Should importers simply contact a quality control firm, explain their situation, and follow the advice they receive?
I don’t believe so. It might actually not be the best use of their money, if they want better results out of their procurements in China.
There are basically three best-selling quality control solutions that make up the bulk of QC firms’ profits:
- Product inspections (around $300)
- Factory audits (around $600)
- Laboratory tests to certify regulatory compliance
The industry has no interest in offering a “no frills” service… even though it is in the interest of most buyers.
Let’s see how it plays out for each of these three solutions.
1. Control of product quality:
I distinguished 3 levels of quality inspection.
Bare minimum (very low cost, except for heavy products):
Ask your supplier to send you photos and production samples.
Better (a little time + 150-200 USD):
Have an inspector go to the factory, draw some random samples, count the defects, and take photos of the products and their packaging.
Even better, make sure the factory has a “perfect sample” for reference, and ask the inspector to send a random sample to your office.
Best (some preparation time + 300 USD per man-day):
(1) Define the inspection checklist before production and get your supplier’s agreement.
(2) Make sure a “perfect sample” is in the factory or is sent to the inspector.
(3) Have an inspector go to the factory, draw some random samples and look for defects, verify if each checkpoint is respected (with supporting photos), and run appropriate tests on a few samples.
My advice:
If you can afford to get the “best” solution during production and before shipment, by all means do it! But you should go for the “better” solution if that’s the most you can pay for.
If you start making trade-off and avoiding inspections during production, you are not really reducing risks. What if you only do a final inspection, and you find that most products are unsellable? It’s too late!
Even a quick-and-dirty review of the first finished products can save you several weeks and many thousands of dollars. If issues are found at that point, you have time to plan ahead and to ask the supplier to address the problem.
Extra reading >> If you’d like to learn even more about QC, read our detailed Quality Control basic concepts post here.
2. Selection of a supplier:
Bare minimum (some time + very low cost):
Get several contacts on trade shows or online directories; request samples and quotes; ask for other customer references and call them; ask for info about the factory (address, number of workers, photos of the building).
Better (a little time + 200 to 600 USD):
Have someone (you or an agent) go in the factory to check capacity and general organization; ask your supplier to certify that production will take place there; run a background check on the supplier.
Best (a little time + 600 USD):
Send an auditor to check the factory quality system in depth, and if necessary the working conditions.
My advice:
The logic is that same as in part 1. If you can follow the “best” solution to approve a primary manufacturer and a back-up supplier (in case you have to abandon your “partner” at one point during the project), do it.
If not, trade down to the “better” solution but, if your order cannot be canceled, get back-up factories lined up. Except maybe if you have a very stable supplier and he keeps producing the same goods.
3. Certification of product safety:
Bare minimum (free):
Before issuing orders, ask the supplier for a past certification of the same product reference, or at least of the materials to be used in production. It gives no guarantee but it is better than nothing.
Better (can be quite expensive, depending on the product):
(1) Send an inspector to pick some samples at random in the factory and to send them to a third-party lab of your choice.
(2) Ask the lab for the standard list of tests to run on this product for its destination market. Perform all the compulsory tests. Get the results yourself and pay for them yourself.
Best (at least as costly as “better”):
Do the “better solution” on the main materials, before they are used in bulk production.
My advice:
Depending on your product line and your country, lab tests can be prohibitively expensive (that’s what I call the importer’s dilemma). Sometimes it is really necessary to avoid obvious risks (say, for children jewelry that might contain lead). In other cases it is out of question (say, for bed sheets exported to Africa).
If you do need lab tests, go for “better” and if possible for “best”, which might not be more expensive.