More New Buyer Questions

More Questions from New Buyers at the Global Sources Hong Kong Show:1.    Q: If I’m small can I do the QC myself?A. Absolutely.  The reason that you are here in China, at a show is because you know your product better than anyone else (or you don’t have any one else to send).  The logic for QC is the same as for the trade show—who knows more than you?!  No one, so yes, you certainly can do it your self.Now the caveat.  What do you really know about how to do QC, arrange logistics and negotiating with Chinese (factories)?  If the answers are nothing, less and “don’t they speak Cantonese in China?” then you’re in a bit of trouble.  BUT NOT ENOUGH TO DISCOUNT THIS OPTION ENTIRELY.  You need to be very careful about the way you handle this, but it is very doable.First, you need to realize that you’ll need testing/QC or at least samples at the VERY LEAST three times in the production process.  First, you want to at least see if not test/QC the first production samples that come off the line—these are not the samples that you had built before production started.  I’m talking the honest first actual product off the line.  Problem is, if you don’t pull them yourself, how do you know they are production and not golden samples?  You don’t.  Pull them yourself or hire someone to pull them for you.  It’ll be worth the money to make sure that these are the real deal.  Trust me on this one.Second, you need to do some sort of inline QC at about 20% to 25%.  This is to confirm that it’s all going well, that the samples, first samples and current production still match.  This is also the time to confirm what the packaging will be like.  At about 25% production you can start doing the set up and pre-packaging problems solving work on the fulfillment line.  This may take a week—confirming production, print checking the packaging, putting the first pieces into the packaging, teaching fulfillment QC what the packaging priorities are and completing some 100% correct standard samples.Finally, you need to be there to check the finished product and confirm the truck loading before you pay for anything.  This last trip should not be confused with “I’m bring money to pay you” which is what the factory wants to have you come to do.  Your first priority is to check the quality of a large percentage of finished goods.  Up to this point you’ve honestly maybe seen 1% of your product finished.  So now it’s time to look at a random 10 to 20% (depending on how much time you have).  If you have done more in-line QC then you can check out less now.  If you’ve had more hands-on oversight during the packaging/fulfillment stages than you can do less now too.  But if you’ve only been in your supplier’s factory for a day or two at the 25% point, you need to be looking at a lot of product to make sure that you’re really getting what you expect.A couple of warnings about doing your own QC.  You don’t need to let your factory know you’re coming.  If you have a production schedule from them and they know that you’re going to have QC drop in, that should be good enough.  Sometimes you want to be polite (the first visit) but you shouldn’t need permission or an appointment to see your own stuff.  Second, do not, under any circumstance, accept sub-standard product because you are being pressured or cajoled or even threatened.    Third, make copies of all your QC reports/list/documents (whatever you’re using) and get it signed and stamped by the factory manager—now he too knows that what is and is not up to standard to ship.  Confirm with whomever is in charge that your issues must be resolved before you’ll pay (and ideally before they do anymore work).  Finally take tons of photos and samples with you.  Write on them, mark them up, use them to talk with QC and line workers.  Sign good and bad pieces and make sure you and the supplier both have a copy of each.2.    Q: Where should my QC office be?A: As close to the site of production as possible.  If you are from the UK, as the guy who asked this question was for example, and you’re doing 80% of your manufacturing in China nowadays, why the hell would you still have your QC office and personnel based in the UK?!  Yup, at this point in your business life you’d better be moving your QC manager to China.  If you’ve still got a QC manager checking goods as they enter your UK warehouse, i.e, goods that have already been QC’s, packaged, paid for and shipped from China, then you are paying for nothing.  It’s too late to do any QC once pre-paid product hits your warehouse; especially if you’re the importer of record!If you’re doing say, three production runs a year and each take 30 days, then maybe you only need to have your QC over here for 30 days a year.  Why 30 days and not 15 days?  Because 30 days divided by the costs of 3 trips is a much better deal than 12 days dived by the cost of 6 trips (two trips per order).  The point is, you get better product for less money if you have someone over here for longer times per trip.  The natural conclusion being that a full time body in the factory is both the cheapest and safest option.

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Week Two HK GS Sourcing Show Questions, Oct 20