(If you check out page 9 in today’s Women’s Wear Daily, you’ll find the article below that talks about Panjiva in-depth) 

By Marc Karimzadeh 

Panjiva wants to make the sometimes grueling process of finding an overseas supplier as easy as picking a restaurant.

The Web-based service, which was launched this year at Panjiva.com offers detailed information on more than 40,000 apparel suppliers and includes a ratings system that measures the apparel business much as Zagat critiques the culinary world.

Josh Green, Panjiva’s co-founder and chief executive officer, conceived the idea two years ago while working in the electronics field.

“I was looking for a supplier in China and was incredibly frustrated because I couldn’t find solid information about all the suppliers in China,” said Green, a 29-year-old Harvard Business School graduate. “It seemed to me that in today’s world there should be an information resource that can provide companies here in the U.S. with the information they need to do business around the world.” 

Green consulted with executives in several industries, including his sister and brother-in-law, Rory and Elie Tahari.

“They said this is a huge problem in the apparel industry because there are so many suppliers all around the world and so little information about those suppliers,” Green said. “With that, I, along with a friend, James Psota, set out to build the world’s greatest information resource for apparel companies trying to figure out who they should be doing business with around the world.” 

In addition to cofounding the venture, Psota, who received a degree from the Massachusetts Institute of Technology, is the company’s chief technological officer. 

Panjiva offers contact information for each supplier, its areas of expertise and the caliber of its customers. The service relies on constantly updated information about suppliers from more than 140 countries. To compile information, the company uses more than 200 data sources, including organizations such as the World Bank for country [context], certification agencies that can disclose whether a supplier is socially or environmentally certified and shipping data from the U.S. Department of Homeland Security, the Ministry of Commerce of the People’s Republic of China and Social Accountability International. Panjiva processes about three million shipments and repeats the process monthly to have an up-to-date view of businesses. 

Suppliers are rated on customer loyalty, quality management and social and environmental responsibility. Panjiva developed patent-pending technologies to transform data into metrics, which, according to company information, “weights the ratings to account for the fact that some dimensions are more important than others.” For instance, a score of 90 and above would constitute an excellent rating, and 70 to 90 a good one. 

“Our belief is that it’s unnecessarily difficult to do business across borders and it’s so important in today’s world, and we want to make it easier,” Green said. “Panjiva cuts down the time and cost of trying to find a supplier, and it helps you monitor your existing suppliers. One of the things we hear a lot from companies we talk to is that there is much concern with the risk that comes with doing business overseas. It’s very important to have up-to-date information on the companies you’re doing business with, so that if there is a risk and the company is going to go out of business, you have as early a warning as possible.” 

The online service has different membership levels, ranging from $500 to $50,000. Buyers can even share their experiences with suppliers on the site and rate them, with detailed scorecards.

“We go through a series of checks to make sure that the person who did the rating has actually done business with the supplier,” Green said.

“Panjiva” is a made-up term based on Pangaea, the supercontinent that existed 225 million years ago when all land on earth was joined together. 

While there have been many databases of suppliers around the world, Green pointed out that much of the information about them usually came from the suppliers themselves. Panjiva, he said, aims to provide information from other sources to serve the buyers. There is no advertising on the site and the profit model is subscription-based.

Green said he could envision taking the concept beyond apparel. “Our customers have already started pulling us into other industries or other areas,” he said.

(The below piece, written by Panjiva CEO Josh Green, appeared in the October 2007 issue of Cotton Bangladesh)  

“It’s not easy being in the textile business.” This may be the one thing that just about everyone in the textile business agrees on.

When I speak with buyers in North America and Europe, I hear that it’s incredibly difficult to find trustworthy suppliers around the world. And even when buyers do find trustworthy suppliers, they live in fear of changes in regulation, currency fluctuations, and rising prices. 

Meanwhile, when I speak with suppliers around the world, I hear a long list of concerns: It’s hard to break into new markets. Buyers are never happy. Price pressure is constant. Keeping employees is increasingly difficult. There’s so much competition!

Given this, why do so many good people get into the textile business? Because, even in a rapidly changing world, the textile business can be a good business.

 For those in the world of cotton, the trends are encouraging. For instance, according to Panjiva’s analysis of data from the U.S. government, shipments of cotton clothing increased 16% from 2006 to 2007.

 Of course, in today’s competitive world, things can change quickly, and so you may be wondering how to maintain your business, let alone grow it. Based on my conversations with buyers, here are three ideas on how suppliers can maintain and even grow their businesses.

1) Get certified

I often hear from buyers that it’s hard to tell the difference between suppliers. After all, the U.S. apparel market is served by over 40,000 suppliers in over 140 countries. One way you can distinguish yourself from your competitors is by getting certified. It used to be enough to get certified by a large company (say, Wal-Mart), but increasingly buyers are looking for internationally recognized, third-party certifications. There are lots of these certifications out there certifications for product safety, quality management, environmental responsibility, and social responsibility. Amazingly, according to Panjiva’s analysis, only about 10% of suppliers have any certifications. While it can be costly to go through the certification process, certifications can help you stand out from the crowd. To get started, contact an internationally recognized certification agency, such as Bureau Veritas or SGS.

2) Consider hopping on the organic bandwagon

Recently, I spoke with an executive at one of the three largest apparel importers in the United States. I asked her if she noticed any major trends in the materials being used in the apparel world, and her answer was simple: “Organic.” Indeed, according to Panjiva’s analysis, shipments of organic cotton clothing increased an astounding 500% this past year. While organic items still represent a tiny percentage of the overall market, there is increasing interest from consumers, retailers, and designers in anything and everything organic. With a truly organic offering, you can distinguish yourself from your competitors. Unfortunately, some suppliers are entering this market in an irresponsible way by claiming to be organic when in fact they are not, or by overstating the benefits of organic versus non-organic. Obviously, to protect your brand over the long run, you will want to stay away from these tactics. To learn more about organic standards, check out IFOAM, an umbrella organization for the organic community.

3) To enter a new market, take small orders

Often, the first question that an American buyer will ask of a potential supplier is, “Have you done business with an American company before?” This poses a major problem for suppliers that are trying to break into the American market. How can you get your first American customer, when buyers only want to work with suppliers that already have a U.S. track record?

The answer: take a small order from a small buyer. Most suppliers avoid taking small orders, because it’s hard to make a profit on these orders. As a result, small buyers have an incredibly difficult time find-ing suppliers that will take their orders. These small buyers will be more willing to take a chance on a supplier that has never done business with an American company. If they’re willing to take a chance on you, take a chance on them! Even if you lose money on the order, you will now have a much better answer when a large potential customer asks, “Have you done business with an American company before?” The answer will be, “Yes.”

Send your thoughts on how suppliers can better compete in today’s global marketplace to josh@panjiva.com