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 In China [Podcast Series]](https://qualityinspection.org/wp-content/uploads/2020/07/VettingSuppliersInChinaPodcastSeries-1140x445.jpg)
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 faceĀ 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...]
Manufacturing Electronics in Taiwan: A China Alternative?
As the US-China trade war intensifies, many American importers are looking for alternatives. They often look at Vietnam, Thailand, Indonesia, India, Mexico, etc. But what about Taiwan? There is sometimes an opportunity to start sourcing products from there, especially in electronics. … [Read more...]
Why Your Ground Agent in China is NOT Helping Cut Costs
From time to time, I hear from a company that works with a ground agent in China, and they basically tell me two things: The agent did a relatively good job lining up suppliers, communicating requirements, and generally ironing out most issues. (That makes sense -- otherwise, the importer switches to another agent or to another approach.) After the initial burst, the agent feels entitled to a commission of X% and is resting on her laurels, not challenging factories, not looking for new … [Read more...]