If you are only going to place 2 or 3 orders with a supplier, the key sourcing criteria will probably be quality, price, past production of similar products, and understanding of compliance requirements. However, if you are looking for a manufacturer you'll work with for 5+ years, you need to look at how they can ensure that the operations in their factory improve. If they are stuck in old ways, they might not be able to support your evolving needs... and, more worrisome, they will probably … [Read more...]
Carbon vs. Alloy vs. Stainless: Steel Grades You Might Buy in China
There are basically 3 types of steel that are used when it comes to product manufacturing: Carbon Steel Alloy Steel Stainless Steel Each of these types of steel has a variety of grades that comprise of different amounts of iron and carbon (the basic elements of steel) and additional alloys. When selecting the right metal for your job, there are several factors that you need to consider: Hardness– capacity to resist abrasion, but also difficulty in being cut or drilled … [Read more...]
The Real Purpose of Factory Audits? Evaluate and Prevent Risks.
I had a good discussion with a client whose background was in auditing for a Big Four accounting firm. He pointed that audits, in that context, is mostly about looking at what happened in the past. In contrast, when buyers request factory audits, the purpose is: To identify risks by pointing to gaps that might have a serious impact on business performance (and to avoid giving much business to a high-risk supplier) By making the most serious gaps obvious, to put pressure on the … [Read more...]
Tired of Your Chinese Factories’ High MOQs & Long Lead Times?
A few months back, I wrote about how some buyers can no longer put up with their suppliers' quality issues. And I often lament on the poor state of quality systems here. In this article I'd like to mention the other enormous source of frustration for foreign buyers: the high minimum order quantities (MOQs) and the long lead times. High MOQs and long lead times are tightly linked They come from the same underlying issue: the "big batch & long queue" mentality. Industrial engineers, as … [Read more...]
Chinese Suppliers Are Getting Less Flexible. Now What?
About 6 months ago, I wrote how Chinese fabric suppliers and dyeing houses were giving headaches to the whole supply chain. It had a serious impact on Chinese apparel suppliers (many delays, higher costs, higher MOQs for fabric...). And, in turn, those suppliers got more rigid when dealing with their overseas customers. The attitude was "that's the way it is and we can't make miracles, so just get in line". That's actually an overall trend, in many industries, from what I have heard. … [Read more...]
New Product Launch Roadmap to Develop & Make a New Product in China
You have a new product idea. You might also have committed customers. What is between you and success? A successfully-produced first batch of your new product. If you haven't developed new products and had them manufactured in China before, you will probably find the process difficult and frustrating. Unfortunately, there can be a number of prototyping iterations, difficulties in finding the right manufacturer and/or components, some solid work on setting production & testing … [Read more...]
How To Get a List of “Good Chinese Factories”?
Hardly a week goes by without someone asking me for contacts of "good factories". We see so many of them, the thinking goes, surely we know a few good ones. When we did a few trade shows in Hong Kong, 7-8 years ago, it came up roughly every 30 minutes. Why wouldn't we do that? For several reasons. 1. Confidentiality The short answer is "we promise confidentiality to our clients, therefore we can't share what we have learned when working for one client with another client". Some people … [Read more...]
The 7 Most Common Product Launch Pitfalls in China
More and more companies work with Chinese manufacturers on new product developments. And, in most cases, things don't turn out the way customers want. I thought I'd highlight the most common product launch pitfalls I have observed for electrical and/or mechanical products. 1. Thinking that "the factory is an expert in manufacturing and all will be good" We have run into many people who think this way. This is typical among companies that essentially do trading (buy and then resell without … [Read more...]
The Sad State of Quality Systems in Most Chinese Factories
The sad truth in China is, 5% of the manufacturers are doing a good job consistently, and the rest have ups & downs that irritate and frighten Western customers. And, of those 5% that do a good job consistently, 0.5% do so because of good systems and the other 4.5% do so because operations are not very complex and management watches what happens carefully. Yes, I made these numbers up. But that's my impression after 12 years spent working here across multiple sectors (from apparel to … [Read more...]
Why Amazon FBA Prep Services Should Be Done in China (not USA)
Michael Michelini wrote about Amazon packaging, and he mentioned the FBA prep services. I discovered a whole industry popped up and is probably growing fast. What do they do? In Mike's words: Basically, a third-party prep service does everything on your behalf, including: Inspect your items to ensure there is no damage, especially if you’re selling “new” products. Carefully remove any stickers from the products, if there are any. Prepare the inventory according to … [Read more...]