The mid-market companies are extremely underserved in this push to achieve global sourcing initiatives. The reason is due to many factors:

  • Cash flow.
  • Limited resources.
  • Limited experience in offshore endeavors.
  • Immense pressure from their larger customer base to source a greater percentage of product from low cost countries.

The big players out there such as GM and Black and Decker have their own assets in place to achieve this reduced spend. However, the GM supplier who is $20M in revenue, is not in position to be able to achieve the dramatic numbers GM has required it to. The result, loss of preferred status as a GM vendor. This scenario plays out every day and it makes no difference if it is GM or Black and Decker. The fact of the matter is, globalization has taken hold of our marketplace.

As a consumer, we want better products for less money - period. In order to achieve that, manufacturers need to extract as much cost as possible. That's where GA comes in. GA works in tandem with our customer base. We are not a broker. We do not buy and resell the product. We are not a manufacturer's rep, we do not REP a particular factory. We have no allegiance whatsoever to any one factory in China. We have a network of factories we work with on projects. Our revenue model is simple, we are retained by our custmers with a monthly fee that is established at the onset of the project engagement. This fee allows GA to cover its costs that are associated with developing the relationships necessary to properly source the product. From there, we charge a cost + percentage. For example, if the product costs $10 and the USA manufacturer wants to order 1M units, our fee would be $10 + X% (typically ranges from 3-15%). The range depends on the product, the difficulty it will take to source the product, etc.

Mid-market companies in today's extremely competitive landscape embrace this model for its simplicity and the ability to literally go to China ASAP without incurring the costs associated with doing so.