As I have noted multiple times in the past, supply chain transparency, or at least the growing requirement for transparency, is a megatrend. More and more, buyers will need to know who makes the critical components, where those factories … [Read more...]
Supply Chain Risk Management, Part 3: A Purchaser Supply Chain KPI Scorecard’s Benefits
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 … [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 … [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 … [Read more...]