How can a new supply chain platform increase your margins by 5-10%?

Shopify Discussion
,
1

Building a new platform in supply chain management to help reduce COGS. 2 main value propositions:

  1. We help brands reduce costs and connect them to reliable and affordable vetted manufacturers that we have exclusive partnerships with.

  2. We reduce shipping costs through partnerships with freight forwarders.

Overall, on average, we achieve a 5-10% margin increase for our current users.

Would love some feedback on the platform and to hear some issues you have/had with procurement.

2

Hi @levglsh

This sounds like an interesting and valuable solution for e-commerce brands, especially those struggling with high production and shipping costs. From what I see, your platform aims to optimize the supply chain by lowering the cost of goods sold (COGS) through manufacturer connections and reducing shipping expenses via freight partnerships. That 5-10% margin increase is definitely an appealing hook, but let’s break it down to see how compelling it really is for potential users.

Here’s my take on your platform and what could make it stand out:1. Manufacturer Network & Cost Reduction

The idea of offering vetted, exclusive manufacturers is great—brands are always looking for reliable suppliers that offer high quality at lower costs. However, the real challenge here is proving that your manufacturers are truly better than what brands can already find on platforms like Alibaba, Faire, or ThomasNet.

  • Are you offering better prices because of bulk negotiation?
  • Do these manufacturers offer better payment terms (e.g., net 30, net 60) to improve cash flow?
  • How do you ensure quality control? A lot of brands worry about hidden defects or poor compliance when switching suppliers.

Potential Improvement: If you can provide real-world case studies showing how brands cut costs without sacrificing quality, that would be a strong selling point.

  1. Freight Cost Reduction
    Shipping is a huge pain point, and securing better freight rates is a big win. That said, many brands already work with third-party logistics (3PL) providers or freight forwarders. So, what makes your partnerships better?

    • Do you negotiate better bulk rates that individual brands wouldn’t get on their own?
    • Do you offer dynamic pricing models that adjust for seasonality and volume?
    • How do you compare to services like ShipBob, Flexport, or Shopify’s built-in fulfillment network?

    Potential Improvement: Show real shipping rate comparisons before and after using your platform, with clear cost breakdowns.

Some Procurement Challenges to Consider

From my experience working with e-commerce brands, here are a few common procurement headaches you might want to address:

  • MOQs (Minimum Order Quantities): Many brands struggle with high MOQs, especially when testing new products. Can your manufacturers offer lower MOQs?
  • Lead Times & Delays: Supply chain delays are a nightmare. Do you offer any predictive tools or risk management strategies to avoid disruptions?
  • Quality Assurance: Brands often get burned by inconsistent quality. Do you have an inspection or sample verification system in place?
  • Transparency & Pricing Trust: Some sourcing platforms have hidden markups. How do you ensure pricing transparency?

Final Thoughts

Your platform sounds promising, but to get brands on board, they’ll need proof—real numbers, clear case studies, and comparisons against existing solutions. If you can show why your manufacturers and shipping partners outperform what’s already available, it’ll be a much easier sell.

Hope this helps! If you need extra help, just let me know asap. Thanks!
Daisy.