We seem to be at a pretty low point right now: Billions of people are confined at home. Economists are predicting a disaster and seem to think 2020 will probably be worse than what most of us can remember. The behavior and effects of this novel coronavirus are still partly unknown. It could still mutate and become more dangerous, for example. And, most amazing of all: the situation has been changing dramatically every 1 or 2 weeks. I am starting this new series on supply chain … [Read more...]
List of Contract Manufacturers in China – Top 13 Factories
These days it’s easy to find article after article stating that manufacturing in China is on the way out. And that's true, at least partly. Vietnam, Thailand, Mexico, and Portugal have many good potential suppliers. However, China is still the best place to produce relatively complex products, especially when time-to-market is critical and when assembly requires a lot of labor. Consumer electronics is a case in point. As Dr. Zhang, research director of IDC Worldwide Robotics, … [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...]
Quality Planning for Importers: Classify Orders by Risk Level
Every purchaser knows that some orders are riskier than others and the risk impacts many of the decisions they make. This is why quality planning and classifying orders by risk level is important for importers. … [Read more...]
How a China-Based Buying Office Can Add Value
If you source and buy consumer goods from several suppliers in China, your experience probably looks like this: Some suppliers are good, some are not so good and not improving When there is a quality issue, it is much better to detect it while the goods are still at the factory... and yet, sometimes, that factory plays the "do nothing and wait" game -- it means they do a very light sorting job and tell you "all is good now", simply because they don't want to do rework and discard some … [Read more...]
China Sourcing: Does Your Sales Contact Really Work At The Factory?
When I meet someone who has recently started working with Chinese companies, I often urge them not to make any assumptions. One of the most common 'discoveries' buyers make is... that they haven't been working with a factory directly when they thought they were. … [Read more...]
Sourcing From China 101: The 15-Part Guide for New Buyers
I have recently published the 15-part 'Sourcing From China 101' series for new buyers who are starting to work with Chinese suppliers (and for more experienced people who want to double-check whether they are working in a smart way). The 15 articles are listed below: Do You Need a Sourcing Agent? How to Identify Potential Suppliers? How to Verify a Manufacturer Second Choices vs. “Never Again” Negotiating With Chinese Suppliers: The Terms you Need to Discuss How To Keep … [Read more...]
KPIs and IT Tools of Purchasing Departments (Expert Q&A)
I had the opportunity to ask a few questions to Alexandre Godvin, who has a particular perspective on the KPIs and IT tools of purchasing departments. Alexandre is the founder and CEO of Winddle, a turnkey, modern, and collaborative solution to manage product development and sourcing operations for the retail and consumer goods industries. … [Read more...]
Selection of Sourcing Countries Beyond China
I am reading The Rise Of The New East: Business Strategies For An Increasingly Complex World by Ben Simpfendorfer, a consultant and economist based in Hong Kong. This book explores the region’s growing commercial opportunities and complexities. It deals with "the East", a wide area starting in Egypt and ending in China. I thought it might be interesting to reproduce some comments by Richard Thomas, head of sourcing for the Far East region at Marks & Spencer. He explains what drives his … [Read more...]