Most purchasers pay too much attention to the price of what they buy but fail to take risks into account. That's a very widespread issue. One solution to this might be developing a supply chain KPI scorecard, to force buyers to report on how risky the supply chain they are building really is. After all, setting up a solid supply chain is an important objective isn't it? This is what we are going to cover here. … [Read more...]
Supply Chain Risk Management, Part 2: The Business Continuity Plan
In this post, let's focus on disaster recovery, and more specifically on the business continuity plan, with a simple example. We will also provide you with a free template. This is the second post in our series of Supply Chain Risk Management, which will come out gradually over the next few months. … [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...]
COVID-19: Have a Resilient Supply Chain, Stop JIT, Never Single-Source? Really?
I am getting tired of reading "expert commentaries" about the impact of the Covid-19 epidemic on supply chains. They all seem to say the same thing, and (in my mind) they tend to overlook certain facts. Let's look at 4 commonly held truths that I disagree with. … [Read more...]
Wuhan Epidemic: Why Major Supply Chain Disruptions Are Coming Up
In my last article on the topic of the epidemic that started in Wuhan, I mentioned there would be real effects on logistics and manufacturing. Today I can affirm some of these effects can already be observed. And it is definitely going to impact some importers' sourcing strategy. … [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...]
8 Elements of a Low-Risk Supply Chain in China [Free Webinar]
Clients often ask us for assistance in improving their supply chain in China. For instance, it's common to hear that they aren't satisfied with poor quality, with missed timelines, or with unethical practices. If your supply chain is giving you issues like this, and it is causing your business unnecessary risk, you might not have taken all the necessary steps. How to lower these risks and build a low-risk supply chain in China? Over at Sofeast, we've created a free webinar for you about … [Read more...]
Traceability in Manufacturing: Do your Chinese Suppliers Do it Right?
I see buyers who spend a lot of time pushing their suppliers to do QC inspections on incoming components, to keep the production area clean, to give clear instructions to operators, and other basics. But I seldom hear them push for traceability in manufacturing, despite how important it is. I thought I should write about it again. … [Read more...]
9 Consequences of the Upcoming US-China Trade War
Based on all the articles I have read about the current geopolitical situation, I am not optimistic about the affect of the US-China trade war on American importers. Dan Harris, who wrote "the US-China Cold War start now," announced that a "mega-storm" might be coming, and he may be right. Now, if things turn out as bad as predicted, and if tariffs apply on more goods imported from China to the US -- and at higher rates -- what does it mean for US importers? … [Read more...]
How To Ensure your Chinese Factory Purchases Good Components?
One of the most common ways Chinese manufacturers enlarge their margin is buying substandard components. Any time a lot of money can be saved this way, the temptation is very strong. What can you do to avoid this risky behaviour from happening? … [Read more...]