I am tired of repeating certain things over and over when I am in Chinese factories. One of them is this: If you work on improving quality, you will cut your costs at the same time if you follow the right approach. This is nothing new. As … [Read more...]
Archives for June 2016
Applying European/American Standards to Chinese Suppliers
A few days ago I published What Needs to Be Done Before Production Starts. I was careful to mention what is commonly done, not very common, or very seldom seen in Chinese factories. I guess most importers of consumer goods thought "we … [Read more...]
What Needs to Be Done Before Production Starts (PPAP)
If you are purchasing products that are quite standard for the manufacturer and if the processes involved are simple, you can do like most importers: approve pre-production samples, write down the specifications, issue a purchase order, and … [Read more...]
Latest Trends in China Sourcing, Compliance, and Quality Control
There have been a couple of interesting articles about future trends in China manufacturing. Dan Harris on the China Law Blog pointed to a well-researched WSJ article (How China Is Changing Its Manufacturing Strategy -- It hopes to keep … [Read more...]
Is Factory Management Getting Better in China Over Time?
What is your image of the factory owner ('laoban' in Chinese)? A man in his 50s who has no formal education and can't speak English, wants to take all the decisions in his business, has placed 5 family members in various positions, and has … [Read more...]
How to Pay a Service Provider Based in Hong Kong or China?
When it comes to paying invoices, there are multiple options. What makes sense for a low amount (say, 100 USD) is not appropriate for a higher amount (say, 15,000 USD). I described before the two main options for paying Chinese … [Read more...]
Sending a Regular Survey to your Chinese Suppliers
Large companies usually send an annual survey to their suppliers. The feedback helps them see opportunities for improvements and gives them data to justify some of those improvements. On their side, suppliers will generally be happy to … [Read more...]
Having a Chinese Manufacturer Make Molds and Tools for You
One of our regular readers, Brad Pritts, wrote a comment yesterday's post about non-recurring engineering costs. It is a great follow up. Here it is. -- One other problem/ misunderstanding that I’ve seen from lots of US customers … [Read more...]
What Are Your Non-Recurring Engineering Costs for Production in China?
Many importers want to have their own (customized) products made in China. One common mistake they make is forgetting to calculate the entire project costs. In particular, they forget about Non-Recurring Engineering (NRE) costs -- many … [Read more...]