Sourcing & Production

When profit margins lower due to saturated or receding sales markets, cost reduction along the full value chain is a priority. As business algebra easily shows, the profit impact of a 5% reduction in purchase price at contribution margins below 10% will exceed the effect of a 50% increase in unit sales. Sourcing in the next low cost countries may now become your primary opportunity. Production, such as in textiles, furniture, terracotta and agriculture, has boomed in Vietnam in recent years. Low labor cost and high availability of natural resources, combined with a young and educated workforce have made Vietnam an attractive sourcing location. But the advantages of this highly competitive supply do not open up by themselves – the extended workbench is not available at the flick of the switch. Firms may face a range of challenging issues in the initial stage, most likely in the different understandings of product quality, production management and feasibility of scale. That is where BDG comes in place and works for you. We are on-site right where you need us. Our experienced team takes care of necessary supplier communication and in all aspects of quality assurance improvement. BDG constantly monitors key parameters and acts instantly when needed, including the entire production process and delivery of products.