can help you minimize the risks of receiving unsatisfying products.

Benefits for the purchaser to order a sample

For the purchaser, ordering a sample is the best way to ensure the high quality of the products. In most cases, the manufacturer will expect the purchaser to pay for the production and shipment of the samples. However, some suppliers will make them for free after some negotiations, or if it is a certain type of samples.

In either case, it is always better to pay to receive a sample and evaluate it, than to skip the process and receive large quantities of a product you can’t use. Bear in mind that the cost of revisions occurring after the production process will be higher: you can avoid this situation with a sample order.

There are various benefits of making a sample order:

1. Lower the risks of major revision costs
   By ordering a sample, you can identify and address potential design or functionality issues before committing to a large-scale production. This simple action can save you production costs down the line since you can still make modifications at this stage of the operation. As a purchaser, ensuring that the final product meets your consumers' expectations is a priority.
2. Optimize logistics operations
   Samples are the first step to identifying potential logistics problems, especially during the production part. While this is not always the concern of the purchaser, it is still important for the manufacturer to make sure that the Supply Chain has no problem producing flawless items. Again, identifying potential problems early on in the production operation can save both parties a lot of money.
3. Ensure product quality and performance
   Checking the quality and performance of a product beforehand is essential for companies that focus on customer satisfaction. For some products, you will likely receive several samples. Evaluating their aspects, quality, and consistency will ensure that the final version will meet the desired standards. 
4. Assess the manufacturer’s capabilities
   The sample’s quality will also tell you a lot about your supplier’s capacity to give you the right product. It is a way to see if the person you are working with is reliable and can provide in different aspects: the quality of work, the ability to meet deadlines, and the condition of the goods upon delivery.
5. Gather customers feedback
   Sometimes, it is in the best interest of businesses to order multiple samples as they will be tested by potential customers to gather valuable insights on how to improve the product. In this situation, sample orders are necessary and can be used to gauge market interest before launching the final version of the item.

The process of sample order does not only benefit the purchaser. As a manufacturer, having clear instructions is a time saver. Not only does this process lower the risks of product defects, but it also ensures a good relationship between both parties and helps avoid material waste.

The main steps in ordering a sample

Ordering a sample can take weeks or even a few months, depending on the product and the modifications you need to make. Again, the cost and time this process takes are worth it, and it is a good way for the buyer to ensure that the product is adapted to the company’s needs.

There are different steps you can follow to ensure that your sample order goes as planned. For this process, you have to find a reliable supplier, select the product, check the sample policy, and then place the order. Let’s find out the details about these different steps to follow for a sample order!

Finding a reliable supplier

Working with a competent supplier who can provide good manufacturing expertise and high-quality products at a good price is the best way to boost your company’s performance. While it can take time to find the right supplier, this step is important: it has a direct impact on the profitability of your business. In today’s competitive market, finding a reliable supplier is essential as it allows you to differentiate yourself from your competitors.

Here are the things you need to take into consideration while searching for a supplier:

• The transparency of the information the manufacturer provides: looking for information should be simple, and good communication between you and a potential supplier will ensure that both parties are on the same page.
• Rely on a Q.C.D.S principle, which stands for Quality, Cost, Delivery, and Service. Through sample orders, you can assess the quality and past work of the supplier. Then analyze the prices and compare them with those of the market. You can find a way to reduce costs through negotiation and compromise, which will lead to a win-win situation. The next step is to find out if the manufacturer can deliver the products when you need them. Finally, take into account the supplier's record of pre-sales and after-sales service.

• Understanding the cost of suppliers by having a good knowledge of market prices is an advantage, as you will be able to negotiate. Note that the relationship between your company and the supplier should benefit both parties to build long-term and solid cooperation in the future.

You can either work with only one supplier or find multiple ones. In the first case, you will have a relatively stable source of procurement, but some risks come along with it: if, for whatever reason, this relation is at risk, you will have a hard time with your business. Meanwhile, if you have multiple suppliers, you can maintain your competitiveness and minimize the risks of delays or other risks.

Tips for a smooth sample ordering experience

First, you need to know that the usual price for a sample unit ranges between $35 and $100 or higher, depending on the type of product. You might be surprised by the high price of a single unit, but keep in mind that the customization of your product will be costly for your supplier for different reasons (logo design, logo mold, specific requests, etc.) 

Sample orders are an essential part of the sourcing process, and doing it right can benefit you in many ways. Let’s review what you need to know for a smooth sample ordering experience.

1. Do not rely on only one supplier: in most cases, it is better to have several options to choose from. Receiving samples from at least two or three different suppliers allows you to know which one is more likely to meet your expectations. Once you evaluate all the samples, you can choose the most suitable supplier.
2. While the price for sample units can be high, you can always negotiate a refund for the sample fees once you place a bigger order. This will show your supplier that you consider a long-term relationship with him based on trust. However, note that you are not likely to receive a refund for the shipping costs.
3. Ask for multiple samples (from the same supplier): receiving more than one sample will allow you to compare them and know if they are consistent. In other words, you will be able to see if the logo is always at the same place, or if the quality is the same, for example. Having several samples is also a good idea, as you can use them for different purposes.
   
4. Ship your samples not by sea, but by air express: you don’t want to drag on this process, so receiving your products as fast as possible is the best way to optimize your operations. Though air express is more expensive than sea freight, the time you will save is worth the price.
5. The best way to pay for samples is through PayPal: it is secure and has a good fraud detection system. If you choose another way to pay, you might face the risk of not receiving the samples.
6. We advise you to order the samples per phase of production: the pre-production sample is an essential one, but ordering a sample after mass production begins is a good way to ensure that there are no product defects. That way, you can test the consistency of the product: it also allows you to compare it with the pre-production sample and see if the quality is the same.
7. Once you receive multiple samples, you can perform tests, or use them to gather potential customers’ opinions and have an outside perspective. You can also test their durability and send them for quality inspection.
8. Don’t forget to give feedback to your supplier on your satisfaction with the products you receive. Maintaining good communication is the key to a successful trade relationship.