Business model description


To fulfill market demand and to speed up time-to-market, the business model of “license to Supply Hub” is elaborated in figure below.


The IP authorization and licensing of Supply Hub, as shown in the diagram, is indeed our innovative business model.



General lighting facilities can be divided into three major categories; “fixtures”, “lighting source” and “inverter and/or ballast”. Hence a distributor may modularize his final products based on his customer’s needs and his specific requirement to optimize the final products.


In order to expedite the launching of CPFL into the marketplace, a dedicated supply hub is established to manage both semi-assembled and assembled products, meeting distributors’ needs and requirements with fast delivery. However, the profit of the authorized supply hub basically comes from fast delivery, quality insurance of the products and efficient usage of capitals, etc.


Indeed both supply hubs and component vendors must be approved and certified by Santoma to guarantee reliable products, and to meet high quality standards and fast delivery goals.


Income from a Supply Hub:

Exclusive patent licensing


No need for factories


Coverage for both Industrial and Commercial Fields


Low Start-up capital


Vendor Managed Inventory (VMI) Being the main source of income


Cash Conversion Cycle (CCC) being part of the main Income


Good Return on Investment Capital (ROIC)


Furthermore, Santoma also provides turnkey services to customer upon demand.