There are a number of methods and techniques for assessing the manufacturer (production, trading company or any other firm). The most important step in the choice of a supplier in China is to determine the level of their reliability, the company's compliance with the international systems of quality, integrity, fair play of the company and specific Manager who carries on business correspondence.
- Compliance with quality Standards: ISO 9001:2008), State Standards of the country of Customer (Russian Federation), or compliance with quality Standards of the country of origin of goods (China). All three of these Standards may be radically different from each other, even if by default, we would take an activity of a particular Supplier in China, conforming to these documents.
Mostly in light industry (mass production goods) there is no concept of rigid Standards prescribed by GOST (State Standards). In the best case, manufactures would be guided by the production technical specifications (TS) of manufacturer. This can lead to big problems when receiving goods from China.
A simple example of the working temperature conditions in China, - the temperature in the central part of China reaches more than +40 degrees centigrade above zero, but not below 0.
In Russia the working temperature conditions starts from – 30 centigrade below zero. In addition to the simplest problems of lubricants, often polymeric and especially rubber materials change their properties under such working temperature conditions. The shipment of goods received in October may not have defective products, but the shipment of goods received in February may have 100% defective products.
In other words, the process of solving quality problems in China often converges to the words: "Well, for our market, this problem is not significant, and we sell out 10000 pieces, and no one ever said that our goods have defective products"…That's what we call "words in favor of the poor", or at least in favor of those who have already received 100% of the payment for the goods.
- The honesty of the company and its reliability: prior to the selection of supplier, minimum price is not a criterion; it is important to determine the level of reliability of the company. There are a number of methods and documentation, the analysis of which will show who is better to deal with and line up business relationships. Our specialists will prepare a detailed report with explanations per each supplier.
"A company had been buying toys through trade organization for several years (about 5 shipments of goods). In the context of sales growth the orders came out at a good level, and after the last transfer of payment for goods the Chinese company simply stopped responding to E-mails and phone calls. Here is a question – what to do under such circumstances? To file a lawsuit?
Currently there are no major levers for returning the money (absence of proper contracts, incorrect transfers of money resources, the Chinese state is always on the side of local manufacturer). How to avoid this situation – it's necessary to choose the proper supplier
- Level and production capabilities: in order to meet the timing of receiving the containers (orders) one must make an estimate of the enterprise from the point of view of its production capabilities. Sometimes you have to simultaneously place orders at a few plants, but you need to realistically assess the possibilities and make the right decision.
Our specialists in China will share their expertise and conduct audit of supplier in China.