Searching the World's Factories With Panjiva
Apparel manufacturing has been expanding to the four corners of the earth, but emerging database technology is making the world smaller for companies looking for offshore manufacturers.
A number of online resources have taken a lot of the legwork out of the search for the right factories. The latest to enter the market is New York–based Panjiva (www.panjiva.com).
The newly launched company has compiled a database of more than 40,000 suppliers from more than 140 countries. Company Chief Executive Officer Josh Green likens Panjiva to the Zagat guide of apparel manufacturing. The database employs a 1–100 rating system, similar to Zagat’s 1–30 system.
Companies can search a volume of categories and narrow the search based on everything from garment type to volume and, more importantly, reputation and track records.
Green and Jim Psota founded the venture after experiencing firsthand how difficult it was to get accurate information on factories.
“I went online to do research, and it seemed like every directory I found had information provided by the suppliers themselves,” said Green. “Of course, everybody says they’re the best and can do everything, so it was frustrating.”
Green and Psota then went directly to the buyers to find out what they wanted in a factory directory.
“The key metric we looked at is how factories demonstrated customer loyalty,” he said. “We want to see if the buyers go back to them again and again or if they try them once and move onto to somebody else.”
The directory is constructed using proprietary technologies, taking data and transforming it into metrics and an eventual rating. Panjiva rates each supplier along three key dimensions, including track records, standards compliance and business basics, which includes a supplier scorecard that helps determines if a company is registered with authorities as well as an assessment of the trading environment in that country.
Panjiva uses information supplied by a number of auditing companies as well as organizations such as the Worldwide Responsible Apparel Production (WRAP), Social Accountability International, the International Oeko-Tex Association and others.
Panjiva was initially targeted toward smaller companies that don’t have the resources of larger companies in dealing with offshore manufacturers, but Green said even the larger companies are finding it valuable.
The database is accessible through a multi-tier subscription basis starting from $500 and going up to $50,000.
Green said Panjiva is intended to be the only source of finding a factory.
“Once you find some sources, you have to reach out to them and talk to them and get a feel of the trust level,” he said. “Our goal is to prevent our subscribers from wasting their time and focus on the factories with a good reputation.”—Robert McAllister
