Should You Remove Disposable Glove Suppliers as Middlemen?
September 09, 2013
Stanley Thai, founder of Malaysian rubber glove manufacturer Supermax, is cutting out the middleman. Supermax, the world's second largest rubber glove producer, is now selling direct to consumers.
As a means of realizing savings, buyers (for example, England's National Health Service – trying to find £1bn of savings in its supply chain by 2016) may choose to buy direct from manufacturers rather than going through a disposable glove supplier middleman.
Of course, sourcing direct from a manufacturer does have its disadvantages. When taking advantage of Mr. Thai's new business model, the buyer assumes the following risks:
- Since manufacturers don't have mechanisms in place for customer support, service often lacks. They will first and foremost protect their larger client relationships, and customer service sometimes suffers.
- Wholesalers/importers take the risk of buying too much of one size and not enough of another, causing a supply imbalance.
- Returns could also be an issue. For example, the manufacturer could make the customer pay for return shipping and a restocking fee.
Read more about sourcing direct from the manufacturer in this article from The Telegraph.