The sportswear OEM/ODM industry seems simple, but there are many complex operating models and potential risks behind it.
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Suppliers often outsource production to smaller factories without the brand's knowledge. This multi-layered outsourcing model can lead to uncontrolled quality and even supply chain problems that the brand cannot trace.
In order to reduce costs, some suppliers will use inferior raw materials or reduce necessary steps in the production process, resulting in a significant reduction in the durability and comfort of the finished product.
Many brands lack control over the production schedule, and suppliers' delayed delivery often makes brands miss sales opportunities.
Understanding how suppliers really work, conducting regular site visits, and establishing transparent communication mechanisms with them are key to avoiding risk and ensuring success for brands.