Sands China commits to local SMEs | Firm sees significant increase in revenue

Sands China’s commitment to supporting local Small and Medium Enterprises has significantly benefited a number of local enterprises as the company continues to foster relationships with local firms in response to the call of the government.

The pioneering long-term initiative of the gaming operator was the first program of its kind in Macau, benefiting hundreds of its partner enterprises. It has facilitatedmany local firms in growingtheir revenues.

Chao Pak Kei – a three-generation local business – has been supplying disposable products for Sands China since 2003 – successfully creating a new source of revenue.

At the beginning of operations, the company’s products only included paper bags and groceries. It then expanded to paper products including paper cups and plastic disposable forks.

Current general manager, Stephen Chow, who inherited the business in 1999 began to incorporate more disposable products such as paper cups, tableware and plastic bags into its portfolio, continuously increasing product choices and improving their quality.

“At the moment, we sell over 600 products and are the exclusive agent for six brands,” said Stephen.

The expansion has allowed the company to secure partnerships with the city’s gaming enterprises – including Sands China where it initially managed monthly orders of over MOP100,000.

With Sands China boosting its efforts and initiatives to support local SMEs, Chao Pak Kei managed to significantly increase its sales revenue with Sands China, obtaining up to nearly 10 times its initial business with the gaming operators.

The number of its employees has increased from 10 to 18, with delivery vans increasing to seven.

This month, Chao Pak Kei will be moving to its new warehouse prompted by a growing demand in products and services.

Sands China has expressed its commitment to supporting local enterprises as part of the company’s corporate responsibility, valuing local SMEs and viewing them as its strategic partners.

The commitment is part of Sands China’s supplier relationship management strategy, which guides the company’s long-standing efforts to support local suppliers.

In 2017, Chao Pak Kei received a Sands Supplier Excellence Award in the category of small and medium-sized enterprise due to its excellent product offerings and customer service. 

The Sands Supplier Excellence Award is a global initiative of Sands China’s parent company, Las Vegas Sands Corp to recognize outstanding cooperation and service by its suppliers.

According to Stephen, a long history should not mean a conservative approach to business, and companies should constantly innovate and incorporate new products, adding the need enhance company competitiveness in order to seize opportunities and grow over the long term.

The general manager noted that the supplier awards encourage local SMEs to continue to exert effort in providing high-standard products and services to their clients.

“These initiatives act as an acknowledgement and encouragement to local SMEs. At least we know that we are on the right trackand it’s a good way for SMEs to promote themselves to other enterprises as it enhances a firm’s reputation,” said Stephen.

The local firm also partners with other gaming operators in the city, so Stephen hopes that the awards would encourage large firms in the region to source supplies from his 60-year old company.

Currently, Chao Pak Kei delivers goods to Sands China’s properties on a day-to-day basis, excluding Sundays, expressing its confidence in providing a quality service to the gaming operator.

“Our main advantage is our local service,” said Stephen, recalling that Sands China used to acquire similar items from companies in Hong Kong.

“We can do logistics, we have our own warehouse and we just keep expanding our warehouse. That’s one of the most important factors to explain how we have been able to deal with Sands China for so long,” he added.

Commending the flexibility and service of Sands China’s procurement team, the general manager lauded the team for assisting them in improving their products and services by offering feedback.

“The procurement team in Sands China is the most efficient and organized in Macau,” praised Stephen.

Currently, the local firm distributes high-end disposable products and is continually working with other brands from abroad to ensure that they provide quality products for local needs.

Chao Pak Kei has Sands China as its largest client – supplying over 300 different items to the gaming operator – and hopes to continually extend their business relationships.

The local firm is also working on entering the digital marketplace where it will showcase products online for clients to have easier access to the company.

“In recent years, we have seen that the demand in the market is changing. They are looking for some more high- end products; that’s why we have distributorshipsfrom some companies in Europe and US well,” Stephen explained.

Sands China has witnessed the local firm’s ability to keep up with the times with high levels of adaptability, responding promptly to the needs of the gaming operator.

Sands China sees it as its responsibility to assist the development of local SME suppliers. As the property continues to expand, it aims to bring local firms along with its growth.

Hundreds of SMEs have greatly benefitted from the series of programs that Sands China has launched, including its initiatives to hold roadshows in the back- of-house areas of its properties.

These roadshows offer more business opportunities to local SMEs, micro-enterprises, young entrepreneurs, and “Made-in-Macao” enterprises, and are part of Sands China’s commitment to supporting local procurement and SME growth.

This article was sponsored by Sands China Ltd.