“Talking with Our Customers on China and Mexico Supply Chain Procurement on lessons learned from bad experiences with supply management”
Minimizing Risks and Costs in Off Shoring and Outsourcing
Most Asian suppliers are quick start ups. Their objective is governed by quick profits. They are not Flextronics or FoxConn. They come and go. So the ultimate responsibility in ensuring that outsourcing and offshoring is cost effective and buying risks management is decided by the buyer.
Most buyers do not audit their suppliers’ capabilities in China. Most times it is difficult to pick up product problems through random inspections when it is easy for suppliers to hide problems when the products are finished, packaged and boxed up ready for shipment.
Some customers setup their own China based offices to manage their suppliers. Most times Buyinspect is called in to “inspect the customer’s inspectors’ work”. In China, where money is King, there is always the issue of “inspecting your employees who are inspecting your purchased products”
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