Instill a culture of quality into a plethora of dubious suppliers from China

[carrello]

I am currently asking my suppliers in China to use better quality raw materials (threads and fabrics) for production.

My problem is that instead of ordering from a company as we do in the USA, our Asian Factories buy raw materials from a market and every time they go back to the market the raw materials change.

I can’t convince them that they should stop using the market, pay a higher price and order from a factory so they can insist on consistent quality.

I have tried to have the buyers perform test at the market, to ensure quality, but the tests are not easily performed before purchase.

I am at a loss for how to develop Supplier monitoring in China and Thailand and now due to R. E. A. C.H. directives I have to provide the % of SVHC substances by weight on my raw materials.
I am certain I can’t get this information from the market!

Has anyone else had this problem or have any ideas?

 

[Jen Kirley]

I am currently asking my suppliers in China to use better quality raw materials (threads and fabrics) for production.

My problem is that instead of ordering from a company as we do in the USA, our Asian Factories buy raw materials from a market and every time they go back to the market the raw materials change.

I can’t convince them that they should stop using the market, pay a higher price and order from a factory so they can insist on consistent quality.

I have tried to have the buyers perform test at the market, to ensure quality, but the tests are not easily performed before purchase.

I am at a loss for how to develop Supplier monitoring in China and Thailand and now due to R. E. A. C.H. directives I have to provide the % of SVHC substances by weight on my raw materials.
I am certain I can’t get this information from the market!

Has anyone else had this problem or have any ideas?

My observation is that, unless otherwise arranged, the Chinese focus is on cost. To get a supplier to use "better" materials, you will need to contract as such and maintain vigilance with a robust and energetic supplier control process.

When I say "contract as such" I mean you would probably need to specify your material and their sources, and perhaps even arrange the contract including delivery. Then you need to ensure they are actually using those materials.

The natural result of all this, as some businesses are learning, is that outsourcing to China is not certain to bring the ROI that was originally promised.

 

[MIREGMGR]

I am at a loss for how to develop Supplier monitoring in China

Is one of your specifications that your vendor's suppliers must be OKed by you based on review of the vendor's supplier audits and/or reports of testing-based specification compliance, and the vendor may not change suppliers for a given material without your pre-approval in writing?

 

[somerqc]

Based on experience, even with that in the contract SOME suppliers in China would still change it for a cheaper price. Why? The money that will be saved until they are caught. Then, it is MEA CULPA - and they change back.

This isn't an attack on China because there are many suppliers in NA that would do the exact same thing. The only difference is that being in NA you are more likely to be able to watch a NA supplier easier than a Chinese supplier.

All over the world there are many people that live by the the motto "It is better to beg for forgiveness than to ask for permission".

 

[harry]

Learn from the big boys like Nike.

1. Nothing gets shipped until checked and approved by their appointed agents.
2. Use only reputable organizations to conduct product testing and analysis and insist on these for every shipment.

Trouble is, many 'buyers' drive such a hard bargain in terms of price that they lose their bargaining power when it comes to 'assurance'. I guess they get rewarded for ability to get a good price and nothing else.

 

[Gordon Clarke]

My problem is that instead of ordering from a company as we do in the USA, our Asian Factories buy raw materials from a market and every time they go back to the market the raw materials change.

I can’t convince them that they should stop using the market, pay a higher price and order from a factory so they can insist on consistent quality.

I’m going to make an assumption based on what you wrote. If I’m wrong then no harm and it may help someone else.

“ .... our Asian Factories buy raw materials from a market and every time they go back to the market the raw materials change.”

My assumption is that you don’t buy in enough bulk for you to buy directly from an actual manufacturer of threads and fabrics.

From visits to China, Thailand, Vietnam and India I’ve seen very large markets that specialize in specific commodities. There are litterally dozens (sometimes hundreds) of vendors that sell almost identical articles. In Hanoi (Vietnam) in one street they sell only shoes, another street only pots and pans and yet another only flowers etc. I’ve often wondered how they all survive!

If your “Asian Factories” buy from such a market then they probably buy from the vendor giving the best “offer” on that particular day. All vendors of course don’t buy from the same supplier. This certainly would explain the varying quality.

If this is the cause of the problem then I don’t see any other solution (unless you choose to buy directly from one specific manufacturer of fabrics) than to specify to your “Asian Factories” the names of which fabric manufacturers you insist they buy from to deliver to you. If they won't do as you want drop them - you are after all the customer.

The following (with tongue in cheek) applies to ALL countries:
“If you are lucky you get what you pay for – it’s seldom you get more”.
I did note you seem willing to pay more to get what you want

 

[Gordon Clarke]

I am at a loss for how to develop Supplier monitoring in China and Thailand and now due to R. E. A. C.H. directives I have to provide the % of SVHC substances by weight on my raw materials.
I am certain I can’t get this information from the market!

Has anyone else had this problem or have any ideas?

I’d better state immediately that I know next to nothing about fabrics but if I were you I’d try and get in touch with two or three manufacturers of the fabrics you feel are best for you and see if you can get a direct dialogue started.

If your “Asian Factories” can’t give you the names of some manufacturers then I’d find this either very unusual or very unprofessional.

I’d also think visiting the country (or countries) you buy from would help and give you an understanding of what is going on. I don’t think a round trip would be expensive and it would certainly let you know what to do. Compare the trip cost with a customer complaint or loss of business.

I’ll bet a trip to two or three Asian countries (maybe 3 or 4 days in each country) could be done for about $5,000 or less – assuming you don’t insist on travelling first class. You would be arriving as the customer and I’ll bet you’d get great hospitality – Asians are usually very good at that.

If your “Asian Factories” can’t arrange meetings with at least a couple of fabric manufacturers then you have the wrong factories.

 

[CarolX]

All over the world there are many people that live by the the motto "It is better to beg for forgiveness than to ask for permission".

And to move a little , this attitude is becoming more and more prevelant - IMHO.

 

[tony wardle]

Well - I do know a bit about fabrics - and I must say - today, I had a good experience with China. Today, we looked at a reasonably low cost base cloth, with a vinyl backer ex China. (Funnily it was sold as a 600d nylon, but made from 150d textured polyester). I personally would never dream of producing this - but, but, the end use and the cost and fitness for use in this case tied up pretty well.Our customer was happy to use such a cloth for his application. To boot, the guys in China gave me the specs on how to produce it locally. They still make some cash from the raw materials, and I got a lesson in how to produce low cost fabric for a particular purpose. In this case - we all came out tops. Of course, we would be producing the goods within the confines and rules of our QMS. Our customers are happy to pay a bit more for this assurance and to have a local supply base in the value chain. (We of course would offer it as a 150d laminated polyester - what it actually is).

 

[Gordon Clarke]

I had a good experience with China.

It just goes to prove that a nice guy is a nice guy, a jerk is a jerk and a rip off is a rip off, regardless of country and or nationality.

If a company isn't willing to pay a fair price, then common sense must tell them corners are going to be cut.

Thanks Tony