Distribution chain of corporate gifts that reach your workplace

 


Corporate Gifts can seem simple. A company sends a shipment to your office, someone on your team opens the box and voila, a gift is born. But what is not visible are the processes, suppliers and people involved in delivering that gift to your office.

From the time a company decides to purchase a gift to the time it is handed over to an employee, client or business associate, a number of steps are involved in that process. Although the focus of giving a gift is on the product, there are a number of other processes involved such as sourcing, fulfillment, logistics and last mile delivery.

THE FIRST LINK IN THE CHAIN

Companies have many reasons to give gifts. Employee rewards, client or business gifts, swag for a conference, and a number of other reasons. Once the company has a reason for giving a gift, they have to consider a number of other constraints such as the occasion, the number of gifts needed, the budget and the recipient. Gift making becomes a complex process and involves a number of other companies for large, customized orders.

CORPORATE GIFTING

A supplier or company specializing in corporate gifting acts as the main intermediary between the buyer and the supply chain once the gifting requirement is defined.

The partner company acquaints itself with the requirements of the client and proposes alternatives within the constraints of the budget, time, quantity and any branding requirements of the client. In such circumstances, the client company need not Contact several suppliers to fulfill its requirement. The gift partner takes responsibility for branding and delivering items.

SOURCING THE ITEMS

After identifying the requirements, the next step is to locate the items. A supplier of corporate gifts may directly or indirectly (through another supplier) procure items to be gifted.

A single order may require a supplier to source items from various categories. Items from different categories may be incorporated in a gift hamper. The supplier is obliged to ensure the items meet the requirements of the corporate client.

PROCUREMENT

The journey of most corporate gifts starts at the production stage. Items such as apparel, bags, drinkware, electronics and desk accessories may first be produced as corporate gifts. Some items may be manufactured to meet a specific corporate order while others may be produced for general use. It is rare for a product manufacturer to sell it to the end client. The item may be further traded by a distributor or a wholesaler before it is sold to the gift supplier.

CUSTOMIZATION AND BRANDING

Customization is often the main difference between a normal purchase and a corporate gift. Company branding can take several forms. It may take the form of a printed logo on a pad or box, an engraved logo on a water bottle or an embroidered logo on a jacket. 

The company may also require special packaging. The item may have to be customized at more than one location before it is sent to the gifting company for the final packing. The process becomes longer and more complicated if special artwork has to be approved for a large order. Company branding standards may also have to be taken into account.

QUALITY CHECKS BEFORE PACKING

Before forwarding the gifts to the ultimate recipient, the company has to perform quality checks. Many corporate orders are large, and an item in a large order may differ from an item in a small order. A large order may be shipped before the quality control is completed. Defective, incomplete or incorrect items may be dispersed to recipients. The quality control may consist of physical inspection of the item and branding. Quantity also has to be checked.

PACKAGING PLAYS AN IMPORTANT ROLE IN CREATING THE FIRST IMPRESSION.

Packaging becomes especially important once the product is finalized. For corporate gifts, packaging can be as simple as branding a box, or as elaborate as creating a gift basket and adding other items. The main purpose of packaging is to protect the item, while presenting it in a nice, appealing manner.

Customers expect the packaging itself to be high quality when other items in the gift basket are of high quality. Additional items like ribbons or gift inserts are not uncommon.

A high level of organization is required when a large number of custom gifts are packaged. It is important that the correct items are given to the correct customers.

Inventory management plays an important role in the gifting industry. Usually products are purchased well in advance. During the holiday season, when there is a spike in demand for corporate gifts, a large inventory can build up, and it must be carefully managed.

After the gifts are packed, they are handed over to logistics companies for transportation to the recipients. The requirements of a gifting company increase when a single corporate client wants employee gifts to be delivered to different cities. Instead of consolidating all the gifts to a single city, the gifts have to be delivered to multiple cities.

LAST-MILE DELIVERY

The final step in a delivery process is called the last mile. The last mile refers to moving the delivery from the logistics network to the final end user. Because this is the step that the end user is most aware of, last mile delivery plays a critical role in the success of the overall delivery process.

The end user often provides delivery instructions and contact information and are essential for last mile delivery. For large scale employee gifts campaigns, delivery mishaps due to wrong addresses are not uncommon. Since large corporate gifting campaigns are prone to last mile delivery risks, some gifting companies arrange and manage delivery and logistics processes to mitigate such risks.

FINAL STEPS BEFORE DELIVERY TO END USER

Upon delivery from the last link in the supply chain, the gift is usually given to the employee by the management during a ceremony, placed on an employee's desk, or delivered by the HR division.

Because employee gifts are often bulk purchases, multiple service providers typically make the deliveries. Employees often see gifts as a package containing the company's logo. The employees may not be aware of the numerous service providers and the lengthy supply chain that delivers gifts to employees.

WHY THE CHAIN MATTERS

There are multiple aspects to consider when it comes to corporate gifting. One thing is for sure, an unrelated element of the process can spoil the entire effort. For example, an often overlooked element of the process can be branding. 

While a ton of thought can go into selecting the perfect gift, branding can still be an afterthought. Similarly, the best packaging can be rendered useless if the gift arrives past the due date. Even the best customization can create more problems if quantities or delivery addresses are incorrect.

This is the reality of corporate gifting. Choosing the perfect gift is just one aspect of the overall process. So, the next time a gift is sent to your workplace, keep in mind that a lot of effort has gone into organizing the shipping of that gift to your workplace from the company's end.


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