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One of my commitments this year was to send out a message each month. For some reason or another the first six months have come and gone without me keeping my promise.
Experiencing setbacks while working with Chinese factories are part of the reality of working in an environment where there are very few processes and even fewer systems to deal with problems. Thus when a problem arises, they are usually compounded long before being recognized. Ultimately the issue will be resolved but not before the entire supply chain feels the ill effects.
From everything I’ve read. It’s apparent various companies have started moving their production back to the US and Europe. That much we know. What’s not clear is the rate it’s actually transpiring at.
Just under a year ago the BCG announced more than a third of major US manufactures were considering reshoring their production. But the problem with thinking, it doesn’t equal doing.
Whether new to sourcing or an experienced veteran, there’s a lot to focus on in order to ensure the products you need are ordered correctly and delivered on time. While it’s easy to center your attention in the details of product specifications, production planning and logistics requirements. You must not lose sight of the other elements which can just as easily derail your sourcing venture.
Saying “Yes They Can” when they really mean “No They Can’t/Won’t.”
Believe it or not industrial manufacturing is a relationship business. No matter if you purchase domestically or offshore the greatest gains will be had when strong mutually beneficial relationships exist.
Over the years we’ve been contact by many individuals who possess an innovative or cool new product idea (in their eyes) which they want manufactured in China. Their primary reason for contacting us is they know we have access to multiple Chinese manufacturers and assume because it’s China they’ll be able to develop their product cheap, easy and fast.
One of the largest adjustments we stated making in 2012 was beginning to engage our Approved Suppliers™ as to where they were sourcing their raw materials from. We did so because we were receiving inconsistent quality (from some) and couldn’t fully comprehend why? We would monitor their production processes where everything stayed the same yet the finished batches would range in quality.