I see buyers who spend a lot of time pushing their suppliers to do QC inspections on incoming components, to keep the production area clean, to give clear instructions to operators, and other basics. But I seldom hear them push for traceability in manufacturing, despite how important it is. I thought I should write about it again. … [Read more...]
3 Common Ways Factories Try to Cheat Inspectors/Auditors
Every day in China, in Vietnam, in Bangladesh, and in India, thousands of inspectors and auditors take a bus or a car to a factory. And, in some of those factories, managers are plotting how to cheat those unwelcome visitors. Let's look at 3 very common ways this is done, so you are warned and ready to avoid unscrupulous suppliers like this... … [Read more...]
Benefits of ISO 9001 for a Chinese manufacturing organization
I wrote recently about ISO 9001: What are the standard and the certification process 10 ways it can get poorly implemented in a factory To summarize my view on this topic: It is a good standard, keeping in mind that it was designed to apply to all sorts of organizations Many companies did not implement it the wrong way, as they took shortcuts and they were only interested in the 'marketing impact' of a certification The real culprit is the way registrar bodies audit and … [Read more...]
The Real Purpose of Factory Audits? Evaluate and Prevent Risks.
I had a good discussion with a client whose background was in auditing for a Big Four accounting firm. He pointed that audits, in that context, is mostly about looking at what happened in the past. In contrast, when buyers request factory audits, the purpose is: To identify risks by pointing to gaps that might have a serious impact on business performance (and to avoid giving much business to a high-risk supplier) By making the most serious gaps obvious, to put pressure on the … [Read more...]
Tired of Your Chinese Factories’ High MOQs & Long Lead Times?
A few months back, I wrote about how some buyers can no longer put up with their suppliers' quality issues. And I often lament on the poor state of quality systems here. In this article I'd like to mention the other enormous source of frustration for foreign buyers: the high minimum order quantities (MOQs) and the long lead times. High MOQs and long lead times are tightly linked They come from the same underlying issue: the "big batch & long queue" mentality. Industrial engineers, as … [Read more...]
How To Get a List of “Good Chinese Factories”?
Hardly a week goes by without someone asking me for contacts of "good Chinese factories". We see so many of them, the thinking goes, surely we know a few good ones. When we did a few trade shows in Hong Kong, 7-8 years ago, it came up roughly every 30 minutes. Why wouldn't we do that? For several reasons. … [Read more...]
Helping a Chinese Factory Improve While Still Holding Them Accountable
You might discover that helping a Chinese factory improve makes sense if you have quality requirements that are challenging to one of the factories you work with, or if you are working with them to develop a complex new product. Actually, it sometimes makes very good business sense. Spending 10,000 USD might save your company 1 million USD in the end! And yet, there is a point where you can't keep "helping" them all the way, as they start to take the habit of being "baby-sat" and they … [Read more...]
How To See if a Chinese Manufacturer Is Capable of Improving in the Future?
Last week I wrote about the best way to have a Chinese supplier take responsibility. However, the most important question, I feel, is how to work with manufacturers that will keep improving over time. And it all starts from supplier selection. If at the sourcing stage, you don't try to work with people and companies that will tend to improve, you are sabotaging all your other efforts. Here are 5 areas I'd look at. … [Read more...]
How a Chinese Factory Can Get ISO 9001 Certified
I wrote before about the way certain consultants are routinely hired by manufacturers to “make paperwork look good”. It is the norm in China. However, some factory owners really want to manage their business in accordance with best practices. They are not looking for shortcuts. They understand that ISO 9001 is not very advanced but it is already a basis good basis -- if applied correctly -- on the road to operations excellence. So, how can consultants help a relatively small factory get … [Read more...]
Do Many Amazon Products Come Right From Alibaba in China?
Yahoo Finance recently ran an article entitled Think you’re buying on Amazon? It’s actually from Alibaba. A few people in the US noticed that many products they can buy on Amazon.com can also be found on Alibaba.com. Let's unpack their differences: Amazon.com is a B2C marketplace that sells to consumers. Very often, products are bought 1 at a time. Alibaba.com is a B2B directory that serves as advertising to manufacturers and trading companies. I would guess the average order is in … [Read more...]