Sourcing to China can be cost effective, but if something goes wrong, it could have a dramatic effect on your bottom line — and negatively impact customer opinion of your business. Can we trust domestic producers and distributors to control quality with fervor equal to their pursuit of low wages? Cheap labor is the easy part; the quality thing is a much tougher nut to crack.
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By Rebecca A. Morgan
Sourcing to China can be cost effective, but if something goes wrong, it could have a dramatic effect on your bottom line — and negatively impact customer opinion of your business. Can we trust domestic producers and distributors to control quality with fervor equal to their pursuit of low wages? Cheap labor is the easy part; the quality thing is a much tougher nut to crack.A product recall is a very visible and expensive sign of a serious quality problem. The life threatening potential of some problems long ago led American government and producers to develop recall and reverse distribution systems.
For the most part we’ve become good at figuring out which product is at risk, where it went, and executing the recall process with limited harm to life. But lately faith in American product-based businesses has been shaken by the apparent lack of due diligence in assuring low-wage Chinese suppliers meet the same standards as our own. Read the rest of “Is Sourcing in China Safe?” or post a comment
Sam Flemming’s first experience with China is with a sino-American software company, where he trains Chinese employees for a life in the United States. A few years later Flemming, totally at ease in public relations and corporate communication, starts his own company: Internet Research for American companies. His source of inspiration? The unprecedented publicity that companies and their products enjoy on Internet forums and blogs. “This is a big thing. It’s not just thousands of messages, it’s tens of millions. Written by real people, sharing real experiences about real brands, products and services.” Together with his Chinese co-founder and a team of what he prefers to call ‘Internet Word of Mouth Analysts’, Flemming now runs CIC, a company specialized in providing research and consulting based on consumer talk on BBSs and blogs. We’re eager to ask for his experiences.
“Of course, being a pioneer is always a challenge. There are no manuals, no models, nothing about this industry. We can only rely on our experience and knowledge. The government here in Shanghai is always very supportive though towards new initiatives, towards anyone who creates new jobs. We’ve had nothing but good experiences. And there’s also a great advantage in pioneering: the fact that we’re developing by every step we take, means that we are Read the rest of “American Dream in China” or post a comment
By David Dayton
“Going to China” has become the mantra of the business world. You’re looking East. You’ve done your homework with AmCham (American Chamber of Commerce in China), on the Internet, with other “China Hands” and in your industry. You’ve found your “perfect supplier” on line, even found a second factory as a back-up. You’ve got a great bid on your product. The pictures of the factory look great, the samples are exactly what you want, and the phone conversations with the sales rep, while maybe a little limited, have been useful. You’re excited. Read the rest of “Working With Chinese Factories - Part II: Qualifying Your Overseas Supplier” or post a comment
By David Dayton
Once again, I’m in a factory working through production issues that would be impossible to solve over the phone, with email, or even with photographs. What’s the issue this time? Among other things, my primary task this trip is to define the factory’s actual capabilities compared with the overly-optimistic sales pitches presented in their brochures. Qualifying a factory is definitely something that you can’t do from across the globe or even from a great distance within the same country! Read the rest of “Working With Chinese Factories - Part I: The Initial Visit” or post a comment
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