Andrew Reich, who has been evaluating factories in China for U.S. brands and retailers for more than 12 years, says he’s seen the best and worst of manufacturing on the mainland. The founder and CEO of Shenzhen-basedInTouch Services, provider of quality control services for overseas buyers, Reich is alsoauthor of the highly informative Qualitywars blog. He recently shared with Alizila some basic tips for finding a reliable factory in China. Here are his suggestions:
1) GET PERSONAL. Your business depends on knowing who you are dealing with, which means when sourcing products you need to do more than merely click a “buy it now” button. After you’ve made initial contact, and have determined if you have reached an agent, a trading company, or a factory representative, the next step is arranging an online meeting with someone in thecompany’s management. “You should treat a contact as if they were someone local that you intend to do business with,” says Reich. You might not be able to physically visit the factory, but you can use technology such as Skype and instant-messaging software to become more familiar with your potential partner. “The type of person that is going to be willing to engage in this kind of very open, transparent discussion is going to be the type of person you want to deal with,” Reich says. “Somebody who consistently avoids this kind of encounter is a warning sign.”
2) GET REFERENCES. Ask your factory contact to provide references of others in the U.S. or Europe that they have done business with. Many manufacturers cannot tell you all of their client’s names or disclose the brands they work for, but they ought to be able to provide one or two references, Reich says. You should contact these references directly, preferably by phone. If the supplier cannot provide you with one genuine reference, “it’s a clear-cut sign that something is up,” says Reich.
3) GET HELP. You can hire professional firms in China to visit your potential supplier and provide you a detailed report, usually for less than $200. Hiring an inspector to act as your boots on the ground in China costs a bit more but “could end up saving you a fortune,” Reich says. (Many suppliers using Alibaba.comhave been pre-vetted through the website’s Supplier Assessment process. To learn more, clickhere.)
4) GET DETAILS. Ask your potential supplier if they can document their quality control procedures, and if they adhere to internationally recognized product safety standards. “You may ask for things such as a quality control checklist for the product in question, or for lab-testing documentation showing that the materials being used in the product are safe and legal for your market,” Reich says. “Do they have a quality control department at the factory that is separate from the production department? Do they have documentation to prove that, such as an org chart?” Professional factories and trading companies will be familiar with and responsive to such questions, Reich says. (To help ensure products meet buyer specifications prior to shipping, Alibaba.com offers low-cost product inspection services through third-party inspectors located throughout China. To learn more, clickhere.)
Finally, Reich encourages buyers to pay attention to their instincts, avoiding suppliers that are evasive or just don’t seem right. “If anything seems hinky,” Reich says, “either do more research until you feel comfortable–or move on.” China has no shortage of factories, so why get stuck with a stinker?
To see what it’s like to visit small factories on the mainland, watch this video:
