The Phenomenon of Chinese New Year Chinese New Year, or Spring Festival, is an amazing time of year in China and several other Asian countries who also place a lot of importance on the lunar calendar (such as Vietnam, Taiwan, Japan, and others). In China, it is the greatest human migration with more than a billion people travelling around the country to visit family and friends and have a well-deserved break this February coming. China's fairly unique reliance on migrant labour, where … [Read more...]
3 Quality Control Plans & Why They’re Needed BEFORE Production [Podcast]
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What is a quality control plan and why do you need to approve it before production begins? A QC plan is an essential tool for buyers to drive their suppliers to produce goods that reach their quality standard. It will typically list your quality-related expectations that the supplier needs to know about before the production starts which may be anything from legal penalties for poor quality, to the types of process used for production and checking quality, through to making the types of … [Read more...]
Exploring Good Manufacturing Practices (GMPs) [Podcast]
Time to pay attention to good manufacturing practices! Importers with suppliers over in Asia may benefit from adopting GMPs (Good Manufacturing Practices). What are they? How are they useful for managing and improving the performance of suppliers in countries like China? How do they fit in with quality audits, social compliance audits, and process audits? The basics are always a good starting point for any supplier management and development plan and GMPs represent the basic activities … [Read more...]
3 Vertical Integration Benefits: Transparency, Control, Speed
Last year I wrote about a very common problem in China Supply Chain Transparency and Monitoring: Not Getting Easier… and this year we are still lamenting that same problem: Further down the supply chain, unauthorized subcontracting is still very, very common. We noticed this is particularly true of metal surface treatment processes that are done outside of the “main factory” (which would typically do casting and CNC lathe/milling). A few examples: Plating Polishing Painting, … [Read more...]
6 Effects of Signing a Strong Manufacturing Contract with your Supplier
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...]