The horrific invasion of Ukraine and the resulting sanctions on Russia are starting to have effects that importers & exporters are feeling. Combined with the consequences of covid outbreaks and the already very high shipping prices, they will probably make for a rough environment in the next few months. Let's go through the 4 main issues one by one. 1. China is having a hard time containing covid For the past couple of weeks, many people from our Shenzhen office have been in … [Read more...]
How To Keep Your China Factories’ Identities Secret
Last week I wrote How To Push a Chinese or Vietnamese Supplier for Supply Chain Transparency. And, of course, pushing suppliers for transparency is hard: In the vast majority of cases, Chinese suppliers (and, to a lesser extent, those in Vietnam, too) do NOT want to disclose that supply chain information, mainly for 2 reasons: If the buyer can see the cost of the full bill of material, it becomes much easier to challenge the final price. In many cases, the final assembly … [Read more...]
How Does Mexico Compare To China As A Manufacturing Base? [Podcast]
In this episode… Dan Harris from China Law Blog recently wrote: "Mexico is the New China" and Manufacturers are Moving There. Renaud Anjoran and Adrian from the team explore the topic of nearshoring to locations like Mexico, why it may especially suit US companies, what Mexico's manufacturing pros & cons are in comparison to China, assessing your supply chain risk, and Renaud finishes off by giving some guidance for importers who are interested in moving some or all of their … [Read more...]
Buying Electronic Components In Advance In China To Avoid Further Price Hikes
Several customers have asked us for help with buying electronic components in advance recently. If you purchase electronics from China, you have certainly noticed that prices have kept rising, and in some cases, the lead times are 6 months or longer. Some companies have stopped producing and are waiting for the insanity to stop, but most others have to keep supplying their customers. The question in their minds is 'how much worse is it going to get?' I thought I'd share some advice on … [Read more...]
4 Common Ways To Ship Products From China By Sea
Our clients often ask for alternatives. And we encourage that. What makes sense for one company may not make sense for another. So, I wrote this mini-guide to the 4 main alternative ways to ship products from China by sea in order, from more to less common. Note, I only discuss sea freight here for simplicity. There are, of course, differences with air freight. … [Read more...]
Rising Raw Material Prices: What Strategy To Follow? (6 Approaches)
In March (2021), we noted that the raw material prices of some commodities (silicone, some papers & cartons, some batteries...) went up a lot. And some analysts predict a multi-year increase in raw material prices. Bloomberg came up with an interesting article on this topic -- When Does a Commodities Boom Turn Into a Supercycle?: A surge in commodity prices has Wall Street banks gearing up for the arrival of what may be a new supercycle -- an extended period during which demand drives … [Read more...]
Why Your Product’s Final Assembly Should Be Close To Its Key Components
Every week we talk to people who have been developing a new product. And they have usually been thinking hard about the country of final assembly. Here's why it usually makes sense for the final assembly to take place near where the key components are sourced from. … [Read more...]
Importer’s ‘Supply Chain Spring Clean’ Checklist To Find Risks & Opportunities [Podcast]
Got some time on your hands during Chinese New Year while your suppliers are on holiday? In this bumper 43 minute Chinese New Year episode to keep you entertained during the holiday, Renaud & Adrian discuss tasks importers can perform to spring clean their supply chains during the CNY holiday when you might have a little extra time on your hands. The point of this episode is to provoke some thought and help you to face some of the more difficult questions and tasks that often get put … [Read more...]
The End Of Just In Time Manufacturing? [Podcast]
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...]
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