Doing business in Asia for many is appealing because of the low cost and high profit margins that any enterprise or entrepreneurial adventure can have. But just as the products that come out of the many cities known as the epicenters of business like Guangzhou or Shenzhen, cheap doesn’t mean quality.

The same thing can be said about inspections. Many people feel that because its Asia cheap services are a must, but the reality of the matter is that cheap services equal’s low quality.  You can hire a worker for what might seem to you like a giveaway 1, 2,3 USD and have them visit the factory and tell you what is going on. This for them beats the $285 approximate that a quality inspection can cost.

In many cities these informal inspectors have strived on charging low cost for what they call “inspections” which is made up of them taking pictures and writing small reports which almost always are useless. A New York Times investigation said “An extensive examination by The New York Times reveals how the inspection system intended to protect workers and ensure manufacturing quality is riddled with flaws”[1]. Beginning with inspection companies who don’t do their job correctly, if the problem is with established companies, how is the problem with the informal ones?

If you are a business planning on investing thousands of dollars in products, having in mind that your ultimate goal is to have something steady. Hiring informal inspectors that charge low prices for low quality inspections is not the answer. These low quality inspectors are not professionals but normal people, they aren’t certified nor do they the have the experience or knowledge, and most of all they are unreliable. When you run into a problem where shipments come with a lower quality that you expected, damaged, or wrong, does the $1 you spent in preventing any of these things really come to be worth it?

The same article by the New York Times talks about the different ways that factories by pass and trick inspectors. If qualified inspectors sometimes face difficulties assessing the truth and authenticity of these factories, how does inexperienced “inspector” deal with this?

The reality of the issue is that these informal cheap inspectors bring unqualified, questionable, assessments to something that requires precision and qualified eye.

When doing business keep in mind that cutting corners and cost in the end could cost you even more than what you were planning to save!

Always go for certified inspectors and companies, who are specialized in examining, analyzing, investigating and reporting to you the exactly what they see keeping always in mind your best interest and that of your final product. The cost that these firms charge are to cover a certified team, traveling cost, arrangements for the inspections, translations, coordination, shipping and quality control, specific regulations and requirements in your local country, and catering to your specific needs.  Inspections are the first step to a successful business transaction; take that first step in the right direction hiring a professional.

Sources:

http://www.nytimes.com/2013/09/02/business/global/superficial-visits-and-trickery-undermine-foreign-factory-inspections.html?pagewanted=all

Jairo Andrés Muñoz, MIR-Peking University

Publishing Coordinator publishing@annexasia.com