Operations & Strategies
Operations & Strategies
Development Strategy
To gain operational efficiencies and cost savings, UG Health Tech is constantly reviewing both its make or buy strategy and the company’s global production and sourcing footprint. Approximately 30% of the company’s production value is generated in China, 40% elsewhere in Asia Pacific, 18% in EMEA and 12% in the Americas.
The company is constantly adjusting the global
production and sourcing landscape and with growing importance of new markets in
the countries like Indonesia, Vietnam and Cambodia, but also to low labor cost
countries close to main markets.
Manufacturing
UG Health Tech’s own
production facilities are located in Dezhou, Shandong China. In addition, the
company has major hybrid factories in Russia, India and Vietnam, where ownership
is shared with local subcontractors and distributors. The company manufactures
approximately 60% of its products itself, and 15% is produced in the hybrid
factories locally.
The company purchases the raw
materials it requires – steel, rubber, and components – from a number of
sources. These raw materials are used to manufacture the metal parts, and plastic
components used in fitness equipment, and various of sports goods.
Sourcing
Approximately 25% of UG Health
Tech’s total production value is outsourced. This includes manufacturing in metal
parts, plastic and electrical components, single and group sports products, and
most of the apparel and wearable device.
Quality management
Quality specifications and
quality assurance are of prime importance to UG Health Tech production
processes. Products are subjected to quality control tests before production
commences and also before they are sold to customers. Quality control tests are
also carried out during production processes to ensure that the items produced
meet the company’s quality requirements.
In general, quality control is
handled by the company’s own quality control personnel who carry out extensive
testing and inspection procedures. The company also requires its third-party
suppliers to arrange for specific tests to be performed at each manufacturing
site. In China, the company’s sourcing Head office in Hong Kong subjects
outsourced production to close supervision to ensure that all products and
components meet each product’s specifications and quality control standards.
Should items be returned or recalled, the products involved are analyzed and
investigated and UG Health Tech liaises with third-party suppliers to ensure
that any related problems do not subsequently occur.
In most countries in which UG
Health Tech brand has operates, the companies provide product warranties based
on local legislation. The scope and terms of each warranty varies in different
geographic markets and product categories.
Global Supply Chain
The UG Health Tech global
supply chain ensures delivery of the right products, at the right place, at the
right time. The company gathers intelligence from retail customers and
consumers, matches it with historical trends and finds consensus between sales,
commercial, operations and finance to provide the most accurate plans. UG
Health Tech then leverages a vast global alliance of suppliers, own
manufacturing, distribution centers and transportation networks in an effort to
fulfill each customer order on-time and in-full.
From end to end, the global
supply chain teams are dedicated to providing the best service delivery
experience to the company’s retail customers and consumers of the wide variety
of brands and products within the UG Health Tech portfolio.
Distribution and
transportation
UG Health Tech has five main
regional distribution centers: HK in China, Novosibirsk in Russia, Mumbai in India,
Ankara in Turkey and HCM City in Vietnam.
The company’s logistics facilities also include factory-specific warehouses and regional-specific warehouses. Products are transported from our distribution hubs to trade customers or to the company’s own stores. Third-party transportation companies are employed to transport the products by truck, rail, plane, and sea.
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