Category: Shopify Tutorial

Elksourcing:Common Practices to Make a Prototype

So, you have a recurring dream about an innovative new product, or a persistent feeling there is a large need for the product you want to invent and get to market, you want to make it to real. 

What are the common practices to turn a new product idea to a marketable product? You’ve got to get it made as a prototype for starters. And what are the necessary steps that must be taken to get you started in the prototyping process?

Step 1: Draw your Design

The first step in creating your initial product prototype is to create a sketch of your design both as a complete unit and separately, with the individual components. It is likely that you will end up with an entire sketch book of designs as your creative energies flow out onto paper. Being as detailed as possible will make the next steps in the process easier for you and the design and manufacturing professionals you may work with down the road. And, those details will also assist with the patent process once it is time to move forward with that plan prior to manufacturing your product.

Step 2: Visualize your Idea Virtually

The next step in the prototyping process is to create a 3-D computer-generated version of your idea. In doing so, you’ll avoid costly mistakes in the engineering and production phases. Virtual prototypes can reveal possible clearance issues in moving parts or identify those not made to spec for various industries. There are several 3-D modeling software programs that can be used to make this process easier, including products from Autodesk, Solidworks, ProE and more, all moving you toward the goal of turning your original idea into reality.

Step 3: Make a Physical Model

Upon completing the virtual images of your product idea, you are ready to move to the next step of prototype generation. Now is the time to unleash your full creative potential! Using whatever materials are available to you, create a Physical Model of your product using the rendered drawings. To save on costs, start with inexpensive materials as you will probably need to make several attempts at an acceptable model for patenting and production. This is where trial and error comes in and you can learn more about potential flaws in the design and necessary modifications. If you lack the experience and knowledge to build your model – and need to keep costs down – seek out a design student and/or retired engineer to help you with your task.

Step 4: Partner with a Manufacturer

Once you are satisfied with the physical model you have developed and feel ready to move forward, it’s time to locate a manufacturer best suited to mass produce your type of product. You’ll want to find a company that can not only produce your product at a price per item that will make you profitable, you’ll also want to make sure they have an industry-proven track record for producing quality goods delivered in a timely manner. Factories across the globe are numerous and often excel at producing one type of product over another. That’s why you may want to connect with a sourcing company that can help manage the entire production process from beginning to end.

Elksourcing:Quality Audits Help to Reduce Supplier Chain Risks

As a buyer, you’re likely under pressure to find the best price for goods without sacrificing quality. And understanding a supplier’s capabilities before working with them is key to this objective.

Many experienced buyers choose to rely on a dependable third-party QC partner as their “feet on the street” for supplier evaluations. These partners can perform a quality audit on your behalf and provide detailed results, including production capabilities and potential quality issues.

Here are a few risks an audit can help you avoid before you place an order with a supplier: 

Production and shipping delays due to disorganization

All buyers worry about delivery dates. A bargain price or high product quality may be little consolation to customers that don’t receive their good on time.

Shipment delays threaten your reputation as a reliable supplier. A late delivery can cause a customer to end their business relationship with you or consider alternative vendors. To make matters worse, you might not receive full payment for an order if your customer charges back for late delivery.

Even if your supplier is responsible for a delay, your end customer is still likely to blame you for a missed delivery date.

Quality issues due to limited factory QC checks

Quality issues pose a different level of risk, depending on your product type and the defect severity. While some mishaps are inevitable as you iron out the production process, you never want to let quality issues through to your customers.

This is especially true for purchasers who sell on platforms like Amazon. Just one defective shipment can result in a suspended Amazon seller account.

Some questions an auditor might ask during a supplier audit to verify internal QC processes include:

a.   Does the factory conduct incoming inspection according to defined standards and requirements? Are the results of incoming inspections recorded?

b.   Is the status of raw materials clearly identified after being inspected (e.g. “approved”, “rejected”, “pending”, etc.)? Is rejected material recorded and quarantined?

c.    Do personnel responsible for product quality have the authority to stop production to correct quality problems?

d.   Does the factory conduct pre-shipment inspection and testing based on the defined inspection requirements? Are the results of inspection and testing recorded?

Conclusion

Quality audits are an effective tool purchaser can us to evaluate new suppliers and manage supplier risk. They can also be a tool for continuous improvement, since you can use audit results to benchmark established suppliers and compare them to others. Together, these offer a robust analysis of supplier risks and help you determine the best fit for your supply chain.

Elksourcing:Step-by-step Approach to Supplier Chain Management

Supplier chain is an integral factor in the success of your importing business. They can work like a well-oiled machine, where confidence levels are high, and the quality and delivery of products and services from your suppliers exceeds your expectations.

Or they can become a burden to bear, swallow up precious resources and cost your business thousands of dollars in administration and performance management. Like most importers, you probably find yourself in a situation somewhere between these two extremes.

But there’s hope when it comes to finding and developing great supplier relationships. Stick to this step-by-step approach, you’ll be reaping the rewards of supplier chain management.

1). Supplier selection

Choosing suppliers is crucial to your business. And categorizing your supply base is also vital to making the most of your available resources when managing those suppliers.

Importers often consider various criteria for evaluating potential suppliers when beginning their search, such as: 

A.   Minimum order quantity (MOQ): smaller purchasers or those with a limited budget, in particular, will be sensitive to the minimum order size a supplier requires.

B.   Payment terms: importers large and small may consider payment terms an important factor in choosing a supplier.

C.  Certifications: common certifications like ISO 9001 may be valuable to you. But remember that certifications may not always be legitimate and are best verified through an on-site audit.

D.  Production capabilities and capacity: an obvious point but one that many importers don’t know how to verify. Requesting and approving a pre-production sample and performing an on-site audit are among the most reliable ways.

2). Developing an approved suppliers list

We often find that a company’s supply base invariably expands over time. Indeed, taking advantage of the “risk management” option of a “second source supply” is a very prudent business strategy.

However, it is occasionally a good practice to review your supply base and consolidate the number of suppliers you have to manage, which is an expense in itself.

3). Auditing suppliers

As with most audits, supplier audits represent a snapshot in time. Lots of information can be collected by this method, and it is indeed a mandatory requirement for most quality management systems. There are two main types of supplier audits:

A.   Questionnaire-type supplier audits

B.   On-site supplier audits

Performing your own informal audit during a supplier visit. One way is to audit your supplier informally while you’re visiting their facility. You can get a lot of valuable insight just from having a look around the production area, warehouse and other grounds.

4). Measuring supplier performance

You can easily measure supplier performance if your systems support making the data readily available. And KPIs will become a very powerful tool if used correctly. Supplier KPIs are a good measure of overall supplier performance, such as: on-time delivery rate, defect rate, response time, etc. 

5). Supplier chain management

Once the development stage has matured to an acceptable level, it’s time to tailor on-going management to the needs of each supplier.

Conclusion

Sourcing to find the right suppliers is one of the most important functions of manufacturing. Your suppliers have a direct impact on the quality of your product or service. “Fighting fires” later in the process is costly, wasteful and invariably leads to customer dissatisfaction—in one form or another—and loss of revenue.

Begin by choosing the suppliers that best match your criteria. Compile your suppliers into a categorized list for ease of organization. Audit each supplier, either by phoning them and asking important questions, or better still, visiting them in person to perform a more comprehensive audit on site.

Measure the performance of your suppliers, and evaluate each objectively, by looking at their KPIs. Work with your suppliers directly to cultivate a strong relationship and improve quality. By taking all of the steps above, you can make informed decisions about which makes the cut and which needs further development.

Invest the time in your suppliers, maintain good lines of communication, speak to the right people and avoid confusion. Suppliers are an essential key to your success. And the ones you choose to work with can either make or break you.

Elksourcing:China Remains a Major Sourcing Destination

There have been countless articles about China’s reign as factory of the world coming to an end. While it is true that wage increases are making some of China’s lower-end industries, such as textiles, out to low-cost countries such as Viet Nam and Bangladesh, China remains one of the top procurement sources for mid- to high-tier products. Even as some of the lower-end industries move out, there is more to a country’s competitive supply chain than labor costs. China maintains a set of key factors that will continue to make it a competitive exporter even as the economic landscape shifts. 

1. High-quality Infrastructure (Especially Export-related Infrastructure):

China’s rail and road infrastructure, particularly along the coastal cities, are among the most developed globally. With a history of double-digit investment rate every year in infrastructure, China’s ports complement the rail/road infrastructure. Shanghai long surpassed Singapore as the world’s busiest port and it will be a while before key competing countries can match China’s current (and continuously developing) infrastructure.

2. Increasing Qualified Labor Force:

China produces hundreds of thousands of graduate engineers and scientists each year to be absorbed into the local industries. Moreover, China now has the world’s largest student population studying overseas with a sizeable number returning upon completion of their studies. Although there has been renewed attention to quality rather than quantity in the number of graduates, the increasing education level will boost China’s competitiveness vs some of the other low-cost sourcing destinations.

3. Growing Research and Development Expenditure Leading to Higher Innovation Capacity: 

Despite the reputation for copying, China’s innovation has continued to pick up pace. A report by McKinsey & Company highlights innovation in areas such as renewable energy, consumer electronics, instant messaging and mobile technology. As internal and external competition increases, China is also focusing on price reduction, adaptation of business models and supply chain development. This will lead to the elimination of less efficient firms, both domestically and those focused on the export market.

4. Lower Costs Comparing to Industrialized Countries: 

Despite double-digit growth in both wages and currency appreciation during the past decade, China’s minimum wage still stands far below that of industrialized countries. Rising wages are correlated with increasing productivity. Therefore, countries competing with China for lower costs will have to also compete with increased productivity and vice versa.

5. Specialization, Not Only at Sector Level, But Also at Product Level: 

China’s specialization in various products remains unparalleled globally. There are entire towns dedicated to producing a single product. For instance, Pearl River Delta is known for electronics industries, whereas Shenzhen has become the IT hub of China. Moreover, the product range available in these agglomerations is diverse, catering for low- to high-end products, resulting in differentiation as a key competitive factor.

6. Pro-export Policies:

It is true that the Chinese authorities have decided to alter the export-led growth model to one focused on domestic consumption. However, the country’s “going out” policy continues to have explicit support (via export rebates or subsidies) or tacit support, especially at local level. This support will continue to boost Chinese exports’ competitiveness -at least in the short term.

Elksourcing:Common Defects Need to Notice for Cast Iron Cookware

As a cast iron cookware importer, it’s your responsibility to protect your customers from hazards and other types of quality defects. And due to the unique properties of the iron alloy, production processes can lead to many different kinds of casting defects.

Let’s explore some of the most common defects in cast iron cookware to help you avoid a potential recall and improve your product quality

1. Pinhole

Pinholes are a common casting defect found in all cast iron products, including cookware. These holes are almost always visible to the human eye but don’t appear on the product until after mechanical processing.

2. Sharp flash

Sharp flash is generally considered a major or critical defect in cast iron cookware. Flash is commonly seen on post-production, pre-packaged cast iron cookware. This casting defect occurs due to a molding plate issue. Flash can be caused by: an insufficient clamp force, poorly fitted molding plates

and overfilling during injection processes

3. Rust

Rust, or oxidation, occurs when a cast iron surface dries after a wet surface preparation. This defect is usually easy to spot because it affects the cookware’s outward appearance. 

4. Sand Inclusion

Sand inclusion is one of the most frequent causes of casting rejection. Sand inclusion appears as lumps of sand grains near the surface of a casting. 

5. Chip

A chip is a common and visible casting defect that appears as a small notch or incision in casted products. It’s usually found at the edges of cookware products. 

6. Crack

A crack is a more serious quality issue than a chip. Cracks are usually located on the bottom wall of a piece of cookware and are clearly visible to the human eye.

7. Wobbling / Warping

Wobbling or warping occurs on the bottom or base of cast iron cookware. Long or flat castings are more easily deformed and will form a curving shape, usually close to the thickest part of the wall.

8. Black Residue

This kind of defect appears as an obvious black spot present in irregular positions and locations on the surface of cast iron cookware. Fingerprint traces remain at the surface of the casted cookware, causing oxidation.

9. Wall Thickness Variation

This casting defect appears as variation in the thickness of a panel or wall of a cast iron pan or pot. The wall thickness of certain areas exceeds your desired standard or tolerance

10. Dent / Dimple

All measures to prevent delamination of the shell and strengthen the bonding force between the layers can help eliminate dents.

You might also try: Increasing the temperature of the dewaxing medium to shorten the dewaxing time

Avoiding large, flat structures and flat plane or upward pouring. If necessary, set process ribs and process holes to prevent defects from occurring during pouring. Reducing shell moisture. A shell that’s too wet isn’t suitable for high-temperature furnace roasting.

11. Uneven enamel

This defect occurs when the manufacturer inconsistently applies enamel coating to the raw cast iron cookware.

Enamel can be applied to raw cast iron either through a dry application or wet application process. In both cases, operators might unevenly apply enamel on the product, leading to this defect.

12. Foreign material in enamel

Foreign material, such as dirt, human hair or insects, can be introduced to cast iron during the enamel process or the molding process.

Foreign material can appear within the enamel or even the raw cast iron body. Visible foreign material often hurts the item’s overall appearance.

13. Enamel drip

Enamel drip is the byproduct of an improper wet application of a liquid glaze, otherwise known as a glaze slurry. Larger drips often appear as a droop and smaller drips appear like a beaded tear. Enamel drips often occur when the enameled cookware is left to dry slowly at a low temperature.

14. Enamel Shade Variation

Enamel shade variation appears as a hue or brightness deviation from your specified color standard.

Many cast iron cookware buyers and retailers choose bright, glossy, visually-appealing enamel to coat their products. And the product color can be a deciding factor for some consumers, who want to display their cookware on their countertops.

15. Color stain/ spot

Similar to shade variation, a color stain or spot appears as a different colored toner on the glaze surface or as dirt material in the glazing.

But while shade variation is visible as a different hue or brightness of your specified color, a color stain appears on your cookware as a different color entirely. The incorrect color is usually confined to one spot.

16. Orange peel

Orange peel is a major quality issue in enameled cast iron cookware. After the products are fired, the enamel surface resembles that of an orange peel – bumpy and uneven.

Conclusion

With cast iron cookware’s recent surge in popularity, competition between cookware brands is fierce. You’ll need to manufacture a quality product that’s both safe and visually appealing if you want to be a major player in the cast iron cookware space—that’s no simple task.

Elksourcing:Recommendations to Optimize Your Supply Chain

There are some good ways to optimize your suppliy chain, expecially if you are a small or medium buyer, or you are new to importing business.

1. Develop A Supply Chain Strategy

In most businesses, they consider supply chain management an independent function in the company, and that it is not involved in general business strategizing. This is ludicrous. The supply chain is one of, if not the key, factor in global business success. Companies that treat their supply chain like an extension and not a primary function of the company tend to struggle more with success.

Implement the supply chain into the business strategies and goals to better leverage it to achieve determined metrics.

2. Design the Supply Chain Network

As much as including the supply chain into the business strategies determines success, the need to design the supply chain network to operate at an optimal level is paramount. Focus hard on the outbound distribution aspects of the supply chain. For the rest of the network design, remain flexible, as needs and demands change over time. If your supply chain is already in motion, but you haven’t optimized it yet, consider a network design audit or review to determine where you can streamline the system already in place.

3. Customer Satisfaction

If you want your business to be successful, then you need to focus on customer satisfaction in regards to how your supply chain fulfills it. The customer must be the primary focus, and that means optimizing your supply chain to ensure customer satisfaction. If you cannot satisfy the customer, you will eventually find yourself without customers, which means no business.

Here are some factors that can negatively affect your supply chain performance:

(1) Long lead time

(2) Poor on-time delivery

(3) Poor order fulfillment

(4) Inventory shortages, creating longer wait times

(5) Poor product quality

(6) Poor service quality

If you identify any of these problems in your current supply chain, it’s best to address them immediately. First, you want to determine the root cause. Then, you want to resolve that root cause. Finally, you want to ensure your solution is working with frequent review and analysis of resolution.

4. Costs of Supply Chain

How much does it cost to meet the market demand using the current supply chain? This question is typically used as a benchmark for success before delving into the finer details of supply chain metrics. Various factors like inventory surplus, shipping costs, product manufacturing costs, etc. all play a role in being able to serve the customers’ demands. Being able to find ways to serve the customer without deteriorating quality of product and delivery times can help reduce supply chain costs, which increases profits.

Poorly managed supply chains can inflate overall costs in these aspects:

(1) Transportation

(2) Procurement

(3) Inventory storage

(4) Inventory management

(5) Waste

(6) Market forecasting

5. Supplier Success

The level of success your suppliers experience directly affects your supply chain and your business’s success. It’s best to work directly with at least your primary suppliers to decrease supply chain risks or uncertainties as much as possible. Unfortunately, there is always risk in business, but the ability to mitigate risk while retaining opportunity for reward is what you’re going to aim for in this instance.

Remember, your customers do not see a distinction between you, your manufacturer, or your supplier. It’s all one company in their eyes, and it’s important you treat your supply chain as one entity under the same umbrella as your own business.

6. Ethics and Responsibility

To build off the last point, it’s imperative you operate your supply chain and overall business the right way. Although the various participants in your supply chain are of different entities and businesses, it’s still your responsibility to ensure ethical procurement and corporate responsibility. If something goes wrong in your supply chain, it’s your business that will be liable for the social reputation fallout. Treat your supply chain with the highest regard as you work to meet the demands of the market.

7. Inventory Logistics

The management of inventory is a huge factor in the success of supply chains. Whether you have too much, too little, or just the right amount of inventory will affect the success of your business. Too much inventory means capital is tied up in products you may or may not sell, which can lead to substantial losses if the market shifts. Keeping your inventory at the amount the market demands is a balance you must master.

Elksourcing:Five Mistakes to Avoid in Global Sourcing

During my sourcing work life, I’ve seen so many importer make mistakes when they do global sourcing, briefly as shown in the following:

Mistake 1 – No Defined Strategy

No matter where you’re sourcing from, you need a well-defined strategy. Without one, it can cause chaos for your business. For example, if you expand into an overseas market without a strategy, the cost of the product could be too high or the wrong product altogether, which leads to little to no sales. This leads quickly to a sinking business before it even leaves the harbor.

When sourcing globally, consider the following tactics to create a well-rounded strategy:

(1) Identify suppliers

(2) Vet and validate suppliers

(3) Insure payment capabilities

(4) Review quality control processes and metrics

(5) Determine sourcing method

Mistake 2 – No Defined Standards 

What’re your business standards when it comes to products or materials? Know the answer to this question prior to inquiring sourcing companies. This will give you a metric to measure the sourcing company’s product against before you purchase inventory.

Here’s a brief checklist to go through when choosing suppliers:

(1) Location – Does it matter where the supplier is located in the given region/country/territory? Does their location have a dramatic effect on price, delivery time, or otherwise?

(2) Capacity – What can choose supplier handle weekly, monthly, quarterly, annually in production capacity? Will you need to switch to or add new suppliers to the supply chain to fulfill potential growth? What will it cost to use more than one supplier or find a larger supplier in the same area/region?

(3) Quality – What are your expectations of quality from the supplier? What is the supplier’s standard of quality? Will you need to compromise quality to use chosen supplier? How consistent is supplier’s production quality?

(4) Price – What is your selling price for product? Does chosen supplier fall within a profitable range? Can you find a better supplier price elsewhere?

(5) Technology – What is the supplier’s level of technology? Will you need to compromise data to use supplier? Will supplier upgrade technology to meet your needs?

(6) Communication – How well does supplier communicate? How transparent is supplier with their process and systems? Can you candidly communicate with supplier?

Mistake 3 – Inadequate Research

It’s imperative that when you source overseas that you do your due diligence in determining if the supplier is worth the investment. A portion of your business will lean on this supplier to be a link in the supply chain. You don’t want scammers or ill-equipped systems to cost you.

Here are some general tips on researching potential suppliers:

(1) Check reviews online

(2) Search for supplier’s website

(3) Call supplier by phone

(4) Verify registration, certification, and licenses

(5) Request a copy of business license

(6) Verify supplier’s local registration

(7) Visit supplier (more than once preferably)

(8) Hire a sourcing service provider

Mistake 4 – Lack of Payment Security and Protection

Before you begin paying suppliers overseas, you need to make sure that if you have any issues with the quality of the product, you’re protected and can get your money back. Too many times, businesses will rush into a relationship with a supplier and start purchasing product to later find out the quality is subpar. When the business goes to get their money back, the lack of payment protection puts them at a loss.

Here are some ways to protect your payments and secure ways to manage quality control:

(1) Choose safe payment method

(2) Set and confirm a clear quality definition before purchasing products

(3) Purchase a sample order first

(4) Source from multiple suppliers

Mistake 5 – Skipping Written Contracts

It’s great to believe that a business’ word is their promise, but that’s not the case most of the time. A business deal without contractual obligations is a huge risk. Although a contract cannot stop a supplier from acting outside of the agreement, but it does give the business owner legal leverage if something were to go wrong. Without a contract, a supplier could deliver lousy products or delay deliveries, and there would be little to no consequences.

Here is some basic information that needs to be in a sourcing supplier contract:

(1) Involved parties

(2) Terms for samples, price, quality, logistics, and management

(3) Product definitions for quality, type, and delivery

(4) Payment agreement

(5) Breach of contract liabilities

(6) Choice of law

(7) Dispute resolution terms

(8) Arbitration clause.

Elksourcing:Full-Time or Third-Party QC Inspectors?

Full-time inspection staff can be invaluable when you have a steady flow of QC needs year-round. With your own team, you can directly manage inspectors and book inspections based on your specific priorities.

But does hiring full-time inspectors mean you’ll never need third-party QC services? Not necessarily.

Depending on the number, training and location of your inspectors, your inspection team might not be able to meet all your inspection needs, all the time. Most importers with a local office hire only a few full-time employees, who sometimes also manage other tasks like sourcing and attending trade shows.

Though it may seem excessive, many importers use a third-party QC firm to supplement their full-time team on the ground. Before you rely entirely on your full-time team, let’s look at how third-party inspectors may be able to help you out of an otherwise tight situation.

1. Increase production oversight when working with new products, suppliers or customers

In the beginning of a supplier-importer relationship, both parties are still familiarizing themselves with each other’s quality standards, working habits and communication skills.

With new suppliers, you won’t have previous inspection reports for reference to help shape expectations. The same uncertainty is common when distributing to new customers, as well. And for entirely new designs, you won’t have a history of quality issues at all.

That’s why importers often want added oversight throughout production when working with new suppliers, customers or products. Increased oversight through broader inspection can help you to:

A.   Set clear expectations early and demonstrate your commitment to quality to a new supplier

B.   Catch and address any product issues early before they affect the majority of an order by verifying production units match an approved sample or prototype

C.  Meet shipping deadlines by monitoring production status

Your full-time inspectors might be able to provide increased support. But your team’s limited capacity could hinder their ability to adequately oversee production. Though clear communication can help you better manage inspections at multiple facilities, third-party inspection can help fill any shortage in qualified staff to ensure your suppliers are meeting quality standards and timelines.

Auditing a supplier’s facility is a common and widely recommended step in vetting potential suppliers. Different types of factory audits can help you qualify a supplier before paying a deposit and committing to placing an order.

But auditing and inspecting require two different skill sets with auditors typically needing different training and certifications than product inspectors. Many third-party inspection companies employ both. And even if you have your own inspection team, a third-party auditor can help you evaluate new suppliers before production begins.

2. Close gaps in product knowledge among full-time inspectors

Many importers with full-time inspection staff face a knowledge gap that forces them to change their QC strategy. Like theirs, your full-time staff might only specialize in one specific product type and lack experience with inspecting others. This can make it difficult to expand your product range without compromising quality. Different products are typically evaluated using unique QC methods that can require specialized training. Most inspectors can follow a basic list of instructions. But it usually helps if an inspector has some background knowledge of industry standards for the product they’re checking.

Product-specific experience helps inspectors:

A.   Support you in developing inspection checklists based on relevant international standards and regulations

B.   Follow industry-standard procedures during inspection for on-site testing and defect classification for your product type

C.  Identify unexpected issues on site that might not be specifically addressed in your checklist

Such a strategy can benefit you over time in a few ways:

A.   More consistent inspection and reporting methods and greater clarity

B.   Quality improvement as your supplier catches and addresses issues earlier in production

C.  Lower costs due to less dependence on outside inspections

3. Meet increased inspection demand during peak seasons

If you import outdoor sporting goods, luxury items or other products with seasonal sales trends, you likely know the feeling of needing to meet tight production and shipping deadlines during peak season. With promising sales on the horizon, there’s also added pressure to ensure goods meet customer expectations.

You may need to work with more manufacturers to meet the increased demand. But with a limited number of full-time inspectors, travel time and costs can add up quickly.

Your first response to a peak season rush might be to hire additional full-time auditors. But hiring more auditors to meet this demand won’t likely be cost-effective or time-efficient if you don’t also need those auditors in off-peak seasons.

4. Limit your risk of corruption issues during inspections

Full-time QC staff typically spend a lot of time stationed at specific factories, working with the same factory staff over time. This can be beneficial in some cases to develop a closer business relationship and improve communication. But it also exposes you to greater corruption risk.

5. Rotate full-time inspectors with third-party QC

One of the best ways to reduce the risk of corruption issues is to rotate inspectors randomly between services. Rotating inspectors makes it harder for any one inspector to get too close with factory staff.

A third-party inspection firm is only effective when they can be trusted to report honestly and accurately. When hiring a third-party inspection firm, be sure to look for some key indicators of strong integrity policies:

A.   A complete Code of Ethics or similar documentation that specifically addresses integrity concerns

B.   A large enough pool of available inspectors to allow for regularly rotating inspectors

C.  Routine and random internal auditing of inspectors to assess their performance in the field

D.  Hiring practices that weed out inspection candidates without a mature understanding of integrity risks and how to spot unethical behavior

Conclusion

With full-time QC staff, you may think hiring a third-party inspector is overkill. But there are times when supplementing your team with third-party inspectors can add value. And it’s always a good idea to have one on standby in case unexpected issues arise. 

If there are any inspection services your own staff can’t cover, be sure to at least contact a third-party QC company for a quote. Most inspection companies don’t require long-term contracts, service minimums or other commitments—you’re free to start and stop services whenever you need.

If an inspection company has an inspector available nearby a supplier’s location, hiring them might even save you money over relying on full-time staff.