A number of blog posts, such as this one, have been popping up lately casting doubts on whether just in time manufacturing can survive post-coronavirus. They share some pretty strong words: Recent trade tensions between the US and China, as well as the COVID-19 pandemic, have highlighted that this supply chain model is increasingly untenable. Listen to this episode of the podcast to hear my take... … [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...]
Will China Lock Entire Provinces Down A Second Time in 2020?
In early February, I was wondering what effects the lockdown of China would have on importers. And, a few weeks later, importers suffered another (often more violent) blow: stores closed for months, a lot of unsold inventory, and weak demand across many product categories. … [Read more...]
When Should American Companies Reshore Manufacturing Or Stay In China?
In recent times it's very common to see stories about American companies scrambling to reshore manufacturing and leave China and the data seems to support this trend of reshoring or finding other locations. However, I suspect the American companies that moved to China for the wrong reasons originally are mainly the ones who are now reshoring back in the US. Is this the case, though? Let's explore this... … [Read more...]
What is the Bill of Materials and why is it important?
When a new product is developed, two sets of documents are very important: On the technical side the design deliverables (component drawings, PCB schematic…) and on the supply chain side the Bill of Materials (BOM). Let's look at the BOM and its importance here: … [Read more...]
How You Can Prepare for the ‘After Coronavirus Peak’ in the West
The COVID-19 pandemic is now clearly impacting the entire world, with heavy and unpredictable consequences. It is no longer just a Chinese issue. The problem has been 'exported'. But let's look at China first. The situation is changing 180 degrees these days! … [Read more...]
COVID-19: Have a Resilient Supply Chain, Stop JIT, Never Single-Source? Really?
I am getting tired of reading "expert commentaries" about the impact of the Covid-19 epidemic on supply chains. They all seem to say the same thing, and (in my mind) they tend to overlook certain facts. Let's look at 4 commonly held truths that I disagree with. … [Read more...]
8 Elements of a Low-Risk Supply Chain in China [Free Webinar]
Clients often ask us for assistance in improving their supply chain in China. For instance, it's common to hear that they aren't satisfied with poor quality, with missed timelines, or with unethical practices. If your supply chain is giving you issues like this, and it is causing your business unnecessary risk, you might not have taken all the necessary steps. How to lower these risks and build a low-risk supply chain in China? Over at Sofeast, we've created a free webinar for you about … [Read more...]
Will US Tariffs Drive Manufacturing From China To Vietnam?
A few days ago, Trump claimed that many tariffed companies would leave China for Vietnam and other such countries in Asia in this series of tweets (read from bottom to top): In parallel, I see an Asia Briefing article entitled Why Vietnam is Overtaking China as a Destination for US Export Manufacturing, showing that this trend is already underway: Vietnam’s exports to the US rose by 28.8 percent year on year in the first quarter of 2019, making the US the largest importer of Vietnamese … [Read more...]
How The Gap Increases Speed in their Apparel Supply Chain
Christophe Roussel, EVP, Global Supply Chain: Global Sourcing and Product Operations at Gap Inc., was kind enough to share some of the tactics his company adopted at the Made in Asia conference. The typical lead time to get a new garment from design to store is 22 to 25 weeks. That's a serious challenge for designers and merchandisers who need to match market demand when and where it exists. The Gap has been able to cut that lead time down to between 4 and 14 weeks for their more … [Read more...]
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