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15 Nov 2010

11 Tips for Dealing with Chinese Factories

by Ian Lowsley, Director China, Chinawand

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Chinese-factory
Receiving painless service from a Chinese manufacturing partner is a massive ask, and is far more difficult to achieve when carried out remotely and with pressing time constraints.

Starting to manufacture in China can be made a much smoother experience by remembering to think about the following points:

You get what you pay for. Factories will sometimes go the extra mile with the promise of a large order and provide samples and lots of initial project work without payment. Some factories do not. Expect to pay cost for samples.

Come to China with your own approved product technical drawings, samples (if you have them) dimensions, colours, surface finishes, tolerances, weights, materials, QC criteria all decided upon.

Put in the time. Working with a company in another time zone will always add an element of difficulty and delay thanks to short working hour overlapping windows. Working with a non-native English language country can magnify this issue.

Chinese factories will generally ignore all but the most recent email and will not take in the bulk of a long one. Be concise and use as simple English as possible.

Pressuring factories with hundreds of angry emails is rarely helpful. Trying to understand the issues at hand and working to solve them without apportioning blame or emotions will result in a faster project completion.

Repeat all important points, then repeat them again and send QC and QA to inspect that your words have been put into correct action. You will be amazed how project critical points can be ignored, forgotten or confused.

Many factories are run by illiterate bosses with a good head for business. This is not intended to be defamatory, but should serve as a reminder that dealing with many Chinese factories is dealing with people who have no formal management training, and little schooling. Be warned – appropriate time should be reserved for a ‘meeting-of-minds’ on important issues.

Direct communication with the people in charge of the Chinese factory will be very rare. For the above reason, an English speaking sales team will be a factories main/sole point of contact with overseas clients. Make sure your words are getting translated properly and through to the people who need to hear them.

Be prepared to double your expected delivery date. Set backs will occur, whether they are made during the communication process, sampling, production or shipment. Adding a few days contingency is not enough. Do not expect miracles and fast delivery times, especially if you are working with a new manufacturer on a new product.

Visit the manufacturer or send someone you trust to visit them before any substantial funds leave your bank account. The importance of this step cannot be stressed enough. When visiting a potential supplier, take an interpreter you can trust. Chinese interpreters can sometimes be unwilling to communicate strong sentiments and can weaken in the face of an intimidating factory boss/team.

Have a company in China you can trust to follow production and keep the factory following your instructions. It would be great if one short client visit was enough to ensure commitment and eternal understanding. Unfortunately, if communication breaks down, mistakes in sampling/production can occur and the whole project can very quickly turn into a rescue operation. More face-time with the manufacturer will be the best way to resolve issues, but would mean another costly trip to China


About the Author

Ian Lowsley is Director for Chinawand, and a member of Dragon Business Network - view profile


About Chinawand

Chinawand specialises in performing and managing many essential China-based business functions for overseas clients starting or expanding their projects in China. Chinawand can help facilitate smooth and successful trade relationships with Chinese businesses.






Comments

 


Gope Earthling | posted almost 2 years ago

thanking you


Michael Ma | posted over 2 years ago

It's a very good article. In this article, the author mentioned the word "translator" or "interpreter" a few times. That means a professional and responsible translator or interpreter is really important in the success of importer and exporter.


Ian Lowsley @ www.chinawand.com | posted over 2 years ago

@Ed Choong - You are right about the 'no problem' comment meaning trouble ahead; it can signify an inappropriate degree of arrogance or ignorance of the projects finer points. Meeting the boss to see he/she has considered the full implications can help allay concerns regarding the manufacturers understanding. Packaging is also a critical but often overlooked point worth remembering to get right early.

@Renaud - Good point. factory size is a major determinant when it comes to the right balance of quality, delivery time and quality. I would add that large factories can be interested in a project if it proves a challenge or pays enough, and although small factories can be severely disorganised, they can be diligently monitored to meet all client expectations. Again - impossible when attempted from overseas.

@Phillip - Yes, that does happen and is normally totally unexpected like a bolt out of the blue! Having someone on the ground can stop a fty from thinking they can get away with such behaviour.

@David - Clients on tight budgets tend to assume they are saving funds by dealing direct. Later on, they also tend to become the ones who advocate the usefulness of having additional in-country support the most!


Ed Choong | posted over 2 years ago

Very good & precise summary. Visiting factories is very important especially if you plan to place a large order. Quality between factories can be very different. Always try to meet the boss of the factory to get his commitment. Be very careful with factories that give you an immediate "No Problem" answer. Most of the time it means no problem to the them but many problems to you. I highly recommend to get someone that you can trust to follow up minor details for you. When inspecting a factory, check their shipping department too. Poor quality packing will result damages in LCL shipment.


David Tutelman | posted over 2 years ago

The last point cannot be stressed enough. It's difficult to get the factory to follow your instructions from thousands of miles away. If you can't be there in the factory making sure your products are up to snuff, hire someone to do it. Once bad product goes out, it can't come back.


Renaud @ www.qualityinspection.org | posted over 2 years ago

Excellent tips. I would add "avoid factories that are either too large (and won't care about your business) or too small (and likely disorganized)".
I agree with what Phillip wrote above, too.


Phillip | posted over 2 years ago

It is very true that pressuring the factory doesn't help. In fact it will likely make the situation worse. Also look out for the factory that will send you one good container. Then another good container. Then when you think everything is going great they send you garbage.


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