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...]
Chinese Suppliers Are Getting Less Flexible. Now What?
About 6 months ago, I wrote how Chinese fabric suppliers and dyeing houses were giving headaches to the whole supply chain. It had a serious impact on Chinese apparel suppliers (many delays, higher costs, higher MOQs for fabric...). And, in turn, those suppliers got more rigid when dealing with their oversea customers. The attitude was "that's the way it is and we can't make miracles, so just get in line". That's actually an overall trend, in many industries, from what I have heard. And … [Read more...]