There is this case of a German pallet racking company in Malaysia who lost more than it gained from buying from its Chinese supplier.

It selected a Chinese warehousing steel racking company approved by an online china sourcing directory. Then it hired a 3rd party inspection company for a random pre-shipment inspection.

After arrival the goods were stored without incoming inspection and kept for weeks. These goods were sent to different customers. Customers inspected and return the goods for metal racks defects.

The German supplier fixed and paid for the repairs of the customers’ defects at a very high cost to itself.

It tried to sue the China Inspection Company and China supplier in Singapore and Malaysia. The Head Office in Germany then fired its German manager and staff in Malaysia for their incompetence in purchasing management.