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...]
Don’t Let a Chinese Supplier Circumvent You: 5 Tips
Some risks and frustrations never go away... One of them is Chinese suppliers circumventing their customers, or selling to their customer's competitors, all the while using the product knowledge they gained... from their customers. Over the weekend, I stumbled upon a good old HBR article entitled When Your Contract Manufacturer Becomes Your Competitor. It came out in 2006, but the same trends are still at work! … [Read more...]
What is the Bill of Materials and why is it important?
When a new product is developed, two sets of documents are very important: On the technical side the design deliverables (component drawings, PCB schematic…) and on the supply chain side the Bill of Materials (BOM). Let's look at the BOM and its importance here: … [Read more...]
China Factories: 7 Key Factors That Cause Shipment Delays
Last week, on Linkedin, I ranted about the many (not all) Chinese manufacturers that "fail to plan appropriately, are over-optimistic, and disappoint their customers with last-minute shipment delays". Someone commented that I should offer "good advice" to these suppliers instead of complaining. And that's right, so here goes... … [Read more...]
Unable To Go To Your China Factory Because Of Coronavirus?
The COVID-19 virus is spreading rapidly throughout the world. Wikipedia keeps count of it, country by country. This website show interesting maps that are kept up to date. Some countries are under-reporting their toll (Iran), while others are going over the top (Nth Korea). It is all happening right before our eyes! What does it mean for importers of Made-in-China goods who can't, or won't, visit China right now? Read on to explore its effects and a helpful list of actions you can take to … [Read more...]
How To Manage Chinese Suppliers based on Facts & Data
If you buy products from a few Chinese suppliers, do you have a system for managing them? And do you use data for that? In this post, I'll show you how to manage Chinese suppliers using facts and data. … [Read more...]
How To Fight Back Against Fake Goods In China Trade Shows
For all the talk about improvements in China's intellectual property protection, many importers are still facing very unethical behavior from their supplier base. And nowhere is it more apparent than in trade shows. The temptation for suppliers to show a customer's innovative product is often too strong. So, how to fight back against fake goods in China trade shows? … [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...]
28 Common Problems Chinese Suppliers Cause Importers
I was thinking of the most common problems Chinese suppliers cause for importers, especially those developing their own products. And I noticed something interesting. Most of them all linked to the way information is managed. … [Read more...]
China Supply Chain Transparency and Monitoring: Not Getting Easier…
China supply chain transparency and monitoring is still as important an issue as it has ever been, and importers need to stay on their toes. Let's explore why this isn't getting any easier... … [Read more...]