If you are developing a new product, you need to pick standard off-the-shelf components and modules as much as possible and you need to consider compliance at this stage. If your product will include electronic components and will need to be FCC certified and/or bear a CE mark, selecting components/modules that are already certified will save you time and money. However, the question then becomes, how to make sure the certificates sent by suppliers are legitimate? I wrote some advice in … [Read more...]
What’s a Supplier Development Program, and Why Implement One? [Podcast]
In this episode… Let's say you're now working with a new supplier who’s doing your manufacturing in China (or elsewhere in Asia). No doubt some things will be great, and there may be issues that you wish could improve. Rather than abandoning a supplier with some problems, how to develop them to obtain better performance and results? A supplier development program is for you. Furthermore, what sort of results should we be aiming for if we embark upon such a supplier development program? … [Read more...]
Are YOU A ‘Hands-On’ Or ‘Hands-Off’ Buyer? [Podcast]
In this episode... Many importers are new to sourcing from China so we've been creating a mini-series of episodes that explores the sourcing process with advice and best practices from Sofeast's CEO Renaud Anjoran. In this series of episodes, we’re exploring how to do your own sourcing from China, from finding suppliers for your products to getting them made. We’ve moved onto soft skills, and last time we spoke about building rapport with your suppliers. Now, we’re going to look at how … [Read more...]
How To Build Relationships With Suppliers? [Podcast]
In this episode… In this series of episodes, we’re exploring how to do your own sourcing from China, from finding suppliers for your products to getting them made. Today, how to build relationships with suppliers! It includes hard skills, that we’ve already covered in episodes 1 to 4, such as identifying suppliers, negotiating terms and describing your specifications, how to manage projects, and how to check product quality. Click here to listen to those earlier episodes. However, … [Read more...]
Fabrication and Assembly Under the Same Roof: Benefits & Limitations
Every week, several importing companies that are looking for a supplier reach out to us for help. In the past month, 3 or 4 of them were looking for a manufacturer for their new electronic product, and they had a specific request. They were looking for a factory in which both fabrication and assembly take place. What are the benefits and limitations of this..? … [Read more...]
Which Chinese Manufacturing Business Model Is Best For You? [Podcast]
In this episode… Sofeast's CEO Renaud recently wrote this guest post on Harris Bricken's China Law Blog about which Chinese manufacturing business model importers will come across when sourcing a Chinese manufacturing partner. Today he goes deeper, joined by Adrian from the Sofeast team, and explains what the two models are in detail, why expectations about how most Chinese manufacturers will behave need to change, and their pros & cons to you if you're searching for a manufacturer right … [Read more...]
Chennai, India: A Growing Manufacturing Hub for Electronics
Last month, in Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons), I compared 4 manufacturing hubs in Asia that seem well-positioned to receive additional activity, as many American companies try and "decouple" from China: Ho Chi Minh City (Vietman) Kuala Lumpur (Malaysia) Bangkok (Thailand) Chennai (India) Chennai has been ramping up its manufacturing activity Well, it seems Chennai has been ramping up its activity fast. Maybe even too … [Read more...]
The ‘Big 4’ Types of Chinese Factories for Quality Auditors
We have been auditing factories in China and some other Asian countries for more than 15 years. There is a checklist, a grading system, some nuances... and in the end what the client really wants to know is 'what kind of factory is it?' And, really, there are a few typical situations that come back again and again and tend to cause the same challenges to quality auditors...and later, to customers. I'll list each of them along with the typical challenges both quality auditors and their … [Read more...]
SE Asia and India are more competitive than China on wages as of 2021, but should we abandon China?
We started comparing the average wages across Asia in 2015 to help importers decide which country might be the best option for them to source from. As I mentioned before, you need to consider the following data (among others): The trend of the average wages in the countries in question The stability of exchange rates, for example against the US dollar Back in 2015, China's increasing wages were followed by other neighboring countries. Its 'real' cost of skilled factory labor, which … [Read more...]
Sourcing from China (Part 2): Negotiating terms, leverage over suppliers, and describing your needs. [Podcast]
In this episode... In episode 65 we discussed the different supplier options open to buyers who’re sourcing from China. One of the options is to do the sourcing yourself. Many importers want to pursue this, so we're creating a mini-series of episodes that explores how to handle the sourcing process from China yourself with tips and best practices from Sofeast's CEO Renaud Anjoran. In part 1 of the series (episode 69), we looked at the early stage of sourcing where you find your potential … [Read more...]
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