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...]
How The Gap Increases Speed in their Apparel Supply Chain
Christophe Roussel, EVP, Global Supply Chain: Global Sourcing and Product Operations at Gap Inc., was kind enough to share some of the tactics his company adopted at the Made in Asia conference. The typical lead time to get a new garment from design to store is 22 to 25 weeks. That's a serious challenge for designers and merchandisers who need to match market demand when and where it exists. The Gap has been able to cut that lead time down to between 4 and 14 weeks for their more … [Read more...]
Supply Chain Management: Quality Inspections’ Role
Do you sometimes feel that your company, your suppliers, and their own suppliers, are on different planets? Does information spread with difficulty through your supply chain? Nothing unique here. It is quite typical if you work with suppliers in China, Vietnam, India, etc. I wrote about this in The Impact of Quality Control Software on Your Supply Chain, on the SynControl blog, and we illustrated it in this infographic: Every step in the supply chain tries to optimize its own … [Read more...]
6 Steps and 1 Key To Reduce Subcontracting Risks in China
I wrote before that the vast majority of Chinese manufacturers find it natural to subcontract certain orders. There are two main problems with this: It seems like a disproportionate number of quality issues occur on batches on which a key process was subcontracted. Walmart and other retailers are driving transparency and are ready to cut a supplier out if production is found in a non-approved factory. You can expect this trend for openness to gain in momentum in the coming years. This is … [Read more...]
Chinese suppliers’ lack of reliability: 5 tips for importers
You import from China. You sell to customers who want the right quality at the right time. You know that, if you can't deliver, they will go elsewhere. And, on the other hand, your suppliers say "we'll try our best, don't worry". And you know that they are late, say, 40% of the time and that their products are substandard or defective 30% of the time. Oh, and they might subcontract production without telling you about it, which makes things even worse. As an importer, you have to make an … [Read more...]
Hands-on buyers: qualifying factories and nurturing them
Last week, I described what I call "hands-off buyers": those importers who don't follow all the precautions necessary when buying in developing Asia, sometimes by choice. Now I am going to write about "hands-on buyers", the opposite stereotype. … [Read more...]