What is an SME from CPG’s Point of View?
The U.S. International Trade Commission and SBA, defines Small or Medium-Sized Enterprises (or SME) as firms having fewer than 500 employees.
For CPG, SMEs are established companies. They are usually focused on a well-defined market segment that take a no-nonsense approach to their business. Intelligent sourcing is an essential part of their success and is usually handled by top-level managers, often the owner or the CEO.
Many SMEs have a lot of experience in sourcing from China. Some have been exploring China sourcing for more than 20 years.
What Does Manufacturing in China Mean for You?
The Good, the Bad and the Ugly
In CPG’s survey of its customers’ opinions and feelings about China over the years, the following comments surface most often:
The Good
- Low pricing that is relatively stable
- Excellent price/quality ratio
- Dedicated factories that bend over backwards to meet your requirements
- Skilled labor that is becoming increasingly productive
- A sophisticated network of suppliers
- Highly Developed Infrastructure combining a great rail system with waterways and an intricate and growing national expressway system all leading to modern port facilities.
- Numerous manufacturers that compete for your business
- Predictable savings
- Timely deliveries
The Bad
- Language barrier: Misunderstandings can often surface.
- Culture barrier: You think you are clear about your requirements, but you and the factory are still not on the same page.
- Fickle loyalties: “After years of buying from a factory, they think nothing of switching to a competitor for a nickel more”
- High maintenance costs: Travel to and within China is becoming expensive
- Time consuming effort to maintain strong supply bonds: Good relations require frequent visits, usually from top management, and China is far away.
- Strain from long distance relationships
- Uncertainty about quality and delivery
- Concerns about IPR
The Ugly
- Fraud
- Embezzelment
- Bribery
- Pollution
- IP Theft
Why Must You Have an Office in China?
Buying direct from Chinese factories without an office is a bad compromise.
If you buy direct from Chinese factories, you must have an office in China. We at CPG don’t think this is a luxury, we believe it is a necessity.
That office must, of course, be staffed by sourcing professionals who cover all aspects of the supply chain and who are culturally attuned to your needs.
The reasons why you must have a China office include the following:
- Language: To this day, most Chinese factories do not have English-speaking personnel.
- Culture: And even if they did, misunderstandings are likely to occur.
- Management: Sourcing is about details. The strands that bind the 3 most important elements of a sourcing program, pricing, quality and delivery, are closely intertwined and require hands on, on-site, day to day management.
- Murphy’s Law: Too much can go wrong.
Compromise: SMEs are pragmatic, they figure that, although they need good sourcing for their business model and their product line, sourcing is not their main focus. Their most precious asset is who they are: their product, the access they have with their costumers and their reputation in the marketplace. Manufacturing in China is something they must do to gain or keep an edge. But setting up a professional sourcing office to manage their sourcing is daunting and expensive. Most China-savvy SMEs have found creative ways around this. In the absence of alternatives, they make the best of what they have, they do the best they can. Yet most of them also realize that a sourcing program without a China office is a compromise: This compromise is always costly, one way or the other…
But There is an Alternative: CPG.
We can function as your office in China, we can provide you with what you should have: expertise without compromise. A China sourcing office staffed by specialists that know how to look after your program: that extra edge that increases your competitiveness, reduces the need for multiple China visits and makes the whole process so much easier.
And all this at a surprisingly low cost. Get a free evaluation of your Sourcing Program to see how much you could be saving.
Why Is Working With CPG Better Than Doing It Yourself?
An educated importer is our best customer. The more you know, the more you appreciate our services.
- It is cheaper: With CPG you have a full-time, full-service office in China without the costs of establishing your own.
- It is easier: Managing your own China office is a full-time headache. Besides the overhead, one has to deal with the training, the employee turnover, the taxes, compliance with local regulations etc. Not to mention the minutiae of the details of the business and efficient preparation of your China trips. With CPG, you know we are never absent, never sick. Your China trips will be fewer, shorter, and more efficient.
- It is more professional: Our staff are carefully selected and highly trained in our systems. Your needs are addressed by native English speakers who understand and care about your program. Our systems have been honed through years of testing. And you have access to a whole range of expertise: from strategic and long term vision advisory to many levels of input on quality control; from sourcing advice to qualified opinions on shipping and packing.
- Full service = peace of mind: Our programs are designed to prevent common sourcing problems rather than cure them after they occur. We build the solutions into the sourcing process and ensure that buyers do not have to make a choice between pricing, quality or timely delivery.
- Full time: Because we operate in the USA, in Europe and in China you enjoy 24-hour support for your program. Even in the middle of the night you can access our China based sourcing team, and there is always someone available to help.
What do our Clients Say?
“Working with CPG opens the door for possibilities in China sourcing that were not accessible before for us. Their services save my company time, money, and reduce travel needs. Plus, they’re always very pleasant to work with! I support and recommend CPG for any business related to China.”
- Heinrich Guth, Purchasing & Development Director, Heras Fencing Systems BV
“For 15 years, CPG has always been there for Old Dutch International and all our home consumer goods needs. I promise my customers the goods my company imports will have excellent quality and arrive right on time, and CPG makes sure I can honor both pledges.”
- Ben Kan, President, Old Dutch International
If you would like to learn more about how CPG can help you, read about our China Sourcing Services. Otherwise, click below and tell us how we can help you today:
