For high-growth DTC brands, packaging can be a major operational hurdle. It’s a critical component of your product experience, but sourcing it effectively from overseas is filled with challenges.
Rising costs, long production timelines, and the difficulty of vetting suppliers from afar can create significant friction. This was the exact situation a promising DTC brand faced before they engaged Move Supply Chain.
This case study explores how our on-ground presence in China transformed their packaging supply chain, delivering substantial cost savings and faster production cycles.
The Challenge DTC Brands Face in Packaging
Many DTC founders and operations managers know the struggle. Your brand is scaling, but your packaging supply chain can’t keep up. This client was dealing with a familiar set of problems that were hindering their growth.
Cost Creep, Rigid MOQs, and Mold Fee Hurdles
The brand’s existing packaging suppliers were becoming increasingly expensive. Unit costs were creeping up, eating into their margins. At the same time, they were locked into high minimum order quantities (MOQs) and steep mold fees for any new custom packaging designs. This lack of flexibility made it difficult to innovate or manage cash flow effectively.
Long Lead Times and Inventory Risk
Production delays were another major pain point. Long lead times from their suppliers in China meant their cash was tied up in inventory for extended periods. Worse, it created a constant risk of stockouts, which could damage customer loyalty and halt sales momentum during peak seasons.
Vetting Sustainability and Compliance Remotely
The brand was committed to sustainable packaging, but verifying claims from thousands of miles away was nearly impossible. They needed assurance that their suppliers were using the specified materials and adhering to compliance standards, but lacked the resources to conduct on-site audits.
Move’s Two-Pronged Approach to DTC Supply Chain Optimization
To solve these challenges, we deployed a two-pronged strategy that combined broad market access with deep, on-the-ground validation. This approach for their packaging supply chain was designed to deliver speed, quality, and cost-efficiency without the client ever needing to leave their headquarters.
Canton Fair Sourcing to Widen the Funnel Fast
Our first step was to leverage the Canton Fair, one of the world’s largest trade exhibitions. Our China-based team attended the fair with a clear mandate: identify a wide range of potential packaging suppliers. This allowed us to quickly build a large pool of candidates and gather initial quotes, immediately expanding the brand’s options beyond their limited existing network.
Factory Visits and Audits to Validate Quality
With a shortlist of promising manufacturers from the fair, our team began the crucial next phase: direct factory visits. Going on-site is the only way to truly validate a supplier’s capabilities, capacity, and claims. We conducted thorough audits to ensure quality control processes were in place and that the facilities could meet the brand’s production demands and compliance requirements.
Execution Details: From Shortlist to Savings
Our systematic process turned possibilities into tangible results. Here’s how we executed the plan.
Supplier Shortlisting and RFQ Structure
From our initial Canton Fair sourcing, we created a curated shortlist of vendors that appeared to meet the client’s quality and capability needs. We then issued a detailed Request for Quotation (RFQ) to these suppliers, structuring it to get clear, comparable data on pricing, materials, and production timelines.
On-Site Quality Checks and Negotiations
This is where our on-ground presence made the biggest difference. Our team conducted multiple supplier visits in China. We walked the production lines, inspected material quality firsthand, and observed sample runs to verify consistency. Armed with this direct knowledge, we entered negotiations from a position of strength. We successfully negotiated not just the unit price but also more favorable MOQs, payment terms, and even complete mold fee waivers with several vendors.
Validating Sustainability Claims
During our factory audits, we focused heavily on validating the brand’s sustainability requirements. This involved reviewing material certifications, assessing the chain of custody for recycled content, and ensuring the suppliers’ practices aligned with their stated environmental commitments. This gave the client the confidence that their sustainable packaging was genuinely sustainable.
The Results: A Transformed Packaging Supply Chain
The outcome of our hands-on sourcing initiative was a complete overhaul of the client’s packaging operations, delivering measurable improvements across the board.
- Unit Cost Down to $3.00–$3.40: Through strategic negotiation and by introducing competitive tension, we reduced the brand’s packaging unit cost to a new, lower range.
- Lead Times Reduced by Up to 3 Weeks: By selecting suppliers with better operational efficiency and closer proximity to raw materials, we cut production and shipping lead times significantly.
- Four New Vetted Suppliers: We diversified the client’s supply base from one or two high-risk vendors to four fully vetted, high-quality manufacturing partners, building resilience into their supply chain.
- Achieved Mold Fee Waivers and Lower MOQs: Our negotiations eliminated expensive mold fees and secured lower MOQs, improving the brand’s cash flow and product development agility.
The Business Impact: Building a Foundation for Growth
These results were more than just numbers on a spreadsheet; they translated into a powerful competitive advantage.
Resilience Through Diversification
With four vetted suppliers instead of one, the brand is no longer vulnerable to a single point of failure. If one factory experiences a delay, they have three other qualified partners ready to go. This diversification is the cornerstone of a resilient and scalable DTC supply chain.
Improved Cash Flow and Scalability
Lower MOQs and shorter lead times mean less cash is tied up in inventory, freeing up capital for marketing, product development, and growth. This new operational agility provides a clear roadmap for handling demand surges during peak seasons without the risk of stockouts.
What This Means for Your Brand
This case study demonstrates the power of having an experienced team on the ground in China. While remote sourcing has its place, it cannot replace the insights and leverage gained from direct factory visits and in-person negotiations. The fastest way to find reliable packaging suppliers in China is to combine broad discovery tools like the Canton Fair with targeted, expert-led supplier visits and audits. This blended approach de-risks your supply chain and unlocks efficiencies that are impossible to achieve from a distance.
Frequently Asked Questions
How fast can you identify reliable suppliers in China?
Using a combination of Canton Fair shortlisting and rapid factory visits, our team can typically identify, vet, and audit a selection of reliable suppliers within one to two weeks.
Can mold fees be waived or reduced?
Absolutely. Mold fees are often negotiable. Common strategies include awarding multiple SKUs to a single supplier, committing to a longer-term agreement, or amortizing the fee into the unit cost over a set volume.
How do you verify sustainability claims?
We verify claims through a multi-step process: reviewing official certifications (like FSC for paper), validating the chain of custody for materials, inspecting raw materials on-site, and conducting batch tests on samples when necessary.
What lead time reductions are realistic for packaging?
The reductions depend on the starting point, but as seen in this case, a cut of up to three weeks is realistic. This is achieved by selecting suppliers with efficient operations and strategic access to raw materials, while also tightening approval cycles.
Take the Next Step in Your Supply Chain With Move Supply Chain
Are you looking to cut costs, speed up production, or build a more resilient packaging supply chain? Move Supply Chain delivers hands-on sourcing and operational support tailored for fast-growing DTC brands. Let us be your team on the ground, we’ll go back to China-Vietnam this October-November and we’d love to help you out with your sourcing. Learn more here.