How many of your suppliers claim to be ISO 9001 certified? Is it true? And, to start with, what does it mean? I want to shed some light on this topic. The purpose of the ISO 9001 standard is to "help businesses and organizations to be more efficient and improve customer satisfaction". How does it do that? First, what is a Quality Management System (QMS)? Basically, a QMS is what a company puts in place to ensure it meets its customers' requirements. Among others, it includes: … [Read more...]
9 Things Only a Large Company Can Obtain in China/Vietnam
I see some good advice, published in Linkedin or elsewhere, aimed at importers sourcing products from China, Vietnam, or other low-cost Asian countries. A lot of this advice is sound. However, I noticed that a good chunk is NOT applicable to companies buying under 20 million USD a year -- and, sometimes, not under 1 billion USD a year. I made a list of 9 things large importers can get, but small companies usually can't negotiate. (Of course there are many exceptions, but they remain … [Read more...]
Setting Up a New Factory in China: from Idea to Operation
We have followed the needs of some clients and set up our own assembly center in South China. I took some notes about the 6 phases we have followed, to get from idea to operation. But first, for those curious of what a factory looks like just a few days after starting operations, I shot this video. As you can see, it is messy. It will look more orderly in a few weeks. And processes should all be nicely in control in 2-3 months. As I mentioned above, here are the 6 phases we have … [Read more...]
How To Check a Chinese Supplier & Confirm They Fit Your Needs
Last month I wrote an article (How To Get a List of “Good Chinese Factories”?) and one my points was: What is a good supplier to one company is a bad supplier to another company. In that article, I gave an example of a famous contract manufacturer in Apple's supply chain. Doing great work for Apple, but a terrible job for some other customers. Let's take another example: A typical factory that makes apparel for Walmart tends to be good at making large volumes in a short time period, … [Read more...]
The Different Types Of Sampling Plans For QC Inspections
1. What is a sampling plan? A sampling plan allows an auditor or a researcher to study a group (e.g. a batch of products, a segment of the population) by observing only a part of that group, and to reach conclusions with a pre-defined level of certainty. In this article I cover these cases in depth (hit the links below to skip to the relevant section): The buyer wants to follow the most common plan to inspect a supplier's batch of products The manufacturer implements a continuous … [Read more...]
Understanding the Basics about Food GMP
Several clients asked precise questions recently about food GMPs. I asked Annie, our food production safety specialist, to clarify some key topics. Q: What are food GMPs? Food GMPs are the industry-specific 'good manufacturing practices' for food products. These practices are the fundamental operational requirements necessary to enable a food business to produce safe food. They are about the methods, equipment, facilities, and controls for producing safe and wholesome food. They are an … [Read more...]
Transitioning to Supplier Self Inspections: Go Stage by Stage
It seems nearly every major retailer has given some thought to letting their suppliers check quality themselves. I wrote about it in Why Supplier Self-Inspections Are Getting More Popular in China. The obvious benefit is cutting costs. No need to send someone to the factory before every shipment. Another benefit is, when this works well, to stop "baby-sitting" suppliers and to force them to take responsibility for important matters such as product quality... And, hopefully, incentivize … [Read more...]
A Key China Sourcing Criterion: Can Your Factory Improve?
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...]
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