Last week I was discussing with a friend in Hong Kong. He is in contact with many companies all over China's coast, due to the nature of his job. He told me about a new trend that looks like this: Small Chinese company operates a few … [Read more...]
How much does a Chinese inspector cost?
Some importers wonder how much a Chinese inspector costs to hire full time. The short answer is: More than you might think. It's more than just their salary, so in this post, I'll explore the 5 types of people you might hire as an … [Read more...]
How many samples to inspect? It depends…
Let's say you want to follow the general procedure for quality inspections. How many samples should you draw for inspection? Let's also say you want to follow the ISO 2859-1 standard, under normal severity, and in level II. (If you are … [Read more...]
Do Chinese suppliers respond to all emails? Of course not.
So you sent a request for quotation to 20 suppliers, and only 5 have responded? Or you have placed an order and production is supposed to be under way, but your contact does not respond to your demands for updates? It should not be … [Read more...]
The changing nature of Chinese exports
The nature of products exported out of China is changing. This is an important trend, and all importers should be aware of its implications. China's manufacturing sector is "moving up the value chain", and it follows the same pattern as … [Read more...]
Shipping under FOB vs CIF terms?
Regarding FOB vs CIF incoterms, I found an interesting article in the latest edition of the ChaINA magazine (published by the Global Supply Chain Council). It warns importers against accepting CIF (Cost-Insurance-Freight) shipping terms … [Read more...]
The effect of China inflation for foreign buyers
Many importers have been forced to accept sharp price increases in 2010 and 2011. And everybody is wondering, how long will it take before China loses its price competitiveness? I just read an interesting article entitled China’s … [Read more...]
Why sourcing from China is so hard
I just read a very thoughtful article on David Dayton's blog: When your supplier is not arguing to win. David gives a list of reasons why it's so hard to get a Chinese manufacturer to deliver on spec, in time, and without last-minute price … [Read more...]
The main advantage of manufacturing in China: speed
Li & Fung's CEO recently gave an interview to Reuters that you can watch here. I wrote a few excerpts below: About China's main advantage: "China is by far the most efficient, quick-to-market, including price and quality, if you add … [Read more...]
Auditing a small Chinese factory: does it make sense?
I see some well-meaning importers who pay for factory audits based on a checklist inspired by the ISO9001 standard. However, I am really questioning the value of auditing a small factory (below 400-600 workers). Don't get me wrong, I am … [Read more...]
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