On Big factory and small factory 

After getting involved in ceramic export business since 2009 and becoming sourcing agent for western customers from 2011, we have encountered hundreds of factories and deals with dozens of suppliers regularly.

Many customers requested us to find reliable suppliers for them. Gradually I realized that reliable supplier may not be suitable supplier for every customer. It’s like buying shoes; some prefer fancy looking while others prefer comfortable function.

In general, big factory price is higher than small ones, unless you are a giant company which place order of more than 100 containers every year. It is true that big factories has higher cost, because they normally purchased expensive raw materials and hired more managers to monitor production.They also pay higher to workers so that less half-way quitting would take place.

Small factory, on the contrary, tries all means to save cost in order to achieve more competitive price. In many cases, the boss family takes the role of sales manager and production manager.The advantage of such corporation is that customer requests can be handled effectively.But it also lead to some chaotic situation due to lack of proper management. 

From the customer end, before choosing the suitable supplier, it is important to analyze your own type of business. Whether you are product oriented or supplier oriented. It’s like choosing a restaurant, whether you prefer tasty cuisine or cozy environment.

If you are brand runner, which require factory to constantly coordinate with new sample development, you’d better deal with a small supplier. Because in big factory, too many departments are involved, resulting in much time wasted in communication.

If you are a wholesaler which require stable supply, big or medium sized supplier is suitable for you. Only when a factory is equipped with big capacity and always keep certain machines in spare, can they handle peak season without panic and haste.

If you are buying a common item that many suppliers are manufacturing. You’ll have to keep in touch on regular basis with several suppliers to know the latest price fluctuation.

All in all, there is no simple rule about how to choose a suitable factory. But no matter what kind of supplier you are dealing with, make sure you visit the factory in person occasionally. Because the only rule that never changes is that everything is changing. A small factory may expand to a medium or giant one if they became supplier of a branch firm.