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What I Learned in Church on Sunday.

I went to church on Sunday, as I do on most Sundays.  It was nice, as it is on most Sundays.  There are many great reasons to go to church, whatever “church” is to you.  For me, the opportunity to take a break from the world and sit in quiet meditation is always welcome.

But this week, after the service was over I got an extra lesson.  More than one of the guys that attend church was, after the meeting, sharing some of the current difficulties they have with working in China.  Here’s a smattering of thoughts from guys working in the furniture, house-wares, sporting goods, electronics, crafts and garment industries as well as a few guys working for major retailers too.

1. Beware the golden the sample.  No matter what industry you’re in, no matter what you eventually wind up with for production and no matter where your supplier is located—the golden sample is the bane of all manufactures.  The golden sample can pass every test devised by man and it can be delivered on time (it has been said to even be able to walk on water!).  So what is there to be scared of?  Once the golden sample is approved you will never see production that meets those standards or looks that good or is delivered on time again.

2. Confirm the destruction of samples, old color standards, old CAD files and rejected product or you’ll be seeing it again.  Maybe not directly in your market; maybe not for a couple of years.  But as sure as God is great, you’re going to see them again.

3. The number of times you come to China directly correlates with the quality of product you get.  If you live here (hire someone, open an office) you will get much better product than in if you come once or twice a product cycle (or once or twice a year).  There is a reason why prices are so cheap going direct—all the QC has been removed!

4.  Regardless of the size of your operation, there are things that you have to check for and incorporate into your processes: Quality Control, if not done by you will most likely not be done by anyone else.  Product testing, including materials testing, in line testing and testing for specific market standards, needs to be done by an independent third party.  International style/quality project management systems, unless you bring it with you, teach it, live and invest heavily in the people involved you’ll not get the quality of management that you’re used to “back home.”

5.  Vietnam ain’t all it’s cracked up to be just yet.  If you can afford to build your own factory and are big enough to draw in with you the necessary support industries then Vietnam (or even many Western Chinese provinces) could be right for you.  If you are buying stock or slightly customized items that are reliant on additional manufacturing/labor/finishing and accessory items (packaging, for example) you may still need to wait a few years.  If you are buying material intensive product that has little additional packaging or components (wood furniture) then Vietnam could be good for you now.

SQL Attack Hits SRI, Twice

For at least 5 hours each, at two different times today, SRI was off line due to a confirmed SQL attack. The server that hosts SRI in the US was overwhelmed with traffic that shut down the entire server (multiple sites). No email, no website, no blog, no online project access.

If you tried to contact SRI today/yesterday and have not heard back, please contact us again. We’re back on online now!

Who is Winning the Lottery of Life?

A. The British

B. The Chinese

C. The Americans

D. Anyone/everyone else.

Answer: B?

Regardless of what you think the answer should be, the article puts the rise of China into an interesting light.

Sorry Rick

If your name is Rick and you called me on Saturday from the US and are still waiting for me to call you back–I’M SO SORRY.   I’ve lost your number; it didn’t record in my phone and I’ve just been praying that you’ll call me back on your own–please do.

Sorry, Rick.  And sorry to the rest of you for making you read this post.

Where is the IPR violation really coming from?!

Chances are, a lot is coming from YOU!  Think about what samples you are sending to your Chinese supplier to “copy” or “make adjustments too?

Yup, that’s right.  If you’re in the business of buying 6 or 8 items and copying aspects of each one to create your “own” design/product you are in fact contributing to the rampant IPR violations that is China today.

For example, I just spent the day negotiating some new contracts with a factory for a printing project.  We signed NDA’s prior to transferring information and art.  Once the negotiations were done (it’s taken a couple weeks to get this all completed) we walked through the factory with the manager and owner and looked at all the “samples” from US clients that they were “copying” on request from each of their US clients.  The factory says they sign strict NDA’s with each of their clients and so they don’t share any product or art with others.  But they also get “boxes of samples” of both product they’ve manufactured themselves and product from other factories each week from their US clients.

The factory is quite good about limiting information; they wouldn’t drop any names, and wouldn’t give me any samples (I always ask to see what they’ll really do when they want a new order) either.  But every one of their clients is sending bucket loads of competitor’s product to the factory and directly asking for copies to be made—some with major some with very minor changes.

Indeed we found 4 SKU’s of one of our products in the factory from another one of our own clients (when we have NDA’s we don’t share client names/product with other clients either).

It just made me laugh—clients in the US are so worried about Chinese factories stealing their IPR but at the same time are more than willing to violate any and everyone else’s IPR to some degree with the copying of samples.  How many times have I been asked “we just have to change this 10%, right?”

Could it be that the evil empire has learned it’s diabolical practices from the very folks complaining about the practices in the first place?