- Level of quality and defects: No manufacturing process is perfect, but imperfection can be more significant when several factors are neglected. Variability and complexity are common parts of the production process. Sourced products may not adhere to common U.S. defect standards. Global sourcing activities could open up disputes when percentage of defect rises above normal.
- Delayed shipments: This problem affects all products, especially perishable ones. It’s simple to purchase items at promised, delivered prices. Transit issues and unexpected factory hold-ups will delay shipment. Long-range logistics can be complex and importers will consequently be at a risk. It is important for importers to fulfill their shipping timeframe and completion dates. Delays can derail distribution and drive up multiple costs.
- Compliance and accountability: Importers should evaluate compliance when they manage global sourcing activities. Final products may not be accepted when it fails to meet due diligence about fair compensation practices, forced labor, acceptable working conditions and child labor. Many manufacturers in China have acceptable working conditions and standard, while others have sub-par working environment. China Assured recommends only reliable manufacturers that treat their workers fairly. Compliance and accountability issues could cause severe brand damages, especially if illegal and unfair practices become known.
- Language barriers: This issue may also affect products. Manufacturers in China don’t only conduct daily business in local language, but products could have inadequate language supports. Users’ manual, interface labeling and instructions could be somewhat inaccurate, causing problems among end-users. Managers in China often speak English, but relayed instructions to line staff could be incomplete or misleading. Words are often lost in translation and errors are bound to happen, especially when communication isn’t interpreted and translated appropriately.
Doing business with people a half globe away presents significant risks, but they shouldn’t insurmountable. China Assured assists companies to take advantage of global opportunities with teams assigned in China. Risk to final products will be removed or significantly mitigated. This ensures importers to get the full benefits of global sourcing, especially from China.