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...]
Sourcing Trends in 2019 between China and other Asian Countries
I attended the Made in Asia conference last week, and the opening talk was given by Ben Simpfendorfer (Founder & CEO at Silk Road Associates, a strategic advisory firm based in Hong Kong). Ben is one of the most insightful people I know when it comes to covering sourcing trends in China and other Asian countries. Here are some of the interesting points he mentioned. The market shares of different Asian countries (Vietnam, Bangladesh, Indonesia, India...) haven't been changing as … [Read more...]
How Blockchain Can Help Importers & Regulators Manage Supply Chains
I came upon a great article entitled The Time Is Now (available only to ASQ members), by Narahari Rao. It describes how orders, invoices, transactions, testing & inspection reports, material certificates, and other critical pieces of information could all be saved in a blockchain database. What is the advantage? Let's say your company buys products that require materials from different suppliers and sub-suppliers. To understand what happens in your supply chain, manage risks (think … [Read more...]
Transferring Production from China to Vietnam to Avoid Tariffs
Many companies US importers from China have seen margins annihilated. It's logical to look at transferring production from China to places like Vietnam. I am writing this from Vietnam, where the tariffs imposed by the Trump administration on made-in-China goods mean new business opportunities. If you are affected, what are the key questions you should ask yourself? Access to component suppliers If you buy bamboo decoration, you should already be in Vietnam. If you have … [Read more...]
Counterfeit Goods in China: Are Things Getting Better?
I was walking on the street in the Huaqiangbei area in Shenzhen and saw two guys pushing carts full of these boxes: Used boxes that were originally full of expensive French champagne. Probably collected in a restaurant or a shop that sells bottles by the unit. What do they contain now? I'd guess the bottles were also collected, re-filled, and carefully re-sealed. I don't want to make too many wild guesses here. Maybe they just re-use these boxes because they are nice looking (?). … [Read more...]
Supply Chain Management: Quality Inspections’ Role
Do you sometimes feel that your company, your suppliers, and their own suppliers, are on different planets? Does information spread with difficulty through your supply chain? Nothing unique here. It is quite typical if you work with suppliers in China, Vietnam, India, etc. I wrote about this in The Impact of Quality Control Software on Your Supply Chain, on the SynControl blog, and we illustrated it in this infographic: Every step in the supply chain tries to optimize its own … [Read more...]
China Environmental Inspections & Factory Closures: an FAQ
Beijing has been inspecting and closing factories for some time, yet it seems the full effect is starting to be obvious to all. Supply chains get disrupted, many production lines are stopped, and an increasing number of importers are suffering long delays. There has been no shortage of articles on this topic. Here are a few recent ones (all were published in September): China to send over 100 pollution inspection teams to cities around Beijing (South China Morning Post) China punishes … [Read more...]
How Do Logistics From China Work for Importers?
By Fabien Gaussorgues Many companies see the lower cost of manufacturing in China, but sometimes they forget to factor in the logistical costs. In some cases, logistical costs can be higher than the price of products! In this article we will cover some of the basics every importer needs to know. 1. Frequently used incoterms The first step is to decide on shipping terms with your suppliers. Here are the 4 most common incoterms in China, sorted from the highest to the lowest involvement on … [Read more...]
Was the RMB Suddenly Devaluated? (Just Rumors!)
UPDATE at 2pm China time: it's confirmed to be just rumors in this article. ++++++ UPDATE at noon, China time: Google still shows the same number, but seems to have its information wrong. All other sources seem to indicate very little change (below is from xe.com). ++++++ My friend Gaetan alerted me to something surprising this morning... Something very special just happened, as related in Market bears smell blood as China scrambles to plug capital outflows on … [Read more...]
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