So you sent a request for quotation to 20 suppliers, and only 5 have responded? Or you have placed an order and production is supposed to be under way, but your contact does not respond to your demands for updates? It should not be … [Read more...]
Archives for July 2011
The changing nature of Chinese exports
The nature of products exported out of China is changing. This is an important trend, and all importers should be aware of its implications. China's manufacturing sector is "moving up the value chain", and it follows the same pattern as … [Read more...]
Shipping under FOB vs CIF terms?
Regarding FOB vs CIF incoterms, I found an interesting article in the latest edition of the ChaINA magazine (published by the Global Supply Chain Council). It warns importers against accepting CIF (Cost-Insurance-Freight) shipping terms … [Read more...]
The effect of China inflation for foreign buyers
Many importers have been forced to accept sharp price increases in 2010 and 2011. And everybody is wondering, how long will it take before China loses its price competitiveness? I just read an interesting article entitled China’s … [Read more...]
Why sourcing from China is so hard
I just read a very thoughtful article on David Dayton's blog: When your supplier is not arguing to win. David gives a list of reasons why it's so hard to get a Chinese manufacturer to deliver on spec, in time, and without last-minute price … [Read more...]
The main advantage of manufacturing in China: speed
Li & Fung's CEO recently gave an interview to Reuters that you can watch here. I wrote a few excerpts below: About China's main advantage: "China is by far the most efficient, quick-to-market, including price and quality, if you add … [Read more...]
Auditing a small Chinese factory: does it make sense?
I see some well-meaning importers who pay for factory audits based on a checklist inspired by the ISO9001 standard. However, I am really questioning the value of auditing a small factory (below 400-600 workers). Don't get me wrong, I am … [Read more...]
Top 10 mistakes committed by importers
It is good for importers to read about best practices. Many first-time buyers have never heard of letters of credit or quality control plans. They often find it useful to follow a "how-to" guide. On the other hand, it is much easier (and … [Read more...]
China quality: run away at the first alert!
Last week I wrote about bad relationships with Chinese suppliers and Dan, on the China Law Blog, mentioned it in There Must Be Fifty Ways To Leave A Bad China Supplier. Specifically, Dan asked this question to his readers: What percent … [Read more...]
The different kinds of sourcing agents
Importers often feel like they need some help to find a good supplier in China or in other Asian countries. In this article I am going to study the different options available to them. I heard lots of stories about sourcing agents, and … [Read more...]