DTC POD Nathan Resnick - Product Sourcing & Development 101

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Nathan Resnick 00:03:01 00:05:16

"Scaling Up Your Supply Chain: "And so for us, those are the three main pillars that we look at. Price, obviously, is always top of mind, but if quality and lead times aren't there, then it's a big problem as well."

Nathan Resnick 00:05:59 00:10:38

"The Power of Third-Party Inspections": "It's kind of like your insurance to make sure that what you're receiving from that shipment is actually what you're expecting to receive. Right. Because literally the worst case scenario is when you receive product and it's not what you expected because now you have product at your warehouse, which is when you're starting typically just your house and you've got a bunch of product that is messed up and that is a horrible position to be in. So get thirdparty inspections done, even at the scale of sourceify, we always do them because it's just why not insurance for your product?"

Nathan Resnick 00:11:03 00:13:40

"Forecasting is Vital for Factory Production": "As you grow, forecasting is so important, and being transparent about that with your factory is vital."

Nathan Resnick 00:16:03 00:19:40

"The Benefits of Supply Chain Optimization: “To boost profitability, making sure your supply chain is dialed in is so crucial.”

Nathan Resnick 00:23:28 00:25:54

"China: The World's Manufacturing Hub": "Though in America, from a macroeconomic standpoint, we're having a lot of governmental incentives like the Chips Act to bring manufacturing back into America. And I think that act is not only strategic from a manufacturing and job standpoint, but also from a kind of security standpoint in terms of not being so reliant on Taiwan or China for chips. But even from an ecommerce angle, it's going to be really hard to compete producing most ecommerce products in America and even in Mexico. Right? A lot of the suppliers in Mexico get the raw material from Asia, so it's always a changing landscape. But as of today, china is definitely still the world's manufacturing hub."

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03:01 Bringing a product to life is complex; technical specs must be created and the right factory found for cost, quality and lead time.

05:59 COVID prevents travel to Asia; alibaba is a marketplace, but suppliers pay to rank; communicate specs clearly; use third-party inspections.

11:03 Factories in cities typically produce same products; forecasting important; visit factory to build relationships and understand production.

14:15 Understanding cost breakdowns of products.

16:03 Solo founder used educational content in Facebook Groups to build flat-fee sourcing business, raised seed round, built supply chain software, charges subscription and commission on production, aligned with customers, works with Jackson, Amazon brands, and ISBA.

20:05 Networking with suppliers at trade shows and hiring experienced sourcing team members to build relationships and consolidate demand for better pricing and payment terms.

23:28 China is the world's manufacturing hub, despite trade wars, tariffs, geopolitical issues, and COVID.

26:54 Never be single sourced; consider cost and lead time when expanding production outside of China.

29:38 AI empowering ecommerce marketing and customer service teams with faster iterations and auto-filled responses.

32:19 Brands using AI to clip and repost ads across multiple accounts to get higher reach and blended ROAS.

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Topic: Product Sourcing and Manufacturing in E-commerce - Bringing a product to life involves many nuances and complexities, including finding the right factory and cost/quality/lead time analysis. - Figuring out factory costs. - COVID restricts travel to Asia; start ecommerce with Alibaba Global Sources; pay to rank; WeChat for communication; third party inspections for product assurance. - Factories typically produce same products in same hubs; forecasting and transparency is important; visit factories to build relationships and understand production. - Networking with suppliers at trade shows and expanding sourcing team to build relationships with long-standing factories to get better terms/pricing. - China remains world's manufacturing hub despite shifting to other countries due to tariff increases, COVID, and geopolitical issues. - Never be single sourced, consider net cost when exploring production outside of China.
Topic: Nathan Resnick's Entrepreneurial Journey - Started in living room, Facebook Groups, flat fee sourcing, YC, software for transparency, monthly subscription, commission on production, customers 10% savings, partnered with Cuts Clothing, Jackson, Amazon brands, non FDA medical supplies, deal with ISBA.
Topic: AI and E-commerce - AI empowering ecommerce teams to iterate faster on ads and handle more customer service tickets. - Using AI to clip and repost ads across multiple accounts to gain reach and drive value for brands.

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