Mill-Direct

Mill-direct refers to a sourcing model where buyers purchase textiles directly from the manufacturing facility rather than through trading companies, agents, or distributors. This approach is common in B2B textile trade, particularly for buyers with sufficient volume and technical knowledge to manage supplier relationships independently.

The advantages of mill-direct sourcing are substantial for qualified buyers. Cost savings typically range from 10% to 30% by eliminating middleman markups. Direct communication with the production team enables better quality control and faster resolution of technical issues. Customization becomes easier when specifications flow directly to the people operating the equipment. Transparency improves as buyers gain visibility into production processes, capacity constraints, and scheduling. Over time, direct relationships build into stronger supplier partnerships that benefit both parties through mutual understanding and trust.

However, mill-direct sourcing comes with considerations that may not suit every buyer. Mills typically require higher MOQs than trading companies, which can aggregate orders from multiple customers. Buyers need sufficient technical knowledge to communicate specifications accurately and evaluate quality independently. Factory visits may be necessary for quality assurance, adding travel costs and time. Language and cultural barriers can complicate communication. When problems arise, resolution may take longer without an intermediary to facilitate.

Mill-direct sourcing makes sense for large volume orders where the cost savings justify the relationship investment, custom specifications that require close collaboration with production, long-term supply relationships where both parties benefit from stability, situations where cost optimization is a priority, and applications where quality control is critical and direct oversight is valuable.

Trading companies may serve buyers better when order quantities are smaller, multiple product types are needed from different sources, sourcing experience is limited, consolidated shipping from various suppliers is required, or risk mitigation through an experienced intermediary is preferred.

Mill-direct pricing typically follows FOB (Free on Board) terms at the mill location, with no agent commissions built in. Volume-based discounts reward larger orders, and payment terms are often negotiable based on the relationship and order history.