AMREP INSPECT Global Supplier Management
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Outsourcing Blackholes in China and Everywhere

How much do you lose in marketing and inventory when your supplier continues to have high rejects and returns? How much is the cost of having your employees doing the resorting and rework on products from your suppliers that do not work?
How often does the supplier accept returns and do rework when he is far far away? The only reason you do outsourcing is because labor and cost is cheap and you have to beat your competitors' pricing. Here are some "supplier black holes" which I gathered from talking with customers that found our Supplier Management Services both useful at the Hong Kong Consumer Electronics show. I hope they make you wiser in working with suppliers if you are a first timer in the business of overseas procurement.
  • One customer from Malaysia bought 10,000 telephones from a supplier in Shenzhen. Half were faulty upon arrival and he had to rework on the defective items. He could not do an on-time delivery to his customers. The supplier would not replace the defective parts. SAMPLES WERE GOOD AND THE PRICING WAS SENSATIONAL. HIS LOSS WAS EVEN BETTER. Next time he would use AMREP.
  • One American Customer could not understand why his supplier was using unapproved UL components which kept blowing up the electrical circuits. PRE-PRODUCTION SAMPLE WAS GOOD AND WAS UL CERTIFIED. He confronted the Supplier's Big Boss who said that "the production manager was doing something bad that he was unaware of". LOSS OF SALES AND LEGAL SUITS. Next time he wanted to use the AMREP Quality Watchdog.

I am obviously very pleased when customers go through some financial pain before deciding that the cost of using AMREP is less expensive than the unfortunate surprises from suppliers which cost them an arm and a leg. However, I find it very difficult to understand why buyers and procurement managers never understand the meaning of SUPPLIER RISKS AVOIDANCE and RISKS PREVENTION.

  1. Automotive Parts Inspection
  2. Inspecting PDA's and Cell Phone Production
  3. Outsourcing Blackholes in China and Everywhere
  4. Qualifying FDA Bio-medical Suppliers
  5. Effective Outsourced Supplier Management
  6. Don't be Trapped by a Supplier


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