We work with companies of all sizes, from entrepreneurs and SMEs to Fortune 500 companies. We like to work with companies with a good growth potential.
We have about 50 clients at this time. References are available on request.
At CPG we firmly believe that to be successful doing business in China you must have someone on the ground managing your China sourcing. We make sure that the product you are buying is exactly what you want, manufactured and packaged to your specifications and shipped on time. That is the service we provide to our clients. The cost-savings of buying direct from a Chinese factory, do not compensate for the risks of paying for the wrong merchandise or receiving goods with major delays.
We make sure your needs are met in a way that would be impossible unless you went to China, visited factories firsthand and locally established your own sourcing program.
CPG has a network of hundreds of factories which we have had experience working with in the past as well as new competitive and qualified factories. Thus we get the factories to compete for your business by offering up the best price while still maintaining the quality standard.
The difference between CPG and vendors from Alibaba is that:
– Does not mark up the pricing
– Works for your interests, not those of the factory
– Is not a reseller nor do we represent any factory
– Represents you in dealing with the factory
– Gives you direct access to Chinese manufacturers
– Makes sure that you get the best price/quality ratio for your product
– Makes sure that you have a choice of factories pre-qualified through CPG’s quality control
– Determines quality based on your specifications, not the factories.
Vendors on Alibaba and other B2B websites:
– Often mark up the products from the factory to make a profit.
– Often will not divulge factory information to force you to continue to buy through them.
– Often solely rely on a factory’s quality control for your order.
– Provide no guarantees that the quality of the products they are selling you will match the quality of the sample you provided.
– May provide poor service and follow-up after the order is paid for.
When paying for a sample through CPG, you are paying the direct cost of the sample to the factory. CPG never profits from a sample cost.
Agents on Alibaba/B2B websites often provide free samples at first, but you will surely be paying much more than the sample’s cost when placing an order.
The key to avoid poor quality and defective products is prevention.
Implementing the following will guarantee success every time:
(a) You understand your own quality needs down to the smallest details
(b) The factory fully understands your quality criteria and is willing, able and experienced to deliver goods as per your requirements.
(c) You have a quality control program in place that is followed through by all parties involved.
If this happens, you will find it very difficult to get your money back under the direct approach because it means the goods went through your own quality control and passed. With an agent or a full service provider, you generally have recourse and can get a credit on future orders to remedy the situation.
The direct approach is to have one’s own staff on site supervising production directly with the factory. This is the best way to insure that your standards are understood and your quality control concerns are implemented. This approach requires having your own sourcing and quality control operations in China with Chinese speakers that can communicate directly with the factories.
The best approach to sourcing in China depends on your specific needs. There are three approaches one should consider:
– The direct approach
– The agent approach
– The full service provider
Savings usually depend on the product but generally savings are:
– Production costs: 20% to 50% savings
– Tooling costs: Over 50% savings
– Every intermediary step: 10% to 15% savings per step
A: Sufficient volume to justify the effort. Obviously the larger the volume, the more it makes sense to buy direct from China since the savings are compounded. But in some cases you may even consider small orders. How small of an order is worth importing depends on a number of factors.
– Freight: For small orders this will be a significant cost.
(Example: Less than a container load for sea freight will cost more than a full container.)
– Mold costs: A small order may not be justified if there are large fixed costs.
– Cooperation: Factories prefer large orders and may not be willing to work with small orders and if they are, their pricing will generally be higher.
We charge fees in different ways depending on our customer’s needs and requirements:
– For preliminary sourcing projects, we charge a specific, mutually agreeable fee for a well-defined job.
– For sourcing programs, we charge a monthly commitment fee which is deductible from a commission. The fee depends on the resources we need to allocate to the project, the commission amount depends on the complexity of the job.
– For supply chain management: We charge for time spent on our customer’s behalf based on a pre-agreed upon schedule of activities and fees.
Products that have:
– High Labor Content
– High quality/labor ratio
– Sufficient value to justify shipping costs
Yes, CPG has a wide range of sourcing related services. CPG services are especially valuable for (a) established import companies who have existing purchasing programs and a lot of experience in China sourcing and who seek better control over their sources; (b) importers who use agents and who prefer to deal directly with factories and (c) new importers who have a clear understanding of their needs. The services are designed to provide direct access to the most competitiveChinese manufacturers and manage the follow-up of orders placed.