QualityInspection.org

Quality Assurance, Product Development, and Purchasing Strategies in China

Supply Chain Risk Management: No, Toyota Doesn’t Always Do Just-In-Time

I ran into a very interesting article from Bloomberg entitled How Toyota Steered Clear of the Chip Shortage Mess. Nearly all automakers announced that they would have to cut their production numbers due to a serious shortage of semiconductors. This was made even worse by a recent fire in a Japanese manufacturing plant. One might think Toyota would be seriously impacted by the general market situation and by one of their suppliers being temporarily unable to produce. Apparently, Toyota … [Read more...]

Have You Revised your Supply Chain Risk Analysis?

Last year, I wrote about the Business Continuity Plan (BCP). More and more companies request their suppliers to prepare a BCP, as a structured approach to performing a supply chain risk analysis to get prepared for the risks they are exposed to. If you haven’t revised your BCP in 2020 and 2021, you have probably been caught off guard by recent events. But the question everyone is wondering is, ‘can we even forecast what is going to happen?’ … [Read more...]

Richard Barnett | Electronics Supply Chain Risk Management in 2021 [Podcast]

Let's hear from an electronics supply chain expert about how to improve supply chain resilience and reduce risks... Richard Barnett of Supplyframe, an expert in electronics supply chains with decades of experience in Asia,  joins Adrian to discuss risk management & reduction in the global electronics supply chain. After the year many importers of electronics had in 2020, reducing risks, improving supply chain agility and resilience, and planning ahead as standard has now become more … [Read more...]

Why Do Importers Need Product Reliability Testing? [Podcast]

Product reliability testing is a must for importers who want to avoid risk... 2020 added considerable strain and difficulty to many importers' lives, so today, more than ever, it's so important to implement measures to protect your business against expensive recalls and lawsuits which may occur if your products don't reach expected reliability, quality, and safety standards. Undertaking thorough product reliability testing during the development and manufacturing stages is one such way to … [Read more...]

Manufacture in China, Vietnam, India, or Elsewhere in 2021? [Podcast]

Manufacturers continue to plan the move of some or all of their supply chains out of China? But where next? Perhaps the word 'exodus' is a little over-dramatic, but there has certainly been a marked rise in companies trying to diversify their manufacturing operations away from China alone since around 2018. One reason is the US/China trade war and the punitive tariffs imposed by the US government on some 'Made-In-China' goods, but we can't discount the coronavirus pandemic, as the manufacturing … [Read more...]

How To Perform In-Depth Due Diligence On Your Supplier [Podcast]

Do your new or current suppliers pose a risk to your business? Sometimes the only way to find out if a supplier poses a risk is to perform some deep due diligence on them in order to assess their business health and if they're able to be a stable, reliable supplier for the long-term. Especially in these times where we're dealing with a pandemic, getting a realistic picture of how suppliers are doing is hard without the ability to be on the ground in China. But there are actions you can … [Read more...]

7 Manufacturing Challenges Due To Lack Of Transparency In China & How To Mitigate Them [Podcast]

The situation in Hong Kong, the US/China trade war, mistrust of China and attempts at decoupling, and other news stories are rightfully a cause of concern for importers with Chinese suppliers. But the manufacturing challenges you should be concerned the most about are those that may prevent you from receiving the products you expect from your suppliers. These challenges can be categorized into 7 different areas and often occur due to a lack of transparency which is either intentional or a … [Read more...]

Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons)

One of the main conclusions of many companies is as follows: 'diversifying our supply chain outside of China is a must in order to reduce risk'. There are two main reasons for this. First, the USA has been leading the charge against Beijing, and any change in the White House will not stop the current trend to "decouple" from China. The general public, the Congress, and the Senate all seem to agree that China is a "strategic competitor" and needs to be opposed. Second, some disasters can … [Read more...]

Supply Chain Risk Management, Part 4: How Much Inventory Do You Need?

If you make sure to sit on 6 months of inventory for every one of your major products, you will run much lower risks of being unable to supply your customers with what they need. You might even be able to cut a current manufacturer off and ramp up a new one, without any impact on your customers. There will be downsides, though. Working capital is expensive. Warehousing and transporting all these goods are not cheap. You may have to write off damaged, lost, of rapidly obsolete materials. (It … [Read more...]

Manufacturing in China can be risky! 10 Examples of China IP Theft

Depending on your product, it may make a lot of sense to manufacture in China (for example, for complex products that need to be developed fast). But the risks of China IP theft haven't gone away. I wanted to share a few examples here. As many manufacturers there start to feel the pinch due to orders slowing down, as their customers tighten their belts during the global coronavirus pandemic, it's only likely to get worse as some unscrupulous characters try to make a quick buck out of unwary … [Read more...]