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Why Your Ground Agent in China is NOT Helping Cut Costs

From time to time, I hear from a company that works with a ground agent in China, and they basically tell me two things: The agent did a relatively good job lining up suppliers, communicating requirements, and generally ironing out most issues. (That makes sense -- otherwise, the importer switches to another agent or to another approach.) After the initial burst, the agent feels entitled to a commission of X% and is resting on her laurels, not challenging factories, not looking for new … [Read more...]

How The Gap Increases Speed in their Apparel Supply Chain

Christophe Roussel, EVP, Global Supply Chain: Global Sourcing and Product Operations at Gap Inc., was kind enough to share some of the tactics his company adopted at the Made in Asia conference. The typical lead time to get a new garment from design to store is 22 to 25 weeks. That's a serious challenge for designers and merchandisers who need to match market demand when and where it exists. The Gap has been able to cut that lead time down to between 4 and 14 weeks for their more … [Read more...]

How Much Does a Quality Inspection in China cost?

Understanding the cost of quality inspections in China I am always surprised by the expectations of some importers regarding the cost of quality inspections in a Chinese factory. Some importers get to talk about their project for some time, see where we would help them, and finally (almost as an afterthought) ask: "How much does a quality inspection in China cost?" I say "299 USD per day of work", and I can nearly hear them thinking “wow these guys are cheap”. They compare this fee to … [Read more...]

The Special Inspection Levels in the AQL Tables

A few years ago I wrote about the inspection levels, but I regularly notice that some people are confused about the "special" levels (S1, S2, S3, and S4). Here is what the ISO 2859-1 standard says (emphasis is mine): The inspection level designates the relative amount of inspection. Three inspection levels, I, II and III, are given in Table 1 for general use. Unless otherwise specified, level II shall be used. Level I may be used when less discrimination is needed or level III when greater … [Read more...]

When To Do a Random AQL Inspection vs. Check 100% of the Goods

First, let me get one thing out of the way: not all batches need to be checked. If a manufacturer has great systems and processes, and if they have a history of complying with your quality standard, there is usually no reason to send quality inspectors to their facility. Similarly, if you can easily return the whole batch and it can be reworked quickly, you probably don't want to spend resources on checking whether they did as promised. Now, let's assume you do want confirmation of … [Read more...]

Sourcing Trends in 2019 between China and other Asian Countries

I attended the Made in Asia conference last week, and the opening talk was given by Ben Simpfendorfer (Founder & CEO at Silk Road Associates, a strategic advisory firm based in Hong Kong). Ben is one of the most insightful people I know when it comes to covering sourcing trends in China and other Asian countries. Here are some of the interesting points he mentioned. The market shares of different Asian countries (Vietnam, Bangladesh, Indonesia, India...) haven't been changing as … [Read more...]

The Problem With Visual Management Boards in Factories

Visual management boards of some kind are now basically the norm in all factories belonging to a multinational group, so they must be effective, right? I'm not so sure. Not that they cannot be useful (they CAN be VERY useful), but, in most cases I have witnessed, these boards just aren't contributing as much to lean initiatives or process improvement as factory management would like them to be. … [Read more...]

QC Basics: What is a Quality Inspection? Context, Tools & Template

This article describes what a quality inspection is, and when it typically takes place (before, during, and after production). We will cover the types of inspections most widely used by buyers in international trade. They should be performed by 3rd party QC providers (appointed by the buyer), or by the buyer's own inspectors, if you buy from China, Vietnam, India, or another low-cost country. … [Read more...]

How To Keep A Clean Factory And Stop Dust On A Budget

In many industries, one of the most common reasons for defective goods is dust contamination, and they have adopted different cleanliness standards (see the Wikipedia page on cleanrooms and factory cleanliness). If you have visited Chinese factories in certain industries, you have probably seen their efforts in that regard. During our factory audits, we always give a grade about general organization and cleanliness. What advice can I offer about maintaining a clean factory without spending … [Read more...]