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  Lessons Learned from Pefso: Protecting Suppliers in Global Trade Over nearly a decade, Pefso collaborated with major global brands, including Amscan and Party City, delivering premium-quality, eco-friendly party decor. These partnerships initially brought great promise, but challenges along the way revealed critical lessons about managing risks in international business. Today, we share these lessons to help other suppliers navigate the complexities of global trade and protect their businesses from similar vulnerabilities. Key Lessons for Managing Risk 1️⃣ Know Your Partner’s Financial Health Conduct thorough due diligence on potential partners, focusing on their financial stability and payment history. Watch for red flags, such as past bankruptcy filings, unpaid debts, and delayed payments, to assess risks early. 2️⃣ Negotiate Upfront Payments Include partial advance payments or deposits for large orders. Terms like Net 90 may appear accommodating but can leave suppliers vulnera...

For nearly a decade, Pefso partnered with Amscan and Party City, delivering millions of eco-friendly, high-quality party decor items crafted from materials like rattan, bamboo, and wood. These partnerships were built on trust and mutual benefits, supported by upfront deposits and timely payments. However, by 2022, warning signs began to appear, disrupting what had once been a strong relationship. 2015: A Promising Start The partnership with Amscan began in 2015 on solid ground. With upfront deposits of 30% and payments made within 30 days, Pefso prioritized Amscan’s orders, shipping millions of products each year to meet their high standards. Amscan became one of Pefso’s largest clients, creating a mutually beneficial relationship. However, the heavy reliance on one client introduced vulnerabilities that would later become evident. 2022: The Warning Signs In 2022, Amscan filed for Chapter 11 bankruptcy, leaving Pefso with: Hundreds of thousands of dollars in unpaid invoices. Stockpiles...

  For nearly a decade, Pefso was a trusted supplier for Amscan and Party City, delivering eco-friendly, high-quality party decor crafted from natural materials like rattan, bamboo, and wood. The partnership was b uilt on mutual trust, with Amscan initially offering upfront deposits of 30% and prompt payments within 30 days. Each year, Pefso shipped millions of products, prioritizing Amscan's orders and accommodating their needs. But beneath this seemingly fruitful relationship, a deeper dependency was forming—one that would later leave Pefso grappling with significant financial losses and operational challenges.                                                         What Happened? 📅 2015–2021: The partnership flourished. Pefso's reliability and ability to meet Amscan’s strict quality standards fostered trust, and...