Mark Sabbagh’s Post

Within the framework of #international trade and #import transactions, I am in constant contact with suppliers and buyers in many countries. My work experience has shown me that some #suppliers and buyers conduct their business with great professionalism and sincerity. This professionalism increases #customer satisfaction and contributes to the acceleration of business processes, whether it is large purchases or small pallet-based purchases. Customer satisfaction in particular plays a critical role for both suppliers and buyers. However, in some cases, #buyers experience delays in the turnaround time of offers. For example, sometimes it can take 2-3 weeks to receive a response to an offer. In fact, some buyers may still not have responded to an offer made in mid-April. Due to the complexity of international #trade and especially import transactions, processes can take a long time, but it is #important for buyers to respond to offers on time. This is because, depending on market conditions, product prices may change until a return to a #price quoted two months ago. However, it has been observed that some suppliers behave as if they will only sell #products to buyers once. This may be manifested by incomplete, damaged or poor #quality delivery of products. It should not be aimed to sell products only once, on the contrary, long-term and reliable partnerships should be established. As a result, whether buyer or seller, they should not see their #relationship only as a commercial exchange. They should strengthen their #communication and build reliable partnerships. This approach allows both parties to develop more successful and sustainable business relationships in the long term.

Long-Term Thinking 💡 ⚖ 📅 Story Time: A brand we are partnered with was having a dispute with their supplier after receiving their last order. They claimed the total qty received was slightly less than what had been invoiced and the supplier denied this as a possibility, even going so far as to check the factory CCTV footage of the packing and loading of the order to support their side. While the dollar amount being disputed was quite low, the buyer in all fairness should be allowed to dispute any discrepancies between invoice and goods received.  The problem is, that these discussions or arguments will almost always have a negative impact on the relationship between buyer and supplier. It's important to evaluate the cost of both options. On the one hand, allowing errors to pass will cost some money, and give the impression to the supplier that you aren't aware of what does and doesn't land in your warehouse. On the other hand, nitpicking and arguing with a supplier over relatively small matters will make you gradually end up at the bottom of the supplier's priority list.  The most difficult customers will end up with the worst service. When a factory is experiencing extended lead times and they need to postpone production on some orders, guess whose orders are the first to be postponed? Not their favorite customers, that's for sure. My advice: Politely but firmly inform the factory of the issue and request they look into it. If they support your claim and offer to replace the missing units on the next order, great. If not, consider letting it slide and informing the factory that you are agreeing to do so in an effort to maintain a solid relationship with them. It's a short-term loss for a long-term gain. #supplierrelations #manufacturing #procurement #productsourcing #globaltrade #supplychain

Whether you're 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 or 𝐛𝐮𝐲𝐢𝐧𝐠 𝐠𝐨𝐨𝐝𝐬, understanding the different types of shipping contracts-like 𝐅𝐎𝐁 and 𝐂𝐈𝐅-will help you better understand your responsibilities throughout a transaction. This in turn will help you reduce risk and lead to a smoother supply chain. So what is the difference between FOB and CIF? And how does it affect the 𝐢𝐦𝐩𝐨𝐫𝐭 and 𝐞𝐱𝐩𝐨𝐫𝐭 process? 𝐁𝐥𝐨𝐠 𝐋𝐢𝐧𝐤 : https://lnkd.in/gEwFqJQk

Conduct Price Violation Audits for your Product Pricing and ensure your distributors and authorized dealers adhere to your pricing policies. This is crucial for maintaining your brand's integrity and profitability as it can hurt your margins and also damage the perceived value of your products. We conduct audits nationwide and can help you get the insights you need to improve your bottom line. #MarketSurveys #PriceCompliance #BrandIntegrity #BusinessGrowth #MarketResearch #ccipk #priceviolations #Marketsurvey #dealerships #authoriseddealers #audits #mysteryshopping

In international trade, it is crucial to carefully read the contract provided by the seller before making a purchase 📄. If you agree with the terms, you approve and sign the contract ✍️. However, if there are any terms you wish to change, you can discuss them with the seller to reach a mutual agreement 🤝. Contracts hold great importance, especially when it comes to the #production and urgent delivery of products 🚚. The primary responsibility lies with the seller's obligations 📦. When sharing my experiences, I take care not to mention the names of countries or companies. This is to avoid creating negative perceptions about those countries or producers in the minds of readers 🌍. Therefore, I refer to them as A, B, and C. This time, we ordered #products from country B. It was the dealership of a large company in country B. While they always have products in stock, we requested them to repackage some items with our own design 🎨. Regarding payment terms, we agreed on a 30% advance payment and 70% payment upon product readiness, against the shipping document 💰. We made the 30% payment and discussed all details with the factory to ensure the products were ready 🏭. Production began, but holiday periods caused delays 🎉. Normally, the product readiness time ranges between 15-20 days, but this extended to 30 days ⏳. The seller informed us that the products were ready and asked us to send a #container for shipping 🚢. Meanwhile, we were handling the transportation arrangements 📦. Around 4-5 PM, the seller's sales representative requested the translation of the packaging for the product we had modified, and I sent it 🌐. The next morning, the logistics agency tried to schedule a loading date with the seller, who then informed them that the products would be ready in a week 📅. However, we were unaware of this situation since we were acting on behalf of the customer 📞. We had already informed the customer that the products were ready for loading 🕒. I contacted the seller to ask why we were not informed, stressing that they should have notified us first 📲. They explained that the sales representative we were working with had left the #company and that we hadn't informed them about the new packaging production 😕. Eventually, the products were ready for loading a week later 📦. As Thomas Edison said, "Failure is simply the opportunity to begin again, this time more intelligently" 💡. This experience reminded us once again of the importance of keeping communication channels open and clarifying every detail 🔄. #storyfrommyexperience #youneedtogoglobal #trading

Free on Board Shipping point or FOB Shipping assigns the liability and the payment for a shipment to the buyer. The transfer of responsibility occurs as soon as the inventory arrives at the shipping point and gets loaded into the vehicle. After the transfer, the buyer logs the transaction as a sale and notes the increase in their inventory. The buyer pays for all shipping costs with FOB shipping. Aside from the transport expense, they are also liable for any damages that may occur during shipping. In this agreement, buyers are responsible for filing claims on damaged freight since they hold the title and ownership of the inventory. For instance, when Retailer A signs a FOB shipment agreement with International Manufacturer B for inventory, the inventory ownership transfers once the shipment reaches the delivery vehicle. In most international transactions, the differentiation is usually at a port. If one piece of inventory breaks during transport, Retailer A is responsible for the damages even if the parcels haven’t reached their storage facility. 📌And more on (zhenhub.com) web 📌https://lnkd.in/eQddmWAw

Some suppliers might negotiate prices; others never will. However, they might give you better terms in other areas, which could be more important #negotiation #suppliers #costmanagement

Recently, I encountered such a problem while purchasing products from a foreign company. All negotiations were conducted in advance, and a price agreement was reached. Later, the delivery terms and packaging issues were discussed, and finally, everything was agreed upon. The buyer company made the payment to the seller. It should be noted that during #international payments, money transfers are credited to the buyer's account within 72 hours. The seller informed us that the money had been credited, and they would start production. Two days after this information, the export sales manager of the seller company stated that they had mistakenly given the prices, thinking we had ordered #products in standard sizes, and the offer was based on those sizes. However, later, they provided a higher price offer for the same sizes and the sizes we ordered. Naturally, the increase in the product's cost was unfavorable for the customer, and the order was canceled. Because we inform the customer of all the costs of the product before #purchasing, if we buy at these new prices, it would be higher than the market price of similar products in the local market. For this reason, we canceled the order and demanded a refund. Lessons Learned Points Buyers Should Pay Attention To: Written Agreements and Contracts-Confirm all agreements regarding price and terms in writing, based on contracts signed by both parties. 📜✍️ Change Clauses in the Contract-Include specific clauses for price changes and other terms in contracts. This ensures both parties fulfill their obligations. 📑🔍 Final Inspection Before Full Payment-Conduct a final inspection before making the full payment and obtain a written statement from the seller confirming that the product is ready and the price remains unchanged. ✅💵 Alternative Suppliers-Always maintain connections with alternative suppliers and prepare a backup plan to compare their offers. 🔄📊 How Suppliers Lose Customers in Such Situations: Damage to First Impressions-Changing the costs you have communicated to your customers in advance can damage their trust in you. 🛠️🕵️♂️ Price Increase-Higher prices can reduce your competitiveness in the local market and cause customers to turn to alternative suppliers. 📉🔍 Trust Issues-Customers who encounter such situations may hesitate to work with you in the future. 🚫👥 Inconvenience and Additional Costs-Changing and reorganizing the order can lead to additional time and costs, resulting in customer dissatisfaction. ⏳💸 Considering these points, it is crucial to take appropriate measures to ensure customer #satisfaction and avoid such situations. 🚀🛡️ #storyfrommyexperience #youneedtogoglobal

Buying in bulk & negotiating with suppliers is a smart #strategy to reduce costs & improve your bottom line. When you purchase large quantities, you have greater leverage to ask for discounts, which can significantly lower your per-unit cost. #Tips #Hacks #Trade #negotiation

Trading Failures! Customers are the base of your business. They are always Right!🤔 I say No! A customer base if built right can be the difference between Success and Failure! It's now time to revisit your Terms of Trade!🤔 There are lots of things going on as the world impedes on your business. Some Tips. Revisit penalty clauses in your Terms of Trade Enforce them for late payments. Offer a small percentage back for very prompt payers. Revisit your product ranges. look to invite similar suppliers to a table. just because you've had a range supplier for a while doesn't mean you have to stick with them. if they step up you can too. 🙏 Buy-ins. Open delivered items so they are in good nick for customers. If they are damaged , refuse the delivery. Take photos This is your proof that the items are good for your clientele. if a customer makes a mistake. phone the supplier to see if the supplier will take it back 🤔 inform the client that a restocking fee will occur and that the other Suppliers charges will be additional if returned freight return will be the customers liability as well. Don't accept dead stock back. You can negotiate selling on behalf, instead of a instant refund #IanFordBusiness