Brokers vs. Manufacturers – Finding The Best Path to Product Delivery

You’ve spent time and resources developing a great product. The challenge is attracting attention to it so consumers will purchase it and then spread the word to others.

Strategies such as Point-of-Purchase (POP) displays are commonly acknowledged to be the best use of your marketing dollars. In days gone by, deploying these strategies was simple. You’d work with a local company to create a display, launch it and start seeing increased sales.

Things are quite a bit different today.

Now, companies have nearly limitless options for deploying new marketing solutions, both from direct manufacturers and from brokers that offer a more hands-off, end-to-end production experience.

But, which method offers the best path to product delivery? Both options have their advantages, though for the purposes of today’s assessment, we’ll be focusing on two product delivery aspects in particular -- quality control and production efficiency.

Can You Establish and Maintain Quality Control?

Quality counts!

One of the best parts about working with brokers is they are ultra-focused on delivering quality. This is especially true of brokers that both design and produce solutions. These businesses maintain trusted networks of supply chain partners across original equipment manufacturers (OEMs), distributors and other vendors who have been tested and vetted by the broker company.

For the broker, this means full oversight over the final product while being able to benefit from each partner’s uniquely-optimized workflows. From production to transportation to quality control, everyone has a job to do, and they do it well.

Manufacturers offer a comparable service for product delivery but with several key drawbacks. Although manufacturers retain control of processes by keeping things in-house, their lack of diversity in processes can actually limit the quality of the final product.

For example, the type of materials they offer might be limited, forcing buyers to adhere to different standards than they anticipated. Or their shipping and distribution processes may be unoptimized and at a higher cost than they would be through a dedicated transportation provider.

From one perspective, their services make them jacks of all trades -- and masters of none. From another perspective, they're simply a jack of one trade -- the one they specialize in. But, does this approach really give buyers the best possible outcome?

Consider the alternative of working with a broker. Brokers select the ideal partner for every stage of product delivery. In essence, they're able to help their clients become masters of all stages, as they're able to leverage their network of specialists to connect clients with the vendor best suited to help, guaranteeing a higher level of quality across all processes.

This includes:

• Analyzing the results of quality tests

• Identifying areas for improvement

• Making changes to the production process or product design as necessary

 The COVID-19 pandemic forced companies to redefine core business processes that support new methods of service delivery. According to research from the Institute of Supply Management, demand for brokered materials will continue to increase.

As companies become leaner, the services of a broker become even more valuable. Buyers should always strive to make and maintain connections with trusted brokers to ensure that their processes are in good hands. 

Can You Make Production Efficiency a Priority?

Production efficiency is, perhaps, the biggest benefit of brokered services. Brokers coordinate with third-party partners across every leg of the supply chain to get products in their buyers’ hands. They might work with an OEM that offers a rich variety of material types for POP displays. They might work with distribution vendors with dedicated processes for mode-shifting transportation, guaranteeing on-time delivery for any components. The list goes on.

With quality brokers, every aspect of production is driven by efficiency. Not all brokers maintain these connections, but those that do offer superior service across production quality and time-to-market. 

Contrast this with manufacturers, many of which operate through in-house processes that may be limited in scope. As an example, many manufacturers won’t sell products in small quantities, which can put smaller companies in a quandary when minimum purchase orders can’t be met. This can become a serious issue when these want to launch a new product or marketing promotion.

Additionally, many manufacturers offer part of the production equation but lack other elements such as product design services. This necessitates contracting with another business to fill in the gaps, creating more complexity in process management.

How the heck can companies maintain an efficient production schedule without working through a reliable company that can meet the entire spectrum of product display design and production needs?

Get the Best of Both Worlds with the Right Partner

Whether you need a new POP display to distribute across your network of retailers, a new visual marketing strategy or any other type of promotion, having the right display partner sets the stage for success.

In our view, the broker vs. manufacturer debate isn’t much of a debate at all, especially when you consider how partners such as Rhino Global offer the best of both. Unlike manufacturers (which primarily stick to the production of components), Rhino handles all aspects of manufacturing, design and delivery through a fully brokered service arrangement.

You get the efficiency advantages and hands-off nature of a broker service while still retaining oversight of key manufacturing processes. This differentiation allows us to provide a more comprehensive, white-glove service that we’re proud to bring to your project.

Contact us to learn more about our end-to-end visual marketing options to get your products the attention they deserve.