| Differentiator |
VIG |
Other Small Companies |
| Supply Chain |
Order is placed with U.S. corporate or sales office. Order is then routed through VIG’s permanent China office. Products are manufactured at a manufacturing plant in China that is partnered directly with VIG. This ensures consistent quality control, manufacturing schedules, product knowledge, factory communication, factory relationships, and low prices. Products are then shipped out of the Ningbo, China port. Products are shipped to Long Beach California (or applicable port) and clear U.S. customs. The entire process of shipping and customs clearance takes 30 days. Products are then shipped directly to the customer or to the VIG warehouse for fulfillment orders. All costs for custom clearance, shipping, and delivery are handled by VIG. VIG’s streamline supply chain allows customers to receive product quickly and at extremely low prices. |
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Order is placed with U.S. office. The materials for the product are purchased and then the product is manufactured in the U.S. at a higher cost. If the company does not have its own manufacturing facilities the products are purchased from an importer at a marked up price. Delivery time can be anywhere from 30-60 days. After the products arrive at the small company they are then resold to the customer at a wholesale or retail price.
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| Office Locations |
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Zhejiang, China (China headquarters) |
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Sandy, Utah (corporate office) |
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Phoenix, Arizona (sales office) |
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Los Angeles, California (warehouse) |
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U.S. store location(s) |
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Possible manufacturing facility or warehouse |
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| Materials & Labor Cost |
The cost of labor in China is eight times less than that of the U.S. This is because of the exchange rate between the U.S. and Chinese money systems. $2000 U.S. can hire eight Chinese workers. The cost of materials is significantly cheaper in China as well. This is a result of China supplying the U.S. with most of its manufacturing materials. |
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The cost of labor in the U.S. is eight times higher than that of China. $2000 U.S. will hire one American worker. This is because of the exchange rate between the U.S. and Chinese money systems. The cost of materials is significantly higher in the U.S. because most manufacturing materials are imported from China.
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| Patented Products |
Since VIG is partnered with leading manufacturing companies in China, VIG is able offer a wide variety of patented products at extremely competitive prices that are not available elsewhere in the market. |
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Since smaller companies have access to only a small to medium product variety they can only offer limited, if any, patented products. |
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| Product Lines |
VIG offers extremely large and varied product lines. Because of VIG’s strategic partnership with leading Chinese manufacturing companies, VIG is able to offer the same high volume inventory that the manufacturers carry. In sense VIG’s partner factories become its inventory warehouse. This allows VIG to not only manufacture products specified by customers, but also offer customers’ factories full of new and innovative products. This creates a one stop shopping center for customers to satisfy their vast needs.
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Other small companies are not partnered with large Chinese manufacturing companies and therefore do not have the ability to carry the same volume of inventory. Small companies can only store a small amount of inventory because it must be stored in their own facilities. As a result customers must search multiple companies to satisfy all of their needs. |
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| Warehouse & Inventory |
Because VIG has a U.S. based warehouse it has the ability to store inventory for customers on a long-term basis. The gives customers the flexibility to order large quantities of products without the need for their own storage facilities
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Small companies do not have large U.S. based warehouses for the long-term storage of customer inventory.
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| Technology |
VIG is equipped with the latest EDI and SPS Commerce systems. The inventory management systems grant VIG the ability to process orders quickly, handle daily orders, label customer shipments for multiple locations, track customer inventory, and expedite all shipments.
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Other small companies do are not equipped with the latest EDI and SPS Commerce systems. As a result all inventory management must be processed manually at the cost of time and efficiency.
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