Product Sourcing Brief

GATE: Confirm brief before creating the sourcing document.

Phase 2: Specify

Product Specification Document

Create a detailed spec sheet including:

1. Product description — what it is and what it does
2. Dimensions — exact measurements with tolerances (+/- acceptable range)
3. Materials — specific materials required (grade, weight, composition)
4. Color — Pantone codes or exact color references
5. Finishing — surface treatment, coating, texture
6. Packaging — inner packaging, outer carton, labeling requirements
7. Functionality requirements — what it must do, stress tests, durability standards
8. Compliance — certifications, testing requirements, restricted materials

Specification Table Format

GATE: Present the specification document for review and approval before sending to suppliers.

Phase 3: Build

Deliverables

1. Complete Sourcing Brief

• Product specifications (technical document)
• Quality requirements and inspection criteria
• Packaging and labeling specifications
• Compliance and certification requirements
• Target pricing and order quantity

2. Supplier Inquiry Template

• Professional introduction and product overview
• Specification attachment reference
• Questions to ask every supplier:
  • MOQ and pricing tiers
  • Lead time for samples and production
  • Payment terms
  • Quality control process
  • Certifications held
  • References from other clients

3. Supplier Comparison Matrix

4. Negotiation Guide

• Which terms are negotiable (price, MOQ, payment terms, lead time)
• Leverage points (volume commitment, exclusivity, long-term relationship)
• Walk-away thresholds for each term
• Common negotiation tactics and how to handle them

Phase 4: Polish

Pre-Production Checklist

• Sample approved in writing with signed specification
• Production timeline confirmed with milestones
• Payment terms agreed and documented
• Quality inspection arranged (pre-shipment inspection recommended)
• Shipping and logistics arranged (FOB, CIF, or DDP terms clarified)
• Contingency plan if production fails inspection

Post-Production Review

After receiving the first order:

• Inspect random sample (5-10% of units)
• Document any defects with photos
• Calculate actual unit cost including shipping, duties, and inspection
• Score supplier performance and document for future reference

Example 1: Private Label Skincare Product

Specs: 50ml glass jar, frosted finish, bamboo lid, custom label with FDA-required text. Target: $3.50/unit at 1,000 qty. Sourcing from US or South Korean manufacturers with GMP certification.

Example 2: Custom Kitchen Tool

Specs: 304 stainless steel blade, BPA-free plastic handle, specific dimensions and weight. Target: $2.00/unit at 2,000 qty. Sourcing from Chinese manufacturers with FDA food-contact certification.

Anti-Patterns

• Vague specifications — "Make it nice" is not a spec. Exact dimensions, materials, and colors prevent production arguments.
• Skipping the sample — approving production without a physical sample is gambling with your entire order cost.
• Choosing the lowest bidder — the cheapest quote often means the most corners cut. Balance price with quality evidence.
• Paying 100% upfront — standard terms are 30% deposit, 70% before shipping. Never pay 100% before production.
• No inspection before shipment — once goods ship, your leverage disappears. Always inspect before final payment.

Recovery

• Quotes are all above budget: Reduce specifications (simpler packaging, different material), increase MOQ for better pricing, or adjust the target cost with revised margin calculations.
• No suppliers respond: Rework the inquiry to be more professional. Suppliers prioritize buyers who appear serious (clear specs, realistic quantities, professional communication).
• Sample does not match specifications: Document the deviations with photos, request corrections. If the supplier cannot hit spec on a sample, they will not hit it in production.
• First production order has defects: Negotiate a discount or replacement for defective units. Document everything and consider a different supplier for the next order.