QualityInspection.org

Quality Assurance and Sourcing Strategies in China

Most Chinese Factories Are Bad at Sourcing Materials & Components

I used to believe that Chinese manufacturers were great at sourcing their own materials/components. There are many reasons for this: They are based here and have teams who can go and visit local suppliers. They have extensive networks they can tap for suggestions. They consolidate buying power for many customers. They have mastered the art of selling to oversea companies. They know how to 'make deals'. And yet... After reviewing the way they manage their procurement, I have seen … [Read more...]

Sourcing from China 101, Part 15: How a Factory Can Improve Productivity

This is the last part in this 15-part series. Here we'll focus on labor productivity in factories. Why is it important for buyers? Because, unless your suppliers make progress in this area in the next 5-10 years, many of them will go out of business. Admittedly, if you are not their biggest customer, they will not follow your suggestions of re-organizing production, but it is your responsibility to open their minds about best-in-class practices. I have prepared a simple explanation of … [Read more...]

Sourcing from China 101, Part 14: How a Factory Can Improve Quality

I bet you are tired of hearing your Chinese suppliers say “this is made by hand, so avoiding defects is impossible”. So am I, because it’s so wrong. Some small factories have decreased their defect rate below 50 parts per million (that’s 0.005%). Some of them, in Japan, employs housewives in the countryside, and their operations are all manual! So, how do they get so close to zero defects? The answer is by applying a set of principles. 1. Faster production cycles help improve … [Read more...]

Standards for Selling on Amazon FBA Platform Are Getting Stricter

I listened to an interesting podcast on Global From Asia. It is entitled Amazon FBA Trends in 2018 with Danny MCmillan and Will Tjernlund. These two guests shared their experiences and insights on the 'Fulfilment By Amazon' platform. I took a few notes that are outlined below. Amazon is now a huge platform Outside of China, Amazon often represents more than 80% of sales for e-commerce companies. Many companies depend excessively on Amazon and have been trying to develop other channels … [Read more...]

How To Comply with Standards that are Impossible To Reach?

Importers are often stuck between a rock and a hard place. They are asked by customers or by regulators to comply with very tough (and sometimes unrealistic) standards, and at the same time they need to ensure business continuity -- keep selling similar products and make a margin. This is quite common when a retailer sets very tough standards for social compliance. For example, Walmart writes that they will terminate any business relationship if they find out production was subcontracted to … [Read more...]

Sourcing from China 101, Part 13: The 5 Steps to Developing a Chinese Supplier

Many importers work in one or two product categories. They buy 80% of their volume from 1-4 manufacturers. And many of them make the same mistake: they don’t try to improve their CURRENT suppliers. Instead, they spend time sourcing NEW factories and training them to their requirements, and consequently they are taking risks on the first order from a new supplier. Is there an alternative? Sure. A supplier development program follows 5 steps. And it starts at the sourcing phase! 1. … [Read more...]

What Can Quality Professionals Do When Most Suppliers Are Off (CNY)?

Do you find yourself with some time on your hands, when your Chinese suppliers are enjoying their New Year holiday? Why not take advantage of it and do some work that will be important to your company's success? Here are 4 suggestions. 1. Data analyses for better decisions If you can easily extract all the issues from QC reports (or if you can use an intern to do that work), this will be well worth your efforts. Ideally, you would classify the past issues per product, per supplier … [Read more...]

Sourcing from China 101, Part 12: How Closely Do You Follow Your Productions?

Up until now, I have written advice that is targeted at certain types of importers. I call them the “hands-on buyers”, and I know them well because many of them are our clients. They tend to follow productions closely. However, let's not overlook a good half of the buyers -- the “hands-off buyers”. My point here is really this: there is no one set of “best practices”. As far as importers are concerned, there are at least two types of buying strategies that can make sense. First, let’s … [Read more...]

Software for your Company’s Quality Inspectors: All You Need To Know

I wrote a detailed guide on quality inspection software for buying offices, on the SynControl website. It has become a hot topic for buying offices and trading companies. Top management is looking for savings in support functions, and the quality department is fist in line. These types of questions are asked more and more often: Do we really need 4 people in the office to manage quality? Couldn't we be more efficient? Would it make a difference if we had fewer inspectors? Does quality … [Read more...]

Do You Focus on Product Redesign Rather than Process Improvement?

Let's say you develop a custom product (based on your own design) with a manufacturing partner in China. After 2 years, they push for a price increase because their costs are going up. And let's say you cannot raise your purchasing price. You have to find ways to keep costs down in manufacturing. There is definitely a place for product redesign. It can lead to enormous savings. And often, a Chinese supplier can give suggestions, such as: A cheaper grade of steel would do the work just … [Read more...]