Doing Business in China

China sourcing typical problems most frequently identified during supplier auditing

The first type of problem results when the seller is not the actual factory, but instead may be a trading company or other type of agent. These agents usually fight hard to ensure the buyer doesn’t do an audit because:

they worry that the buyer will go factory direct to get a lower price

they are aware that they lack an effective quality system and are likely to fail the audit
So the problem is that sometimes intermediaries don't allow the buyer to conduct an audit. The solution to this is simple – find a new vendor!

The second common problem is the "bait and switch". Some sellers will have an audit done at one factory, but then produce in another factory which may have lower pricing but a poor QC system and low workplace standards. The best way to avoid this trap is to state clearly in the contract that the factory address audited will be the location of production for the order.

China sourcing typical problems most frequently identified during supplier auditing