You may meet the problem when working with a Chinese factory directly

You may meet the problem when working with Chinese factory directly

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– Uncontrolled production costs and the supplier trying to raise prices all the time

– Your production is made by a company you don’t know

– The supplier does not solve the problems found in the quality inspection

Uncontrolled production costs and the supplier trying to raise prices all the time

This is one of the problems with Chinese suppliers that often occurs when you search for suppliers and end up selecting the lowest-priced one.

You have closed the order in a rather informal way with the cheapest supplier and you have made a down payment of 30% of the total order. From that moment on you start receiving a series of emails telling you that such and such a material or other component has gone up in price and they can’t keep the original quote. Or you simply ask them to make a small modification in the packing and you see that the total price of the product increases by 10%.

These are signs that the cost of the product was underestimated in the initial quotation and the supplier is trying to make a better profit margin.

Your production is made by a company you don’t know

This is also more frequent than it seems at first glance. This type of problem with Chinese suppliers is due to the fact that we always run the risk that our production is not carried out in the supplier’s main plant and that it is carried out in an external company where the same controls are not in place as in the main company.

This problem is easily solved by carrying out the corresponding production controls and warning the supplier that such controls are going to be carried out. In this way, the supplier will be aware that an inspector may come to his company at any time and may notice the deception.

The supplier does not solve the problems found in the quality inspection

The risk in this case is that the supplier does not fix the problems we have found during the quality inspection.

This happens very often when you work with a trading company that does not have enough control over its suppliers.

The end

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