Here are some interesting or useful articles that I found recently.
5 People You Should Know by Name in Your Factory
My friends at InTouch wrote about the best contacts to know in Chinese factories:
- The owner – for pricing, disputes, and special commitments.
- The factory general manager, if different from the owner.
- The production manager – for production planning issues.
- The QC manager – for quality issues and their prevention.
- The salesperson is at the bottom of the list, but should be the first point of contact. Keep a good relationship with her, and make her feel valued, if possible.
Your China Contract Should Be In Chinese. Here’s Why.
Dan and Steve, over at the China Law Blog, have already written many articles about this. But I get this question so often, I think it is necessary to get this message across:
- Suing Chinese companies should be done in China.
- For various reasons, it is better if the contract itself is drafted by your lawyer, in Chinese.
Continuous Product Cost Reduction: Another China Advantage
Etienne Charlier points out that, since a Chinese engineer earns 5 times less than his counterpart in the West, many little cost-saving projects that would consume too much time (and money) in the West are actually feasible in China.
If you are lucky enough to work with a cooperative manufacturer who is willing to invest in cost reduction projects, you should definitely pursue this route:
- Propose changes in packaging (lower volume/weight, cheaper packing)
- Propose changes in materials embedded in the products
- Propose changes in production processes
H&M, Zara Make Commitment to Safety Reform in Bangladesh
It seems like several large retailers are getting serious about deaths in Bangladeshi factories that work for them.
Is it going to prevent large-scale accidents? I doubt it. But at least they will be able to say “we did everything we could”.
The main reason I doubt it is the widespread phenomenon of undisclosed subcontracting. It just can’t be monitored from afar. And it is a convenient way to avoid long shipment delays that these fast-fashion retailers cannot accept.
5 Important Factors Affecting Manufacturing in China
What is modifying China’s industrial sector? InTouch has identified 5 factors:
- Automation
- Slower factory expansion plans (very interesting)
- Focus on the Chinese market
- Better working conditions
- A slow move to inland provinces
Can you see other heavy trends?