10 Elements of a QA Strategy in China (Part 2)

In part 2 of this podcast series, we continue to discuss the 10 elements of a strong quality assurance strategy in China.

In part 1 we went through elements 1-5: 

1. Background checks on the potential supplier
2. Reliability audit on factories
3. Evaluating the fit of the new supplier
4. Fair payment terms 
5. Contracts

Quality Control

6. Product Specification Definition - a common mistake of new importers is not defining their specifications in great detail. Your supplier needs to be reminded about your requirements, which can include materials, design, quality, and even packaging. The specification sheet acts as that reminder.

 

7. Quality Inspections - another error is rushing to get the products shipped without performing quality inspections. Having been to the supplier's factory and even seeing that some of the first products off the line were fine is not enough - some buyers have received their goods to find that 40% or more had to be scrapped due to poor quality. By performing inspections, it allows any issues to be solved in the factory before shipment and the payment of the balance- after shipment and when you've paid 100%, anything like that becomes 'your problem' in most cases.

Buyer/Supplier Relationship

8. Building Long Term Business Relationships - you need to find a way to be seen as a long term, stable customer who won't shop around to save a small amount. Chinese suppliers may not believe any claims you make about being a good customer, so the best way is to walk the walk with a clear roadmap, purchasing plan, inspection policy, etc. This professional outlook gains you respect. Fulfilling your promises also gains you a lot of credit, so placing orders when you promise to and being upfront and honest about changes of the plan also helps win hearts and minds, as does not negotiating too hard on the price to the point where you put them in a jam.

 

9. Regular Face-To-Face Meetings - you need a contract and procedure in place before placing orders, but buyers should actively go to China and visit suppliers regularly. Buying from China can't be done remotely forever, you need to call in and keep an eye on things. Also, it is not necessary to be drawn into big dinners, socialising etc, this isn't advantageous unless you want it to be - they will respect professionalism and your stable business more than socialising.

 

10. Improvement of factory operations - you should find out what suppliers have been doing and see if there are opportunities for improvement. If you're a reasonably large customer you will have the sway to push them to improve. The message here is not to hesitate to make the suggestion even if it is 'their factory,' as if you can help a Chinese supplier improve without costing them a lot of money (which is often possible) they will like you even more as a customer.

 

You can look at the overall strategy in more detail in this blog post from QualityInspection.org: https://qualityinspection.org/quality-assurance-strategy-china/