The COVID-19 virus outbreak has caused lockdowns and economies have been suffering. Due to this crisis and the measures taken by governments, the economy is not looking the same as before. Also when we look forward many economists and central banks are warning for an upcoming economic crisis. Many of us all have to prepare for the new economy and overthink our current business models.

Reducing supply chain management costs

To ensure profitability in different economic conditions, every company looks at the costs. Maybe you are now cooperating with an agency that charges by percentage or take margin as a trader on your products? Maybe you have now purchasing employees hired in your own country but these costs are very high? We at CIL China are a cost-reducing solution. We have significant cost advantages.

Cost advantages

• The fixed service fee charged based on workload, not on order value.
  When you are working with an agency that charges by a percentage based on the order value, the higher the orders and prices are the more costs you have. Even if the work needed to manage a smaller order and a bigger order does not have so much difference. With CIL China’s way of charing, your costs are not rising with the order value but with the amount of work needed. Bigger orders do not cause significant more work causing costs to be almost the same for bigger and smaller orders. Reducing your order-management costs significantly.

• Hiring CIL China instead of employees in your own country
  In Nothern-Europe, China-experienced purchasing and supply chain positions averages between 2500 – 4500 pre-tax EURO excluding employment costs on the employer’s side. You can save up to -50% on the total employer’s costs when you hire an employee within CIL China. Giving you a big cost advantage, and having an experienced employee and office in China to benefit from.

• One monthly fee, managing multiple orders and supply chain-related projects
  Where at other agencies you are paying per order, at CIL China you pay for the amount of work. With a monthly fixed fee and the available working hours within that month, we manage multiple production orders and supply chain related projects. The more projects and orders we can manage within the same time, the more costs you reduce on your production orders. Compared to paying a percentage or fee per order, this solution reduces your costs significantly.

More information about how we can help you to reduce your sourcing and supply chain management costs? Please contact us.