Here are some interesting or useful articles that I found recently.
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 attractiveness of RMB remittance in the eyes of suppliers.
Here is another great article from The Economist.
The author explains why, in spite of higher costs, most manufacturers based in China are not planning to move their operations. The main reasons: a network of suppliers, excellent infrastructure, talented factory workers, productivity and speed (compared to other Asian countries), and the sheer size of the country.
You have probably heard the story of that American citizen, owner of a factory in China, who had a bad experience with his staff.
David Levy, who manages a factory in South China, gives us his take on this incident. As often in China, bad communication is the culprit.
A couple of infographics:
- Cost of Factory Worker In US v. China, Germany: shows comparisons based on rough average numbers about unskilled workers.
- Impact of 3D Printing on Supply Chains: illustrates the shortening of supply chain that might occur in certain industries.
The Wall Street Journal asked “experts” what future trends they see. I don’t agree with all of them, but this is an interesting exercise.
I wrote advice for buyers who visit factories: what to look for if you care about quality, about costs, about production cycle length…
You will even get a template in Word format!