![Are You Using A China Manufacturing Contract To Protect Yourself? [Podcast]](https://qualityinspection.org/wp-content/uploads/2020/09/AreYouUsingAChinaManufacturingContractToProtectYourselfPodcast-1140x445.jpg)
The importance of a China manufacturing contract I've written about terms to negotiate with your contract manufacturer and the positive effects of signing a strong manufacturing contract before. And some commonalities between them include making expectations clear, protecting IP, and making your supplier accountable for their results in your China manufacturing contract. It's fair to say that many of today's buyers still start working with a supplier in China (or other Asian … [Read more...]
6 Effects of Signing a Strong Manufacturing Contract with your Supplier
As a buyer, you may be in a position of strength in front of a supplier. For example, your orders are quite attractive to them, and you can easily switch to another supplier. You may be tempted to work with a business lawyer to draft a manufacturing contract. That makes sense. And that lawyer will probably prepare a relatively strong contract, too. That makes absolute sense from a lawyer's point of view (their mission is to cover all risks, after all). However, here are a few consequences … [Read more...]
Sourcing From China 101, Part 6: How To Keep Leverage Over Suppliers
Up until now, I have explained how to find a good supplier and what terms to negotiate from the get-go. But this is not enough. Buyers who are new to China often make a mistake: they trust their suppliers too much. How to keep leverage over suppliers? China is a dog-eat-dog environment. You can’t trust a company simply because you have checked and qualified them. You need to structure your deals in such a way that you keep some power over your supplier and do not become financially … [Read more...]
The lack of professionalism of some Chinese suppliers
A few days ago, I was invited to speak in a seminar organized by the European Union Chamber of Commerce in China. The topic was "How to collect payments from Chinese suppliers". The first speaker was Javier Hernandez, a lawyer based in Beijing. From his presentation, I realized the main source risk factor is the fact that many Chinese suppliers don't follow what is considered normal business practice in the West. Here are three examples that are very, very common. Surprisingly, most … [Read more...]