Sourcing 101 Series Part 3 – Quality Management in China

Let’s consider the economics. A typical inspection of the product shipment can cost the customer between 250 to 400 US Dollars. The inspector, who in many cases is a freelancer hired on a contract by the inspection company is getting somewhere between 50 to 90 US dollars. The sale price of the shipment to be inspected can be in the range of several thousands to hundreds of thousands of US Dollars. In this case the manufacturer can be tempted to "improve" the pay of the inspector and thus ensure the positive outcome of the inspection. In this situation the only losing party will be the customer that ends up with a faulty product or any other number of issues with this shipment.

So what you can do to avoid getting into a situation like this.

1. Do your homework - get references on the inspection company. 

2. Find out if inspections are delivered by a staff member or by a contractors. People that are on the payroll will be a safer bet. Staff members will be more likely to be loyal to your interests.

3. Start from buying small. In the end of the day you are trying to create a direct sourcing relationship with the manufacturer, not with the inspection company. 

4. Keep records of your inspections. This field is played by many these days, you want to know how good these inspectors are. Maintain performance evaluations records on the inspection companies.

5. Have ready alternatives. Inspection is one more service that you use, it is good to have your options.