Economies of scale with global merchandising
More is less if you partner with the right branded merchandise agency
It really does seem as though the world is getting smaller these days, but could that just be because we keep getting bigger?
We are Arcadia; a full-service branded merchandise agency. Our global offering includes consultancy, product design, manufacturing, storage and distribution of branded promotional products, marketing materials and event equipment.
What does global really mean?
Being ‘global’ sounds impressive but, at the same time, it rolls a bit too easily off the tongue like most marketing speak. What credentials do you actually need to be able to justify making such a grand claim in our sector, and what benefit does genuine global reach have for a client?
So, we’re based in NORAM, UK, EMEA and APAC and, importantly, for swift and cost-efficient merchandise distribution, we have our own warehousing facilities across four continents with hubs in London, Hamburg, New York, Reno, Toronto, Bangalore and Sydney.
That kind of comprehensive footprint enables us to service global organisations and meet all their branded merchandising needs while, at the same time, offering true economies of scale.
We’re talking specifically about lower production costs and reduced prices for raw materials and other inputs. As you would expect, to make prices even more competitive, we’re always looking to take advantage of the lower costs found abroad, often in the Far East.
Introducing ‘Global Group Buy’
A common merchandising requirement for large international organisations, like yours, is the production of an item or a range of items for all offices around the world as a one-off purchase.
That’s something we’re regularly asked to do and, because one didn’t exist, we’ve even coined our own term to describe this practice: ‘Global Group Buy’. As not all customers want the same thing, we offer two different ways to achieve these one-off purchases.
Manufacturing in one location
In the first scenario, your organisation would collate orders from all the different company locations around the world. The required goods would then be manufactured in one place, usually wherever the best price can be secured to achieve the desired quality. With this one large order, you would, of course, benefit from the lower prices that result from traditional economies of scale.
At the same time, manufacturing the product at one factory ensures a consistent level of product quality for all locations and gives you complete control over the integrity of your brand.
Once manufactured, the merchandise would then be shipped to Arcadia’s convenient warehouse locations in the different regions, and then on to the end destinations.
Local production in multiple locations
There is another option. Over the years, Arcadia has established a network of tried and trusted suppliers across the world, and you might decide to use a combination of these to fulfil your one-off order.
Doing it ‘the local way’ won’t offer the same level of economies of scale. It’s also true that using multiple factories in different parts of the world to produce your merchandise can result in inconsistent quality.
However, there is one significant benefit that might make this approach the best solution for your organisation. For many one-off projects, rapid turnaround can be the overriding priority. If you have tight lead times and are unable to meet your deadlines by using just one factory in one location, this could definitely be the way to go.
Global Merchandise Management platform
Whichever option is right for your organisation, your Global Group Buy will run more smoothly if you take advantage of our user-friendly Global Merchandise Management platform. This online platform has been designed to manage all aspects of the ordering, warehousing and distribution of promotional merchandise and marketing collateral, leaving you to sleep easy at night.
Use our platform and, wherever you are in the world, your order will be processed from the closest Arcadia warehouse to deliver the most competitive shipping cost, the fastest delivery and the lowest possible import duties.
Time to talk?
If you’re a global organisation and would like to find out more about the economies of scale that Arcadia can deliver, or you’d like to discuss any other aspect of branded merchandising, Contact our team They’ll be delighted to answer your questions and talk you through your options.
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