China Business

China Plant Tours. Nine Reasons Why You Must See For Yourself.

International manufacturing lawyers

China Sourcing Blog recently did post, China Plant Tours: Why You Have to See for Yourself, calling for visiting the overseas plant from which you will buy your product, “before you place an order.” China Sourcing calls for this for the following reasons:

  • It makes sense to meet the people with whom you will be working before you place an order. You will get to know their personality and will start building a relationship with them. Good relationships play a crucial role in business in Asia — hence the value of a face-to-face meeting can never be underestimated.
  • You can inspect manufacturing areas to get an idea of raw material quality, workers’ skills, production capabilities and the internal QC process of the manufacturer. There is nothing better than to see it with your own eyes.
  • You can find out to what extent your manufacturers subcontract their production to other plants by checking their work areas and warehouses, or by asking them during meetings.
  • You can experience the working environment and meet the workers to be sure that your suppliers are not using child labour and are providing protection masks etc.
  • By making the long trip, you are giving your suppliers a sure signal that you are really serious about quality issues, and more so if you emphasize quality during your meeting. When they produce and deliver products, they will put you in a ‘Picky clients’ list and will therefore be more careful with your products.

It then goes on to list the following extra benefits you can gain from visiting your overseas product supplier:

    • You may find out that you can actually source many other products in China besides those in your current plan. I had a client before who saw good packaging material during his plant tour in a steel tube plant and finally ordered some packaging materials as well.
    • You may see your competitors’ products in a production line during your plant tour.

I am going to add an eighth reason that either sort of goes beyond all of the above or completely overlaps it: You know your own business better than anyone else. Therefore, you visiting the plant is more likely to trigger suggestions for minimizing problems/maximizing quality than anything else.

Ninth reason is that you going to your China plant should go a long way towards convincing your supplier that you are serious about your relationship with them and serious about watching over what happens to your product.

Anyone up for a tenth reason?

4 responses to “China Plant Tours. Nine Reasons Why You Must See For Yourself.”

  1. Tenth. You can enjoy genuine Chinese food.
    Eleventh. You can understand more about Chinese business culture and tradition.
    Twelfth. You can enjoy more freedom here in China. You can do a lot of things that you can not do in USA.
    Thirteenth. You can make contributions to the current economic crisis.

  2. Visiting the factory will also give you a better sense for how easy/difficult the verbal communication process will be once you begin the production process. Many factories’ account managers are very good at reading/writing English, but are not nearly as skilled speaking English. Invariably, issues come up during production that require more than written communication. You want to be confident that these issues can successfully be addressed either in person – or at minimum – via phone if required.

  3. You can tell a lot about a factory by the composition of its work force in gender and age as well as by its parking lot and lunch.
    “When we opened this plant, the parking lot was full of bicycles. Now it is full of motor scooters, motorcycles, and cars.”
    Plants often provide lunch for the workers, ask what the budget is for each meal and then look at what the workers are eating. It’s a sign not only of how the company treats its employees and obligations, but also of how well it controls costs and spends money (in terms of budget vs. provided meal).

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