"We have proven to them our reliability as a supplier. We have passed their standards of quality. We have delivered on time even as sales volume and reorders grew. We have been able to work with their people to develop products appropriate to their market," said Manuel Siggaoat, Sr., chairman of Siwon International, which manufactures Manels leather goods.
Unknown to many, Siwon has been providing Avon Phils. with promotion items and leather accessories sold under the Avon name for the last 10 years. In the last five years, sales to Avon has grown 10 times over, with orders running up to as much as 12,500 pieces per item.
"Not once did the company fail us in terms of quality, reliability, and commitment," said Avon supply chain manager Bing Salazar.
"This means, among other things, that our facilities are adequate for our employees, that they are not abused in any manner, and that we do not employ minors. Our accreditation has actually resulted in a higher level of dynamism in our company in terms of work ethics and corporate responsibility," said Siggaoat.
Siwon is also in its third year of a TQM or total quality management program of the Department of Trade and Industry, through a technology transfer donation from Japan. Because it has incorporated TQM in all steps of its product development, the company takes as much as six months and several prototypes to come up with products for Avon.
(TQM programs take four to six years to complete).
"This is an exciting time for our company, which is celebrating its 40th year. There is so much to learn from this partnership," said Siggaoat. " Of course, there is that risk we are taking. But we would like to believe the market segments are different for each product line. Those who go to our stores to shop would be seeking something different from those purchasing directly from Avon ladies. The styles and pricing are also different."