QualityInspection.org

Quality Assurance, Product Development, and Purchasing Strategies in China

Some Chinese Factories Are Going Bankrupt: How To Know Which Ones

Some Chinese factories have suffered serious blows recently. Large American companies are moving manufacturing outside of China, often abruptly. Many manufacturers were hit in 2020 by very soft demand and cancelled orders. Their government is becoming more serious in getting taxes paid and regulations complied with. And so forth. The logical conclusion? Many factory owners who have accumulated debt and don't see the light at the end of the tunnel are tempted to go out of business. If … [Read more...]

Chinese Suppliers Harder To Work With than Last Year, 2020 Survey Respondents Say

2020 has been a tough year for so many reasons: The COVID-19 pandemic, the continuing US/China trade war, the drive to exit China for some manufacturers, a global recession beginning, and more. But what effect has this had on the relationship between foreign importers and their Chinese suppliers? To find out, we sent a survey to both our Sofeast and QualityInspection.org readers to assess the state of manufacturing in China in 2020. The results were eye-opening... … [Read more...]

Service Providers: Escape the Commoditization Trap

We compete with a number of other service providers, and over the years I have seen stark changes happen in some verticals. An interesting case study is the TIC (Testing, Inspection, Certification) industry. In 2005, importers were paying 500+ USD per man-day for QC inspections on consumer goods. Over the years, salaries and other costs went up, but the market price tended to go down. (I wrote before why some buyers always want a lower price.) What are the reasons? It is a combination of … [Read more...]

Product Reliability Testing | 7 FAQs

If you develop, manufacture, or distribute a product that has to perform its intended function for at least a certain duration, you probably need to do product reliability testing. Otherwise, you may have no idea how soon the product will fail and how it will fail, and that might cause you serious issues in the marketplace. Our clients often ask us questions on this topic. Read my responses to the most frequently asked questions. … [Read more...]

Vetting Suppliers In China [Podcast Series]

Vetting suppliers is important. After all, these suppliers are responsible for your company's reputation. Hopefully, everyone by now will understand the dangers of checking Alibaba or Global Sources and 'choosing' a supplier who 'looks' good, or perhaps trusting that Alibaba Gold suppliers are somehow more legitimate and trustworthy (spoiler alert: they might not be). So what does a good vetting process look like? … [Read more...]

What Is the APQP? (Advanced Product Quality Planning Process)

The APQP, or Advanced Product Quality Planning, is a proven approach for developing a new product to be made in high volume and under strict quality, timing, and cost requirements. It was developed in the automotive industry. (Virtually all tier-1 suppliers of car parts have to implement this approach.) It has also been adopted in other settings with similar requirements, with great success.   Adding some structure to the design & development phase I have heard many people tell … [Read more...]

Incubator VS Accelerator VS Go It Alone: The Startup’s Conundrum

If you are a startup at a very early stage with growing your business and getting products to market, you have a few choices in order to get on the right path. Do you go with Startup Incubator VS Accelerator, or dispense with them and just go it alone? Here are the options in more detail (we'll focus more on hardware startups, rather than purely software startups, as working with them is where most of our experience lies): … [Read more...]

Supply Chain Risk Management, Part 4: How Much Inventory Do You Need?

If you make sure to sit on 6 months of inventory for every one of your major products, you will run much lower risks of being unable to supply your customers with what they need. You might even be able to cut a current manufacturer off and ramp up a new one, without any impact on your customers. There will be downsides, though. Working capital is expensive. Warehousing and transporting all these goods are not cheap. You may have to write off damaged, lost, of rapidly obsolete materials. (It … [Read more...]

Low Volume Manufacturing in China for Your New Product

A lot of our clients develop their own products, often in the electro-mechanical space. Some start with a bang and have large pre-orders. They are the lucky ones (on the commercial side, at least). Many others have more modest objectives, requiring only low volume manufacturing at first, and can struggle to find an interested manufacturer in China. I thought I'd share some tips for companies in this situation. … [Read more...]

6 Effects of Signing a Strong Manufacturing Contract with your Supplier

As a buyer, you may be in a position of strength in front of a supplier. For example, your orders are quite attractive to them, and you can easily switch to another supplier. You may be tempted to work with a business lawyer to draft a manufacturing contract. That makes sense. And that lawyer will probably prepare a relatively strong contract, too. That makes absolute sense from a lawyer's point of view (their mission is to cover all risks, after all). However, here are a few consequences … [Read more...]