Thursday, May 16, 2019

Basic knowledge of imports - Top ten points for purchasing quality from China

It is a lead paint on children's gifts. This is a computer mouse that can seriously shock users. It seems that every new day will bring a wave of product recalls and security alerts to products from China. Promotional product importers and distributors are as susceptible to the catastrophic impact of the business and reputation of distributing dangerous products as retailers. As our more promotional products industry deals with Chinese suppliers every day, the following strategies can serve as a guide to ensuring that you only get the best quality products from overseas.

10. Know who you are working with - When you buy a product from China, it is often difficult to tell if you are working with a factory, trading company or other company. When it comes to product and quality issues, the key is to know exactly who you are working with and that this relationship is transparent to all parties. If you are not working directly with the factory and the supplier is unable to provide you with a satisfactory product answer, then they will block your procurement process and you should reconsider the relationship. If you have difficulty identifying the people you work with, please contact a company that specializes in Chinese supplier certification.

9. Keep emails short, sweet and focused - I respect the amount of English that local Chinese employees have never lived in in English. However, based on my experience in doing business in China for more than 7 years, I will tell you that your supplier in China is most likely to know only 50% of what you wrote in the email. Keep this in mind the next time you give a lengthy explanation or suggestion to an overseas supplier. English is not the first language of this person. Keep your emails simple and clear.

8. Pay Chinese suppliers - Wire Transfer [W / T] or Letter of Credit [L / C]? - A safe and well-coordinated payment arrangement is beneficial to both parties before placing an order and is a parameter to encourage quality. Unless you have a long-term relationship with the supplier and trust, the letter of credit should always be your preferred method of payment. If you have not used a letter of credit before, please contact your banking department for assistance.

7. Save money and headaches through third-party quality checks ["QC"] - Working with third-party quality control companies in China, you can take advantage of the company's experience, all with the task of ensuring that product quality meets certain standards. These companies provide services such as product inspection, factory audits and laboratory testing. This service is usually offered at a flat rate and provides a significant value relative to the total cost of your purchase [checking a shipment for approximately $350]. China's best-known companies providing QC services are InTouch Services, Bureau Veritas and Intertek Testing.

6. Confirm your production plan - don't touch it! - Receiving orders from China on time is just as important as receiving the right product. When a more profitable order enters the door, Chinese factories are notorious for being less important [for them]. Quality issues are more likely to occur as suppliers rush to catch up with their promised timelines. So make sure you ask the right questions and get an answer by email. These questions include: a] When does production start? Complete 50%? carry out? Export? [Confirm that these milestones have been met] b] Have all the raw materials for this order arrived at the factory? How about all the packaging materials?

5. Don't be afraid to call - you can only communicate with email so much. When walking around with overseas suppliers, sometimes it seems that they don't seem to "get it"? The time difference can be painful, but don't let you stop you from scheduling a conference call with an overseas supplier. Online calls such as Skype are familiar to almost every Chinese, allowing you to easily and freely communicate with Chinese contacts. Although this may not work for suppliers with low levels of spoken English, I don't recommend placing an order if you don't have at least one phone conversation.

4. Verify raw materials or risk everything - You know exactly what materials you are using and ask suppliers to provide material safety documents that are absolutely essential to the quality of your products. The United States continued to see recalls after recalling products made from substandard materials. For example, if the item you purchased is white plastic, make sure that the white plastic meets the general flammability standards. If the item is likely to come into contact with food, make sure it is food grade. You should assume that the factory you purchased in China will use the cheapest material unless you specify otherwise. Insist on requiring suppliers to provide you with written verification. The FDA and other US organizations have regulations regarding the safe distribution of plastics, metals and other materials. If your supplier is unable to verify this, please contact a third-party QC company for guidance.

3. Samples are worth taking pictures - When working with China, you must insist on sampling as much as possible. Do not accept excuses unless there are serious obstacles [ie no existing mold]. Make sure these samples are properly labeled and stored, and each time you receive a new sample, carefully compare the last sample. Never confirm with a Chinese factory that production can continue until you approve the pre-production sample. Just put this process in the right place and you can find a lot of quality issues before they happen.

2. Don't expect, check! - The easiest, cheapest, and most effective way to eliminate quality problems with Chinese products is to inspect them before they leave the factory. The best way to arrange such an inspection is with a third-party quality control company [mentioned in section 7 above], but you can also arrange your own staff in Asia or your agent. You should insist on seeing an inspection report [including photos] recorded in English to record the process.

1. Product Quality Control Checklist - Poor communication during the ordering process is the root cause of most quality issues with Chinese suppliers to date. This communication can be significantly improved by using a product quality control checklist. The Quality Control List is a multi-page document detailing all the important aspects of the items you purchase. It's best to create it with the help of a third-party QC company that specializes in providing this service, but you can create a simple and effective service yourself by doing the following. For more information on creating a quality control checklist, check out Quality Wars, my blog about quality control. The key points that should be included in this list are:

a] Project details [item number, SKU description, etc.]

b] Content and packaging

c] color

d] barcode

e] Appearance and function

f] Specifications and special requirements

g] Photos

Make sure you translate this document into Chinese and use the QC checklist as a starting point for discussing production and quality with your suppliers. You may find that there are not many details in the QC list. If this is the case, then I suggest that you develop a template and send it to the supplier to fill out. There is no shortage of promotional products companies that work directly with overseas suppliers. With all the horror stories about import orders getting worse, you can differentiate yourself by consistently delivering superior quality. There is no doubt that your customers will be very grateful for your due diligence and be able to talk smart about your focus on quality.




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