1. What is a sampling plan? A sampling plan allows an auditor or a researcher to study a group (e.g. a batch of products, a segment of the population) by observing only a part of that group, and to reach conclusions with a pre-defined … [Read more...]
How to Pay Chinese Suppliers by T/T Payment (Bank Wire Transfer)
A T/T payment is a common way to pay Chinese suppliers, but what is this payment type, how to make one, and what FAQs do importers have about the process? In addition, when you're ready to pay a supplier, what kinds of payment terms might … [Read more...]
What is the “AQL” (Acceptance Quality Limit) in simple terms?
What Does AQL Mean? 'AQL' stands for 'Acceptance Quality Limit', and is a method used by many businesses to check a random sample from the production batch of their products and confirm that the risk of bad quality is relatively low. In … [Read more...]
The 3 Types of Hong Kong Trading Companies
After working myself in a Hong Kong trading company a few years ago, and then observing my clients' suppliers, I have noticed a lot of similarities among these companies. I think we can distinguish between three types of trading … [Read more...]
Why Excessive Stock is a Big Problem in a Factory
Most Chinese factory managers have never completed advanced education. But they are generally very savvy at certain aspects of their job. There is one thing they can't wrap their head around, though: the fact that the rules of physics … [Read more...]
Direct Sourcing in China: What Functions Do Importers Need to Perform?
Direct sourcing has been the dominant trend over the last 20 years. Importers have reduced FOB prices by going "factory direct" by eliminating trading companies. But, in some cases, it has often resulted in higher overall costs and lower … [Read more...]
Reset your Mental Models when Buying in China
Every year, tens of thousands of new businesses start purchasing directly in China. And many of them have a bad first experience. The key to successful China sourcing is not a set of tools -- it is primarily a change in mental … [Read more...]
How to SUSTAIN Improvements in a Chinese Factory?
When a Chinese factory is in crisis and its boss is open to new ideas, it is possible to make a lot of changes quickly. These improvements are usually driven by consultants or by a strong and experienced manager. And the problem is, once … [Read more...]
Auditing the Processes of a Rubber Molding Factory in China
Today we are focusing on the way to audit a rubber molding process. It is quite common in tire factories, but also in many other productions. What are the Rubber Molding Processes? Processing rubber to produce final products for end use … [Read more...]
Are Technical Auditors Necessary for ISO 9001 Audits?
Many people think the ISO 9001 standard is pretty generic is applicable to all industries (that's mostly correct), so a good auditor can check any type of business when performing ISO 9001 audits (I don't agree with that). And the ISO … [Read more...]
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