A couple of years ago I wrote how some huge companies were demanding more transparency into their supply chains. I think they are setting a trend that will not get reversed. However, many companies are not following these best … [Read more...]
How to Shape your China Procurement Strategy
Ideally an importer wants all three of these benefits: High quality Fast delivery Low cost This might be achievable if you set up your own factory and if your organization is excellent at both engineering and manufacturing. … [Read more...]
The RMB is Depreciating Against the USD Further and Further
Good news for importers: you can buy more and more RMB with 1 USD. To put things in perspective, we are now back to the level of mid-2011. What happened recently? I certainly don't pretend to have the full picture. Many … [Read more...]
Setting up a Supplier Evaluation System that Works in China
If you work with a number of suppliers, you probably know which ones are good and which ones are not-so-good. But do you have a formal system to evaluate and manage them? I would strongly advise to put a supplier evaluation system in … [Read more...]
Your Chinese Manufacturer Can Help Improve Your Product Design!
There is a common belief among many importers that Chinese factories are unable to help during the design phase of a new product. As a result, the importer typically works on a design on his side and then asks the Chinese side to make it a … [Read more...]
How to Protect against Copies when you Manufacture in China
For certain types of products (electrical, plastic injection etc.) Chinese manufacturers are often the best source. Production can be performed with relatively high quality and a relatively low cost. However, one of China's major weaknesses … [Read more...]
8 Ways to Prevent Chinese Suppliers from Subcontracting
I wrote before that the vast majority of Chinese manufacturers routinely subcontract some orders. The problem is, they usually do it without disclosing the reality to their customer. Why do they subcontract production to another factory? … [Read more...]
Do Penalties for Poor Quality Make Sense for your Suppliers?
Should you charge penalties to suppliers when there is a quality issue? And, if so, how to do it? I discussed this topic with David Collins, one of my partners at China Manufacturing Consultants, and we agreed that the answer is … [Read more...]
Setting a System in Place when Buying from a China Factory
I had an interesting conversation yesterday with a client who buys from a China factory. We were discussing how Chinese people are generally not good "system thinkers". The problem is, the satisfactory completion of an order … [Read more...]
3 Challenges Ahead for China Procurement Offices
The procurement offices (also called buying offices or sourcing offices) of medium to large size companies that import from China all seem to be under intense pressure. Many are restructuring, slimming down or on the contrary internalizing … [Read more...]
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