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4 sources that should help you find suppliers in Asia

Online research

Google is a great way to look for suppliers. However, your search results may be limited because the relationship between Google and China is not very good. The same is true for Bing. To counteract possible restrictions, you can also use the Chinese version of Google, Baidu, as it will usually offer you a more extensive range of suppliers located in China.

Trade shows

Every year Hong Kong is one of the hottest spots for trade shows for a vast range of consumer goods such as apparel, lighting, toys, jewelry, gifts and premiums, and more. Examples include an event organized by HKTDC, which attracts manufacturers from all over Asia to the Hong Kong International Convention Center. The trade show at the Hong Kong Asia World Expo, organized by Global Sources is also very popular. Both organizations are well known, have years of experience in the industry, and can provide expert assistance to buyers in their sourcing journey. Global Sources, in particular, can provide customized services for their clients. Suppliers at these trade shows are considered to be at the “top level” of the market. They go through a selection process and are willing to pay a significant amount of money to be present in Hong Kong for those few days.

Another hot spot to find suppliers in Asia is the Canton fair, located in Guangzhou, China . This trade show is enormous, with a physical size comparable to an international airport. Attending this event is an excellent opportunity to meet thousands of suppliers, but there are so many that it’s impossible for you to visit them all in one trip. To maximize your productivity, you should focus on just a few products. Otherwise, you may end up with a lot of contacts but not the ones you need to generate business in the upcoming season.

Other smaller but interesting trade shows also take place in Europe and North America. Their proximity to you and their smaller size makes them easier to visit for a day or two and provide a better opportunity to initiate face-to-face negotiations with the most relevant vendors. These events offer less choice when compared to the Asian exhibitions. Nevertheless, manufacturers who can travel to other continents to promote their products are usually quite experienced and able to serve their international customers well, providing you with a more positive initial experience with manufacturers in Asia.

Here are few trade shows for your reference, but there are many others scheduled in Europe and United States:

• Textile: Heimtextil in Germany
• Pets: Interzoo in Germany
• Automotive parts: China expo in Poland
• Global Sources organizes one of the most famous trade shows in the USA in Miami each year and exhibits suppliers specializing in Electronics, and Gifts and Premiums.
• Toys: Toy Fair NY in USA

Social networks

Reddit.com – This platform is not very appealing, but it does provide a forum for exchange and the ability to find some great contacts. New customers contacted AQF after reading some references about us on this social network.

Facebook – There are several groups for Amazon sellers, including the following: Treasure Hunting, Smart China Sourcing. More generic groups which are valuable for measuring the trends, exchanging ideas and identifying potential new suppliers include China Sourcing, China Export & Import.

In addition to being the world’s most extensive network of professionals, LinkedIn also provides members with an opportunity to connect with a broad range of suppliers. You can also find suppliers in Asia subscribing to several specialized groups, such as country-specific networks. Examples include: Buyers, Buyers world, International import-export.

Online platforms

Global Sources is one of the major online players and provides an extensive range of pre-selected suppliers. The platform is easy to use and allows you to get in touch with a particular supplier and request a quote. You can also buy samples which is one of the most effective ways to evaluate your supplier’s capacity to manufacture your product. Also, GS is very focused on Amazon sellers and provides a selection of different tools to help them find suppliers in Asia. They also publish and share a wide range of relevant content from various procurement professionals across Asia that will help to develop your knowledge about sourcing.

Alibaba is also a major manufacturer database provider. They have made significant improvements over the past year and now provide the ability to request a quote from multiple suppliers which can save you time in the research phase. However, keep in mind that Alibaba may suggest suppliers that are paying for a higher position in the search results and may not be the best value for your needs. The good thing is that they are transparent on their advertising policy, and you can verify the membership conditions of the suppliers from the website directly.

Traders

Among all the contacts you come across, you may find that some are traders. It is critical that you clarify if the supplier you are in negotiations with is the direct manufacturer or someone acting on their behalf. As an intermediary, a trader should know his suppliers well and have the ability to source the best value for you. However, avoid putting all your eggs in the same basket by ensuring a third party is in charge of evaluating the quality of your manufactured goods. Unfortunately, many Traders are in a complicated position and often lack the required expertise and impartiality when assessing an important supplier’s products.

While it does take time to identify suitable suppliers, you can maximize your efforts and get a more precise idea about which ones to get contact by researching well and exchanging information with other professionals on social networks. However, this is just the beginning of your procurement journey. The next step is to implement a rigorous process to qualify the supplier and verify they can meet your requirements. We will provide you with some useful resources on how to do this in the coming days!

The team at AQF thank you for following us and showing interest in our content. We wish you a happy, healthy, and prosperous Year of the Dog and look forward to accompanying you on your sourcing journey for the coming year.

What changes have occurred in China’s New Environmental Regulations?

China released new amendments to their Environmental Protection Law in 2017. The changes have been described as “the strictest Environment Protection Law” in history in China and are part of a national effort to address China’s infamous pollution.

The amendments dramatically increase the level of personal and financial liability for environmental noncompliance and also place a much greater emphasis on the cooperation of local government administrators for enforcement of the rules, holding municipal and provincial party bosses responsible for environmental problems. Punishment for breaches can include demotion and restrict their chance for promotion. Needless to say, all levels of government are now focussed on enforcement of the new regulations.Since then:

• Central government authorities from the Ministry of Environmental Protection and the Communist Party’s anti-graft watchdog have inspected tens of thousands of Chinese manufacturers and found that many don’t comply with the new regulations.
• Over 40 percent of all China’s factories have been shut down at some point to be inspected by departmental officials. (as of October 2017)
• More than 80,000 factories have been hit with hefty fines and criminal charges, (some resulting in jail time,) as a result of the inspections.
• Some local authorities, who have traditionally turned a blind eye to breaches of environmental regulations, have closed factories even before inspectors have arrived.
• Many of the factories that were found to be non-compliant are subcontractors to primary suppliers for major brands.
• Some factory owners have closed their premises in China permanently and relocated to other countries.
• Delivery times for many goods have blown out significantly.

How might China’s Environmental Protection Law affects you?

After years of rampant industrialization, with little to no regard for the health and safety of the population and the environment, it is clear that the Chinese government is extremely serious about addressing pollution issues. Ultimately, if they are to survive, manufacturers will have to find ways to both meet production goals and comply with China’s New Environmental Regulations. Those who do, will prosper and become more sustainable, and China as a whole will benefit. However, the short-term disruptions are having a significant impact on businesses trying to deliver products in a timely manner to their customers.

The massive number of non-compliant factories that have been shut down has resulted in a surge in late and missed orders, increased production costs, and could ultimately result in higher prices for end consumers.

Even if your primary supplier is 100% compliant, they may rely on subcontractors who aren’t, and your supply chain could still be vulnerable to disruptions due to inspections and closures.

What can you do to avoid supply chain disruption?

An
Environmental Audit carried out by a qualified, independent party will provide visibility of your entire supply chain and is essential for peace of mind in these changeable conditions.Firstly, you should check that your QC partner understands and can verify the compliance of your suppliers with the China’s New Environmental Regulations mandated by the Chinese Government as well as international standards such as
ISO 14000.To guarantee the entire supply chain, have your QC partner perform an Environmental Audit to assess your risks before working with a supplier AND their key subcontractors. Include an assessment of the supplier’s risk management methods and results related to environmental issues. For example, what will they do if CN government closes one of the supplier’s factory.Your auditors should be able to provide a corrective action plan to support your supplier and their subcontractors to implement sound environmental management practices and conduct follow-ups to ensure progress.

Source: pexels.com

Chinese New Year Peak season is a critical time for preparing your business for the post-CNY period. Here are six compelling reasons why you should consider executing your supplier audit program now instead of after the CNY holidays.

6 Reasons to implement your Supplier Audit program before CNY

1. Minimize risks

Regular audits should be seen as an investment to protect your supply chain rather than an expense. You can head off potential supply chain disruptions before they impact on your business, saving time and money in the long term.

2. Verify your supplier’s production capacities

Before CNY, factories are at their highest production levels. If you want to check the plant while running at full capacity, now is the best time to do it. You will be able to check all production lines, product quality, machines and equipment that are both operational and under repair, and more.

3. Assess the sustainability of the supplier’s management system

When productivity is highest, and everybody is busy, it is the perfect time to assess the availability, suitability, and effectiveness of a supplier’s management system under real-life circumstances. Before CNY, auditors can evaluate if the management system, especially the supplier’s process control, copes well with the extra workload or may crack under strain, posing risks to your goods and supply chain.

4. Ensure the supplier complies with local and international regulations

You need to ensure your brand’s image is protected at all times, in particular during the peak season. Over time, your fashion garment supplier changes and grows (or not). Depending on their financial situation you may expect a deterioration or improvement in working conditions, the production site, machinery and equipment, etc. However, one of the most critical issues for you is to verify that they continue to comply with all local and international regulations regarding quality, social and environmental requirements while production lines are running at full capacity.

5. Define and set up corrective actions to prepare for post-CNY production

It is quite challenging to get a 100% pass report on an extensive supplier audit, social audit or environmental audit. Requirements are high, but you can assist your garment supplier through regular reviews and clear definition of suitable corrective actions while ensuring the launch of your post-CNY garment procurement season isn’t affected.

6. Develop a long-term relationship with the supplier

Regularly auditing your suppliers is also an excellent way to show your interest in building a long-term relationship with them. The objective of an audit is to assess the current situation and make improvements based on the local and international standards. It is in the interest of both parties if they have a mutual objective to work together long term.
Moreover, an audit is the opportunity for your supplier to show the evolution of his product range and production capacity, factory size and facilities, and the presence and adequacy of their management systems.

Implementing a supplier audit program during busy production times, such as the period before CNY, provides an excellent opportunity to gain insight into the real health and sustainability of a supplier and their management systems.

With over 10 years’ experience working in the Quality Assurance industry in Asia, AQF has found that an annual check of garment suppliers provides far-reaching benefits to fashion retailers, including e-commerce retailers, and the manufacturers themselves. Regular surveillance allows better control over supply chains in Asia while protecting the reputation of brands.

Your third-party quality control partner should be able to help you set up an efficient and tailored supplier audit program before February 15th, 2018. If you have any questions or would like to discuss how AQF can help you assess your suppliers in the build-up to Chinese New Year, then don’t hesitate to contact us.

Top picture source: pexel.com

How to adapt your furniture quality control procedure during the peak season?

Prepare clear product specifications

Preparing clear specifications is something we regularly mention on the AQF Quality Control Blog, and that’s because it’s essential. You cannot disappoint your customers with products that do not meet their expectations, and you need to ensure that every aspect conforms to their requirements. If you want to succeed, you need to work on your specifications and improve them over time. Better specs help your supplier do a better job. They also assist your third-party QC partner in preparing the most appropriate inspection protocol so that every important aspect of your products is checked.

Modify your furniture checklist to focus on identifying those defects

Paint can be tested very easily. You could stipulate a more rigorous testing protocol requiring higher number of test samples on your checklist, but you could just as easy secure your results by ensuring that the S-1 sampling for the adhesive test (or cross-cut test depending on the product) is randomly picked, in different places of the storage area in the warehouse. This procedure will decrease the risk of finding problems on arrival at the product’s destination. You can emphasize this request to your third-party inspection company to ensure they will pay attention to the way they select the samples for testing.

You could also request an additional test which is commonly used for textiles, called the ‘rub test’. This test may help to check if the color of the paintwork comes off by rubbing a white cloth – first dry, then wet – on the furniture. It may require some extra time for testing, but it’s worth it if your risks are reduced.

It is essential to provide enough time for your QC inspector to assemble several pieces of your product entirely. All parts may be present, but if you can’t assemble all of them correctly, or the furniture does not seem to be able to perform its function, then you will be in trouble. You could increase your sampling to S-2 Special Inspection Level for a stricter control, but you need to make sure the basics are followed. Cartons for sampling should be randomly selected from different areas of the storage warehouse. If there is limited time or the QC inspector doesn’t have the practical know-how, some furniture may be assembled in front of the QC by a factory worker, instead of by the QC directly. If you don’t want this situation to occur, you should stipulate in the inspection protocol with your QC partner that the QC should be the one assembling the furniture, as would any customer receiving your product.

Finally, you should make sure to include a function test along with the assembly test. This instruction requires the QC has to simulate the function of the product. For instance, if it is a chair, the QC should sit on it as you would at home.Increasing the sampling for the above tests implies more time for the quality controller at the factory. Your inspection service may cost more, but rather than just thinking of the added expense, consider it as an investment that ensures you won’t miss any sales!

Adapt your furniture quality control approach and assign slightly more budget to it

To succeed in this risky period, you may need to invest more in furniture quality control, and try to identify any problems as early as possible. Most of the defects aren’t detectable until the very end of the production process, so you must check your goods before shipment.However, a potential delay or paint defects can be identified earlier by monitoring the production process for one or two days or, performing a during production inspection on semi-finished goods.

Ensure your third-party inspection company sets up a vigilant on-site monitoring process

Few people can claim not to have experienced any bribery issues in the quality and sourcing industry in Asia. But depending on the way you manage your human resources you can decrease the chances of this occurring. Effective team management, regular monitoring, training, and bonuses based on performance are essential. However, during the peak season, there are many suppliers interested in corrupting QC inspectors. The temptation is high, so you have to make sure your QC partner has set up the right processes to limit the risks as much as possible.

Agree on a stricter payment method with your supplier

The payment method you stipulate is one of the most common ways to put pressure on your supplier to do a good job. Manufacturers are mostly driven by money, even more so during peak season as they have to pay extra salary to their employees for Chinese New Year. You should, therefore, take advantage of the most secure payment methods to protect your supply chain and guarantee your end-user’s satisfaction. A ‘letter of credit’ is the most appropriate, but you could also consider making a payment after a PASS result on a pre-shipment inspection report. You will need to use your best negotiation skills to reach this agreement as most suppliers prefer you pay a deposit.

Test your products at an early stage

You may often be tempted only to test your product at the pre-shipment inspection stage because you consider the product testing process is just a formality. However, it may not be the case, and you don’t want to face any fines from Customs because the goods don’t conform to your destination country’s standards and regulations. Try to test your products at an early stage and include the positive lab test results within your payment conditions. This requirement will oblige your supplier to pay attention to your order.

There are plenty of aspects you can work on to limit risks during the peak season. Ideally, you should work on your
furniture quality control procedure and adapt it to the situation. Your QC partner should be able to offer you a tailored solution based on your goods specifications, quality requirements, time-to-market objectives, and experience with your supplier. Feel free to share your needs with us should you need any advice!

Main quality risks when performing furniture quality control during the peak season

Robust furniture quality control is the best approach for evaluating quality issues, assessing the quality risks of your orders, and identifying product defects as early as possible. Based on our experience, here are the most common defects found during the peak season:

Inconsistent and higher numbers of furniture defects

Most of the problems found are related to the following defects:

Peeling paint

There are three possible root causes for this defect: the substrate is not processed clean or well, the coating temperature does not reach the requirements to ensure the best result, or the paint did not have enough time to dry.

Missing parts

The primary root cause of missing pieces is the lack of attention from the worker on the production line, who may not follow the work instructions properly. The second reason is that the quality control team did not properly control the different parts before packing.

Assembly issues

Assembly issues are mainly caused by the worker(s) not following the work instructions properly. Alternatively, the instructions might not be clear because the client’s requirements were not detailed enough.These three defects may sound familiar to you, but during the peak season, they may appear on your regular products as frequently as with new ones. The quality of furniture manufacturing is inconsistent during that period, which is caused primarily by a loss of control throughout the whole manufacturing process. The less time people have to fill an order, the less they can focus on providing the best work they can. This outcome is valid at every level of the supply chain.

Increased furniture manufacturing times

A production lead time estimated before the peak season may not be realistic during this period. In fact, we observe a higher number of production delays across the whole furniture industry during the build-up to Chinese New Year, as well as with most other manufacturing lines.

Bribery risks

It is quite common to observe an increase in the number of manufacturers offering the well-known “
red pocket” to quality controllers during the peak season. Their objective is to get an acceptable inspection result to guarantee immediate payment and shipment of the goods, even if the quality of the batch is lower than specified.

Reasons for such high furniture quality risks

Why are those defects regularly found while performing furniture quality control during the peak season?

Previously we explained the root cause of the common defects, but we didn’t mention the reasons why they appear more frequently during the peak season. Let’s try to clarify that here.

Factories know they have very little time to generate maximum business before the traditional Chinese New Year holiday. They, therefore, aim to fill their order book entirely from November until mid-February (CNY starts on February 15th in 2018) without taking into account external factors that may affect their production lead-times or challenge the limits of their production capacity. Consequently, production runs are processed in a rush which is never helpful for guaranteeing consistent quality.

Also, you need to consider that your suppliers may subcontract your orders because they don’t have the necessary production capacity during the peak season. That might involve outsourcing part of your job, or perhaps even the entire process. In case of partial subcontracting, the risk of finding quality inconsistencies between lots is considerable. You can’t expect two manufacturers to produce the same product if their production lines are different. When the supplier outsources the entire lot, the risk is that you won’t get the same quality level that you are accustomed to from your regular supplier.

You also can’t count on your regular supplier to control the subcontractor’s quality. They barely have time to do it on their side! In peak season, suppliers focus mainly on getting goods ready for specific shipment dates to avoid delays in other production runs; ensuring they get paid and guaranteeing their cash flow.

Reasons for higher risks of furniture production delays?

In addition to your supplier subcontracting the manufacturing of your goods to partners, they may still face production delays. Their factory production capacity is limited and the closer we get to Chinese New Year the worst it becomes. Moreover, factories work on a just-in-time basis, running at maximum production capacity during the peak season. If anything goes wrong with one order, it delays all the rest. Unless that is, they sacrifice some production steps by speeding up and providing a lower quality product.

What kind of event can delay the productions?

• Delayed delivery of raw material
• The quality of the raw materials isn’t good enough, so repurchase is required
• The client confirms the final details of the order too late (artwork, packaging instructions, colors, etc.),
• The production machines are not working normally and require repair or maintenance
• The workers resign or leave for holidays
• The government believes the business is not compliant with standards and closes the factory down: a very dramatic situation. (i.e. the environmental protection controls in China have already obliged thousands of factories to close down).

Now that you know the risks and their root causes, how can you avoid or limit them? There are several small actions you can implement to adapt your furniture quality control procedures and minimize problems.

Stay tuned. A new article will be published in the next few days to provide you with useful advice and practical solutions.

Photo from 123rf.com

Dates you should know about when manufacturing before Chinese New Year

Until when can you ship your goods?

You should have your products ready for shipment ten days before the
official public holiday. Otherwise, there is a high chance that you won’t be able to ship your goods until the end of the holidays, in early March 2018.

When are factories closing and opening again?

Dates are specific to each factory. However, from our experience, no workers may be available to do the job between approximately February 8th and February 28th. That said, you should always include a few days buffer just in case you need to get the goods sorted or reworked before shipping. i.e. Your supplier can only deliver the reworked products on February 8th. If later, you can be sure that either you don’t receive your goods because they remain in the closed factory or you get the substandard goods they initially inspected, as they did not have time to improve anything.

When should you place your order?

Well, that depends on your supplier’s production capacity and availability during that period, along with the size of your order. The latest you can realistically place an order is around mid-January, so there’s not much time left! Therefore, if you already know that you will need goods for the upcoming spring season, you should consider ordering now.These dates may vary depending on your supplier’s location and production capacity during the holiday period. Some suppliers are well organized and may inform you in advance. That’s exactly how we managed to provide you with this information. If your supplier hasn’t told you yet, we highly recommend you send him an email to clarify the main dates that could affect your plans for manufacturing before Chinese New Year.
Here is a template you may use to get in touch with your suppliers and verify their CNY holiday schedule:Dear [supplier name],We are planning to place a new order with you which should be shipped before the Chinese New Year holiday. However, we are not fully ready, and we would like to clarify how much time we have to send it to you. Therefore, may I ask you to confirm your:

• Factory closing date:
• Factory opening date:
• Deadline to place an order for a shipment before CNY:
• Last shipment date:
• Deadline to place an order for a shipment after CNY:
• First shipment date after CNY:

What about your third-party QC partner?

Third-party inspection companies based in China do not close for more than a week most of the time. At AQF, we remain available to perform inspection services at the factory or forwarder’s warehouse until February 14th, 2018. However, we highly recommend you plan your inspection services ahead during that period as you are not the only one in a rush and workload is high. Also, consider having discussions with your third-party quality partner about the best quality control strategy to implement, knowing that quality risks increase during that period and lead-times are not extendable.

Photo from pixabay.com

What are the methods to check finished goods quantity?

An inspection reviews several important aspects of a product: workmanship, specifications, quantity, functionality, and safety. Unfortunately, limited budgets don’t always allow examination of all those areas in detail because it requires significant time and increases inspection costs. Therefore, time is limited and inspectors use the most efficient methods of control possible, within the available resources.

How do we check the finished goods quantity today?

A
quality inspector commonly
counts all units present in 3 cartons and then determines the number of cartons in the batch without removing them from the storage area. Simple multiplication determines the total number of units in the consignment. This method provides a good compromise between accuracy and workload in most situations. But there are better ways to proceed, depending on the circumstances.

Counting each piece, one-by-one

This process may require that every single carton is opened and examined by the quality inspector in collaboration with factory workers.

After counting, personnel must repack and seal the cartons, then re-organize them in the warehouse. There are faster counting methods that exist such as the use of the conveyor belts to count the goods before packing into master cartons. However, this implies verification of quantities during the production and before packing. Any other method requires approximations rather than exact numbers. However, this technique needs considerable space which most warehouses can’t offer. It also requires a substantial amount of time and human resources – i.e., factory workers plus QC personnel to supervise the job is done properly.

Units and carton weight

A second, alternative method to check the finished goods quantity consists of checking the number of units in one carton and then determining the total weight of the carton with those contents.

Inspectors can then verify if the weight of all the other boxes is the same. This process takes considerable time as well, but far less than checking the contents of every single box. The challenge with this method is that warehouses are usually tightly packed and the space between each lot is narrow. The quality inspector has to find enough room to move the cartons out of their storage location to weigh them all one by one. To do this effectively, he needs the collaboration of several factory workers, for a few hours. The underlying premise of this method is that all cartons and products weigh the same without exception, and it is therefore somewhat of an approximation.
Let’s take an example to deepen the understanding of the methodYou decide to import 50,000 bags and get them manufactured by one of your supplier in China. In total, there are 2500 export cartons, which contain 20 bags each.During the inspection, the Quality Inspector will open one carton then count the number of pieces and verify that there are 20 pieces in the carton. He will then put the 20 bags back in the export carton and verify the gross weight. In this case, the G.W. is 8kgs. He will take this value as a reference to verify the gross weight of the other 2499 export cartons.

Define the inner volume of each carton

A third approach is to measure the dimensions and thickness of a carton to define the inner volume. If you know the unit packing volume, you can then estimate how many units should be inside one box, and multiply that by the number of packages to get a total.

With this method, you need to take into account some loss of space. For example, a carton is not always filled 100% by the units but also contains air. Cartons might have dents so fewer pieces can fit inside. Depending on the product, the number of pieces may also vary in each carton.This method is most suitable for products packed in boxes as they guarantee a consistent volume when the packing process is the same. For products like plush toys or cushions packed in polybags, it is harder to guarantee that the factory will be able to pack the items in the same way in each carton.
Let’s take an example to deepen the understanding of the methodYou are importing 500 wooden jewellery boxes from your Chinese manufacturer. The Quality Controller will measure the volume of your packed products to determine their volume. In this case, each box is packed in a gift box measuring 31x21x13cm. Therefore the product volume is 0.0085m3.The Quality Controller will then measure the inside of one export carton to determine its inner volume. After removing all goods, the measurement is 43x25x35cm. Therefore, the inner volume of each export carton is 0.0376m3.By dividing the product volume with the export carton inner volumes, the QC concludes that only 4 pieces can be packed per export carton (0.0376/0.0085 = 4.42).After that, the QC will count the number of cartons ready. In this case, he counted 100 cartons and can then conclude the total number of pieces finished and packed: 100×4 = 400 pieces. This means that there is a quantity shortage, not all goods are ready for shipment, as 100 jewellery boxes are missing.

Changing to a more
reliable and complex method to check finished goods quantity increases the chance of
receiving 100% of your order. However, the workload and your costs also increase, and you must ensure the check is performed at the right time for the best result.
Pre-shipment inspection is usually considered the best quality control solution to check quantities, safety, and conformity to your requirements, but who knows what happens after the inspection is finished? Due to lack of time on the day of inspection, third-party QC companies do not usually supervise the re-packing of the inspected goods. You must, therefore, rely on the goodwill of the supplier and their workers to repack them all after replacing or reworking the defective goods.

So, how can you guarantee the total quantity in each carton and that all of those cartons will be loaded into the container?

As discussed above, the quantity check procedure can be adjusted to verify the total quantity of the shipment with more or less approximation. However, the time at which this check is done is as valuable as the check itself. Ideally, it should be at the very last “minute” to allow the best control and supervision of the consignment.

We recommend you send your third-party inspection company to
supervise the loading of the container to remove any doubt.

Learn more about
Container Loading Supervision.

A shortfall in the number of units can have a detrimental impact on your business finances and reputation. Negative consequences can include: Customs fines (actual quantity not consistent with invoice), Financial Loss (you get less for what you paid for), Quantity shortage (you miss out on sales) or Profit margin decrease (or you may have to increase your selling price). Therefore, let’s answer to your main question:

How can I ensure the total quantity of my goods is shipped?

To make sure you get what you pay for and guarantee delivery of the correct quantity of goods; one of the solution is to be present until your products are all ready for shipment, and supervise the container loading process. Once you confirm that the right number is officially loaded into the container for shipment, and the consignment is locked and sealed, there is no potential to lose units until you reopen the container in the destination country.

The primary objectives of container loading supervision are to:

• Verify the total quantity of goods are loaded
• Ensure that the condition of the container will protect your products from rain and other hazards during transportation
• Evaluate if the goods are loaded in the right way to avoid movement and falls that could result in damage, affect handling at the warehouse (especially for Amazon sellers), and impact on the quality of the product for end-consumers (broken parts, scratches, moisture, stains, rust and more).
• Verify all documents are ready for custom’s clearance in the country of destination
• Make sure that goods are loaded as expected (master cartons sequence, storage method).

Is that enough to succeed?

The shipment of the total quantity of products is not enough to ensure 100% satisfaction and success when sourcing from Asia. You also need to ensure the product conforms to the expectations of your end consumer. That means delivering safe products of the right quality, at the right time. The container loading supervision process cannot achieve this in isolation, but should be combined with other quality control methods such the pre-shipment inspection to verify the product specifications and quality are conformed to your requirements.

Understand what happens during container loading supervision.

Learn more about Pre-shipment Inspection

6 Key Factors that Influence India or China Manufacturing

Pricing

Money isn’t the only thing that matters when it comes to manufacturing — quality, dependability, and timeliness are also important. That being said, production costs are vital when you’re sourcing from abroad. In many cases, China takes the lead when it comes to more competitive costs, due to a variety of reasons. One major factor keeping costs up in India is that electricity is both expensive and limited. Not only does it
cost more to power a manufacturing plant, the available hours to run it are fewer than in China. Add to that higher (and often less productive) labor and a lot of bureaucratic red tape and you just might find a better deal in China. Still, many Indian federal officials are attempting to draw more manufacturing to the country, so the tables could turn in the future.

Logistics

China and India differ greatly when it comes to logistics and transportation. Whether it’s to bring in raw materials or export a finished product, India relies heavily on its massive network of roads. However, they are not always paved well or wide enough to comfortably accommodate a large truck, increasing the potential for slowdowns in the logistics process. Depending on the factory location, the time between the factory and the pier may take much longer than in China.On the upside, the government has been steadily investing in railway, highways, ports and airports development throughout the country to help grow India’s manufacturing economy which are introduced in a
KPMG Report. In fact, it’s expected to
cut back transportation time and costs by 20%.In China, there are a number of logistics hubs to take advantage of, including newer roads and highways, railways, waterways, and airports. Transportation and other factors are considered in the World Bank’s annual
Logistics Performance Index. In 2016, China ranked 27th worldwide, compared to India at 35th.

Economic Environment

New regulatory reforms from the Indian government have resulted in a much less complex tax structure. The recently launched Goods and Services Tax (GST) recodifies India’s elaborate tax structure in an effort to simplify the process. It’s also expected to increase efficiencies across the board.China, on the other hand, is facing slowed economic growth. Past months have seen little increases in major indicators, although the last quarter saw a
1.7% growth in the economy, compared to the 1.3% that was predicted. At this rate, the country might see annual growth for the first time since 2010.

Product Expertise

While it’s economy has cooled off in recent years, China has a major advantage over Indian manufacturing, and that’s the ability to scale.

More plants performing more repetition in manufacturing allows for a reduction in costs by sharing common expenses. China has also created special economic zones and industrial clusters to encourage manufacturers, suppliers, and other relevant parties to be physically close to one another. So, if you need certain materials for a specific product, you’re more likely to find not just a Chinese manufacturer who is familiar with your product, but other local resources as well. It provides higher flexibility and the ability to react in case of insufficient quality, non-conformed materials, or other issues.

Manpower

Both India and China have huge populations to draw on for staffing manufacturing facilities. However, the quality of work is not always the same. For example, Chinese manufacturers are actually cited by McKinsey as being
five times more productive than their Indian counterparts. So while the
hourly rate for a manufacturing plant employee in India is only 92-cents compared to China’s $3.52, the cost compared to productivity still favors the latter country.

China average salary has increased drastically over the past years which affects the manufacturing industry competitiveness: “
Chinese factory workers are now getting paid more than ever: Average hourly wages hit $3.60 last year, spiking 64 percent from 2011, according to market research firm Euromonitor. That’s more than five times hourly manufacturing wages in India, and is more on par with countries such as Portugal and South Africa“declared Sophia Yan, Correspondent in China for CNBC last February 2017.

Foreign Language Skills

The scale tips towards India when it comes to communicating in a foreign language.

English is actually the second official language in India and many people speak it, especially those in executive roles. They also incorporate British customs and legal system, making a much smaller culture gap to bridge compared to China. However, you may have better luck finding Spanish speakers in China.

Customs Management

Dealing with customs during the export process is also something to consider. In this category, which factored in the efficiency of the clearance process, the Logistics Performance Index scored China a 3.32 compared to India’s 3.17, giving China the slight edge when it comes to customs.Compared to China, India offers a low clearance process for exporting goods, which has greatly
dampened its ability to compete in the global value chain. But, as the LPI report reveals, India is actually improving in this area. Over a two-year period, the country’s score jumped 0.45 points. China’s score, on the other hand, increased just 0.11 points during the same period.What exactly is the LPI customs score based on? Three categories:• Speed• Simplicity• Predictability of formality

Currently, China has the upper hand in exporting goods, but India is certainly making improvements to the supply chain process.

Manufacturing Processes

India or China manufacturing culture is well known worldwide however they are very different. They did not evolve in the same way over time.

In certain cases, Chinese manufacturers are relocating some manufacturing sites to other developing countries to keep costs low and maintain the same manufacturing processes. However, many entrepreneurs have decided to replace manpower by machines in the recent years in order to limit the impact of labor cost on the finish goods and guarantee “Made in PRC” products. They are optimizing their manufacturing processes aiming to stay competitive, delivering big volumes on very tight schedules.India’s manufacturing process is improving over time; however, the
country’s culture has always been to manufacture at a small scale, limiting the possibility of improving the manufacturing processes. There is a bad image surrounding big companies, entrepreneurs, and investors . Instead, they prefer family and artisan models. The problem as a buyer is that you are facing greater risk of quality issues and production delays. Small organizations need to outsource a part of the job in case of large orders to deliver within a tight schedule. The manufacturing process is different in each factory and very hard to control: it requires performing several
inspections at different places at the same time which increases costs.However, you may not be aware of the existence of subcontractors if you did not perform an
audit to qualify your supplier prior to your order. In fact, some suppliers tend to avoid mentioning this fact to clients, and their auditing is a good way to put pressure on them.

India or China Manufacturing Skills

In terms of selecting a manufacturing company based on your product type, each country has different levels of expertise. However, no matter India or China manufacturing, they both are able to produce a wide range of consumer goods. China, of course, has a wider offering of all kinds of consumer goods, while India is often a bit more specialized. Here’s a list of product categories by country to help you narrow your decision based on what exactly you want manufactured.

China manufacturing

China’s main activity is the electronics and electrical products, specializing in consumer electronics. In fact, it represents 43% of revenue. Then comes the textiles and garments which represents 12% of revenue.

China has a very wide product expertise which includes furniture of all kind, footwear, paper products, automotive parts. This overview below will show you the country main product expertise. How you can get a detailed view
here.

India manufacturing

The main
products manufactured and exported from India are diamonds and jewellery, followed by textile manufacturing. This generally refers to cotton textiles as India is an expert on this material, including bags, accessories, garments and footwear.

Furniture, building materials, and all kinds of iron and steel products are also largely produced in India.The country’s other fields of expertise include automotive parts, wooden products (including furniture), and electronic appliances for medical purpose in most of cases. Below you will be able to get a clear idea about India manufacturing skills or you can check it in detail
here.
 

In conclusion, China and India are very dynamic manufacturing countries. They have proven specific skills and strength, but also weaknesses. You should make sure to do your homework before sourcing a supplier and choosing the right country where to source from.

Here are some key questions you may like to answer to before selecting your sourcing country in Asia:

• What is the product category?
• What is the quantity that I need?
• What kind of quality am I expecting?
• Is my product manufacturing process complex?
• What is my budget?
• How long can I wait to ship my goods?
• Do I have a good logistic partner in both countries?

 
Tell us about your experience when manufacturing in India or China.What are the most important factors to you in deciding where to manufacture your products?We’d love to hear from you!

Picture from budastock

General definition

• Laboratory (lab) testing ensures that goods conform to the national regulations of the country of importation. • A product inspection ensures that goods conform to the client’s requirements, product specification, and the requested quality level. The process consists of visual checks in addition to basic product testing, also called on-site testing.

Product testing during an inspection vs. lab testing: 5 differences

1- Product Testing Environment

Controlled environnement

Laboratories perform tests in a controlled environment under conditions defined by the applicable standard. Testing equipment is regularly calibrated to ensure the most precise and reliable result. The testing laboratory will ensure they perform the analysis under the required conditions and can then certify the compliance of the product with the standards.

Basic conditions

As most of the testing equipment is large and heavy, quality inspectors will only perform some of the tests if the necessary equipment is available at the factory. They will verify the latest calibration date to evaluate the reliability of the result. Nevertheless, the test is usually performed under basic conditions which may not meet all those required by the standards. For example, when the humidity or temperature is high in the testing room, the result of a moisture test varies. Therefore, the result of this test during a product inspection can only be used as a reference. It cannot be used to certify conformity to standards because of the uncontrolled environment.

2- Product Testing Purpose: Legal Compliance vs. Customer Quality

Standards and regulatory requirements

Lab testing verifies the safety of a product or compliance with applicable standards and regulatory requirements in the country of destination of the goods. However, just because the goods meet the requirements of mandated tests, it doesn’t mean they are suitable for end consumers. Compliance is but one part of Quality when it comes to what consumers expect.

Your requirements

Product inspection assesses the quality of the manufactured goods based on the client’s requirements which reflect the end user’s expectations of the product. The process can’t necessarily ensure compliance with standards, but it does guarantee that products meet specifications deemed important to the end consumer.

3- Product Sampling

Few pieces

Due to the expense and often destructive nature of the tests, far fewer samples undergo laboratory testing compared with the number examined during an inspection.

Tens or hundreds

For product inspection, quality inspectors use International standard ISO 2859-1 standard (commonly called AQL tables) to determine the number of samples for examination. For large lots, they may need to test hundreds of samples. For example, for an order of 10,000 soft balls for babies to be exported to Europe, a laboratory needs 6 samples to verify compliance with EN 71 and ISO 8124 standards. When a quality inspector performs a pre-shipment inspection for the same order, he checks 200 pieces (based on the General Inspection level II) and tests between 5 to 200 products depending on the complexity of the tests.

4 – Product Testing Frequency

Once or twice during the product life cycle

Lab testing is usually only done once, at the beginning of a new project, and then maybe once during production. The initial tests ensure the supplier has the capability to comply with the standards. The second test verifies the materials, product design, and final product comply with relevant standards when they are manufactured on a larger scale. Most companies don’t usually order lab tests for repeat orders as they assume the supplier will use the same material and repeat the design as per the first lot.

Every time a new batch is manufactured

Product inspections should be performed every time a new batch is manufactured, and preferably at different stages of the production process. Even if the design and the materials used for the manufacturing of the goods remain the same, and the product is initially compliant with specific standards, it does not mean the quality will continue to be consistent over time or that you won’t suffer any production delay. Regular inspections are necessary to ensure the product quality continues to meet consumer expectations, and to avoid supply chain disruption.

5. Time Required for Product Testing

Lab testing always takes longer than a product inspection.

Results aren’t available as soon as those from the product inspection for the following reasons: • Tests are usually more detailed and analyze every component and material used to manufacture the product, including paint. • The tests are more complicated and take longer (it may involve some chemical manipulations, or require a test to be repeated over several hours or days) • Independent third parties in charge of the product testing are usually off site. The quality inspector is responsible for sending randomly selected production samples to them.

Remark: Laboratory testing can contribute to longer lead times. When delivery deadlines are tight, you should plan for laboratory tests as far ahead as possible, or results might not be available before the product is shipped. For example, when requesting lab testing to verify toy compliance with EN 71 part 1, 2, 3, the laboratory needs 5-7 days to test and deliver the final result. To obtain a CE certificate, required by the European Union takes 2-3 weeks. In comparison, a toy product inspection is performed within one to two days after placing your order. Your products are quality controlled, tested, and a detailed report is sent to you within 24-48 hours.

Quality is Vital for Successful Amazon Sellers.

Detailed product listings and accuracy both significantly contribute to your reputation as an Amazon seller. If a customer receives your product and it doesn’t match the specifications in the product listing, you’re more likely to receive returns and poor reviews, both of which can negatively impact your business. In some cases, Amazon can also suspend your listing.Even if you think you’re accurately describing your product, the actual product shipped from China might not meet your (or your customers’) expectations. A robust o
n-site quality control strategy is essential for a successful Amazon business.

Benefits of Arranging a Pre-shipment Inspection for Amazon Sellers

Catch issues at the source: in China

Detecting problems before your products leave the factory gives you the option to ask the factory to fix them at their expense. This takes more time to ship your goods but you have the ability to make sure they meet your requirements before leaving China.

Avoid lower returns, negative feedback and suspension

If you decide to arrange a PSI before your products arrive at your customers’, you’ll avoid dealing with numerous returns, save yourself from negative customer feedback, protect your brand reputation and delete the risk of an account suspension by Amazon.

Get better product’s quality

Arranging a PSI inspection automatically increases the quality of your goods. The factory knows you are serious about quality and so they will pay more attention to your order to avoid the risk of having to rework your products at their expense.

Prepare an accurate product listing

Your product description on Amazon should match your actual product quality. Once the pre-shipment inspection has been completed, you get a full review of your product’s quality. You are ready to
list your product on Amazon with the most accurate details. For best results, ask your QC to send you production samples that are most representative of the entire batch. This way you can prepare the most accurate product listing based on the actual item. You could also take the opportunity to photo shoot your production samples and use those pictures to present your product on Amazon.”

Lower your risks by verifying Amazon’s packaging and labeling requirements

Packaging and labelling expectations are very specific to every single buyer/importer. You may choose to gloss over these details but doing so will put your Amazon account at risk. Instead, pay careful attention to
Amazon’s requirements and include them as part of your specifications to both your
manufacturer in China and your
third-party inspector.When selling on Amazon, especially for Amazon FBA sellers, this is a critical point that must be carefully verified before shipping any goods to the Amazon warehouse. The pre-shipment inspection is the best timing to verify that your China supplier has implemented all of your specific requirements. However, you must make sure your third-party inspection company knows about Fulfill By Amazon requirements as it will affect the inspection scope.

Warning: not every quality control company has experience in inspecting goods sold on Amazon, so make sure to select the right one!

What Does a Pre-shipment Inspection Include?

Many quality control challenges can be overcome by performing a
pre-shipment inspection before your goods are paid for and shipped. At a cost of a few hundred dollars, you can rely on a
professional third party to inspect your goods and provide a neutral opinion on their compliance to your own product specifications and quality standards.The pre-shipment inspection covers all aspects of your product. The inspection scope includes checking the quantities manufactured, product appearance, material, dimensions, packaging, labelling, functionality and safety. Those controls are only performed on a limited sampling based on a statistical sampling procedure, an internationally recognized standard called ANSI/ASQC Z1.4 (ISO 2859-1).It may sound unnecessary, but a pre-shipment inspection verifies the total quantity that is ready to be shipped; after all, you don’t want to pay for 2,000 mp3 players and only receive 1,000 units. The inspector counts the number of goods packaged in addition to ensuring they meet your product specifications and quality standards. This quantity shortage is a recurrent issue faced by entrepreneurs who don’t inspect batches before shipping. Without proper control at various states of the supply chain, you’ll have a hard time proving who is responsible for the shortage. This usually results in financial loss for the seller, not to mention inventory shortages.

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How a Pre-shipment Inspection Protects Amazon Sellers Business

Payment terms

One of the best things you can do for your business is link your pre-shipment inspection result to the final payment. You’ll typically be required to pay a 30%-50% deposit to get the production started, but you should negotiate that
final payment to be contingent upon a PASS pre-shipment inspection. This is a compromise that most suppliers should accept.

Product specifications

When you do schedule a pre-shipment inspection, pay close attention to your
purchase order and product specifications. Make sure all the details you have to declare on the Amazon product sheet are indicated in your purchase order so that your supplier can do the best job possible right from the beginning. A well-prepared product specification document is key to reduce quality risks and a must for your third-party inspection company for an in-depth verification of your product’s quality.Building a successful business as an Amazon seller depends on happy customers and positive reviews. Make sure about your
listing quality. You should carefully detail your product specifications on the listing page and ensure that the actual product meets those specifications. When importing goods from China, a pre-shipment inspection is the best way to prevent any discrepancies and guarantee that your goods arrive just as they should. AQF regularly inspects goods in Asia for Amazon sellers, including Amazon FBA sellers.

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In order to put your business on the right track and ensure the best ROI, take note of the 6 unavoidable quality challenges when selling on Amazon FBA goods sourced in China. It’s wise to understand the most common challenges of the FBA program and how to avoid them.

1. Ensure Your Products Comply with Local Standards

Each time you import products, they must comply with local regulations and standards, regardless of the product. While some sellers rely solely on the supplier’s word, this is risky when you deal with Amazon, because your product must comply — no questions asked. To start off, make sure you’re dealing with a
reputable vendor. An easy, low-cost way to accomplish this verification is to
perform a factory audit from a third party quality control company (r
ead more: How to choose a third party quality control company). They offer a wide range of factory audit services, some of which focus solely on helping you select the right supplier. This kind of factory inspection is a risk-free way for FBA sellers to confirm that you’re dealing with a reputable manufacturer. You could also take the opportunity to verify the supplier’s experience in dealing with Amazon FBA inventory programThe second step to take is to perform a
lab test by an ISO 17025-accredited organization. Not only can they tell you what exact standards and regulations your product should comply with, they also provide the tools to verify the actual compliance. Remember, this is
vital if you want to be a successful FBA seller. Plus, it protects your business because your products are in line with all the necessary legal requirements.

2. Pay Close Attention to Product Labeling

Another challenge when
selling on Amazon FBA is getting the right product labels for Amazon to manage its inventory. This is especially important because Amazon expects the fastest inventory management from its employees, so they’re extremely strict to make sure this happens. There are a couple of things you need to know about labeling your products.First, maximize the
label’s readability by using a white background. Next, you’ll need a unique barcode that covers any other barcode already on the product. This helps you to monitor your stock and sales volume. Also make sure that the text actually describes the product it’s used for. Unfortunately, it’s not uncommon to find discrepancies when sourcing in China. The label stickers should also be flat, readable, and scan-able.To ensure your labels are created properly, you should monitor their production by performing a
pre-shipment inspection (PSI). Otherwise, you can limit the risks with an alternative solution: For FBA sellers who sell the same products, Amazon offers stickerless, comingled inventory. That means all of the same inventory is kept together rather than being separated out by individual sellers. However, in this scenario you run the risk of having a lower quality product sent to your customer. Just because you have the same product manufactured does not mean that the quality will be the same. It could be better to manage your own labeling process to keep control of your brand reputation.

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3. Make Your Packaging Amazon-friendly

Packaging your product correctly is an absolute must when
selling through Amazon FBA. They should be “e-commerce ready;” otherwise, you run the risk of delaying the fulfillment cycle and incurring additional charges. Plus, your customers won’t be happy if they don’t receive their orders on time. Avoid any potential slowdowns by packaging your product the right way straight from the beginning.Your first concern should be making sure that everything
reaches destination in one piece. The correct packaging prevents any breakage, leakage, dirt, and more during the overseas journey. From there, the packaging then needs to survive being transported from the Amazon fulfilment centers to the customer. This leg of the trip is generally completed by either courier or normal post, both of which can result in rough treatment of the product.On the inside of your packaging, you also need to include any pertinent information to the consumer, including product specifications, instructions, and any other marketing information you’d like to include. You also need to add in any relevant
legal notices. Toys, for instance, must include a suffocation warning and Amazon is extremely strict about this.Make sure to prepare
clear instructions for your manufacturer in China when it comes to packaging. It plays an important role to protect your goods and promote your product. To do so, you can consider contracting a
third party inspection company to perform a
pre-shipment inspection on your behalf. One of the main objectives of this product inspection service is to verify the product packaging and shipping packaging conformity to your requirements. There are also tests such as the
Carton Drop Test which is a must-have when dealing with international transportation.

4. Use Professionals for Shipping

Whenever you
sell on Amazon FBA, shipping from manufacturers in China can become one of your biggest challenges. Not only do you have to deal with the usual obstacles of importing from abroad, you also need to make sure everything is
packaged according to Amazon’s specific guidelines.To ensure a successful delivery, don’t cut corners by hiring a local courier to take care of your shipment. Instead, choose a professional company that is registered with Amazon and who can schedule the delivery in advance. UPS is an official partner of Amazon, so you have the best chance of getting your package delivered in the correct manner.That’s because when you work with Amazon as an
FBA seller, it’s not as simple as packing a box and having it delivered straight to the warehouse. Amazon has a number of requirements that MUST be met. Large volumes, for example, must be delivered on pallets, which needs additional fumigation requirements. You need a shipping company that not only properly manages, but also follows other Amazon specifications, including no damage on the pallets and well-marked with the shipment ID.

Avoiding Problems Ahead of Time

Obviously, most of the challenges on this list
need to be verified before your product leaves China, because you won’t have the chance to inspect the shipment yourself before it arrives at Amazon fulfilment centers. To avoid any problems, you can order a
pre-shipment inspection from a third party quality control company. It’s a much less expensive option than reworking products or incurring penalties from Amazon, not to mention the cost of losing customers through slow fulfillment or broken products.A pre-shipment inspection allows you to verify a number of Amazon FBA requirements, from pallet packing to barcode labeling. You simply can’t rely on the supplier to be an expert on Amazon’s protocol, plus there’s always the chance for misunderstandings. A third party inspection company can easily perform a pre-shipment inspection to take care of non-conformities before they affect your business. You may also consider having them supervise the loading of the container. No missing quantity or broken pallet are acceptable for Amazon. All this can happen while loading the goods in the container.

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Find out how to effectively control quality of imports from China

1. Understand different “quality” points of view

Everyone has a different point of view when it comes to quality, and these differences are amplified even more when you begin working with suppliers in other countries, particularly China. Because of the great distance between importers and manufacturers, most communication is limited to English written documents submitted to the factory, which opens the door to a lot of misunderstandings. This is partially due to the lack of language skills: Chinese suppliers usually have sales teams with a basic English knowledge while factory workers don’t even speak English. Moreover, Chinese suppliers produce goods for buyers from all over the world, each one with varying standards and regulations for each specific country of origin. That’s why you should avoid asking your manufacturers to use common sense. The best way is for them to rely solely on the importer’s requirements that are provided at the beginning of each job, so it’s necessary to clearly explain your quality expectations to Chinese manufacturers.

2. Get ready for the right quote

Perhaps the most important step when purchasing in China is to prepare very clear product specifications. These include product dimensions, characteristics, functionalities, customizations, individual packaging, labeling, shipping packaging, etc. This should be done as early as when you request the price quote from the supplier to make sure the number you receive is accurate. Plus, the more detailed your request, the better the supplier can meet your manufacturing needs. He can ensure the proper equipment, human resources, and lead time to produce your order. Not only that, providing detailed product specifications helps increase the quality of your goods. If the actual job ends up costing the supplier more than the original quote, many would rather lower the quality of goods than increase the price.

3. Verify and keep record of approval samples

Approval samples are a vital component to control quality of your products, so make sure it’s part of your supplier agreement that you receive and approve at least three samples before production. That may seem like a lot, but you’ll soon understand why. When you get the samples, pay very close attention to every single detail. If you prefer a professional eye, some quality control companies will verify it as well. Either way, the goal is to test the product and verify that it meets each one of your product specifications and quality requirements. Make sure you keep one sample on your side and send back an approved sample to your supplier and one to your QC inspector to control quality. The supplier uses the golden sample as a reference, and compares it with production. If there are discrepancies, the production should be adjusted. The third party inspection company then uses it as reference to verify the conformity of the production to your product’s requirements.
Be aware! An approval sample alone is not enough to confirm that production will go smoothly, because the two product types come from different places. A single sample is created in a sample room, while the final products are created on the manufacturing line: it is made by different hands in different conditions.

4. Control quality during the production

Every supplier has its own manufacturing skills, but it also has limitations. Unfortunately, these are not always conveyed to the importer; in fact, many manufacturers have difficulty saying that they’re unable to fulfill a particular request, whether it’s due to cultural differences, a weak quality management system, peak season, or shady business practices. The only way to ensure that your instructions and quality requirements are clearly understood and respected is to verify the goods while in the manufacturing process.

To track your goods quality during the production, you can ask your supplier to send you production samples and pictures from the finished goods for review. But these measures are oftentimes not enough to confirm product quality and useless to verify the production speed. A less-than-reputable supplier could use smoke and mirrors to create the illusion that production is conforming to your requirements, when the reality might be very different. Collaborating with a third party inspection company gives you an on-site expert to confirm the goods’ quality and production status on your behalf. This service is called a During Production Inspection and helps limit consumer goods defects while still under manufacturing process.

5. Identify quality problems before it’s too late

When the goods are manufactured and ready to be shipped, you have one last chance to verify their conformity before their arrival at destination. Rather than relying on production samples and pictures of the goods packed, you have several options to control quality of your order in-person. You may prefer to travel to China to inspect the shipment yourself. You can also rely on a third party inspection company to save yourself time and money: this service is called pre-shipment inspection. While fully trained and certified, the inspector can follow your own quality control procedures so you know the shipment is exactly as you requested before it arrives. A third party quality control company guarantees a neutral point of view and provides an additional set of eyes to catch any errors or other red flags. Once a poor quality or incomplete shipment arrives, you have few — if any — options to return the goods or get your money back.

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6. Take the opportunity to improve future quality

Remember that the results of previous quality controls on goods are an opportunity for improvements, not an automatic reason to go looking for a new supplier. In fact, every non-conformity or quality problem has a solution if you take the time to communicate and negotiate. The most important step is to analyze the root cause of the problem together with the supplier and identify the corrective actions to put in place. This is actually part of the continuous improvement process known as the ISO 9001 standard, which is used by certified third party inspection companies and most professional Chinese manufacturers. When you have an ongoing relationship with a supplier, quality control is the best way to work hand on hand, to regularly improve goods quality and conformity to requirements.

Implementing an effective quality control plan in China doesn’t have to be difficult, even if you live on the other side of the world. Luckily, you have plenty of solutions available to make sure your product is manufactured to your specifications and shipped on time. Start by preparing your order well in advance, with clear instructions for your supplier. Then pick the right quality control plan, from creating your own QC team to hiring a neutral third party inspection company. You will then minimize business risks and maximize your professional success.

Tell Us About Your Experience!
How do you control quality from overseas? We’d love to hear from you!

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What is Quality Control?

Quality control can focus on both product specifications and manufacturing process specifications for any type of good and is
especially important for importers sourcing in China. The goal is to identify any problems, defects, and non-conformities in the product that doesn’t follow required specifications from the buyer, supplier, or from general international standards. When caught early enough, these issues can easily be solved to fix the initial batch and avoid any future problems.

Challenges for Importers Sourcing in China

Sourcing products from China may be the competitive manufacturing option available, but there are a few reasons for that. Import business owners face a number of specific challenges that can affect their return on investment as well as the delivery of goods. The first major issue to be aware of is that importers typically need to purchase goods in advance. Since payment is generally released to the manufacturer prior to the goods being shipped out, you run the risk of receiving low quality goods with few (and costly) options for sending them back or reworking the goods locally. Whether the factory’s mistakes are deliberate or not, the bottom line is that they impact your business. The expense for both shipping and customs duties would be enormous, not to mention the amount of time it would take to send back products and receive a new batch. Since many smaller businesses don’t understand the intricacies of China’s legal system, it’s very unlikely a lawsuit would have any success. So in this situation, the importer would take a financial loss if the goods’ quality was not at an acceptable level because there’s little to no recourse for the factory even if they don’t fix the problem. Even if the business decided to sell the product anyway, their brand image could be substantially damaged if customers viewed them as lower quality.
Quality control not only ensures the quality of the product, it can also monitor their timely delivery. Without a
quality control plan in place, production schedules can fall behind and you might miss your sale season, resulting in low product turnover.All and all, it is essential for an importer sourcing in China to quality control their goods before, during and after production. You should check yours goods at pivotal points in the manufacturing process and communicate with the supplier to get any potential problems fixed before it’s too late. To do so, you can manage it all by yourself together with the factory or work with third parties.

Who Performs Quality Control in China?

There are a few different options for quality control when importing from China. The first is the
supplier’s in-house review of the manufacturing process. However, it’s pretty obvious that solely relying on the manufacturer presents a conflict of interest. At the end of the day, they are likely to be more concerned with their own financial interests than the quality of your products. To get a better idea of how the supplier operates, consider performing a
factory audit prior to the confirmation of your order. This will give you a clear idea of exactly how they control the quality within the factory. You might also check the factory’s licenses and certifications, along with their production capacity, human resources policies, and more.Another way to perform quality control is through your
trading or sourcing partner in China. You could consider requesting that they add a product inspection to their other duties; however, this also carries a high conflict of interest. Intermediates negotiating with suppliers need to keep good business relationships with them, and some may even receive hidden commissions from the factory that you don’t know about. In this situation, it is very difficult for them to provide a neutral opinion because the financial pressure and incentives are too high.You could also decide to have your own
quality team. This strategy requires intensive training on your product, plus local human resources management available anytime you need them and based near your suppliers’ locations. Travel time and transportation costs could quickly add up if your suppliers are located throughout the country. There are additional risks as well. Because quality teams have a limited number of human resources, the same quality inspector will regularly be in charge of verifying goods at the same suppliers’ site. There is a high chance that QC and suppliers develop a friendship that will end up with risk of corruption or at the very least influence his point of view on the goods’ quality.As an alternative, there is a wide range of reputable
third party inspection companies who advocate on your behalf in China. The company’s sole purpose is to protect you and your financial interests by verifying the goods based on your requirements. They have a neutral relationship with the supplier or trader; in fact, their business relationship is on one side only: the importer. They can provide several QCs to visit a unique supplier to keep the opinion the most neutral. They are able to provide services all over China and Asia for the big players. Plus, many importers are surprised at how affordable professional third party inspections are, especially compared to the potential for loss if a low-quality shipment makes it to your door. When searching for the ideal quality control company, make sure it holds both
ISO 9001 and
AQSIQ licenses from the Chinese government. Also be aware of non-reputable or poorly managed companies whose employees might be open to bribery from the factory to inaccurately represent information during the quality control verification process.

What Does Quality Control Include?

When you work with a
third party inspection company or your own quality team, the process is very detailed and specific to your product.You develop a detailed
inspection protocol based on a
checklist and your own
product specifications and
quality requirements. The inspection protocol sets up all the different verifications the QC may have to perform while controlling the goods on-site: it includes cosmetic verification, functional verifications as well as conformity to your requirements verification. It’s best to be as specific as possible to ensure every detail is controlled and evaluated as you want it. Provide clear details, otherwise the inspector and the manufacturer will use their common sense which may be different from yours. Also realize that your checklists should be constantly evolving as your own specifications change. You can even provide your inspector with a reference sample to be used in conjunction with the specification sheet to get the best results.
Sourcing in China can be challenging, no matter how long you’ve been doing it. Quality controls are key to protect your business. They are important for the first shipment concerned but also for the recurring orders. They can then help your factory
prevent similar mistakes in the future while getting the current shipment out the door within an appropriate amount of
time and the
guarantee that your goods are sellable. Thus, make sure to rely to the right quality control experts when performing product inspections. Having a third party inspector is probably the most flexible and reliable option for small and medium companies, as they guarantee product expertise while sitting on your side to defend your interests. Not only that, they can quickly operate all over China and Asia. With a third party inspection company, you keep control on your goods quality and benefit from their expertise regardless of location.
Tell us about your experience!How do you implement your quality control plan? Do you use a third party inspector in China?

In addition to supply chain disruptions, quality issues are also amplified due to the rush to fulfill orders. There’s a much greater chance for defective products or partial shipments leading up to the Chinese New Year. Other potential problems include shortages on raw materials, subcontracted manufacturing, and communication difficulty, as Chinese factory managers often prefer to keep quiet instead of losing face.

Clearly, the impact of Chinese New Year on any import business is enormous, making it more important than ever to well prepare your order and implement a robust quality control strategy in China.

Here are six ways to effectively avoid any disruption on your import business during Chinese New Year.

1. Avoid Tight Production Schedules

Be sure to confirm your orders well in advance to ensure ample time for production and delivery. If possible, try to plan ahead for your entire first quarter so you can altogether avoid the lag in post-CNY manufacturing. This may seem difficult since Western businesses are typically recovering from the Christmas season rush, and forecasting sales for a quarter is quite challenging nowadays. However, planning well ahead is a good business practice you simply can’t ignore when working with China suppliers. Plus, factories typically manufacture orders on a first-come, first-served basis. The sooner you submit your orders, the sooner you’ll receive your shipments and avoid disruption on your import business. You’ll also have a reduced chance of suffering from raw material shortages and production delays during the pre and post-holiday rush.

2. Prepare Clear and Detailed Product Specifications

While every order all year long should have well-defined product specifications, it becomes more important than ever leading up to the Chinese New Year. Pay very close attention to the way you describe your products and what constitutes an acceptable final product to avoid any confusion. Provide definitions for industry jargon, include tolerance levels for dimension or weight requirements, and use standards such as the Pantone code when instructing on color. Follow best practices to make sure you communicate the right specifications to your manufacturer.

Read more: Sourcing in China, the purchase order role

3. Prepare a List of Defects with Your Own Tolerance Level

It is almost impossible to expect zero defects products, which makes it imperative to state your precise quality standards and expectations. Clearly identify your definition of major, minor, and critical defects so the supplier knows what you will tolerate within each defect type. For example, you may consider an open seam to be a critical defect whereas most suppliers may consider it as “normal” and most quality control inspectors only consider it a major defect. Being upfront right from the beginning of your contract helps the supplier know where to focus his efforts. It also helps your third party inspection company better evaluate the quality of the goods on your behalf. This advance preparation especially helps the process go more smoothly during the rushed period leading up to Chinese New Year and better ensuring a PASS inspection.

4. Verify Speed and Quality During Production

Verifying the goods during production is the only way to limit the risk of delay and ensure the quality of the product before CNY. It plays an important role in reducing the impact of supply chain disruption on your import business. If you skip this step and wait for the final inspection, there likely won’t be time to rework the goods. Whereas in a normal situation this would delay the delivery schedule, there might not be enough time at all to fix the problem before the factory closes for Chinese New Year. You might either receive a partial shipment of cherry picked goods or a full shipment of defected products. You can avoid both of these scenarios by choosing to inspect the goods when either 30% or 50% are manufactured.

5. Control Your Goods Before Shipment

The most commonly required inspection by buyers purchasing manufactured goods in China is the pre-shipment inspection. This quality control measure before the shipment occurs when 100% of the goods are manufactured and at least 80% are packed. The big advantage of this inspection is that it provides a neutral opinion about the overall quality of an order, in particular when performed by a third party inspection company. The PSI ensures there are no unpleasant surprises when you open up your export cartons at destination. This is particularly important when factories close for weeks during the Chinese New Year. Don’t forget that you won’t be able to get in touch with your suppliers or ask for new productions for several weeks!

Download our sample report!

6. Ensure the Right Payment Terms

This is another condition that applies all year long but takes on increased importance during the peak season. Suppliers are in need of cash flow during the busy Chinese New Year season. It is the time they are preparing workers’ payment for the thirteenth month. They’ll want as many advanced payments as possible, but it’s still vital that you protect your own import business. To do this, there are a couple of options. The first and the most reliable is to use a letter of credit for your payment conditions, and have it connected to the pre-shipment inspection PASS report. You could even require a PASS report for the during production inspection as well. The other option is to provide a 30% deposit and release the remaining balance after receiving a PASS PSI report. With this option, however, you run the risk of losing your deposit in the event the factory shuts down and never reopens following CNY.

Chinese New Year can lead to import disruptions, but it is possible to circumvent many potential issues in term of quality and delivery lead-time. Keep your earnings on track by avoiding supply chain disruptions during CNY. AQF can provide you inspection services at all stages of production to ensure the best quality control strategy for your business in such sensitive period. Feel free to contact us to discuss your needs.

Tell us about your experience!
Does your business follow these steps during Chinese New Year? What other suggestions do you have for avoiding disruptions during CNY?

Photo rights: iqoncept / 123RF

Hangzhou Economic and Technological development area (HEDA)

Hangzhou is a very significant city in the Zhejiang area, due to its size and economy. It is one of the ten most important economic development zones in China. The pillar industries in the HEDA are home appliances, automobile parts, textiles, electronic information, bio-pharmaceuticals, and light foodstuffs.

Product inspection in Hangzhou during the G20 summit

Every time an important political event happens in China, the government implements drastic measures to guarantee the purest air possible for the international invitees. During the G20 summit, factory production will stop for 14 days.

To avoid production delays and financial loss, manufacturers will speed up their processes. Consequently, there is an increased risk of lower product quality. As a buyer sourcing products in Hangzhou, you should closely supervise production and follow up with regular product inspections in the area during this period.

During the Summit, there is also a high risk of production delays. Rather than finding out at the last minute, be proactive and perform on-site inspection during the production of your goods, before and after the Hangzhou G20 summit.

AQF has dedicated, quality control experts based in Hangzhou who are qualified to inspect home appliances, automotive parts, garments and more. We can perform a range of product inspections in Hangzhou, including during production inspection and pre-shipment inspection. And, for a closer follow-up of the quality of your goods, you could also consider implementation of production monitoring. Feel free to get in touch with us if you have any questions!

We’d love to hear your thoughts on the topic. What is your quality control strategy around the G20 summit in Hangzhou?

Verify Supplier Legitimacy

Working with suppliers in Asia comes with risk, but a factory audit from a reputable quality control firm minimizes uncertainties. It’s difficult to verify a supplier’s claims from a distance, in particular without having industry knowledge. A manufacturing audit can ensure that the factory is legal and has all the necessary certification and licenses to be able to sell and export goods.

Confirm Supplier’s Product Expertise

A manufacturing audit gives you an inside look at the factory’s showroom without having to step foot inside. A quality control auditor verifies the machines to find out whether or not the factory has the capacity to produce your product internally. If some parts are missing, sub-contractors may be involved. Even if you’re OK with that, you still have the right to know how and where your products are produced.

Check the Factory Capacities and Organization

An in-depth supplier evaluation confirms that a factory can indeed meet the production lead-times you initially received from the vendor. The auditor checks the supplier’s storage capacity, which can greatly impact the quality of your goods. For example, products stored outside could be affected by bad weather. If semi-finished and finished products are stored in the same area, they may accidentally be loaded together. A manufacturing audit also tells you how management is organized so you know who makes decisions and solves problems — and most importantly, who you should talk to for negotiations.

Authenticate the Factory Quality Management System

The quality management portion of the manufacturing audit confirms that the factory has the necessary processes in place to ensure the quality of your final product. The auditor checks how your specifications are reviewed and taken into account, the way goods are controlled during production, and how the machineries are calibrated over time to guarantee the same efficiency and quality result. There are key quality indicators for all relevant functions at every organizational level to make sure no detail goes unnoticed.

Verify the Supplier’s Social Accountability

Your manufacturing audit provides a thorough review of the factory to make sure that at an administrative level, all documents conform to the local regulations. As per the SA 8000 standards, the auditor reviews HR records and even interviews managers and workers to confirm the factory’s work environment. You’ll receive verified proof that the working environment is clean, and the conditions are acceptable.

AQF offers two kinds of factory audit services to evaluate suppliers, a simplified version called a Simple Factory Audit and an in depth version called an Extensive Factory Audit. Depending on your objectives we may recommend one or the other.

And you: what are your reasons to perform manufacturing audit?

For a deeper understanding: Supplier requirements for a factory audit based on ISO 9001.

Photo credit: kadmy / 123RF Banque d’images

You might have heard this type of check called a final random inspection (FRI) or finished quality control (FQC). In reality, they are all the same thing; quality inspections carried out once 100% of the order is manufactured and at least 80% packed (although some buyers choose to wait until it’s 100% packed before carrying out the test).

The Advantages of Pre-Shipment Inspections

There are lots of benefits to a PSI, but most people agree that guaranteeing the quality of goods produced overseas, at the place where they were manufactured, is its trump card.

This quality control procedure also saves a fair bit of time. Once the goods are in the country of destination, correcting faults becomes costly and requires additional shipping and time delays. Identifying any faults and errors in the batch before you ship makes it easier for suppliers to rectify an issue there and then.

Pre-Shipment Inspection Standards

Whether you use in-house staff or a third-party quality control agency, there is a single standard for sampling procedures and acceptance criteria that the majority of PSI inspectors follow.

Acceptance Quality Limit (AQL)

The so-called AQL Table is widely used for consumer goods Pre-Shipment Inspections in Asia and throughout the world. This clever model uses statistical number crunching to define the highest acceptable number of defects in a batch (i.e. how many faults a buyer can tolerate) before it is rejected.
The AQL varies between industries, so it always provides a balanced, unbiased view. You can further tailor it to your needs based on your quality expectations.

Sampling Plans

Inspectors won’t test every item individually. Instead, they’ll use sampling plans (cf. ISO 2859 or ANSI/ASQ Z1.4-) to determine how many samples they need to pick randomly to get an accurate overview of the quality of the whole shipment. This means savings in time and money for you — particularly useful if your inspection date is close to shipping.
The general inspection level III is the most extensive check and samples a larger portion of the shipment compared to a general inspection Level I test at the lower end of the scale. Choosing your AQL general inspection level will depend on the quality risk you are facing and the type of products you are checking. For general consumer goods, we recommend at least a general inspection level II, while automotive or medical products should be tested at the general inspection level III.

Defect Classification

Depending on the needs of the buyer, PSI sampling can be used to verify different measures of quality. One of the most commonly used within the consumer goods sourcing industry is to classify the defects as either: critical, major or minor and define an acceptance quality limit for each one of them.

Curious about exactly what we check during a pre-shipment inspection? Stay tuned for the next article in our series: Pre-Shipment Inspection Checklist, Everything you need to know.

Still got questions? Check out this helpful article from our specialist operations team and find out all about pre-shipment inspections based on the AQL table.

There are lots of quality control companies in Asia – and this is understandable. China, in particular, is home to a great number of manufacturers supplying products to the world which fuels the demand for inspection services. Choosing the right quality control provider may be quite overwhelming at first. That’s why we believe it’s useful to have a few key factors in mind when making the decision.

Let’s take a quick look at what matters most when choosing a quality control company.

Proper Papers

Professional quality control providers will have the ISO 9001 certification and, when working in China – the AQSIQ license. You will also notice a clear structure and division of QC teams responsible for different areas: hard lines, soft lines, toys, electrical and electronics, etc.

Clear and Comprehensive Inspection Reports

Accurate and easy-to-understand reports are an important factor when choosing a quality control company. None of us want to spend time deciphering convoluted messages or struggling through bad English. Making sure the QC company you are considering is capable of providing professional and clear reports is a great long-term time-saver.

Download our sample report!

A Wide Range of Quality Control Services To Satisfy Each Buyers’ Needs

An experienced QC company will be able to offer a wide range of services to guarantee any buyer to find all the solutions that he needs to secure the quality of its goods and verify the liability of a supplier. For inspection services, the most common services are: pre-production inspection, first article inspection, during-production inspection, pre-shipment inspection, container loading supervision and more. The audit services usually available are: factory, social and environmental. Some companies (and this is the case with AQF) even offer extra complimentary services, such as defect sorting or production monitoring.

Easy Online Quality Inspection Booking

An easy-to-use online inspection booking system is a great advantage on its own. It allows buyers to manage all its services in one place, share information via a secured system, manage its services quickly and follow-up each service status at a glance.
Of course, the company should back it up with thorough follow-up and coordination services – it’s definitely a strong contender. In addition to pure convenience, having an online booking system in place also speaks about the company’s size, experience and high inspection volumes.

Transparent Pricing for Quality Inspections

Yes, pricing does matter. We all want to cut costs and save more. However, choosing a good quality control company is well-worth the expense. A professional QC service provider will also make pricing very clear, letting customers estimate their spending well in advance. The service fee would be fixed and evaluated based on man-days (the time necessary to complete a service).

For instance: 1 man-day to inspect 20,000 caps and 2 man-days to inspect 40,000 caps.

And you: How did you choose your quality control company in China?

A Third Party Inspection, or TPI, is the term used for independent impartial inspection services provided by a qualified company.

Independent

There are three common types of inspections out there. First party inspections are performed by the manufacturers themselves on their own. Second party inspections are performed by the buyer or the buyers’ in-house quality team.

Third party inspections are made by an independent company, usually hired by the buyer, to ensure that all the products are up to the needed quality standard and the manufacturing process itself meets the international standards in term of quality management system (ISO 9001), social acceptable practices (SA 8000) and environmental management (ISO 14000).

Impartial

One of the main benefits of third party inspections, as opposed to those performed by either the manufacturer or the buyer, is that the inspectors performing TPIs are unbiased by either side and can thus deliver a verdict that is fair without compromising the interests of either party – while, of course, looking out for the client and the requirements put forward. In simple words, their decision will only be influenced by hard facts and both participants of the manufacturing process will be able to get a clear picture of where they stand in the current project.

Qualified

Third party inspections are typically performed by ISO 9001- certified companies, and AQSIQ licensed (when the quality control company offers its services in China) with relevant experience, trained and specialized teams on few or several product categories. Choosing the right third party inspection provider is an important step in ensuring thorough quality control in the interest of the end-consumer.

Will my company benefit from third party inspections?

Most companies consider third party inspections a well-justified expense. They are performed by companies with a strong expertise, working on the ground every day. They provide a neutral opinion on the goods quality and allow to keep a close eye on quality consistency on site without having to be there.
This way, the buyers are fully aware even at distance, of the manufacturing process, and can build a confident relationship with the supplier. Moreover, despite coming at a cost, TPIs end up saving you money by helping avoid expensive errors or employing an in-house QC team.

Instances when a third party inspection is needed most

• Working with new suppliers
• Identifying quality issues on-time
• Repeated product quality issues (but we’d rather avoid to get to this conclusion and inspect the goods for all shipments, at different stages of the production process – it will cost less than having to solve the quality issues with the supplier on goods already shipped)
• Purchasing premium items: high-end electronics, industrial equipment, etc.

Should you be interested in third party inspection services, feel free to get in touch with us, we would be glad to assess you!

Download our sample report!

And you: Do you perform third party inspections to control the quality of the goods you imported from Asia?

Develop the Relationship

The first step before striking a deal with a supplier is to reach out and request samples of the specific product. Not only does this allow you to get a hands-on feel of the product, it helps both you and the manufacturer agree on the product requirements and cost. Oftentimes, language and cultural differences can slow down the communication process, but it’s vital to iron out these details upfront before placing a large order.

Perform Due Diligence

Once you’re happy with the product, it’s important to perform background research to make sure you’re dealing with a reputable company. There are several free resources available online that allow you to find blacklisted companies throughout Asia, although these lists may not be updated regularly. For more comprehensive results, consider hiring a company like AQF to perform a factory audit. A simple factory audit takes just one day and the cost is affordable, on average USD298. This is an easy way to avoid scams and make sure the factory has the experience and capacity to manufacture your product.

Negotiate Your Contract

Once you’ve finalized your vendor and price, there are still several details to iron out; most importantly, your payment conditions. While there are several options, never fully finance your purchase order in advance. Instead, consider paying a predetermined percentage upfront (typically 30%) followed by the remaining balance when the order is completed and the inspection result is PASS. Line up a proper purchase order outlining your product, labeling, and packaging specifications, as well as a product checklist if applicable, terms of purchase, and a quality control plan.

Finalize Approval Samples

After finalizing your contract, it’s time to get a final product sample. Request one for you and one for your quality control company. This step prepares you for production by confirming the color, shape, functionality and feel of the product as well as identifying non-conformities and deciding which are acceptable.
The quality control company‘s inspector uses the sample on-site as a reference to compare with actual production, in addition to product specifications and quality requirements. In this stage, plan to perform any necessary laboratory testing to ensure the product meets any applicable local and international regulations. Choose a notified body recognized in your country of importation. After all, you don’t want your shipment to get rejected at customs (for regulatory non-compliance) or by your customer (for bad quality).

Create a Quality Control Strategy

A strong quality control strategy aims to detect defects throughout the production process, which is why it’s critical to partner with your supplier. In reality, quality control benefits both parties because suppliers can successfully complete purchase orders and you are happy with the final product. Agree on inspections throughout the production process and acceptable quality limites using the AQL table (how many samples will be controlled, the number of defective goods you’re willing to accept, and more).

The road from trade show to product delivery is quite a long one, and there is a lot of room for error no matter how long you’ve been in the business. For more help with your quality control strategy on your next supplier deal in Asia, feel free to contact us.

And you: Which other steps would you recommend to successfully deal with suppliers in Asia?

Failing to establish a timeline when sourcing in Asia

It’s important to be methodical and consistent from the very beginning when choosing a supplier. We suggest creating a clear roadmap before starting the process. For instance: choosing the sourcing method > finding suppliers online or at trade shows > checking suppliers > selecting suppliers > defining Quality Control strategy > and so on.

Vague or Non-Defined Standards

It’s important to consider current as well as potential requirements when choosing a supplier. Some may choose to place a first, small, trial order, to test the supplier and avoid big losses dues to poor production quality. However, each order is different and doing this doesn’t guarantee quality is maintained for future orders. Once again, it maybe a good idea to outline your requirements. For example:

Supplier Location

Where in Asia is the vendor based? How will this influence production costs, shipping, etc.?

Production Capacity

A smaller factory may not be able to meet deadlines when the order quantity goes up; a big company, on the other hand, may not give enough attention to small orders.

Production Process

A factory should put in place a proper Quality Management process. The international reference for this is the ISO 9001 standard. However, in practice, some factories choose to skip the set up of proper processes. This can be verified via a Simple or Extensive Factory Audit, which the AQF team is happy to carry out.

Quality Standards and Verification

What are your products quality requirements and how do you implement / check them in another part of the world when sourcing in Asia? Here is where recognized Third Party inspection companies are preferable, as they can provide a neutral opinion and communicate with the Asian supplier locally .

Price Range

A budget line needs to be drawn at some point to ensure you choose the suppliers whose products you can afford – remember to include your quality assurance and quality control budget within your cost: a simple factory audit is approximately USD298 while product inspection services start at USD298 per man-day.

Download our sample report!

Tech. and R&D

When it comes to high-end items, electronics or expensive goods, knowing that the supplier has a professional team and necessary equipment is essential. You can get this verified while performing a factory audit. A professional Third Party inspection company in Asia will check this for you in detail and report back.

No Due Diligence Performed

This is probably the most important step when looking for suppliers in Asia. Due diligence may include:

• Checking online reviews
• Asking for a copy of all documents: registration, certification and Business license
• Visiting suppliers at trade shows such as the coming HKTDC Hong Kong Electronics fair or the HKTDC Hong Kong Gifts fair in April 2016
• Visiting supplier’s factory via a factory audit: this will allow you to verify the original documents previously received, and that all aspects of the factory are to your Quality standards.

No Written Contract between Asian supplier and buyer

Oral agreements, promises and invoices will not offer protection if anything goes wrong. That’s why a written contract in English and Chinese is an essential requirement for safe, long-term cooperation. A good contract would specify involved parties, payment, QC, logistics, liability for breaching the contract, choice of law, dispute resolution, order and product specifications and more.

Failure to understand the local culture

Being able to communicate with the suppliers in their own language is definitely a huge advantage. However, even more important is the ability to understand local culture. It helps to anticipate misunderstandings and identify critical situations that would only lead to miscommunication and potentially serious conflicts or quality issues.

And you: What mistakes did you make when sourcing in Asia?

Overburdened Factories

While China stops shipping goods for almost a month, the rest of the world continues to consume. This results in orders multiplying before Chinese New Year holidays to compensate for the upcoming closures. Factories speed up production to cope with their increased workload and may need to work extra hours to hit deadlines. In these conditions, workmanship and product specifications are often neglected and internal Quality Control is no longer ensured: Chinese New Year Quality Risks are a reality which require buyers to adapt their strategy for quality control in China.

Choosing The Right Quality Control In China

The most popular inspection is the Pre-Shipment Inspection. However, in the busy run up to Chinese New Year, additional Quality Control in China may be necessary. The questions below may help you.

• Do we have time to rework the goods in case the pre-shipment inspection identifies defects and non-conformities?
  It is likely that in the case of defects and non-conformities that you will experience a delay. This is because vessels are very booked up over Chinese New Year and any delay in delivering goods to the warehouse (caused by re-working of defects, etc) will result in goods not being shipped on time.
• Are we sure the supplier will deliver on-time considering factories are overloaded during that period?
  Manufacturing delays are recurrent before CNY. Since Pre-Shipment inspections are carried out shortly before the goods leave the factory, they may not reveal production delays until it is too late.

The pre-shipment inspection is necessary but may not be enough during this busy period. The best way to avoid any delay is to adapt your quality control in China by executing a During Production Inspection. This allows tracking of the manufacturing speed and the goods’ conformity whilst the goods are still on the production lines. It also gives time to correct the mistakes along the way, therefore avoiding any need for postponement of the delivery date.

For sensitive orders or failed production inspection(s), the manufacturer should be closely reviewed in order to identify the issues, and followed up on in order to verify the corrective actions put in place are showing the required results. This is called production monitoring and consists of having a quality inspector on the production line for one or more days, in order to review the production processes and work together with the factory to effectively put right anything going wrong.

Get to know more about AQF product inspection services to better secure your imports, and feel free to contact us for any questions.

All the AQF team wishes you a secure end of the year of the Sheep and
great successes during the year of the Monkey!

And you: what kind of strategy do you put in place to quality control your goods in China before CNY?

European Union regulations on vacuum cleaners

The new regulation concerning power consumption of vacuum cleaners and labelling complements older regulations on safety. Here’s a video about the new label, which must contain the following information:

• Power
• Performance (ability to pick up dust)
• Energy efficiency
• Dust re-emission in the exhaust air (particularly important for people with asthma)
• Noise level
• Durability (no early failure of the hose or the motor)

Consumers therefore will get much more information about the vacuum cleaner they buy. In addition, their machines will consume less:

• Sept. 1st, 2014: maximum 1600 Watts input power
• Sept. 1st, 2017: maximum   900 Watts input power

How importers comply with EU vacuum cleaner regulations

For importers to ensure their products meet all regulatory requirements and are safe, here are some adices:

• Suppliers should be audited to understand if the manufacturer is legitimate, legal and has experience with vacuum cleaners. Add as special checkpoint that a machine to measure suction power is available.
• The product specifications should be well detailed in the PO. This includes requirements on the power consumption, noise level, application of label, etc.
• The product should be tested in a recognized laboratory. .
• The lot to be shipped to the EU should be inspected to check if specifications have been met.

On-site tests performed during a vaccum cleaner inspection is the importer’s last chance to ensure to comply with EU vacuum cleaner regulations.

And you: how do you react to comply with EU vacuum cleaner regulations?

7 good reasons to visit the MEGA SHOW 2015 Edition

The wold largest sourcing fair and market place

While specialized fairs may offer a good insight into a specific industry, the MEGA SHOW manages to gives the most exhaustive and comprehensive look at the world market than any other event through an extensive range of products. The MEGA SHOW continues to grow over the years, with 53,000 buyers in 2014 (43,000 in 2013), it attracts everyone in the Asia-Pacific from the gift, housewares, premiums and toy manufacturing industries.

Keeping an eye on the competition

The MEGA SHOW is the place to take a look at what others are up to, study new trends and approaches, form alliances and affirm its presence in the market. It is one of the best event of the year to gather all the resources needed to make predictions and informed decisions about the future development of each individual business.

Exploring new business opportunities

As new ideas lead to business growth opportunities, the MEGA SHOW instantly immerse the visitor in the flow of innovative ideas and business development opportunities. The Products Showcase Area, located at the fair entrance, allows to get a quick overview of what to expect from the exhibit the minute you walk in.

Learning, Sharing, Exchanging

There are over 100 nationalities represented by the visitors attending the Mega Show. It is a unique opportunity to discuss the sourcing industry with peers, solve supply chain challenges and exchange professional advice to secure imports.

Finding new suppliers

With more than 5,400 exhibitors (3,500 at the MEGA SHOW part 1), the MEGA SHOW allows to source an extensive range of products at a single location and meet reliable Asian-based suppliers: manufacturers as well as service providers, such as inspection companies to further enhance the business strategy.

Strengthening the business relationship with current suppliers

More often than not, the communication with suppliers is mostly remote, via phone, email, chat on skype. The Mega Show gives the possibility to bridge the distance gap and finally talk to the suppliers in person. It allows to build an effective supplier relationship and address concerns or compliance requests.

For improving the relationship with suppliers, bringing a delicatessen from the country of origin is always welcomed!

quality control& quality assurance

The show is the right time to clearly define ways to ensure the quality assurance and quality control of the goods that are or will be purchased. The AQF team will be attending the MEGA SHOW once again, booth 3T-32. Feel free to stop by to discuss your current quality issues, coming projects, Asia sourcing market trends and more, or make an appointment now!

And you: what drives your interest and makes you come back year after year to the MEGA SHOW?

——–
More resources about quality control.

Photo from mega-show.com

4 Highlights of the HKTDC Hong Kong Electronics Fair (Autumn edition) 2015

The largest trade show focused on consumer Electronics only

The HKTDC Hong Kong Electronics Fair is one of the biggest consumer electronics shows in the world. With two events per year, it offers a comprehensive overview of the electronics market with over 55,000 products and around 400 service providers in the industry. The Autumn Edition happens to be the largest of the shows, with over 4,100 exhibitors and 95,000 buyers from over 150 countries in the world.

Hot spots to visit: novelties and trends

Just as it is impossible to leave Paris without a visit to the Eiffel Tower, it is impossible not to go to the HKTDC Hong Kong Electronics Fair (Autumn edition) 2015 and to not check out the 4 key spots.

The “Hall of Fame” will grab and hold everyone’s attention with a selection of cutting edge innovations available at the show. It’s a great place to start to catch a glimpse of the entire exhibition in one single location.

The HKTDC Hong Kong Electronics Fair is not only about seeing what’s available, but also about being part of what’s to come. The Technology Exchange Zone is where to find prototypes of future products, exchange expertise and talk to inventors. This is the place where the future of the industry is created.

Also, the Autumn Edition presents new product categories such as:

• Robotics & Unmanned Tech
  Although, mobile robots have found wide applications in industry-related, military and security fields, the raise of consumer mobile technologies has lead to design robots with various end-user applications for entertainment and domestic functions. At the HKTDC Electronics Fair (Autumn Edition) 2015, we will get the chance to see the latest innovations featuring drones, quad-copters, self-balancing electric unicycle/scooter and humanoids in its brand-new zone: Meeting Room N101.

• Smart Tech
  According to Cisco, in 2008 the number of things connected to the Internet was greater than the people living on Earth, and it is expected to reach 50 billion within 2020. Some of the Top Applications are Traffic monitoring, Health Security, Transport and Logistics, Daily life and domotics. From security alarms to smart thermostats, smart technologies have flooded the market and invaded customers’ homes. The new zone to source the latest smart tech products is at the Convention Hall Foyer & Mezzanine.

And, within the existing products’ categories some demonstrate strong innovation and may be worth a visit:

• Wearable electronics
  The wearable electronics market is expected to reach $25 Billion by 2020. Indeed, the interest in this sector has been growing for a decade and the interest is mostly lead by wearable fitness trackers, smart watches and bands. Lately, one of the most significant trends reaching the BtoC market are the wearable wrist bands that allow the user to monitor daily activities by using state of the art sensors. The HKTDC Electronics Fair (Autumn Edition) 2015 gives a window of opportunity to bring innovation to importers while providing the ability to leverage sales and meet market demand.

• 3D printing
  The 3D market has been booming in the past few years and is expected to reach $8.4 billion by 2025, representing 2 million unit sales per year. Forecasts are even predicting that in 2040 there will be a 3D printer in each home, in the USA, as the price for such devices will be dropping. 3D printing applications are found in diverse sectors already, including aerospace, medical, automotive, education and imaging technologies. The HKTDC Electronics Fair (Autumn Edition) 2015 provides the possibility to meet with Asian key suppliers at level 4.

SEMINARS

We often hear that the future is now – and it really is at the HKTDC Electronics Fair (Autumn Edition) 2015 seminars. The conferences are free and offer a unique insight into the evolution of the consumer electronics industry (in general) and its applications to various businesses:

• IoT Revolution – “How does it benefit your Business?”
• Latest Trend and Applications of Components in Mobility Devices

Service providers and Quality control

Sourcing and looking for new ideas may be the most popular objectives for those attending this fair, but these are not the only ones. With compliance and quality control being the two most challenging areas of the supply chain in the Asia Pacific, the fair is the most suitable place for getting in touch with quality control service providers – especially, those specializing in the field of consumer electronics. These contacts may prove invaluable in the future, and help securing imports, while saving both time and money.

The AQF team will be at the show, at booth M4-A26 (Level 4). We have worked on offering specific services to match the quality requirements of the consumer electronics industry. Get more than quality control. Make a request for an appointment today.

And you: What areas of the HKTDC Electronics Fair (Autumn Edition) 2015 would you highlight? What product categories are you most interested in for this edition?

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More resources about quality control.

Photo from hktdc.com
*information from the Consumer Electronics Association, www.ce.org

Fabric rolls measurement procedure

Fabric rolls length measurement

All fabric rolls factories should have this specific machine (as per the above picture) which efficiently counts the number of meters (or yards) per roll.

Fabric rolls width measurement

The fabric rolls width measurement is taken by using the measuring tape. The final measurement indicated in the inspection report by the quality inspector is based on the minimum width measured from three different locations: at the beginning, in the middle and at the end of the fabric roll.

Download our sample report!

Limitation to the fabric rolls measurement during an inspection

The calibration of the machine can affect the measurement of the length of the fabric. There is a tolerated discrepancy of more or less 1%, give or take, otherwise the buyer should mention its own tolerance levels in conveying measurements.
For knitted fabric and some elastic or smooth woven fabric, the use of inspection machine is not applicable.

The measurement of the fabric width can be different along the roll, therefore the measurement result may differ if taken elsewhere than at the beginning, in the middle and at the end of the fabric roll.

In fact the manufacturing of fabrics is quite complex, there are always discrepancies in terms of length and width. Buyers should be precise with their measurement requirements, if they vary from the usual procedure of their third party inspection partner, to ensure the fabric roll inspection is based on the same criteria.

And you: how do you proceed with the fabric rolls measurement during an inspection?

Photo taken during a pre-shipment inspection in Pakistan

Check out the best of CSIC resources for May 2015

Crash Course: Video 1. How to find suppliers in China
With over 20 years experience in the sourcing field, Mike shares his knowledge and expertise in identifying suitable suppliers in China.

China Sourcing Crash Course: Video 2. How to verify and evaluate suppliers in China
After making the first selection (as per video 1), it is time to verify the legitimacy, product experience and quality control process of the supplier. This video will provide useful advice on what and how suppliers should be evaluated.

China Sourcing Crash Course: Video 3. How to negotiate with Chinese suppliers
In this video buyers will become familiar with the negotiations approach that Mike recommends. It is all based on his many years of experience.

China Sourcing Crash Course: Video 4. Project Management & Quality Control
When the selection is finally done, it is time to manage the project and the quality control aspects of sourcing. This happens to be a common weakness amongst Chinese suppliers. One will find that this video contains a lot of useful information and advice to ensure everything goes smoothly throughout the entire process.

And you: do you have any articles or videos to share?

Why are the percentage of defects from the AQL result different?

While inspecting the total order quantity, it is highly likely one will find a different number of defects compared to the AQL result, lower or higher. If not, it is merely a lucky day. For example: on a 100 pcs order, if we take a sample size of 10 pcs and 3 of those items are defective, it does not mean that there will be in total of 30 defective pieces on the total order. The AQL does want to get close to this result; however, the only way to know the total defective quantity is to check the total order quantity.

The AQL standard takes into account the probability of having this defect on the overall lot only. Its purpose is to provide information about the defects available compared to the acceptance quality limits of reference.

How to read the AQL table result?

Each defect and its classification (minor, major, critical) should be analyzed seperatly and carefully, paying close attention to each though the number of the defect is low. This is because there is always the probability that the number of defects on the overall order could be higher or lower than the AQL result.

Therefore, one should ask oneself: am I willing to accept such defect(s) if present in a higher quantity on the total order? If the answer is no, then the supplier should be requested to improve the quality of the goods.

Also, in some inspection companies, a defect can be reported separately from the AQL table when it appears on too many samples (>10%-20 % of the sample size in general). This allow more clear reporting of the situation. We usually call it a “general defect”, it can be a minor or major defect. In any case, it should be looked at closely as it is likely to be present in a high percentage on the whole lot.

The AQL standard is a very useful tool to identify the major defects in production, however it remains a probability. To ensure the most representative AQL result, it is highly recommended one use the highest standards of the AQL whic is, level II or III only.

Download our sample report!

And you: how are you used to interpreting the AQL table result?

Photo taken during a water boiler pre-shipment inspection

Color fastness test on fabric during an inspection

The quality inspector in charge should take a white cloth and rub it against the fabric with adequate strength. The test is done twice: the first time with a dry cloth, the second time with a wet cloth. If traces of color appear on the white cloth it means that color transfer occurred.

Download our sample report!

How does the dying of yarn fabric work?

The dyed yarn fabric follows a different production process than other fabric: the yarn is dyed first, and then colors are set using a fixing agent. Afterwards the yarn is dried, sized, beam-warped, weaved, desized, etc. to finally get the finished yarn fabric.

When should the color fastness test on dyed yarn fabric be performed?

The color fastness test on dyed yarn fabric is more complex, as it involves several different pieces of yarn which may have been dyed differently. Moreover, yarn fabric can be made of the same yarn color or mixed colors. Each yarn has been subjected to a different dying process.

Different strands of yarn are crossing one another which makes it even more difficult to understand which one is fading and to evaluate the actual color fastness grade. As a result, the color fastness test should be done at the very early stages. It should occur after the dying of the yarn instead of on the fabrics.

As a result, the color fastness during an inspection is almost meaningless. That’s why this test is often excluded from the inspection protocol. To know the color fastness grade of dyed yarn fabric, the test should be performed during the dying process instead of on the finished yarn-dyed fabric.

The color fastness test, during an inspection, is only valid for dyed fabric that underwent the dying process in the last stage of the fabric manufacturing, as opposed to the yarn fabric for which it is usually the first step.

And you: when do you perform the color fastness test on dyed yarn fabric?

Reasons why goods should be inspected at the subcontractor’s site

inspection result reliability reduced

The supplier and the subcontractor have different production processes therefore the quality of the goods manufactured on the subcontractor side and supplier side won’t be the same. An inspection should be performed on an homogeneous lot otherwise the inspection result is meaningless.

To be efficient, inspections should be performed where the goods have been manufactured. One inspection order per factory should be booked to ensure the most reliable result.

Damage during transportation

Usually the goods are transported bulked in cartons from the subcontractor to the supplier factory therefore the goods are not well protected and may suffer damages. In case of defective goods, they should be shipped back to the subcontractor and shipped back again to the supplier after being reworked therefore the risks of damages during transportation increase drastically.

Supplier loosing face

The supplier may loose face in front of the subcontractor to explain that the work has not been done according to the client requirements and that the goods should be reworked. However, the goods have left the factory of the subcontractor, he may refuse to rework them; it all depends on the agreement with the main supplier, their business relationship and the payment agreement, etc.

Also, the supplier looses face in front of the buyer, if he hided the fact he was working with a subcontractor. The buyer should carefully deal with this situation: protecting the relationship is the priority to ensure corrective actions are put in place properly.

Impact on the inspection reliability when subcontractor’s involved in an order

The quality inspector can perform a reliable inspection at the supplier factory as well as the subcontractor’s as far the they cooperate. However, to limit risks above mentioned, the buyer would rather try to perform inspections on the respective production sites.

And you: do you have any other reasons why goods should be inspected at the subcontractor?

What is a sealed packaging?

The sealed packaging consists of wrapping a product in such a way that it can’t be opened without breaking the packaging. It is also called packaging display, as it is considered to be a marketing tool to sell a product on shelves in shops.

Risks related to an inspection of goods with sealed packaging

At the time of the pre-shipment inspection, the packed goods should be inspected. This means that in cases where there are goods with sealed packaging, the QC will have to break the packaging in order to inspect the goods.

In such situation, the suppliers tend to refuse to break the sealed packaging of too many products. The typical justification involves a stock shortage. Moreover they will claim that they can only replace few pieces only. In fact, sealed packaging is customized as per the client’s design. It is customary for the supplier to order the sufficient quantity to wrap the goods ordered with very few extra pieces (the aim is to cut costs everywhere).

Therefore, the QC is obliged to inspect the goods on a much smaller sample size which affects the inspection result. Only the conformity of both sealed packaging and export cartons can be checked properly.

The quality control of the good’s quality, functionalities and conformity to the buyer’s requirements are affected in cases where the QC can only inspect a small sample size.

Solutions to avoid those risks

Inform the supplier in advance about the inspection conditions

At the time of the order confirmation, the supplier should be informed that a pre-shipment inspection will be performed. He should be clearly asked to prepare the sufficient amount of extra sealed packaging in order to repack the goods after the inspection. It is best to give precise quantities by mentioning the sample size that will be inspected to avoid any misunderstandings.

Warning: some suppliers may suggest keeping some goods unpacked for the QC to perform the inspection. This would mean that the samples for the inspection are selected by the factory rather than the QC. This would result in a conflict of interest. The reliability of the inspection result will be affected.

Inspect during the production

Various inspections should be performed during the production specifically, before the packing of the goods. It would allow on to implement corrective actions in time and limit the risks in case the supplier refuses to inspect the correct sample size at the pre-shipment inspection even though this solution is less reliable.

And you: what are your solutions to limit the risks related to the inspection of goods with sealed packaging?

Picture taken during a toy pre-shipment inspection

Why a supplier works with subcontractors?

The subcontractors are usually factories without export licensing, colluding with bigger factories holding the export license. They normally guarantee to the main supplier:

• Price competitiveness (higher margin for the main supplier)
• Fast manufacturing during peak seasons
• Bigger production capacities for big orders

Subcontractors are usually small factories who don’t respect the standards required to export. Their production know-how and quality management system are limited, or nonexistent altogether, which explains why suppliers are hiding the fact they work with subcontractors.

How to identify if a supplier works with subcontractors

Factory audit

During a factory audit, a specific question related to the use of subcontractors is asked. If the supplier is honest, he will already declare that he has previously used or is presently using subcontractors.

In case his answer is negative, the factory audit includes a check related to the factory manufacturing equipment, production lines, and production capacity. These three pieces of information combined should be intelligible otherwise there could be subcontractors involved or the supplier will be unable to comply with the deadlines.

Inspections at different stages

Performing inspections at different stages of the production process also helps to identify the presence of subcontractors.

• If the factory has only one part of the raw material it may be because the rest has been delivered somewhere else.
• If during a production inspection, the quantity produced is less than what was supposed to be based on the daily production speed previously agreed upon, then it may mean that the rest is manufactured elsewhere.
• If some finished goods arrive at the factory the day of the inspection, then a subcontractor involved!

And you: how do you identify if your factory works with subcontractors?

Check out the best of CSIC resources for April 2015!

How can I find real companies in China who are real manufacturers in China?
This article gives plenty of resources that will aid the buyer in identifying real manufacturers in China while avoiding the middleman. It also contains a great video tutorial.

When raw material prices go down, can I expect lower pricing on finished product?
Yes, that’s correct. Even though the costs associated with raw material can go down, it is possible that the final price will remain the same. This article offers a more in depth explanation in relation to this scenario.

Case study: Dealing with MOQ barriers when sourcing customized electronics from China
In this article Mike gives suggestions to an importer interested in starting a new project in which the volume is below the usual MOQ required by manufacturers.

And you: do you have any articles to share?

Chinese internet

The Chinese internet is restricted and there are limitations to what one can access. For various reasons (some political), a number of online services and social networking sites have been banned. One of the more noteworthy site is facebook but there are many others used in our business such as Dropbox or WeTransfer.

Product specifications for China suppliers

The product specifications are necessary for the buyer to explain to the supplier its requirements in terms of quality. It is one of the fundamental aspects to avoid quality issues during production. They should be clearly explained; the more details the better.

Way to send product specifications to China suppliers

Complete product specifications involve assorted files of text and pictures. Sending them via email is not the most reliable means. The best way and most secure is to use online booking platforms however; they are only offered by third party inspection companies, factories do not offer such a service.

As an alternative, documents can be shared via the cloud, particularly a Chinese cloud, as most of the others are blocked. The most recommended is yun.baidu.com.

And you: how do you send your product specifications to China suppliers?

What does your vendor during a product inspection

Manpower to help the Quality inspector

The Quality Control Inspector needs manpower in order to proceed with the inspection within the limited amount of time available. The factory manpower is required to:

• Transport the randomly selected export cartons from the warehouse to the inspection room.
• Unpack the goods that the inspector arbitrarily selects from the selected export cartons.
• Repack the goods after the product inspection.

The factory workers assistance ensure that the Quality Inspector focuses on his main job: identifying defects and non-conformities.

 Working space for the Quality inspector

To select the cartons indiscriminately, they should be located in a wide area where the Quality Control inspector can see all of them and easily select the cartons randomly, as requested by AQL international standards. The room for inspection should be large enough, well-lit and clean and the factory is responsible for preparing the working environment accordingly in advance, so the Quality Inspector (QI) focuses on his main job without losing time.

Equipment for testing

During a product inspection, the goods should be tested. Both basic and small equipment are usually brought by the QI, but most of the equipment required for testing should be provided by the factory. The factory’s role in all of this is to guarantee that the testing equipment works properly and is available for the QI on the inspection day.

Bribery

This is one of the primary concerns while sending a quality inspector to control goods. There is the risk that the QI or the factory will attempt to seek out some extra money in exchange for a good inspection result. Factories should be clearly informed on the rules without leaving anything open for interpretation: no money should be given to the QI and in the event bribery is initiated by the QI, the factory’s role is to immediately inform the third party inspection company or manager (in cases involving internal QC departments).

It is highly recommended one be precise and outline each of the supplier’s responsibilities, in writing, before the inspection date. It is even better if the supplier approves them in writting prior to the inspection. It will offer clarification, eliminate confusion and reduce the risk of the QI having to disagreement with the factory on the day of the inspection. It ensures the best conditions possible.

And you: what other role do you recommend for the factory during an inspection?

What are the risks of inspecting several products in one inspection

• A smaller sample size

Inspecting several products in one inspection means that we consider the total order quantity (all references included) as the reference to define the sample size to be inspected (the sample size is based on the general inspection level II). The sample size is then split proportionally between references.

This way of defining the sample size is different from the common procedure used by the third party inspection companies. The common procedure consists of defining a sample size per product reference.

Let’s consider we have to perform an inspection of 50K assorted garments:
10K pants, 10K t-shirts and 30K sweaters:

Based on the general inspection level II and usual inspection companies’ procedure, the sample sizes to be inspected should be 315 pants, 315 t-shirts and 315 sweaters. For a multiple product inspection, the total sample size is determined based on the total order quantity (50K), thus 500pcs in total. This is split as per the references. For example: 100 pants, 100 t-shirts and 300 sweaters.

• Higher risks of not finding the main defects

The fact that the sample size is reduced per product reference will automatically affect the reliability of the inspection result.

As per the above example, the inspection of pants and t-shirts is clearly affected: 100 pieces are inspected instead of 315pcs. Only 1/3 of the sample size is inspected. Under these circumstances, it is very difficult to identify the main product defects.

• QC less focused on the product

Inspecting several products at once is complex for the inspector. The more products he has to check, the more specifications he has to digest and control within the same day. This inscreases the likelihood that some details, with regards to the products, may go overlooked.

And you: do you know any other risks of inspecting several products in one inspection?

Picture from makewealthhistory.org

Ceramic products material

To ensure the ceramic products material fulfills the standards and directives of the good’s country of destination, it is necessary to perform tests in an official laboratory where some chemical tests will be performed. Once said tests have been carried out, the goods should pass them.

The defects of reference for ceramic products

There is an exhaustive list of 24 defects, which are taken into account while governing the cosmetics of ceramic products. They all refer to the quality standard concerning appearance. The defect list is as followings: deformation, bubble, blank dot, under glazing, pin hole, accumulated glazing, unsmooth glazing surface, crooked decal, scratches
Cracking, vacant spot, impurity, different color, color stain, rough bottom, broken decal, glaze cracking, unsmooth edge; rough surface, crawling, glazing sticking, chip, knocking, over burned.

Defining the Quality of ceramics: grade A, B, C

The quality of ceramics is defined by giving a grade ranging from A, B and C.

• Quality of ceramics Grade A: If there is nothing exceeding 24 kinds of defects on the product, the product is considered an excellent product.
• Quality of ceramics Grade B: It is classified between Grade A and Grade C. It can accept 2-4 defects from the listed defects mentioned above.
• Quality of ceramics Grade C: If there are 6 or more kinds of the above mentioned 24 variations of product defects.

And you: which quality of ceramic products do you request?

Program of the 2015 HKTDC Gifts and Premium Fair

This year is a special anniversary edition for the 2015 HKTDC Gifts and Premium Fair. The product categories presented at the fair as as follows: Advertising Gifts & Premium, Beauty Products & Accessories, Christmas Lighting, Corporate Gifts, Fashion Jewellery & Accessories,Green Gifts, Hiking and Camping Products, Luggage & Travel Goods, Packaging, Party & Festive Items / Wedding Favours, Stationery & Paper, Toys & Sporting Goods, Testing / Certificate & Inspection Services and more…

Sourcing China suppliers at the 2015 HKTDC Gifts and Premium Fair

The Gifts and Premium industry primarily manufactes goods in China due to the wide range of products offered by Chinese manufacturers. However we also know that scams are everywhere in China. That said, buyers should take the time to engage in a face to face meeting with potential suppliers, during the fair, to create first impression.

After the fair, it is necessary to conduct additional research concerning any potential China suppliers considered: verifying the vendor’s validity and checking free resources such as the vendor’s black list. Other recommendations are available in the article “How to check the reliability of suppliers“.

Afterwards, it is recommended one perform a factory audit. It is the last check that will determine whether or not a supplier is right for a specific project. It will be followed up by giving the green or red light for the production of the goods

Quality Control suppliers at the 2015 HKTDC Gifts and Premium Fair

Whether in-house or via a third party inspection company, it is imperative one make certain the goods are controlled properly. Making the right choice depends on various factors.

Sourcing China suppliers at the 2015 HKTDC Gifts and Premium Fair also includes looking for the right quality control partner. The AQF team will be in attendance, at booth 5F-H10, to discuss “More than Quality Control“. We will also be on hand to share our know-how and experience in the gifts and premium industry.

And you: will you be sourcing China suppliers at the 2015 HKTDC Gifts and Premium Fair?

 Conditions for the appearance of scratch marks and how to prevent them

Scratches can appear at the very first stage, particularly for molded products, similar to the item pictured above. Scratches can appear because of:

• Poor molding
• The poor storage conditions of semi-finished goods
  The semi-finished goods are stored in cartons/baskets most of the time before assembling. The way goods are stored and manipulated at this stage can inflict damage, particularly scratches. To identify the issue in time, the semi-finished goods should be inspected.
• Poor protection during production (assembling and packing)
  The only way to avoid this is to perform a during production inspection and a pre-shipment inspection; however, the production inspection is the only one that will allow one to take corrective measures in time to avoid the whole lot being affected. The pre-shipment inspection will only prevent shipment of goods that do not conform to standards as it is already too late to repair. In case the buyer must decide to perform a product defect sorting or to reproduce it all.

The only way to prevent scratches is to regularly check the goods during the production process.

Difference between major and minor scratch marks

In order to avoid a misunderstanding with the inspector, it is best the buyer clearly defines the criteria based on the maximum dimensions and location of the marks.

Otherwise, the QC inspector will take into account the main definition of what are critical, major and minor defects to classify the scratches. He will also take additional references such as its visibility at harm distance into consideration. As a result the classification of major, minor and critical scratch marks can be classified as noted below:

• Major defect: when scratches are at the front or on the side of the product and the dimensions are over 10mm.
• Minor defect: when scratches are between 5-10mm and located at the front, back or on the side of the product.
• Critical defect: it is almost impossible for scratches of this nature to be considered hazardous or unsafe for the user. Only if the buyer makes its own definition of a critical scratch mark defect, will the QC take this option into account.

In case the scratch is smaller than 5mm or not visible at arm’s distance, it may not be considered to be a defect by the QC. The buyer should clearly mention whether or not he wants them to be counted in the minor defects list.

Download our sample report!

And you: what is your criteria concerning making the distinction between major and minor scratch marks?

Photo taken during a during production inspection.

The 2015 HKTDC Houseware Fair program

A very wide range of houseware products will be presented by suppliers such as: Art & Craft Items, Hardware & DIY Products, Artificial Flowers, Healthcare Products, Babies and Children’s Homeware, Kitchenware & Gadgets, Candles & Scent Sensation, Pet Supplies, Eco-Friendly Products, Furniture, Gardening & Outdoor Accessories, Wine Tools & Accessories, Testing / Certificate & Inspection Services and more …

Tools to select suppliers at the 2015 HKTDC Houseware Fair

During the fair, buyers usually take the time to look for the right supplier to manufacture specific goods. However, it is important to engage a face to face meeting to create a first impression with the suppliers.

After the fair, it is necessary to continue to investigate the potential suppliers identified: verifying the vendor’s validity and checking free resources such as the vendor’s black list are compulsory. There are plenty of other recommendations in the article “How to check the reliability of suppliers“.

Following the first verification, the buyer will have a clearer idea as to whether it is a scam or a legitimate supplier. Afterwards, it is recommended one perform a factory audit. It is the last step prior to deciding whether or not to commence work with the supplier or to find a more suitable one. It will confirm all of the previous checks and it provides further information concerning the manufacturing process, infrastructure, and more.

Quality Control suppliers at the 2015 HKTDC Houseware Fair

Quality control can be performed in-house or by collaborating with a third party inspection company. Making the right choice depends on a number of different factors.

Quality control companies will attend the 2015 HKTDC Houseware Fair. The AQF team will also join, at booth 5E-E02. We will be available to discuss “More than Quality Control“. We will also be on hand to share our know-how and experience in the houseware products industry.

And you: will you visit the 2015 HKTDC Houseware Fair?