If you import products from China, have you calculated what poor quality costs you?
As the buyer, you probably have to pay for:
- QC inspections (because you can’t trust your suppliers’ quality)
- Unsellable products that you receive as part of the shipments
- Penalties from your customers when they find quality issues
But it doesn’t stop there… You also have to pay for certain costs that are included in the manufacturer’s price:
- Defects found before shipment and reworked
- Scrapped material
- ISO 9001 certifications (they feel the need a third party accreditation to conceal their quality system’s shortcomings)
This is why many people believe the costs of quality account for 30-40% of a product’s total landed cost. And the good news is, there are ways to reduce these costs!
If you are interested in this topic, join the upcoming conference PROFITABLE SOURCING IN CHINA – COST OF QUALITY to be held next week (March 5 in the afternoon) in Guangzhou.
Here is the presentation of the conference:
A major objective of sourcing organizations is to keep costs low, while complying with quality standards and safety requirements. Tracking and reducing costs of quality has become a key priority, both at the level of the buying organization and of the manufacturer.
How to account for these costs, and what is the impact on the total landed cost?
What solutions have companies in different industries applied with success?
Join us to learn from experts about the best sourcing practices and share your opinion with other professionals during our Forum.
You can see the great lineup of speakers on this page.
I hope to see you there!