Manufacturers continue to plan the move of some or all of their supply chains out of China? But where next? Perhaps the word 'exodus' is a little over-dramatic, but there has certainly been a marked rise in companies trying to diversify their manufacturing operations away from China alone since around 2018. One reason is the US/China trade war and the punitive tariffs imposed by the US government on some 'Made-In-China' goods, but we can't discount the coronavirus pandemic, as the manufacturing … [Read more...]
Tips For Continually Getting Good Results From A New Supplier | Vetting Chinese Suppliers (Part 11) [Podcast]
You've successfully vetted and started working with a new Chinese supplier. What's next? In our mini-series on vetting Chinese suppliers, you will already have learnt about due diligence, factory audits and visits, exploring testing facilities, and much more when it comes to vetting suppliers. If you follow through this process logically, perhaps with the help of local factory auditors and quality inspectors in China, you will be well-placed to find reliable suppliers who reach your … [Read more...]
Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons)
One of the main conclusions of many companies is as follows: 'diversifying our supply chain outside of China is a must in order to reduce risk'. There are two main reasons for this. First, the USA has been leading the charge against Beijing, and any change in the White House will not stop the current trend to "decouple" from China. The general public, the Congress, and the Senate all seem to agree that China is a "strategic competitor" and needs to be opposed. Second, some disasters can … [Read more...]
Free Samples from Potential Chinese Suppliers: A Positive Sign?
If you find 30 potential suppliers that all seem capable of making the product you want, how to pick the best one? With B2B platforms like Alibaba and Global Sources, many buyers ask themselves that question. And an easy answer is "I will ask for free samples and see who says yes and makes good-looking samples". … [Read more...]
Vetting Suppliers In China [Podcast Series]
Vetting suppliers is important. After all, these suppliers are responsible for your company's reputation. Hopefully, everyone by now will understand the dangers of checking Alibaba or Global Sources and 'choosing' a supplier who 'looks' good, or perhaps trusting that Alibaba Gold suppliers are somehow more legitimate and trustworthy (spoiler alert: they might not be). So what does a good vetting process look like? … [Read more...]
Sourcing Manufacturers: What Type To Choose For Your Production In China/Vietnam?
I realized that most buyers are unfamiliar with their options when it comes to sourcing manufacturers. I want to clarify what their options are. (This is especially applicable if you import electrical and/or mechanical products from China, Vietnam, Thailand, Malaysia, and Taiwan). … [Read more...]
Advice for Buying Face Masks in China without Losing your Shirt
With the COVID 19 pandemic hitting more countries, and more people realizing how serious the situation is, it seems tens of thousands of people started looking for face masks and other personal protection products. And what I see is a lot of people sending money, receiving substandard products, or not receiving anything at all. I wrote this article as a warning about your risks. And also to improve your odds of getting what you want, if you are determined to pursue your project. … [Read more...]
How To Diversify Manufacturing Sources Out of China and Cut Risk
By now, companies that rely on China to supply some products or parts have generally grasped the current situation with the COVID-19 epidemic that is leading them to wonder if it's important to diversify manufacturing sources away from China alone: A large portion of the Chinese population is forced to stay home (up to 760 million, according to the NYT) In many areas, local authorities have taken the matter in their hands and nobody knows when they will change policy It means … [Read more...]
China Still Best For New & Complex Manufacturing Projects
Steve Dickinson wrote an article (Moving Manufacturing from China: Where you Gonna Run?) that got me thinking about complex manufacturing projects and China. He outlines the main reasons why China became "the factory of the world" so quickly (especially from 1992 to 2005), for small and large buyers alike. Other low-cost Asian countries are now trying to emulate these results and attract manufacturing, and they seem to focus on lower tax rates. Here are two recent articles I found on this … [Read more...]
How to Find a High-Quality Chinese Supplier? Not a Short Recipe…
A client asked us recently how to find a high-quality Chinese supplier to make their products. My partner Fabien responded, I liked his email, and I expanded on it in this article. … [Read more...]
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