By Fabien Gaussorgues With the sharp increase of shipments of electric & electronic devices working with a lithium battery and new rules that appeared recently when it comes to shipments, clients keep asking us about applicable regulations for shipping e-cigarettes. This guide covers the shipment of e-cigarettes, as an example, but it is mostly applicable to other small devices with lithium batteries (smart devices, IoT, Bluetooth speakers, and so forth). Note: on sofeast.com we … [Read more...]
Do Good Manufacturing Practices (GMP) Audits Drive Improvement?
In any industry, there are generally-accepted 'good manufacturing practices' (or GMP). And customers often audit their suppliers' operations by using those GMPs as a checklist. First, what are those 'good manufacturing practices'? Think of it as the requirements of ISO 9001 (which are vague enough to be applicable in any type of organization) + some specific manufacturing arrangements. For general consumer goods, GMPs include batch-level traceability, identification of all materials, … [Read more...]
How the US/China Trade War Accelerates the ‘Made in China 2025’ Plan
Many journalists wrote about the new tariffs, how the situation will likely evolve over the next few months, and who the winners and losers might end up being. What I realized is, this situation is helping Beijing accelerate the transition of their manufacturing sector toward higher technologies. Let's look at 3 events that all point to this. 1. The US is stopping trade talks with China (published yesterday) For years, the US has complained American companies can’t fairly compete in … [Read more...]
When AQL Sampling Plans Can’t Find Defective Products
A reader sent me this interesting question: I would like to better understand AQL usage and more precisely whether inspections based on AQL are effective in situations where the distribution of defects is not homogeneous within the lot. Let's say the lot is 25,920 pieces split in 36 boxes. From previous observations, most of the pieces in the lot are OK, but a few pieces (200-500) are not OK and they are physically located in a focused part of one or 2 boxes. Is an AQL inspection the … [Read more...]
Does the Future of Vietnam Manufacturing Depend on Taiwan?
I talked with a client who was working in a Taiwanese factory established in Guangdong in the early 1990s. It had been set up recently — production was previously done in Taiwan. Their facility was making products that require metal, rubber, plastic, and textile parts. At the very beginning, all these parts were coming in full containers from their old Taiwanese suppliers. Over a few years, they convinced all their main component suppliers to set up production in South China, in order to … [Read more...]
Pros and Cons of Crowdfunding (Kickstarter/Indiegogo) for Startups
Crowdfunding has emerged as one of the main sources of funding for hardware startups (and many other ventures). Here are a few impressive statistics: 15 million people have backed a Kickstarter project since 2009. Backers pledged a total of 3.9 billion USD. More than 9 million people have backed an Indiegogo project since 2008. However, entrepreneurs need to think about all the pros and cons of raising money this way. If you are in this situation, here are are some … [Read more...]
On-Time Delivery for your New Product Made in China? Possible?
We have seen this situation a number of times: An American or European company designs a new product They find a manufacturing partner that has some general experience in their industry (but has never made that precise product since it is totally new) Since the buyer needs flexibility and service, and can't afford high prices, they tend to work with a small or medium-sized factory (fewer than 500 employees, and often fewer than 200) All the development (NPI) work gets done, but … [Read more...]
How Blockchain Can Help Importers & Regulators Manage Supply Chains
I came upon a great article entitled The Time Is Now (available only to ASQ members), by Narahari Rao. It describes how orders, invoices, transactions, testing & inspection reports, material certificates, and other critical pieces of information could all be saved in a blockchain database. What is the advantage? Let's say your company buys products that require materials from different suppliers and sub-suppliers. To understand what happens in your supply chain, manage risks (think … [Read more...]
Transferring Production from China to Vietnam to Avoid Tariffs
I am writing this from Vietnam, where the tariffs imposed by the Trump administration on made-in-China goods mean new business opportunities. Many companies import products from China to the US and have seen their margin annihilated. A logical reaction is to look at other places to have their products manufactured. And Vietnam is often in the short list of alternatives. If you are in that case, what are the key questions you should ask yourself? Access to component suppliers If you buy … [Read more...]
How to Pay Chinese Suppliers by T/T Payment (Bank Wire Transfer)
T/T stands for Telegraphic Transfer. In other words, an international wire of funds from the buyer's bank to the seller's bank. When a Chinese supplier asks for a T/T payment, what they really mean is they want a wire transfer. (Technically, a T/T is not exactly the same as a wire transfer through the SWIFT system, but the vast majority of people think of them as the same thing.) A wire transfer based on SWIFT is the most common payment method in international trade with Asian countries. … [Read more...]
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