Boss Cut Out Middleman to Save Money – It Backfired Spect…

I work as a purchasing manager for a mid-sized home goods retailer. We have used the same domestic importer for our seasonal decor for five years. They charge a markup, but they handle the customs, the quality checks, and the shipping. It is hassle-free.

My new Director of Operations is convinced that he is a business genius. He called a meeting last month and lectured me about how we are hemorrhaging money by using a local distributor. He told me to cancel our contract for the holiday shipment and go direct to the source.

I warned him. I told him that dealing with freight forwarders, tariffs, and port delays is a full-time job. He told me I was just being lazy. He actually said, “Just get me the contacts, I’ll close the deal myself.”

So I did. I spent a few days on Alibaba compiling a list of legitimate Chinese manufacturing companies that produce glass ornaments. I handed him a spreadsheet with twenty factory contacts, their MOQ (Minimum Order Quantity) requirements, and the time zone differences.

I sat back and watched the show.

He realized that FOB Price does not include shipping to our warehouse.
He wired money to a supplier but forgot to hire a customs broker, so the shipment got flagged by CBP.
The container sat at the port for ten days because he didn’t understand what an ISF filing was. The demurrage fees (fines for not moving the container) alone cost more than the 15% he was trying to save.

He came to my desk yesterday, looking incredibly humbled, and asked if I still had the phone number for our old importer.

TL;DR: Boss thought international trade was easy; I let him manage a direct import order and he ended up paying double in fines and fees.