China Manufacturing Decoded
 

China Manufacturing Decoded

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Join Renaud Anjoran, Founder & CEO of Sofeast, in this podcast aimed at importers who develop their own products as he discusses the hottest topics and shares actionable tips for manufacturing in China & Asia today! WHO IS RENAUD? Renaud is a French ISO 9001 & 14001 certified lead auditor, ASQ certified Quality Engineer and Quality Manager who has been working in the Chinese manufacturing industry since 2005. He is the founder of the Sofeast group that has over 200 staff globally and offers services (QA, product development & engineering, project management, Supply Chain Management, product compliance, reliability testing), contract manufacturing, and 3PL fulfillment for importers and businesses who develop their own products and buyers from China & SE Asia. WHY LISTEN? We‘ll discuss interesting topics for anyone who develops and sources their products from Asian suppliers and will share Renaud‘s decades of manufacturing experience, as well as inviting guests from the industry to get a different viewpoint. Our goal is to help you get better results and end up with suppliers and products that exceed your expectations!

Episodes

What Are The Benefits Of The Shenzhen Free Trade Zone To Importers?

Tuesday Jul 28, 2020

Tuesday Jul 28, 2020

In This Episode...

What is so useful about free trade zones in China?

Why should importers with Chinese suppliers consider utilizing them?

Sofeast has recently opened an RMA and fulfillment facility in Shenzhen's Pingshan Free Trade Zone, so, based on our experience there, we're going to explain the benefits.

 

Hopefully, after listening to this episode, so you will understand if using warehousing, RMA, and fulfillment in the FTZ is better for your business in terms of costs, time, and effort than in China-proper.

Show Notes

Start to 6:27 Introduction into what Free Trade Zones are.

6:27 to 9:01 - FTZ RMA facility is better than local ones (such as in the USA) due to far lower costs and proximity to your suppliers. 

9:01 to 10:42 What does the inspection, sorting, and repair/rework process that the FTZ is perfect for look like?

10:42 to 11:52 Rather than using a local rework company, sending defective pieces back to the FTZ means your supplier can take responsibility and send their own staff to do the repair/rework. How does this work?

11:52 to 12:08 There was a lack of repair services in China, until now..!

12:08 to 15:01 Suppliers deliver finished products/components to the FTZ and they have 'exported' - can apply for VAT rebate and request payment by customer - they like this and it can help you to have a better relationship with the supplier. Our FTZ facility can store your goods (it's cheaper than locally or even other places in China) and fulfill them as per your needs, so you rely less on the supplier to get things right or safely store your products (the supplier's warehouse may be damp, may not be insured against fire, etc). It's suitable for batches of products of a certain size, but not dropshipping piece by piece (we handle this from our Dongguan contract manufacturing facility)

15:01 to 17:00 If importers have the need to bring together orders components/products and ship them out from China in batches, using a FTZ fulfillment center can improve relationships and results from suppliers.

17:00 to 19:49 If you use a 3rd party (such as our company) to act on your behalf from the FTZ to deal with your supplier Chinese-company to Chinese-company - this allows easier payments, invoicing, and builds more trust with the supplier who knows that they can take legal action against us if we, say, do not pay them (much harder for them to do against foreign companies), therefore they are more likely to offer preferential credit terms and other benefits to you. Therefore using a dedicated 3rd party China buying office in conjunction with the FTZ location is helpful.

19:49 to 21:15 An FTZ location allows you to receive components and goods from different suppliers without letting them know important information such as your IP, product type, other suppliers, costs, your retailers, etc. Overall, this helps protect you against suppliers using your designs or undercutting you in your market by selling cheaper.

21:15 to 22:15 If some parts come in from suppliers in a foreign country, let's say somewhere like Vietnam, to be assembled with other from China, is it worth paying fees to import them to China and spending the time to go through Chinese customs? By utilising a Free Trade Zone facility, this cost can be avoided.

22:15 to 23:29 Customs clearance - are there tangible reductions to delivery times due to the FTZ's reduced bureaucracy in regards to customs clearance?

23:29 to 26:24 Do the Chinese FTZs eat into Hong Kong's status as a free port where there are also lower import/export duties and processes? Hong Kong still has benefits, but labor costs there are high.

26:24 to END Summarising the benefits of the FTZ - where is the Pingshan FTZ in Shenzhen located? Take a look at this map for a rough idea (you can see how close it is to Yantian port).

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On-site, Subjective Factory Evaluations | Vetting Chinese Suppliers (Part 4)

Thursday Jul 23, 2020

Thursday Jul 23, 2020

In this episode...

This is the fourth part of our series on vetting Chinese suppliers which loosely follows the blog posts in this series that Renaud wrote before.

In this episode, we’re discussing your subjective impressions when you finally go out to a supplier and visit them (or the questions your factory auditor should be answering if you have sent them in your stead, which is perhaps more likely during the coronavirus pandemic when travel to China isn't possible).

So you'll want to use this opportunity to check the facts with your own eyes, and Renaud is going to give you a number of tips about this which are split into three categories:

  1. Factory fit 
  2. Factory management
  3. Factory setup and condition

Show notes

Introduction - This episode covers a fairly loose list of topics that you need to pay attention to when visiting a supplier. (START to 3:30)

Factory fit (3:30 to 15:40)

Factory size - Huge suppliers may have a good reputation, but if your orders only make up a fraction of their sales they may not provide you with the best service as you are not a priority, therefore finding a balance is needed. Size is the most important factor to consider when assessing a supplier's fit. (4:25 to 6:16)

Seasonality - If your supplier has many customers with the same seasonality (requiring products to be made at the same time), this could lead to delays and for your order being bumped in favour of larger customers. (6:16 to 7:07)

Focus - Who is the supplier usually dealing with? Their requirements have an impact on their focus - for example if their number 1 customer generally requires fairly low-quality goods, but you need them to produce goods at a very high quality, then their focus isn't a good fit for your needs. (7:07 to 8:36)

Keeping key processes in-house - if one production process is very critical to your products, choose a manufacturer who keeps this in-house instead of subcontracting it. (8:36 to 9:03)

The contact person - who will you be working with? If they're not experienced it could cause you trouble later. Don't base buying decisions alone on how effectively the representative communicates, as great suppliers may not always have staff who speak good English. (9:03 to 11:38)

Respect for IP - Does the supplier show you a showroom full of different designs? Did they develop all of these products, or are they 'touting' the designs of their current or former clients? If this is the case, how can you be sure that your product design and IP won't be next? (11:38 to 12:25)

The pros & cons of working with large or small suppliers - this is related to finding a supplier whose size is a good fit. Large = good resources and facilities, but a possible lack of attention. Small = good access to management, your order will be valued, but they may have poor structure and a lower level of experience, a poorer network for sourcing materials and components, etc. (12: 25 to 15:40)

Factory Management (15:40 to 23:00)

Are the managers/production supervisors/team leaders present on the factory floor? - why this is important in terms of how well the supplier has control over its production and can make improvements. Do they email instead of verbally communicating with the team? This affects productivity and shows poor leadership. (15:40 to 17:30)

Are any metrics displayed? - this demonstrates an overall understanding of the present performance and grasp of where the supplier is at right now. (17:30 to 18:20)

Are operators paid the piece or by the hour? - by the piece is a red flag as this pay scheme causes a lot of problems such as operators hurrying to produce quantity without being so concerned about quality. (18:20 to 18:52)

Hands-on management who look to improve things are positive - they're likely to be a sustainable supplier over a longer period. (18:52 to 19:45)

Management who show an interest in and understanding of finances and profit point to being a sustainable supplier - suppliers who try to make a sensible profit and understand their costs will have a more secure business and be more sustainable over time (19:45 to 23:00)

Factory Setup & Condition (23:00 to END)

This is what you should be looking for when in the factory:

Cleanliness - this reflects on how well the operation is run. (23:00 to 23:51)

Are products in contact with the ground? - shows how well your products may be respected, or not. Are electronic parts in contact with non-ESD surfaces or packaging. This demonstrates their culture of quality and how well they'll pay attention to your quality standard. (23:51 to 24:42)

How are the operator's toilets? Clean, have soap? - seems strange, but this speaks to the culture of the supplier and whether they're concerned with improving conditions for workers and are a forward-thinking supplier. (24:42 to 25:37)

How is the condition of the equipment? - again, this shows how concerned they are with the upkeep and maintenance, as newer or well-cared-for equipment will affect your product quality. (25:37 to 27:50)

Is the testing equipment maintained properly? - if the supplier truly pays attention to quality their testing equipment should be well-maintained. If not, are they capable of producing products which reach your expectations on quality? (27:50 to 28:28)

Is the owner's car very expensive? - it's normal to see fancy cars in China, but if the factory is relatively shabby and the owner is driving a Rolls Royce this could show that he is trying to suck the maximum cash out of the business and is therefore not necessarily in it for the long run. (28:28 to 29:20)

Organized factory layout & operator PPE - the management is serious about organization and safety which is a good sign. Safety goes hand-in-hand with quality and staff improvement. (29:20 to 32:15)

Safety and Social Compliance - personal safety is a bigger problem than child labour in countries like China and Vietnam. If your suppliers don't take it seriously, can this reflect badly on your brand were something to happen? (32:15 to 33:12)

Management style - how operators are treated and whether they're in fear of management, if they have younger staff who will be faster and more adaptable tells you how dynamic the company is, and is the work broken into very short cycles? If so, it's lazy management with little process-engineering and low efficiency. (33:12 to 35:16)

Their in-house capabilities - do they do a lot of the work in-house, or they're just packing boxes? If the latter they may a trading company! (35:16 to 35:45)

Check for shipping marks on packages - this will give you an idea of the kinds of customers they work with which can give you an indication of the level of price and quality they usually work with (35:45 to 37:20)

Summary - also mentioning how factory auditors can help answer these questions for you and take additional pictures should you choose to send them in instead of visiting yourself (37:20 to END)

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You will also find this long list of questions to ask useful, as well: 24 questions to ask during a Chinese factory visit.

 

In parts 1-3 of this series, we’ve covered what bad suppliers look like, how to verify their legitimacy & suitability with numerous tips and questions, and how and why to assess their engineering capabilities. 

Catch up with them here:

  1. 7 Ways Suppliers Can Cheat Importers Or Cause Problems
  2. Initial Vetting Process & Approaches To Weed Out ‘Bad’ Suppliers
  3. How To Evaluate Your Supplier’s Engineering Capability

All these steps take place before the factory visit, which we've covered in this episode. 

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How To Evaluate Your Supplier's Engineering Capability | Vetting Chinese Suppliers (Part 3)

Monday Jul 13, 2020

Monday Jul 13, 2020

In this episode...

This is the third part of our series on vetting Chinese suppliers which loosely follows the blog posts in this series that Renaud wrote before.

In this episode, Adrian & Renaud discuss the importance of evaluating your potential Chinese supplier's product engineering capabilities which are especially important if you're working on new product development with the supplier.

We mainly concentrate on the 5 key engineering attributes you need to check:

  1. CAD Compatibility
  2. In-house Design Capability
  3. R&D Facilities and Capability
  4. Prototyping Capability
  5. Initial Prototype Test Capability

These give you a roadmap you can use to assess whether your supplier has the engineering experience, knowledge, and capability to create your new products before you start working with them.

Show Notes

Introduction - WHY to evaluate engineering capability in order to choose the right supplier. Tightly linked with many importers relying on their supplier's expertise and competencies to fill in gaps in their product development (design & engineering) that they do not have (for instance, implementing a camera module into products). If you choose the wrong supplier, you open yourself up to risks. Not just competency either, it may be that you choose a supplier that is the wrong size for you to be a priority.  (START to 7:16)

What are the attributes you should be checking? - size, incentives, time-scales, and business model. Work with a lawyer to address the greatest risks. (7:16 to 9:47)

What to do if your potential supplier won't sign a manufacturing contract? - some suppliers know that you need their expertise and will, therefore, refuse to sign a contract that puts too much responsibility on their shoulders. Instead of caving to their demands, you can find a new supplier, or redevelop or simplify your product to avoid the issue. This would typically happen with an ODM factory, whereas an OEM or CM + design house are other options where you will have more control (also more expense) (9:47 to 12:50) - read more about supplier choice and their pros & cons.

Does your supplier have CAD compatibility? - can files be sent back and forth and worked on with no issues? This is important if you are both working on product designs (12:50 to 13:25)

Do they have good engineers internally? - what you should look out for when assessing the capabilities of the supplier's mechanical, electrical, electronic, and/or software engineers (13:25 to 17:10)

Questions to ask and evidence to request to see engineering capability - Renaud shares some of the key questions you need to ask the supplier, such as about past projects which are similar to yours, in order to see that the supplier can truly reach your expectations (17:10 to 20:10)

Some more attributes that engineers need to display in order to assist on the R&D side and with certifications - electrical engineers need to be able to calculate motor torque, understand control systems, etc. Electronic engineers should have an in-depth understanding of PCBAs, but can they also design them in such a way that the products can pass FCC scrutiny for example? Do they know how to test the PCBAs? Software engineers - what environment are they used to? Can they work with your team on it seamlessly? Do they have examples of sensors etc that they have worked on before? Do they have experience of speeding up early prototyping for proof of concept? They may also have to help you with tooling, which is expensive. Do they have experience of reviewing tooling or do they just trust that the mold fabricator does a great job? (20:10 to 25:30)

How well can the supplier help if things go wrong? - if there are technical issues with custom-made parts (such as poor surface-finishing), can someone from the supplier's team go on-site and check why it's happening? Do they have experience with reliability testing? If the supplier is unaware of effective testing, that's a major red flag. (25:30 to 29:12)

The importance of asking questions and getting examples if you're unable to go on-site - until you can visit your supplier, quizzing them on past experience in R&D, testing, etc is a good option. Do they have experience in your materials, products, packaging, etc? If they test in-house, question their testing capabilities, too. Do they understand your quality standard? (29:12 to END) - Sofeast can also assist you to find suitable suppliers.

The advice you've been listening to draws on this blog post:

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Initial Vetting Process & Approaches To Weed Out 'Bad' Suppliers | Vetting Chinese Suppliers (Part 2)

Monday Jul 06, 2020

Monday Jul 06, 2020

This is the second part of our series on vetting Chinese suppliers which loosely follows the blog posts in this series that Renaud wrote before.

In Episode 10 we explored the bad behaviours or trouble that the wrong supplier can cause, such as scamming you, raising prices dishonestly when they know you have little choice but to pay, or just not being competent enough to be able to produce your products correctly.

Now that you know what you don't want from a supplier, what are some of the first steps you can take to weed out suppliers who aren't suitable? Adrian and Renaud discuss this initial vetting process, approaches, and some actionable tips here...
 

Show Notes

Introduction - we'll be discussing questions to ask and actions to take that can help avoid red flags when sourcing new Chinese suppliers (START to 2:40)

The following tips are fairly unstructured, but can all be helpful as a part of your preliminary supplier vetting process...

Test the water with a factory audit - a supplier should be secure enough to accept a factory audit. If not, then what are they hiding? Either way, conducting an audit teaches you a lot about your potential supplier's ability to do the job you need them to, and audits are affordable (2:40 to 6:20) - learn more about factory audits.

Do a search engine search for the supplier - if they have behaved badly in the past, it's likely that there might be some articles or news about them online, so search their company name and see what you can find (6:20 to 8:45)

Is the supplier's online information consistent? - a red flag is where the supplier has different information on Alibaba, Global Sources, etc. If they don't match, why not? You can also see verified information about the supplier on these platforms, so it's a good place to see what they're offering very quickly (8:45 to 13:07) - For anyone thinking of sourcing suppliers based on Alibaba's recommendations alone, Renaud wrote about 'Why An Alibaba Gold Supplier Status Doesn’t Mean Anything' here.

Has the supplier consistently participated in trade shows? - if they have it is evidence that they are a legitimate supplier as trading companies, very small, or unprofessional businesses may not do this (13:07 to 13:45)

Try purchasing a sample and insist on paying to their company account and collecting the sample from their address - by doing so you can confirm 2 things: 1. That they are who they say they are because you collect from their address (is it a factory, apartment building, office downtown? If it's the latter two you could have an issue). If they do request you to pay to a personal bank account, or maybe one in Hong Kong, this is a red flag, too - as a legitimate company should be able to provide a real business bank account (13:45 to 17:30)

Check the business in the Chinese government database - you will need the company's Chinese name and address, but with this (and the ability to read Chinese) you can learn a lot about the supplier, such as their company size, the scope of work they do, the investment capital (a low amount suggests they aren't a manufacturer), and any past or present court cases and decisions against them and the reasons, too (17:30 to 20:02) - performing a legal records check on the supplier is a fast and inexpensive way to check for this helpful information.

Check if the company holds any trademarks or patents in their own name - if it doesn't look like they do a lot of R&D but they have trademarks, patents, etc, this is a possible red flag. Have they been taking IP from past customers and registering it in China under their own name without their knowledge? (20:02 to 21:34)

Request the supplier's business license - it will be in Chinese, but it contains a lot of the useful information listed above if you can read Chinese. If not, get someone knowledgeable to analyze it (there should be a QR code on them which shows the registered info online). A good point is to check if they have an export license, too. If they do not, they'd have to deal with an intermediary which can add some risk of IP-leakage, etc (21:34 to 23:48)

Check their ISO 9001 certificate - this is common in China now, but you should ask for the certificate which you can verify with the issuing body and also the manual which should list the quality objectives and scope of the Quality Management System is - this is not suitable for people with no understanding of it, but at least be aware of this certificate's veracity if the supplier claims to hold it (23:48 to 25:53)

Question them about how they protect your IP - do you have a standard agreement for customers like us? How do you protect my IP? Many importers do NOT ask these questions! If they do provide an agreement, get you lawyer (familiar with Chinese law) to check it and assure that it's enforceable (25:53 to 27:56)

Ask for reference customers - who do they work with? You can learn a lot from this, although it's not always practical for suppliers to give too much of this information away (27:56 to 31:00)

What is the typical order quantity and quality standard? - if they deal with huge companies who place much larger orders than you will, you may have to expect a lower standard of quality than you're expecting. So the supplier's 'level' should be appropriate to where you're at as a business (31:00 to 32:30)

Familiarity with export standards - if they are unaware or lack understanding of the standards surrounding the products they make (such as UL standard for batteries), this is a red flag (32:30 to 33:19)

How is their communication? - real manufacturers may not have the best communication. If they do, you may be dealing with a trading company. However, don't discount a manufacturer where their English isn't perfect, as it is fairly normal (33:19 to 34:50)

Conclusion - Buying in China for the first can be confusing, so talk to other importers or find someone with experience who can provide some advice - keep eyes open, do due diligence, gather intelligence - these are three key takeaways (34:50 to END) - We also mentioned the book, 'Poorly Made In China' - this is a modern classic that gives great insight into the (many) things that can go wrong when you start manufacturing in China!

The advice you've been listening to draws on these 2 blog posts:


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7 Ways Suppliers Can Cheat Importers Or Cause Problems | Vetting Chinese Suppliers (Part 1)

Monday Jun 29, 2020

Monday Jun 29, 2020

In this mini-series of podcast episodes, we will explore the process of what it means to work with the right Chinese supplier and how to qualify them effectively, screening out the bad options and focusing only on the one or two best choices.

You can read more about this topic in the series of blog posts on QualityInspection.org which we refer to throughout - read all of those posts here.

When starting to source new suppliers, you need to be aware of the risks, and these bad behaviours are what we focus on in this episode - the 7 ways Chinese suppliers cheat or cause trouble for customers.

Show Notes

Why is vetting new Chinese suppliers so important? (Start to 1:45) - the topic is drawn from this blog post which you can read for extra information.

Introduction to the components of trust between supplier and client - firstly, do you trust them their character and truthfulness and secondly, do you trust them to be able to actually fulfil your orders correctly? The need to be careful not to put yourself in a situation where you rely too much on one supplier who may not have your best interests in mind. (1:45 to 7:38)

7 ways Chinese suppliers can cheat you!

The 5 bad behaviours

1. The supplier disappears after a deposit, or a fee for samples is wired. (7:38 to 11:25)

2. Price increases unexpectedly after a deposit is transferred and you're 'hooked.' (11:25 to 16:33)

3. Price increases from one order to the next, without relation to production cost increases. (16:33 to 18:55)

4. Lack of respect of IP rights (selling the buyer’s design to other customers). (18:55 to 25:05) - you may also enjoy this blog post related to IP theft in China, too.

5. Lack of transparency (subcontracting outside of an approved facility, changing a component without notice, etc.) includes a discussion about how face is gained when you get away with things and also the concept of chabuduo (more or less). (25:05 to 31:24)

2 lacks of competency/experience

6. Lack of reliability: late deliveries, inconsistent communication…why over-promising and underdelivering has become common among Chinese manufacturers. (31:24 to 34:50)

7. Inability/unwillingness to reach the desired quality standard. At what point do you 'pull the plug' on a supplier who is unable or unwilling to produce goods at the quality standard you are expecting? (34:50 to 37:55)

Previewing the next episode  

In part 2 of this series, we will move on to discuss how to screen out the 'bad' suppliers who are likely to cause you the problems discussed in this episode? This will include tips for better vetting, such as background checks and smart questions to ask that will help you quickly identify which candidates aren't right for your needs. (37:55 to END) 


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Choosing Suppliers: OEM, ODM, Contract Manufacturer?

Tuesday Jun 16, 2020

Tuesday Jun 16, 2020

In episode 9 of the podcast, Adrian and Renaud discuss the different types of suppliers you may encounter in China (and Asia in general), their pros & cons, and what to look out for when sourcing suppliers.

Show Notes

We react to the worrying news coming out of Beijing about new clusters of coronavirus infections. How could this affect manufacturing in China? (Start to 3:45)

As the disputes and rancour between China and the USA rumble on, how are the trade war and the recent push to 'reshore' manufacturing going? (3:45 to 7:10)

Moving onto the episode's main topic, Renaud defines OEM and ODM - what these suppliers are, their features, and pros and cons of working with them. Factory audits are a useful tool here to help assess if the supplier is right for your needs. (7:10 to 23:50)

ODM - Expanding on some of the benefits and possible risks of working with an ODM specifically, such as their failure to alert you about who really owns the IP of the products they're suggesting they can produce for you, and also the need for a watertight Chinese manufacturing contract. (23:50 to 25:45)

OEM - Similarly expanding on OEMs. What are some of the key benefits (fast to market) and risks for importers when working with these suppliers? Such as being locked in with a supplier who won't produce the quality you need or the risk of losing your IP to them and finding your products on the market later on at a much lower cost! (25:45 to 32:56)

How to keep an OEM in line when working with them? Including arranging a suitable agreement with your lawyer and what it must contain in order to hold sway over the supplier. (32:56 to 36:05)

The rules of thumb for choosing suppliers - What production volume of yours would be best served by hiring an OEM, ODM, or CM (or even setting up your own manufacturing facility)? (36:05 to 37:25)

CM - What are contract manufacturers in more detail. Benefits of working with them and a number of best practices to make sure the production runs smoothly. Why CMs are less likely to play tricks than OEMs and ODMs and want to get to mass production and for it to run very smoothly. (37:25 to 45:10)

"Famous CMs produce products for HP, Apple, etc, so if I work with them I'll be guaranteed great quality products, too, right?"  Why this is not necessarily the case.
We also mentioned our own Contract Manufacturing subsidiary, Agilian Technology, at this point, which is one of the 'smaller alternatives' mentioned that will provide a better service for buyers who don't bring enormous orders to the table. (45:10 to 50:00)

The dangers of dealing with trading companies who may be leading you to believe that they are a manufacturer or who cannot handle the manufacturing project as capably as you need (due to not being particularly involved with the factory amongst other reasons).
In this section, we also mentioned due diligence and how we provide solutions like an affordable legal records check to help weed out trading companies or bad apples when sourcing suppliers. (50:00 to END)


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Supply Chain Risk Management & Reduction

Wednesday Jun 03, 2020

Wednesday Jun 03, 2020

In episode 8 of the podcast, Adrian dials in with Renaud to discuss supply chain risk, how to manage it, and some of the tools that can really help make a difference for importers.

 

Section 1: Supply chain risk, Black swan events, & VUCA (Start to 25:00)

  • What is supply chain risk
  • Real-life instances where this has negatively affected businesses
  • Black swan (unpredictable) events
  • VUCA (Volatility, uncertainty, complexity and ambiguity) and some examples
  • Performing due diligence on suppliers (Sofeast can help with this)

We follow the topics of this blog post: Supply Chain Risk Management, Part 1: What are VUCA and Black Swans?

 

Section 2: The Business Continuity Plan (25:00 to 37:00)

  • Explaining what a BCP is and its benefits
  • The dangers of 'swimming naked'
  • How to build and complete the plan (including Issues/Risk dimensions/Action plan)
  • The role of planning in an organisation that wants to take action to reduce risks

This section focuses on the topic of this blog post: Supply Chain Risk Management, Part 2: The Business Continuity Plan

As promised, you can get Renaud's BCP template and configure it for your own needs should you wish to undertake your risk analysis for your own business here: https://bit.ly/BCPTemplate

 

Section 3: The Supply Chain KPI Scorecard (37:00 to End)

  • Why most purchasers pay too much attention to the price of what they buy but fail to take risks into account such as too much complexity, unreliable suppliers, etc
  • Examples of the negative consequences of focusing primarily on price
  • How completing a supply chain KPI scorecard can help reduce risks and the key KPIs to include (such as quality, cost, on-time delivery, and certain risks, too)
  • Summing up and closing remarks from Renaud

This section draws on this blog post: Supply Chain Risk Management, Part 3: A Purchaser Supply Chain KPI Scorecard’s Benefits

******

If you have any questions about the topics discussed in this episode you can get in touch with us and we'll do our best to answer them and also remember to subscribe to Renaud's blog at QualityInspection.org and visit Sofeast if you need assistance on the ground in China or SE Asia with your supply chain, quality, product development, and much, much more.


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How Manufacturers & Importers Can Prepare For A 'Post-COVID' World

Wednesday May 13, 2020

Wednesday May 13, 2020

After reading IndustryWeek's article: What Will Manufacturing’s New Normal Be After COVID-19?, Adrian and Renaud discuss the topic with a special focus on China.

If you have a supply chain or factory in China, how might things change for you in the future and, if you're in lockdown right now and cannot travel to China, what kinds of activities can you do to keep making progress in 2020?

The message is that things don't need to be on hold! There are useful activities that importers and manufacturers can perform right now that will help you hit the ground running post-COVID, and the use of technology may spur this even more.

 

Today's topics

In summary, we cover these topics:

  • Remote activities importers and manufacturers can do, such as product development.
  • Which industries are thriving during the pandemic and which are negatively affected.
  • What kinds of safety measures have been brought in to factories in China?
  • Is productivity being affected by this?
  • Can manufacturing be returned to the West 'easily' if automation is factored in?
  • How likely is it that companies can 'decouple' from China post-coronavirus? What challenges exist for reshoring or near-shoring and what are the benefits?
  • Is digitization going to increase in the future and how can it be helpful?

 

Show notes

Get even more great resources from us at Sofeast.com, and if you have any questions, please contact us any time.


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Hot Topics In China Manufacturing Spring 2020

Sunday Apr 26, 2020

Sunday Apr 26, 2020

In this extended episode...

Renaud is interviewed by CMC (China Manufacturing Consultants) about the hottest topics in China manufacturing in Spring 2020. 

These topics are covered:

  • If there is a global recession/depressed demand, what are the effects of this on manufacturing?
  • Why the bargaining power of buyers will increase and how it's the time for buyers to seriously evaluate their Chinese suppliers for a better future supply chain (including the kinds of activities you might perform).

  • How to spur Chinese suppliers to make positive changes if it's found that they need to adjust.

  • How short term thinking is affecting long-term improvement projects in Chinese manufacturers (we blogged on this here) which negatively affects quality, delivery, efficiency. How consultants can come in to assist with this.

  • Who should Chinese factories be hiring internally to complement consultants to make long-term improvements?

  • The advice to PPE & medical supply manufacturers and buyers - this industry is booming due to the coronavirus pandemic causing unprecedented demand, so there are certain things that both parties should consider which Renaud explores, such as selecting the right kind of equipment to cope with a temporary increase in demand.

  • What can buyers of high-demand products such as PPE do to assure that their customers will get the right quality products on time? This includes production planning and more.

  • How has factory relocation from China to other countries been affected by the pandemic? Some useful tips for manufacturers who still intend to move, such as how to plan ahead and why starting small is a good idea.
  • The top 3 things a big buyer (30-50% of output for a supplier) should be doing right now.

  • The 3 things that buyers of medical supplies and PPE should be conscious of in the current environment.

Show notes

As promised here are the links from today's show.

If you have any questions arising from the pod, please contact us and we'll be happy to help if we can.


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Tips for Buyers of Coronavirus Medical Supplies from China

Thursday Apr 16, 2020

Thursday Apr 16, 2020

As the world battles coronavirus, there is an increasing number of buyers rushing to buy coronavirus medical supplies such as masks, gowns, face shields, ventilators, test kits, and more from China.

The situation is fast-moving and the market is risky. So when lives are on the line, what can buyers do to assure that the products they're importing are safe, high-quality, and permitted to be exported from China and/or imported into their countries?

Adrian from Sofeast and our CEO, Renaud Anjoran, discuss this topic today.

Show Schedule

  • What is the situation on the ground in China now regarding the manufacturing of PPE/medical supplies to deal with coronavirus? 
  • Has China implemented any rules to improve quality?
  • Loopholes, risks, and importing to the West.
  • Renaud's main TIPS for importers.
  • If buyers can't get the products they need from China, what other options do they have in Asia if any?

Resources for coronavirus medical supply buyers

If you have any questions or need help with buying medical devices or PPE, please feel free to contact us. We're already working with clients worldwide to help support them during this difficult time.


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