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Why Chinese suppliers often have quality problems

2020-3-29



Today's China, with the upgrading and improvement of the supply chain, the scale of the manufacturing industry has continued to develop, and China's export trade is also growing. Sellers in Amazon stores can order a wide range of goods in bulk in China and at very low prices, "Made in China" brings opportunities for global trade and retail.

However, as a foreign buyer, when ordering goods from suppliers far in China, it is inevitable to encounter some potential risks, such as poor product quality. Why do quality problems often occur with goods from China? Let us analyze its causes now to help you improve the quality management of your supply chain.

 

1. Fierce price competition leads to reduction of cost budget

After more than 20 years of development, China's foreign trade export market has formed a mature industrial chain in many product areas. However, due to the new capital, the manufacturing scale is still expanding, whether it is textile or machinery manufacturing, electrical and electronic industries.

On the other hand, the global market ’s consumption capacity is growing slowly, and consumers ’purchasing power is no longer sufficient to consume the production capacity of manufacturing companies. This phenomenon has become increasingly apparent.

For international buyers, if they want to purchase a certain product, they will have a lot of channels to obtain supplier information and product quotations. Within three days of sending the inquiry, they may receive 20-30 quotations from different suppliers. It is possible that more than half of the quotes are very close prices, and the price difference is within 5%.

In such a fierce market competition environment, the profits of suppliers have become very small, some even zero profits. In order for enterprises to operate normally, they can only think of ways to reduce production costs. Such as using cheap raw materials, shortening processing time, eliminating quality management procedures, etc.


2. Good and "bad" customers

Not every customer is God, although many sales experts say: You should try your best to satisfy and even please every customer, but anyone with a little business experience understands that in some cases this is impossible Realized. Many suppliers evaluate and classify customers, which is what we often call good customers and "bad" customers.

The definition of a good customer is roughly: there are stable orders, the price of the product can guarantee the normal profit of the supplier, there are no overly demanding requirements on the quality of the product, no unreasonable fines, the fulfillment of the contract and commitment, and full trust and respect for the supplier , Work efficiently and do not often make mistakes, and vice versa.

Obviously, each supplier is willing to cooperate with high-quality customers for a long time. In general, they will pay as much attention as possible to the raw materials of the product and quality control in the production process to ensure qualified final products and provide good service.

Of course, due to overcapacity and fierce order competition, many suppliers have to cooperate with "bad" customers, because the product prices are too low, they may realize their profits by cutting corners. If there is a conflict between a good customer and a "bad" customer's order, the supplier will first ensure the security of the former, such as delivery time, choice of raw material supply, etc.

In addition, in terms of payment terms, they are likely to require "bad" customers to pay 100% of the payment before shipment. This will greatly affect the mindset of suppliers, leading to a decline in product quality.


3. Backward production equipment and quality management

Most Chinese factories have the ability to produce medium quality products, and the production process and management system have also entered a mature stage. However, there are some factories where the quality of the products is not stable, and this is especially the case in small-scale factories.

Because of the lack of capital investment, it is difficult for them to update the production equipment, which leads to an increase in the equipment failure rate, which affects the rate of defective products.
 
Among the factories we audited, some of factory was only 2-3 people in workshop, and the QC and production supervisors were all held by the factory owner. Such factory owners are very busy and have little time to care about product quality.


4. Not enough understanding of target market quality standards

As a supplier, they need to clearly understand what products your customers need, what technical requirements and quality standards. National markets and consumer acceptance of product quality vary in markets around the world.

For example, for clothing exported to Mexico, the government mandates that the care label must sewing with the fabric at one time, the fabric cannot be assembled after the fabric is sewn. We have found such problems during clothing inspection in China.


Conclusion

As China's leading third-party inspection company, NBN Inspection helps foreign buyers to conduct Factory audit services and Quality inspection services in China. Make your sourcing business in China safer and easier.
 
 
 
 

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