Whenever I find an interesting article, I save it. Here are the most recent ones. Have a nice weekend!
China Manufacturing Payment Terms. Limit Your Risks.
Steve Dickinson describes the way 80%+ of importers pay their Chinese suppliers (bank wire with a deposit). It is inherently risky for the buyer. Fortunately he also offers three ways to mitigate your downside.
5 China sourcing strategies that do not work
Etienne Charlier makes a list of ineffective strategies adopted by companies, after they decide to start sourcing from China. If you are new to China, make sure to read this post.
Emotions in China Manufacturing
Chinese suppliers don’t want to deal with emotionally unstable customers. All it can do is harm your production quality and derail its schedule. It seldom improves the situation. I agree with Jacob Yount: keep your cool, and be methodical!
HSBC’s writers came up with a very good comparison of China and Bangladesh, when it comes to garment production. It is ironic that China, in spite of lower-labor-cost competitors, remains by far the largest garment exporter.
Why China’s College Graduates Can’t Find Jobs
China’s economy is mostly based on processing/manufacturing, and tends to neglect other activities along the supply chain (product design, raw materials procurement, logistics and transportation, order processing, wholesale management, and retail sales).
This is the basis of this article’s explanation of the mismatch between the numerous young graduates and the economy’s needs (simple manufacturing sector jobs that don’t require a college education).
The March of Robots Into Chinese Factories
Chinese manufacturers with cash on hand are tempted by full automation. I am not totally against automation, but the first step that is often skipped is to optimize the production flow. More about this here.
According to this article, Chinese automotive firms are following the lead of GM and others who dream of a “lights-off factory”. But why doesn’t Toyota, the most efficient company in this industry, even have computers on the production floor? Maybe there is a better way…
Pre-Shipment Inspections Always Important
Etienne Charlier relates a case where a factory had a strong quality management system, and yet a final inspection caught a serious lapse in quality.
Some manufacturers are good at reassuring foreign buyers, but does it mean there is no risk?
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