Tackling the Issue of Quality Fade

Quality fade is all around us, but many businesses and consumers don’t always know how to recognise this concept or know what they should call it.

Around the world, we’ve all been exposed to situations such as recalls for unsafe food products, cars with safety problems, dangerous toys, electronics and gadgets that break within days. Not to mention the buttons that fall off clothes on the first day or the zip that breaks in 48 hours after purchase.

This is ‘quality fade’, which describes a supplier systematically downgrading the quality of the products that a foreign buyer has contracted them to manufacture, in order to boost their profit margins.  Quality fade and the escalating business greed that drives it has become a significant issue for importers sourcing products from highly competitive low cost manufacturing countries, which notably include Vietnam and China.

Mawson Global experts regularly work with foreign companies who recognise they need support and assistance in establishing relationships with quality manufacturing partners in emerging and industrial countries.  Many of our clients have encountered deliberate quality fade problems in previous business dealings, with the excellence of early product runs and customer satisfaction frustratingly replaced by quality problems, customer complaints and lower sales over time. 

Sometimes quality fade issues are just annoying nuisance, but for other products such as foodstuffs or vehicles, profit-driven cuts pose a real risk to consumers’ health and safety on the other side of the world.

Unscrupulous factory owners will continue cutting quality and cost corners until confronted or exposed.  This is a common problem in China, with shrewd suppliers proffering plausible enough excuses if questioned, aware from experience that many international buyers will shrug off a small problem, believing it was simply a mistake.

We can introduce you to trusted suppliers who are serious about quality, helping you to develop a reliable long term manufacturing partnership. We provide advice on negotiations to achieve clear outcomes based on agreed specifications, structuring contracts before production starts that protect both parties; and on quality control steps which include setting up inspection procedures and standards.

We will advise you to save yourself future trouble and money by independently checking the factory before entering a working relationship.  Always work within formal contracts to avoid potential issues that often arise from more informal arrangements, which are found to be unenforceable in the manufacturer’s country. We recommend using a third party auditor regularly, or if you start to be aware of quality fade issues with a supplier.

Your contract with a manufacturer must specify that they take responsibility for product quality control, including catching defective products before they leave the factory premises and accepting liability for handling any quality problems post-sale. 

Over time, it is critical that foreign buyers maintain a close watch on product quality, to avoid the headaches of quality fade problems that increasingly impact your resources and bottom line. 

 

Overcoming Language Barriers with Global Sourcing Partners

Globally sourcing your company's products can improve your productivity, efficiency and bottom line, but sometimes language barriers can get in the way. From simple miscommunications to cultural gaffes, language barriers can cause international business relationships to grind to a halt.

It’s important to have a strategy in place to mitigate language issues before they cause serious problems. So, here’s a closer look at strategies that can help overcome language barriers with your global sourcing partners:

1.       Translate all critical documents into the local language. Before embarking on a business partnership, it’s important to consider the basic documents that will outline and guide the relationship. Examples of critical documents include legal contracts, sourcing guidelines, company and background information, and operating agreements. Translate these documents into the local language to ensure that both members of a partnership get off to a good start. It gives everyone involved a clear frame of reference. Any point of confusion or disagreement can refer back to these original core documents.

2.       Utilize multiple channels for communication. One of the most effective strategies for overcoming language barriers is creating redundant systems. Don’t rely on a single source of communication to handle important conversations. Follow up conference calls or Skype discussions with summary emails that outline the major takeaways. Email exchanges are easier to track than phone and in-person meetings, but written communications also should be supplemented with other points of contact. Even simply hearing a colleague’s voice helps to build strong relationships.  

3.       Partner with sourcing firms that have language capabilities: When you’re selecting your global sourcing partner, choose a firm that has language and translation capabilities. The right partner will be able to navigate your sourcing market with conversational fluency, but also be able to translate written documents as part of the process. The best firms offer this support to clients as part of the ongoing relationship, and can provide premium support at a reasonable price when special translation needs arise.

If you’re contemplating launching a global sourcing initiative, Mawson Global can help. Contact us to discuss your business, your sourcing goals and how our services can make it easier to navigate the process today.

The Year of the Horse and What It Means

The recent Chinese New Year has ushered in the Year of the Horse. This year’s Chinese New Year fell on Jan. 31, bringing the Year of the Snake to an end. Chinese New Year is China’s most significant holiday, kicking off a two-week period of celebrations around the country. Here’s a closer look at how the Chinese lunar calendar works, and what to expect in the year ahead.

China’s calendar is believed to have originated during the Han dynasty (206 BC to 220 AD). It’s a 12-year cycle, and each year is connected to one of the 12 animals in the Chinese Zodiac. The zodiac, known as Sheng Xiao, features the rat, ox, tiger, rabbit, dragon, snake, horse, sheep, monkey, rooster, dog and pig. Each animal is also associated with a specific element, such as fire, wood or water.

Different years carry different qualities, and understanding this can help you relate more effectively to your Chinese supplier. The Year of the Horse is generally regarded as a positive year, with people looking forward to success and happy events. The horse is a good omen in Chinese culture, and this carries through to the zodiac interpretation.

The Year of the Horse is particularly positive in the business world. It’s connected with leadership, decision making, and taking decisive action. There’s a focus on the successful conclusion to current ventures, and finishing things ahead of time. Profits are assured. The overtones of the year are happiness, good health and prosperity. The Year of the Horse is considered an excellent time to launch new things and an advantageous time to travel.

People born under the Year of the Horse are also believed to have many of these traits. They’re strong leaders with high levels of energy. Horses stay active, always seeking out new challenges and approaching life with an energetic zeal. They’re also natural performers and great with people. Whether it’s cultivating a one-on-one relationship or taking center stage, people born in the Year of the Horse are natural leaders, sales professionals and communicators.

The Chinese calendar offers a unique perspective. For companies doing business with China, it’s helpful to take the time to get to know the system and its implications for the year ahead. If you’re ready to connect with sourcing partners in China, contact Mawson Global today for assistance with your global sourcing needs.

What the Chinese New Year Means to Your Supplier

It’s the most important Chinese holiday of the year and one your supplier is likely looking forward to with great anticipation – Chinese New Year.

The Chinese New Year, known as Spring Festival in China, marks the beginning of the Chinese calendar year, the end of winter, and the first solar term of the Chinese year. This momentous cultural occasion is celebrated with festival that begins on the first day of the first month in the New Year and ends on the 15th day of the year. During this time, migrant workers return home and gather for huge family reunions during which they catch up, feast, and wish each other peace and happiness.

Given China’s significant internal travelers, special arrangements are made with the area’s various methods of transportation, including buses, railways, and airlines, beginning two weeks before the holidays. This time period is called “chunyun,” which literally means “transportation during Spring Festival.” It is the world’s largest annual migration, and it could impact your company’s bottom line if you’re unprepared.

Given the massive relocation of its people, traveling to China during its New Year can be a fruitless endeavor. Suppliers may be difficult to reach or completely inaccessible beginning two weeks prior to the holiday as their workforces head home. During the Chinese New Year, many offices will be closed. Factories may operate on different time schedules -- closing early in the day and reopening much later than usual. Some may even close the week before the New Year and remain closed for the duration of February.

If your company is reliant on Chinese suppliers, you need a plan to ensure your business continues to operate during the holiday.

Mawson Global, a leader in global sourcing, can work with your organization and its Chinese providers to ensure everyone is on the same schedule during the holiday season. The Mawson Global team understands the importance of this holiday to Asian suppliers, and it can help your organization avoid delays and disruptions to its business before, during, and after the Chinese New Year.

The Western holiday season may be over, but for our Eastern friends, the celebrations are just around the corner. This year, the festivities kick off right at the end of January. Make sure your suppliers can celebrate one of their favorite times of year and your business continues to run smoothly during the month February – contact Mawson Global for assistance with your global sourcing, marketing, and commerce solutions.

 

 

 

Sourcing From China on the Rise

 

As global economic indicators have shown incremental improvement over the past several months, it could also point to a positive position for Chinese manufacturers and service providers. According to the most recent International Sourcing Confidence Index, confidence from multinational companies that source products from China increased in the third quarter, up from 50.40 to 51.28, according to the Shanghai International Sourcing Promotion Group Co.

The Index is a measure of the confidence that multinational companies feel with regards to sourcing products in China. The survey interviewed more than 200 multinational companies that have a presence in China. A reading above 50 indicates optimism, and the third-quarter index represents the highest mark in a number of quarters. The index’s improvement also indicates that the global market might be inclined to source more products from China.

According to the most recent trade information, exports from China grew to 7.2% in August, up from 5.1% in July.

With four experienced individuals staffing our office in Qingdao, China, Mawson Global is strategically positioned to help companies and organizations of all sizes and disciplines to identify and acquire the most cost-effective suppliers of products and services in the Chinese market.

Because we have a team on the ground in China, we’re able to minimise the risks associated with global sourcing and help your company make the most out of global sourcing its products. Our team members are knowledgeable about international standards, and understand local languages and cultures. Having a team in China also means that Mawson Global can quickly identify suppliers that meet your quality standards, and provide you with a partner with whom you can cultivate a long-term relationship.

There are a number of reasons to partner with Mawson Global for your global sourcing needs, including:

  • We are a global leader in product sourcing with more than 70 years of family experience.
  • Small and medium enterprises get Fortune 500 sourcing expertise for a fraction of the cost.
  • Mawson Global identifies high-quality suppliers that you can build a long-term relationship with.
  • These relationships enable your company or organization to become a key player in the global market.
  • Sourcing through Mawson Global will keep you ahead of your competition.
  • Partnering with Mawson Global helps your company slash costs and increase your profit.

For more information on how Mawson Global can help you join the global arena, please take our 10 Product Challenge or contact us.