Looking at SaFaBeau’s (SFB) supply chain, our upstream suppliers involve Disc Manufacturer, Disc Processing Company as well as Webcam manufacturer. Downstream suppliers are the retailers.
Disc Manufacturer
We have less or no control over the supply details in this part of the value chain. Consequently, it becomes more important for us to build a tighter relationship and trust with the 1st tier supplier, the Disc Processing Company, who sources the CDs in order to ensure controls in cost, quality and timely delivery of our main material.
Disc Processing Company
As mentioned above, the Disc Processing Company sources CDs from Disc manufacturers and processes them with the specifications given by us into our Fashion Beauty CDs.
Webcam manufacturer
Our sources of webcams are Chinese factories due to their low costs and that our product requires little customization. However, there can be trust issues which needed to be closely monitored, as well as the purchasing quantity has to be large enough to achieve economy of scale.
Retailers
We aim for high visibility and easy accessibility when it comes to distribution such as electronic shops and convenient stores.
The following illustration shows SFB’s suppliers in more detail.
SFB Employees
Our engineers write the Fashion Beauty Software which is later on provided to the partnering disc processing company to be copied to CDs, the engineers also provide after-sale services for any technical questions our customers may have. There are also packaging and inspection personnel to inspect products delivered from the suppliers and to pack products as per customer requests, ie. Fashion Beauty Software only or Fashion Beauty Pack (incl. Webcam).
Disc Processing Co.
This part of the value chain plays a significant role in the product we sell. The Disc Processing Company copies the software to CDs, adds the stickers onto discs and packs them in CD cases. Stickers and CD cases are designed by SFB.
Packaging Co.
We use recyclable cardboard as the main packaging material for our products. From CD cases to Webcam box are environmental friendly.
Webcam Manufacturer
To make our product affordable and user-friendly, any webcam is applicable to our software. As a supplementary item in our Fashion Beauty Pack, lowering cost is the primary target in the negotiation with supplier. To achieve the cost target, we decide to buy in bulk and to use mass produced parts eg. Lens and spare parts. The only customization is the look of our webcam which makes the product stand out and justifies our pricing of the Fashion Beauty Pack at the same time.
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