Showing posts with label suppliers. Show all posts
Showing posts with label suppliers. Show all posts

Tuesday, 7 October 2014

Guide to finding the right clothing manufacturers in China

Learn how to find the right partners in affordable outsourcing destinations. 


Looking to design your own T-shirt or launch a knitwear collection? Outsourcing to China or other low cost countries could be your only option.
In this article, I explain what you need to know when selecting a clothing manufacturer, substance regulations, material quality and managing the product development and production process.
Regardless of whether you are an apparel start-up looking to try out a new product line, or you consider yourself the next Karl Lagerfeld, this article is packed with actionable advice for you. But first, I will explain why buying wholesale clothing from China is rarely an option.

Buying wholesale clothing from China

The Minimum Order Quantity (MOQ) of clothing and textile items is often 300 to 500 pieces per design. That translates into a major investment, assuming that you want to launch an entire collection. Many importers assume that the solution to this is skipping manufacturing to purchase off shelf clothing from wholesalers.
Of course, there are clothing and textile wholesalers in China. In fact, there are tens of thousands of them. However, these wholesalers, trade items manufactured for the Chinese market. Take a look at Taobao.com (China’s Ebay) and see for yourself. You can get a T-shirt for 2 dollars and a pair of jeans for the price of a Big Mac meal. But, China is not a magic land where basic economics don’t apply. In other words, you do get what you pay for.
In fact, you might get a bit more than you really want. At least in terms of regulated substances, such as Formaldehyde and AZO-colors. China’s substance regulations are more lax than those in the west. Thus, buying wholesale clothing from China is rarely (if ever) an option, unless you are willing to risk having your items seized by customs – or face a forced recall.

Important factors when selecting a clothing and textile factory

Not all clothing and textiles manufacturers are equal. Making a random factory selection online, without verifying that the supplier is able to reach your quality requirements, is likely to end up in disaster. Below follows an introduction to the three main factors that really matter, when selecting clothing manufacturers in China.
#1: Substance control and compliance with foreign textile regulations
Clothing textiles are regulated in most countries, including the United States, Europe and Australia. Most applicable safety standards, such as REACH (Europe) and FHSA (United States) regulate substances, such as formaldehyde, AZO-colors and asbestos. Most Chinese manufacturers, especially the smaller ones, are not aware of the substance content in their textiles.
It’s a deeply rooted issue that goes way beyond the manufacturer. All clothing manufacturers purchase fabrics and components from sub-contractors. The number of sub-contractors can range from two or three, to more than one hundred. Ensuring that no non-compliant fabric slips through requires the supplier to test a large number of samples, which most small factories consider too expensive and time consuming.
#2: Textiles labeling requirements
Clothing and textile regulations are not only limited to substances, but also product and packaging labeling. These labeling requirements vary greatly between different countries. However, most countries require labeling to cover Country of Origin (Made in China), textile fiber content and washing instructions.
However, a supplier cannot really be compliant or non-compliant with labeling requirements. In fact, it’s your job to design the textile label, and verify that it’s compliant with applicable regulations in your country. The supplier’s job is to print it. That said, they must be able to provide you with information about the textile fiber content and washing instructions.
#3: Fabric quality
Good suppliers provide high quality fabrics and bad suppliers provide low quality fabrics. But, it’s not that simple. A couple of years ago I learnt that myself, the hard way.
In 2011, we were tasked with managing the product development process of a new polo shirt collection for a European brand. They had already selected a new supplier in the southern Fujian province to manufacture their new designs. It was a good supplier. Clean facility, long history, plenty of capital, modern machinery and a strict quality management system.
The client received the samples and testing began. A few weeks of usage and washing later, it was clear that the material quality was far below the clients' expectations. While they wanted to match brands like GANT and Ralph Lauren in terms of quality, this sample would go straight to an outlet.
Obviously, the client was upset about this, and we submitted a complaint to the supplier. They made another batch of samples. But the result was the same. This was when we realized that this may be a reliable supplier, yet unable to match our buyers quality requirements. It turned out that they were indeed specialized in making low end apparel, and pretty good at it too!
Before you get started, you need to get your fabric specifications in order. Never assume that a Chinese clothing and textiles manufacturer is specialized in making items matching your quality requirements, regardless of their technical qualifications.

Product development process

When you have selected a few suppliers (not only one, as explained further down in this article) it’s time to put them to the test. Keep reading, and find out how to manage the clothing product development and production process:
Step #1: Design drafting, material selection and product specifications
Chinese manufacturers are entirely accustomed to producing items according to buyer specifications. While some suppliers offer design services, they will certainly not help someone to design a new collection based on a random inquiry on an e-commerce platforms like Alibaba.
Before you even bother to contact manufacturers, you need to get your specifications in order. These include, but are not limited to, the following:
  • Design drafts
  • Design elements (e.g. collar)
  • Dimensions
  • Fabric type (e.g. 96% cotton and 4% spandex)
  • Fabric weight (e.g. 120 gsm)
  • Printing or embroidery (e.g. screenprint)
  • Pantone colors
  • Buttons (design, material)
  • Seams
  • Textile label (design files and dimensions)
  • Compliance requirements (e.g. AZO-free colors)
You may also complement a product specification with physical product samples, in case you intend to replicate a certain color, material or design elements of an existing product. However, certain components, such as buttons, are better left open until you know what the supplier has to offer.
In case you fail to provide sufficient product specifications, you are likely to receive items of very poor quality. Misunderstandings occur easier than you could possibly imagine, and there is no universal definition of what “good quality” is. Nothing should be left out of your product specification.
Step #2: Sample development
This is when it gets interesting, but act with caution. First of all, it’s way too early to make a final supplier selection at this stage. Instead, you shall select at least three or four suppliers that produce clothing samples simultaneously.
In my experience, roughly 50% of the suppliers fail to manufacture satisfying samples. They might lack the precision to get the seams straight, provide low quality material or prove that they don’t really care that much about following your design requirements.
Samples take time to develop, and often require a few revisions. All of a sudden three months have passed. If you have made a final supplier selection too early, you might need to start all over again. That’s why it’s critical to keep several supplier options at hand at this stage. Thereby, you can simply ditch the supplier failing to produce satisfying samples, and move on with those that succeed. Yes, it costs a bit extra to buy samples from four suppliers, rather than only one. But, considering the time and money you will save, it’s well worth it.
Step #3: Compliance testing
Previous compliance means that a supplier can prove that they are able to ensure compliance. While that is a key qualification requirement, it’s not a guarantee for future compliance. Thus, you shall submit material samples for compliance testing, before mass production begins.
But, this is also when it gets really complicated. Fabrics are purchased from sub-contractors, and suppliers rarely keep them in stock. The fabric samples that are available during sample production may not be available by the time you place your order. Even if the fabric used for mass production is visually identical, it may come in another batch (thus it may contain other chemicals) or be from a completely different sub-contractor.
In a worst case scenario, this means that you could end up with clothing made of non-compliant fabrics, even though the pre-production fabrics passed compliance testing. However, despite this risk pre-production fabric testing is critical. One way to minimize the risk further is to have fabric samples compliance tested as soon as the batch used for your items arrives in the supplier warehouse, but before mass production begins. That way you can at least avoid a situation where you are left with an entire batch of non-compliant apparel. Sounds complicated? Not so much, if you follow the process below:
  1. Select fabrics and confirm applicable substance regulations
  2. Ask your supplier if the fabric used for mass production originates from the same batch and/or from the same sub-contractor
  3. Collect and submit pre-production reference fabric samples to the test laboratory
  4. Supplier begins mass production and order fabrics from one or more subcontractors
  5. Collect and submit batch sample reference fabrics to the test laboratory
  6. If compliant: approve production
As one material, and sometimes color, requires a separate compliance test, costs increase if you use many different fabrics and colors. If you are on a small budget, try to limit the number of different fabrics used in your apparel.
Step #4: Sales contract
Before you pay the deposit and production begins, a Sales Agreement shall be signed by the clothing manufacturer. The main purpose of the sales contract is not to get prepared for future disputes, but to prevent them.
First of all, it shall prevent misunderstandings. Thus, it shall include product specifications, design drafts, material specifications and color samples. You may also attach physical samples, for the supplier to sign and stamp.
However, these specifications may be useless unless you put pressure on the supplier to actually comply. This can only be achieved if you make the supplier understand that you will verify compliance, and that you have a bargaining chip at hand, in case they wouldn’t.
In order to verify compliance, you need to follow up with Quality Inspection. I’ll get back to that in a bit. The payment is also critical. If you pay a supplier 100% in advance, they no longer have an incentive to remake or repair defective items, in case the quality inspection fails. This is why the final balance payment shall be withheld until the quality is verified.
Step #5: Quality control
Manufacturing is not a science. Quality issues are certain to occur, to a varying degree. They can’t be completely eliminated, but they can be managed and reduced to a degree that they don’t affect the viability of your business.
Forget about returning defective items to China. Low cost manufacturing is cheap for a reason. Instead, you must verify that your clothing reaches your quality requirements before it’s packed and shipped. Thus, a Quality Inspection shall be executed in the manufacturer’s facility, after production – but before shipment.
There are a number of defects that may occur when manufacturing clothing. Below follows a list of defects I have stumbled upon:
  • Poor seams (e.g. not straight, loose threads)
  • Discoloration
  • Skewed embroidery
  • Incorrect dimensions
  • Loose buttons and zippers
  • Dust and dirt
However, certain quality issues cannot be detected during a single factory inspection. For example, poor quality fabrics may lose fitting, only after a few washes. This is why extensive sample testing, and actual usage, is critical, before production begins. 

This article is re-published with permission from Frontier's content partner, ChinaImportal, an e-commerce platform that assists businesses looking to import products from China.
See the original article here.

Thursday, 28 August 2014

Tips for buying product packaging from China

Imagine Apple selling iPhones in ziploc bags instead of the glossy cartons we are used to. It wouldn’t be the same thing. Well designed and high quality packaging adds plenty of value to your product. In this article we will explain what you need to think about when buying product packaging from a Chinese supplier – including design options, materials, warning labels and marking requirements.

“Do I need to find a packaging supplier on my own?”

No. While few Chinese suppliers are manufacturing product packaging in-house, most have established relationships with sub-contractors specialised in packaging and printing. Therefore, you don’t need to bother with locating a product packaging supplier by yourself. However, In case the suppliers sub-contractor is not able to provide a satisfying product packaging, you may still source one on your own.
That said, it comes with certain complications. The packaging must still be delivered to the final assembly supplier. Unless you have a reliable partner in China, I don’t suggest you attempt to manage such a transaction.

Product packaging design

When buying product packaging from China, you basically have two options. You either use an existing product packaging, or you design one on your own:
Option #1: Custom designed product packaging
This approach is somewhat complicated. First of all, you must design the packaging according to the product shape and dimensions. Never rely on your supplier to make final adjustments to your packaging design. Chinese suppliers are accustomed to a “make to order” approach, and simply forward clients product packaging designs to their sub-contractors. Unless you have previous experience designing product packaging, you may want to get help from a professional. If you decide to do it yourself, keep track of the following specifications:
  • Material (e.g. PVC plastic)
  • Lock type
  • Surface lamination (e.g. glossy)
  • Thickness
  • Outer dimensions
  • Inner dimensions
  • Printing (e.g. Silk screen printing and Offset printing)
  • Pantone colors
Customized product packaging also requires additional tooling. Tooling costs are always paid by the buyer, but varies depending on the type of tooling. That said, product packaging tooling costs are usually quite low, and rarely adds up to more than a few hundred dollars.
Option #2: Using a factory designed product packaging
Using an existing product packaging design comes with two benefits. First of all, the packaging design is already tested and based on your products design and dimensions. That’s quite a bit of time and money saved right there. Secondly, the tooling is already paid for by the supplier, or its sub-contractor, and can be used free of charge.
Even if you do decide to use a factory design, you can still add your own touch by customising the layout. The layout must of course be based on the packaging design and dimensions, but most suppliers can provide you with a digital template.

Labelling requirements

Product packaging design is not all about posh artwork. Importers in worldwide need to ensure that the product packaging is labelled according applicable labeling regulations. In many cases, labeling requirements are part of a safety standards, such as CE (Europe) and CPSIA (United States).
Failing to comply with the applicable labeling requirements may result in a forced recall, or even a lawsuit. Keep reading and I’ll explain why.

Warning labels

Certain legal acts and directives requires the importer to attach a warning label to the product packaging, in case a product contains a regulated substance. In the case of California Proposition 65, which regulates hundreds of substances in consumer products sold in California, such a warning label shall include one or more of the following sentences:
WARNING: This product contains a chemical known to the State of California to cause cancer.
WARNING: This product contains a chemical known to the State of California to cause birth defects or other reproductive harm.
WARNING: This product contains a chemical known to the State of California to cause cancer and birth defects or other reproductive harm.
Such labels are certainly not going to make your product fly off the shelves faster. The only way to avoid warning labels is by verifying, through laboratory testing, that the regulated substances are within the legal limits. While California Proposition 65 is only relevant to business based in, or selling to consumers based in, California – similar warning labeling requirements are also outlined in the Federal Hazardous Substances Act (FHSA).
In the European Union, warning labels are not as common as in the United States. A logic explanation is that the EU decided to outright ban or strictly regulate substances under the REACH directive. Essentially, you need to ensure compliance or you are not allowed to sell the item at all – with or without a warning label. In South Africa, the law pays specific attention to the wording of labels and how products are advertised. The objective is to create an equal platform for all products by stating, for instance, having only facts and not confusing the consumer by word of implication.

Marking requirements

Certain directives, including the CE directive in the European Union and FCC in the United States, require the product packaging to contain graphical symbols.

Country of origin

Consumers have the legal right to know where a product has been made, before they make a purchase. If the country of origin (e.g. Made in China) printed on the product unit, is not visible through the product packaging, the country of origin must also be printed on product packaging.

Minimum Order Quantity

The Minimum Order Quantity, or MOQ, for customised product packaging (layout and/or design) is usually no less than 1000 pcs. The packaging MOQ is not controlled by the manufacturer, but the print and product packaging sub-contractor. This may cause certain complications when the product quantity is lower than the packaging quantity. While it’s hard, mostly not possible, to make the sub-contractor to cut the MOQ requirement – most suppliers still agree to store excessive product packaging for future orders.
Thereby, you can order a product packaging volume that exceeds the actual number of items made for your first order, without wasting money on excessive inventory. That said, make sure your supplier keeps your product packaging in a dry and clean storage area. Make that a clause in the sales contract.

Product packaging regulations

While labeling requirements concerns the item inside the packaging, there are also directives and legal acts specifically regulating packaging design, mechanical properties and substances. In the United States, the Poison Prevention Packaging Act (PPPA) regulates packaging for household items that may be harmful to children.
Most packaging regulations require the importer to ensure compliance with one or more ASTM (United States) or EN ISO (European Union) standards. Contact us today, if you want to know more about how we can help you ensure compliance when importing from China.
This article was originally published here. We re-published with permission from our content partner, ChinaImportal, an e-commerce platform that assists businesses looking to import products from China.
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Wednesday, 16 July 2014

5 steps to planning a business trip to China



So, you’ve found a couple of suppliers online and want to find out if they are everything they claim to be. That’s a good first step.

But, boarding the next flight to China, with a list of three random suppliers you found online, is most often a complete waste of both time and money.

In this article, I explain how you need to prepare yourself before your business trip to China, and what to should look for while you’re there.
#1: Is the supplier able to show compliance with product regulations in your country?
In most industries, less than 5% of the suppliers are able to show previous compliance with American, European and Australian product regulations and standards. Assuming you don’t verify their compliance prior to your visit, you’ll waste a lot of time visiting suppliers that are neither willing nor technically capable of complying with the relevant standards.
Besides, compliant suppliers tend to be above average in other aspects. Apart from the obvious legal requirements, I also consider compliance a strong indication of the supplier’s technical expertise.
#2: Schedule meetings with as many suppliers as possible
All manufacturers are not equal. Expect at least 50% of them to not be what you expect. It’s bad out there. I’ve been taken to factories that have not been operational for months. Factories that would barely pass for junkyards.
I can even recall one really weird situation a couple of years ago, in Xuzhou, when I was taken to the same factory twice in the same day. First in the morning, when a representative of a Trading Company took me there. The second time in the afternoon, when the actual owner of the factory picked me up.
It felt quite awkward to tell the boss that I had already visited their factory earlier that day. Not to mention that I wasted my entire afternoon. Not that there’s much else to do in Xuzhou…
The lesson here is that you’ll return home empty handed if you visit one or two random suppliers. It’s not enough. Schedule visits with at least five or six suppliers, and list a handful of backup suppliers – in case the first round fails to live up to expectations.
#3: Make yourself familiar with the geography
China is a big country, with hundreds of industrial clusters on the east coast. If you’re lucky, you can limit your visit to a single city. Certain industries are in fact concentrated to single cities, such as Shenzhen. However, in other industries, suppliers are scattered all over a province – or even the entire east coast.
First of all, you need to make a traveling plan. Getting to China is easy, and there are direct flights to major cities such as Shanghai, Hong Kong, Shenzhen, Guangzhou and Beijing. But most suppliers are not located in these cities (with the exception of Shenzhen). Instead, you are likely to find yourself spending time provisional cities like Taizhou, Foshan, Dongguan and Changzhou.
Getting there is not that much of a hassle though, thanks to China’s high speed train network. You can get to basically any city on the east coast by train. And that’s about as far as you need to get on your own. Any supplier worthwhile visiting will take you from there to their factory by car.
#4: Confirm the suppliers factory address
It’s common that suppliers, even those who are manufacturers, trade products supplied by subcontractors. It’s not always a bad thing though, but I prefer to be aware of such arrangements before I make my way to whatever village the supplier is located in.
All Chinese companies have a registered address. If the supplier is actually manufacturing the products, the factory should be located at the same address as specified on their Business License. There are exceptions, but this is the general rule.
If the supplier brings you to another address, they are probably taking you to a factory that’s not theirs. But then again, sub-contracting is not always a bad thing. What’s important is that you make your supplier understand that they are going to be held liable for defective products. This is a relatively small issue when dealing with qualified and organized manufacturers, that are in turn outsourcing certain products to sub-contractors. They have assets, and it’s not so easy for them to “disappear” in case things turn out bad.
But that doesn’t apply to smaller trading companies, that consist of little more than an a small office and a few employees. Apart from old laptops and dusty product samples, these companies have no assets. They can’t afford to compensate you if they would run into quality issues. It may also be in their interest to align with the manufacturer, rather than you, in case of a dispute. Stay away from these companies.
That being said, there are also reputable Trading Companies that act as exporting platforms for tens, sometimes hundreds, of manufacturers.
#5: Prepare product related questions
When communicating with a supplier on the internet, you rarely get further up their organization than the sales agents. However, you can expect a lot more attention when you show up in person at the suppliers factory. This means that you’ll get access to their managers and engineers - the people who are actually qualified to talk about their products and manufacturing capabilities.
Whenever I go out to visit suppliers and sit down with their engineers, I get to hear things the sales agents never told me. Probably because they are more concerned with making the sale, rather than telling me the truth. But also because sales agents are not engineers, they spend their days drinking tea and gossiping with their friends on WeChat -  apart from a few occasional conversations with potential customers. The engineers, on the other hand, are qualified to tell you what they can do, and what they can’t. I can recall plenty of times when the sales agents had promised things the supplier was simply not able to deliver on.
While you got the manager’s attention, it’s also a golden opportunity to make them understand that you’re not a gullible idiot. Make them aware of planned quality inspections and lab tests. It’s always good to put pressure on a supplier to comply with your quality requirements and product specifications.
Chinese companies are top heavy, and the only way to make things run smoothly on the production line is by applying pressure on the people in charge.
Inspecting the factory
The production line tells a lot more about a supplier than their brand of instant coffee or what car the owner is driving. Perhaps his new Audit was (involuntarily) financed by the last customer who didn’t bother to hire a quality inspector. The first thing to look at is how well they monitor product quality during the different stages of production. This is what you need to take a closer look at:

#1: Incoming materials

Manufacturers are not “Santa Claus workshops” that make every single material and component in house. They purchase components and materials from tens, sometimes hundreds, of domestic and foreign subcontractors. When quality issues occur, these subcontractors are often to blame (and many suppliers try to use that card).
What really matters to you is that the supplier checks the quality of the incoming materials and components. They shall also separate components and materials that are compliant with certain standards (such as REACH), from those that are non compliant. A supplier that’s not able to manage such separation is a major liability.

#2: Production lines

Manufacturing is not a science, there are always quality issues. What differentiates a good supplier from a bad supplier, is that the former monitors quality during the production process – and minimizes the number of defect units that slips through unnoticed.
A supplier that cares about maintaining a high quality standard has several checkpoints throughout the assembly line. They shall also be able to show how they define and manage defective units. A supplier claiming to have a zero defect rate during production is simply not monitoring their production well enough – if at all.

#3: Assembled products

Products coming off the assembly line shall also go through a final check. While a supplier is not necessarily testing every single unit, a final quality check shall include 2-5% of the batch. Finally, the supplier shall also maintain quality control records. If they claim to be ISO certified, they are even required to maintain records.
Is the supplier’s production lines busy?
It speaks for itself. A supplier with empty warehouses and dozing workers is obviously not doing that well. There’s a lot of overcapacity in China. Plenty of suppliers barely get enough orders to make ends meet. Doing business with such manufacturers is a liability. Even if they have the best intentions, suppliers operating on the edge of bankruptcy are not liquid enough to compensate buyers in case serious quality issues occur.
Before you leave, check out the factory warehouse
Not all manufacturers in China are geared towards Western markets. Many, of not most, are primarily made products for the domestic Chinese market, and developing markets in Asia, Africa and Latin America. That’s not saying that these suppliers are “bad”, but it may indicate that the supplier is not that knowledgeable about Western quality requirements and product certification requirements.
That’s why spending some time in the factory warehouse is a wise decision. This is where the suppliers stack hundreds of cartons, before being loaded into containers and shipped to buyers around the world. There’s only one thing that’s better than a warehouse full of goods about to be delivered, and that’s a warehouse full of goods addressed to buyers in your country.
These are strong indications that the supplier is not only kept busy with regular reorders, but also that they are well aware of product regulations and quality expectations in your market. And that is something you shall never take for granted when doing business in China.
This article was first published here
Fredrik works at ChinaImportal, an e-commerce platform that assists businesses looking to import products from China.

Monday, 14 April 2014

How to manage micro distribution in emerging and frontier markets

There is increased interest in micro distributors and the potential they hold within an inclusive business model.

By 
Well documented micro distribution models include the Coca-Cola MDC (Micro-distribution centre) in Africa and Unilever’s Shakti model in India. Micro distributors can be found in emerging and frontier markets where markets are fragmented and modern trade (e.g. Walmart, Tesco) is still in the very early stages of development. Below are a number of issues to consider when activating a micro distribution model.
Advantages of micro-distribution

Entrepreneurial spirit - A micro distribution system allows companies to tap into the entrepreneurial spirit that is so evident in many emerging markets. However, entrepreneurs must have a long term view to ensure the same consistent quality service is provided to customers.

Flexibility - Micro distributors tend to be more flexible in responding to customer needs. For example, they trade longer hours and can also provide weekend and night deliveries. They can act as a credit provider to low income customers. They “live and breathe the streets” of the communities they work in and are in a much better position to control accounts receivables.

Issues to consider prior to implementation 

Channel focus - A micro distribution model is not a one size fits all solution for all channels. Micro distributors generally focus on selected channels in traditional trade e.g. mom & pop shops, Dukas (East Africa) and Spazas (South Africa).

Complexity - Due to the complexity of sale and distribution, micro distributors will likely struggle to service modern trade effectively. It is best to reduce the complexity (e.g. reduced stock keeping units) for the micro distributor, including expected tasks and activities. It is important to understand what the micro distributor can successfully take care of in the supply chain.

Role definition - Companies needs to determine which aspects of the business they would like to control. For example, the Coca-Cola model separates order generation from delivery. This allows the company sales person to focus on more value adding activities (e.g. meeting customers, getting orders) and the micro distributor to focus on warehousing (neighbourhood warehousing) and distribution.

Supply chain impact - When implementing a micro distributors system, companies must assess what impact the distribution model will have on the rest of the supply chain. For example, compared to larger distributors, micro distributors will require smaller drops sizes that will impact the warehouse and transportation infrastructure and processes.

Shared infrastructure - Profit margin are normally thin and it is important to determine if there are any opportunities to share infrastructure (e.g. warehouse, transport) with other non competitive manufacturers and distributors. This can significantly reduce cost and make the distribution model viable.

Regulatory issues - Companies also need to assess the impact that regulatory issues will have on the micro distribution system. This could include business licenses, zoning and transport bands (e.g. restrictions on delivery trucks during peak hours).

Standardization - During the design phase, companies need to standardized processes and systems as it will reduce set-up and training costs. For micro distributors, distributor turnover (the number that close down) is high and it is important to evaluate how set-up and training costs could be reduced.

Support - Micro distributors also have limited resources (e.g. capital, employees) and normally require a bundled approach (e.g. training, finance, process design) to ensure their operations are sustainable and viable.
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