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Here are some interesting or useful articles that I found recently. Rising Wages May Erode China's Low-Cost Manufacturing Advantage Economists predict an increase of Chinese wages by a bit over 10% this year. When adding the appreciating currency and the stricter pollution controls, other low-cost Asian countries become more attractive on paper. Why China’s Factories Will Automate In another grim article about the Chinese manufacturing sector, David Wolf reminds us of the underlying … [Read more...]

Here are some interesting or useful articles that I found recently. How I find factories I always find it refreshing when an experienced buyer describes how he works, and what tools he uses. Peter Keller, an American buyer who has imported nearly 1,000 containers since 2005, lays out his sourcing techniques -- in particular his 4 "secret weapons" to source new suppliers, how he vets factories, and how he gets them interested in working with him. Using a Grid Analysis for Supplier … [Read more...]

Here are some interesting or useful articles that I found recently. In China, the Dangers of Due Diligence Checking Chinese suppliers or partners carefully before starting a business relationship is extremely important. Yet China is making it pretty clear that background checks on companies or individuals (without their consent) are not welcome. They are, in many cases, illegal! Fast and Flawed Inspections of Factories Abroad Another interesting article from the New York Times, … [Read more...]

Here are some interesting or useful articles that I found recently. Five tips: How to map your supply chain As I wrote recently, buyers should try to have visibility in their supply chain -- beyond their suppliers, into their sub-suppliers. For example, of my clients desperately wants to know where a material, which is essential for his production and can make or break the final quality of his products, is sourced. However, his direct suppliers just won't disclose it. This article is … [Read more...]

Here are some interesting or useful articles that I found recently. Linking Factories to the Malls, Middleman Pushes Low Costs Giant sourcing company Li & Fung could well be the next company under the spotlight for (un)ethical sourcing issues. Over the last few years, the main target was Apple. But, when compared to Apple, Li & Fung is: Much less transparent about the factories it works with; Linked to worse cases, especially over the last two years. Read this good, … [Read more...]

Here are some interesting or useful articles that I found recently. Bank transfer most favored payment method among China exporters [Survey] This survey from Global Sources displays interesting data about: The preference for bank transfers when it comes to payments; Those few orders accepted without a 30% deposit; Those not-so-few cases where 100% pre-payment is required; What criteria Chinese suppliers consider before they agree to favorable terms. The increasing … [Read more...]

Here are some interesting or useful articles that I found recently. The New Era In China Product Supplier Relationships Requires New Contracts According to Dan Harris, more and more importers want to use one of their Chinese suppliers to ALSO be the distributor/licensor of their products in China. It makes sense, since the manufacturer will benefit twice from high China sales: as the distributor and as the maker. And the Chinese domestic market looks so promising in certain … [Read more...]

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 … [Read more...]

Here are some interesting or useful articles that I found recently. Choosing A China OEM Manufacturer: A Practical Guide Steve Dickinson suggests some non-conventional ways to spot fake factories (trying to put up a show and impress naive buyers) and inadequate factories (trying to appear better than they really are). These are good tips. As a complement, you can read an article I wrote before on the same subject. Importing from China: Ways to Assure a Smooth Order Jacob Yount … [Read more...]

A good number of interesting articles were published recently. The first three address heavy trends in the sourcing world. The New Role Of Written Contracts For Product Purchases In China Steve Dickinson wrote a great piece about a consequence of ever-increasing costs. Lower margins along the supply chain mean higher pressure to avoid mistakes. In the early days of buying product from China, the price was so cheap that these non-compliance issues and their resulting costs were simply … [Read more...]