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Continuous Auditing to Keep Pressure on a China Factory: How it Works

One of the questions our clients ask most often is "how to keep the pressure on our supplier's factory so they improve and they don't make the same mistakes again". Continuous auditing is an answer to this, but how does it work? … [Read more...]

Does The Safety & Quality Of Products Sold On Amazon Pose Risks?

A few weeks ago, a journalist asked me whether products sold on Amazon present higher safety risks and whether their quality is inferior (relative to other distribution channels). My guess is that yes (I have no solid data to back that up. It would be quite difficult to come up with such data), for a similar product positioning (price & quality), those sold on Amazon present higher risks for consumers. Here's why. … [Read more...]

The Future of the Greater Bay Area: High-Tech Manufacturing

Beijing has been planning for the development of a high-tech area in the Pearl River Delta. They called it the Guangdong-Hong Kong-Macau Greater Bay Area in 2017. They clearly look up to the success of the San Francisco Bay area, home to Silicon Valley, and they have been planning to emulate that example. Learn more about it in this post. … [Read more...]

Are Calibration Reports Always A Must? Why Auditors Should Think Before Raising Suppliers’ Costs

By Annie Chan Did you get a visit from an auditor who seemed obsessed with calibration reports? Was he/she happy to see that all tools had been calibrated based on internal reports, or (even better) on third-party lab certificates? There is no doubt auditors love asking for all kinds of reports to confirm the supplier complies with requirements. However, their requests are not always reasonable. … [Read more...]

Manufacturing Electronics in Taiwan: A China Alternative?

As the US-China trade war intensifies, many American importers are looking for alternatives. They often look at Vietnam, Thailand, Indonesia, India, Mexico, etc. But what about Taiwan? There is sometimes an opportunity to start sourcing products from there, especially in electronics. … [Read more...]

Will US Tariffs Drive Manufacturing From China To Vietnam?

A few days ago, Trump claimed that many tariffed companies would leave China for Vietnam and other such countries in Asia in this  series of tweets (read from bottom to top): In parallel, I see an Asia Briefing article entitled Why Vietnam is Overtaking China as a Destination for US Export Manufacturing, showing that this trend is already underway: Vietnam’s exports to the US rose by 28.8 percent year on year in the first quarter of 2019, making the US the largest importer of Vietnamese … [Read more...]

Traceability in Manufacturing: Do your Chinese Suppliers Do it Right?

I see buyers who spend a lot of time pushing their suppliers to do QC inspections on incoming components, to keep the production area clean, to give clear instructions to operators, and other basics. But I seldom hear them push for traceability in manufacturing, despite how important it is. I thought I should write about it again.   … [Read more...]

9 Consequences of the Upcoming US-China Trade War

Based on all the articles I have read about the current geopolitical situation, I am not optimistic about the affect of the US-China trade war on American importers. Dan Harris, who wrote "the US-China Cold War start now," announced that a "mega-storm" might be coming, and he may be right. Now, if things turn out as bad as predicted, and if tariffs apply on more goods imported from China to the US -- and at higher rates -- what does it mean for US importers? … [Read more...]

How To Ensure your Chinese Factory Purchases Good Components?

One of the most common ways Chinese manufacturers enlarge their margin is buying substandard components. Any time a lot of money can be saved this way, the temptation is very strong. What can you do to avoid this risky behaviour from happening? … [Read more...]