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.