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Quality Assurance, Product Development, and Purchasing Strategies in China

How did Apple build a winning supply chain in China?

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Two recent FT articles look at how Apple set up a successful supply chain in China that helped them dominate rivals, how they handle their NPI process in a very hands-on way that provides great results, and how their close relationship with China might be damaging long term. Here are our thoughts on these topics and more and some of the learnings that it's possible to take from how Apple operates in China, Vietnam, and India.   Listen to this episode. Hit play below: 🎧 How … [Read more...]

Zero Covid in China is over: What next?

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Following unprecedented protests across China, the government has been rapidly dropping its flagship 'Zero Covid' policy as of the start of December 2022. While a return to normalcy in China may come as welcome news to locals and visitors alike, the road to get there will no doubt be bumpy. A largely unvaccinated public with little exposure to the virus now sees rising cases around China, similar to the difficult situation the rest of the world had to navigate in 2020 and 2021. So what does … [Read more...]

How Running China like a Business is the Recipe for Economic Domination

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Dr. Allen J. Morrison & Dr. J. Stewart Black are two American leadership, strategy, business and manufacturing experts who have recently written a new book "Enterprise China: Adopting a Competitive Strategy for Business Success" which was released on December 1st 2022. The book provides a great overview of how China runs itself like a business and the strategies that it uses for economic success. This is helpful knowledge for foreign businesses because it also provides approaches on how … [Read more...]

How Environmental Regulations Will Force Changes in China Sourcing

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This past week, it has become quite apparent that governments are accelerating the pace at which they pass environmental regulations to force businesses to help mitigate the climate & biodiversity crisis. Unless you have been living under a rock recently, you have heard about COP 27 that is being held in Sharm El Sheikh. Many prominent figures have called for concrete measures.   You will need to collect data and report them at some point in the future As Clive Greenwood and I … [Read more...]

Zero-China Supply Chain: Should Importers pursue it?

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Following October 2022's 20th Communist Party Congress in which Xi Jinping made various statements about the state of China and its future plans, some of which spooked Western observers, let's investigate what China's current politics might mean for manufacturers with a supply chain there and if trying to build a 'Zero-China' supply chain is warranted for anyone who's worried about the stability of the region. You'll also learn about how to minimize supply chain disruption by following a China … [Read more...]

CM + PCBA Factory vs. EMS Supplier in Shenzhen, China

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Companies that are developing a new electronic product for manufacturing in China tend to think of the way they should structure their supply chain. And they have an important decision to make. Do they choose a Contract Manufacturer buying from a PCBA factory or an EMS supplier in Shenzhen? … [Read more...]

Sourcing from Taobao for mass production? Stop it! [Podcast]

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In this episode… Renaud and Adrian from the team talk Taobao! Taobao is a huge Chinese online marketplace where it's possible to get almost anything at a decent price. The problem is, some importers have been purchasing components from there for use in their mass-produced products! You might be thinking: If prices are good and they have the items, what's the problem with sourcing from Taobao? Listen, and you'll find out..!   Just hit the play button to start … [Read more...]

Is It Possible To Get Credit from a Chinese Supplier?

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We sometimes get this question from clients who don't have a long experience of working with Chinese suppliers: We have been customers for a long time but they still refuse to give us credit. Is that typical/normal? And the short answer is, yes, it's typical unless you are a large and well-known company. Unfortunately, it isn't common for Chinese suppliers to give credit. Many long-time customers still pay 100% of their orders before they are shipped. And that's part of the "hidden … [Read more...]

How War In Ukraine Could Negatively Affect Global & Chinese Supply Chains [Podcast]

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In this episode… We discuss how wars like the one waged on Ukraine by Russia right now could affect global supply chains. In particular, could China be affected, and if so, how? Is the West likely to decouple from China in the future in a similar way as they have done with Russia? Finally, Renaud leaves you with some guidance on ways to diversify your suppliers and therefore reduce the chances of supply chain disruptions and risks.   Just hit the play button to start … [Read more...]

Sourcing from China (Part 2): Negotiating terms, leverage over suppliers, and describing your needs. [Podcast]

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In this episode... In episode 65 we discussed the different supplier options open to buyers who’re sourcing from China. One of the options is to do the sourcing yourself. Many importers want to pursue this, so we're creating a mini-series of episodes that explores how to handle the sourcing process from China yourself with tips and best practices from Sofeast's CEO Renaud Anjoran. In part 1 of the series (episode 69), we looked at the early stage of sourcing where you find your potential … [Read more...]