
SEPTEMBER 11TH 2015
MY QUALITY VS. YOUR QUALITY, THE ETERNAL DILEMMA.
A common concern among foreigners manufacturing in China is quality control. More than often, investors will be introduced to a flawless sample which will ensure the contract. Problem arises when receiving the final product, and then realising that the goods are useless. Here we list some of the common issues and ways to solve them!
Problems:
- Trusting the sample. Usually, when the sample is good, the investor trusts that the company has the capacity to repeat the process in order to create their final product. In order to avoid the hassle, the parties sign a rather simple contract or engage in negotiations about the buyer’s requirements. These lax rules and the need to gain a bigger profit while keeping a competitive price, motivate some manufacturers to cut on costs. Hence, even if they subscribed to deliver certain standard, they would rather neglect it rather than losing profits.
- Trusting the contract. Even in cases where highly specific contracts are agreed upon, the manufacturers might find unthinkable ways to circumvent requirements. Their motivation is getting more and more contracts, as they win by volume. Consequently, even in cases where they respect the contract, they will work on what is not stated, without previous discussion with the client.
- Miscommunication. This might be the most common one. When we deal with China, especially through virtual platforms, we deal in unequal terms. Unless you are quite fluent in business Chinese, the ideas you try to convey in (mostly) English language might not be understood in the same way (or any) by your counterpart. Sometimes, trying to be very specific with your requirement might be the wrong way to go, as your manufacturer might not understand what you are saying.
Solutions:
- Use the sample as a quality standard. When negotiating, ask about the process of production for that sample. Be specific about asking for the same into your Chinese-language contract. This last point is very important. Make sure your criteria is understood by your counterpart.
- Invest in third-party QC. Hire a company that can visit the manufacturer and continuously inspect your goods. It is better to find problems while producing than once produced.
- Trust on experience. Thanks to China’s efforts to expand their language abroad, more foreigners can manage today in Mandarin. Make use of that advantage for negotiations. Both parts clear. Take the wall of communication down, and create trust with your supplier.
3 solutions to 3 of the most common problems when manufacturing in China. Have you experienced any of these issues?
SOURCES:
http://jlmade.blogspot.cl/2011/08/sampling-strife.html
http://silkroadintl.net/blog/2010/08/24/ok-so-it-doesn%E2%80%99t-meet-your-standards%E2%80%A6-so-what/
Annex Asia Publishing
publishing@annexasia.com
Image: WSJ.com