I see some well-meaning importers who pay to audit factories based on a checklist inspired by the ISO9001 standard. However, I am really questioning the value of a factory audit on a small factory (below 400-600 workers). Here’s why…
Continue reading “A Factory Audit On A Small Factory. Worth It?”
Supplier self inspections, rather than sending in external quality inspectors, are becoming increasingly important for today’s buyers.
In certain cases, it makes a lot of sense to stop sending employees to check if a supplier has done a good job.
However, it is not just a case of saying “oh, by the way, starting next month we’ll only check 20% of your shipments”, or “good job — we’ll trust you entirely from now on”.
Don’t play Santa Claus. Your suppliers VERY MUCH want you to stop sending inspectors to their facility, and in exchange, you can extract a few concessions…which will reduce your risks further.
But first, let’s look at the type of things you want to avoid…
Continue reading “How to Arrange Supplier Self Inspections for QC”
Understanding the cost of QC inspections in ChinaSome importers get to talk about their project for some time, see where we would help them, and finally (almost as an afterthought) ask: “How much does a quality inspection in China cost?”
When quoted: “299 USD per day of work”, I can nearly hear them thinking “wow these guys are cheap”.
They compare this fee to the costs of professional services in their country, or maybe to the total amount of the order, or to the cost of their best alternative (taking a flight to China). So it sounds really low.
***
1 man-day of work (which is sufficient for a good number of random inspections) costs 299 USD.
Travel expenses might apply, on top of the cost of labor, if the factory is far away from the closest importer. Let’s take 3 typical examples:
(Exact costs are quoted on a case-by-case basis, depending on transportation options available. Contact us if you’d like to discuss quality inspections now.)
***
I am always surprised by the expectations of some other importers regarding the cost of quality inspections in a Chinese factory. In their minds, even 100 USD would be a rip-off.
They compare it to the salary of a typical English-speaking employee in China (6,000 RMB), they divide it by 30 days, and they think we make an insane margin.
These buyers seem to forget about the main costs of a company that has set up a network in the main regions:
The first category is ready to pay more for better service and higher reliability. They tend to be medium- or large-scale companies, or they have developed their own product and getting all the details rights is what helps them charge a premium. These buyers allow quality assurance firms like ours (Sofeast) to exist.
They want to make sure they are paying fees within the market band (i.e. not twice as much as their competitors). They are looking for convenience, reliability, and speed, more than a ‘great deal’.
I learned that the second category of buyers, unless they absolutely have to, will never accept to pay the market price for quality control inspections. They prefer to roll the dice and let the factory ship out. In some cases, if they work with a ‘sourcing agent‘ who spends 20 min looking at a few products and taking a few photos, it is already plenty.
Is it rational? Not always. Are they worse off? Sometimes. If they buy off-the-shelf products that are purely decorative (or to be given away as part of a marketing campaign), that might make sense!
What is our conclusion, knowing all this?
Our main target is companies who have developed their own product. In the QA department, we help them get better organized, specify what their QC checklist is, and take better advantage of QC inspections.
And those buyers who always look for the best deal? We let them choose the cheapest suppliers and run the highest risks. They are not a part of our client base … We are just not a good fit.
Now that you have a better idea about quality inspection in China cost, we have 3 options for you.
I wrote many times that QC inspections before shipment are a good way of keeping quality problems where they belong: In the factory.
Quality control inspections are a good tool. But pointing out their limits is important. Misinterpreting their reliability is very easy.
Continue reading “Beware! QC inspections based on AQL & random sampling have limits”
