Uncovering the Key Reasons Behind the Preference for Direct Sourcing in the Premium Sheepskin Industry
In the world of high-end sheepskin products, quality and cost control are two factors that can never be ignored. For manufacturers, choosing the right way to source raw hides directly affects their product quality, production costs, and even market competitiveness. In recent years, “direct raw hide supply” has become the first choice for more and more high-end sheepskin product manufacturers in B2B procurement. This article will explore the core logic behind this trend and explain why it can help businesses reduce costs and improve efficiency.
1. Cut Down Intermediate Costs Significantly
One of the biggest advantages of direct raw hide supply is the ability to reduce intermediate costs. In the traditional procurement model, manufacturers usually get raw hides through multiple middlemen. Each middleman adds a certain profit margin to the raw hides. By the time the raw hides reach the manufacturers, the price has increased a lot.
With direct raw hide supply, manufacturers connect directly with raw hide producers. They skip all the intermediate links. This means there are no more extra costs from middlemen. For example, a high-end sheepskin coat manufacturer used to buy raw hides through two middlemen. Each middleman added a 15% profit margin. After switching to direct supply, the manufacturer’s raw material cost per unit decreased by about 25%. This cost saving directly improves the company’s profit margin.
2. Ensure Stable and High-Quality Raw Materials
High-end sheepskin products rely heavily on the quality of raw hides. In the traditional procurement model, manufacturers often face problems such as unstable raw material quality. Middlemen may mix low-quality raw hides with high-quality ones to make more profits. This makes it difficult for manufacturers to control the quality of their final products.
Direct raw hide supply solves this problem. Manufacturers can directly communicate with raw hide producers. They can put forward specific requirements for the quality of raw hides, such as the thickness of the hide, the density of the wool, and the absence of defects. Raw hide producers will produce according to these requirements. Moreover, manufacturers can even send professionals to the production site of raw hides to supervise the production process. This ensures that every batch of raw hides meets the high-quality standards needed for high-end products.
3. Speed Up the Procurement Cycle
Time is crucial in the fast-paced market of high-end sheepskin products. The traditional procurement model has a long cycle. Raw hides need to go through multiple middlemen, which takes a lot of time for transportation and communication. Sometimes, middlemen may have inventory shortages, which further delays the procurement process. This can cause manufacturers to miss the best time to launch new products or meet market demand.
Direct raw hide supply shortens the procurement cycle greatly. Manufacturers and raw hide producers establish a direct cooperative relationship. When manufacturers need raw hides, they can place orders directly with the producers. The producers can arrange production and delivery quickly. There is no need to wait for middlemen to transfer information or transport goods. For instance, a high-end sheepskin bag brand used to take 45 days to complete a procurement cycle. After adopting direct supply, the cycle was reduced to 20 days. This allows the brand to respond to market changes faster and launch new products more quickly.
4. Enhance Flexibility in Procurement
The market demand for high-end sheepskin products is constantly changing. Sometimes, manufacturers need to adjust the quantity or specifications of raw hides according to market trends. In the traditional procurement model, this adjustment is very difficult. Middlemen usually have fixed supply quantities and specifications. Changing orders may lead to additional costs or even the inability to change at all.
Direct raw hide supply provides manufacturers with greater flexibility. Since manufacturers communicate directly with raw hide producers, they can adjust the procurement plan in a timely manner. If the market demand for a certain type of sheepskin product increases, manufacturers can increase the order quantity of the corresponding raw hides. If there is a new trend in product design that requires a change in raw hide specifications, manufacturers can also negotiate with producers to modify the production plan. This flexibility helps manufacturers better adapt to market changes and maintain their competitive edge.
Conclusion
For high-end sheepskin product manufacturers, “direct raw hide supply” is not just a procurement method. It is a strategic choice that can help them reduce costs, ensure quality, speed up the procurement cycle, and enhance flexibility. In the fierce B2B market competition, this model has become the core logic for manufacturers to achieve cost reduction and efficiency improvement. As the market continues to develop, more and more high-end sheepskin product manufacturers will choose direct raw hide supply to gain more advantages in the industry.