General Manager, Mr Paul Sly of Australasian seals and gaskets supplier CSGtech, has stressed the importance of quality governance when sourcing from China.
A manufacturing component specialist himself, Mr Sly says that even minute quality control problems can have big consequences for manufacturers serving demanding markets.
For instance, the failure of the tiniest, comparatively inexpensive O-ring, gasket, seal or machined part can result in recalls and refunds, also leading to ruptured business relationships founded on total quality control and the highest safety standards.
“The issue of quality governance is magnified by distance from suppliers - both geographic and cultural distances and differences,” said Mr Sly.
“If, like so many Australian manufacturers, you are sourcing from China to compete, then being unaware of what causes even small quality variations can be devastating.”
Mr Sly explained that while the initial batches of a product could be exactly to spec, as time moves on these initial standards can change for reasons non-Chinese customers don’t understand.
“One of the big reasons for quality and product variations is that Chinese suppliers generally are great at dealing with huge quantities of production - big orders where margins of a few cents are critical. They have to be flexible and responsive to cost in such a vast commodity market and will change suppliers accordingly,” said Mr Sly.
“So Australian companies have to look out for what happens if suppliers substitute something different and just a fraction cheaper – but something that ultimately doesn’t work when it arrives Down Under and then the situation gets ugly,” he added.
Mr Sly advised that when dealing with overseas suppliers, Australian manufacturers needed to properly manage the whole selection, acquisition and quality assurance process from factory floor to customer’s door.
CSGtech works closely with manufacturers and end-users to source suitable and cost effective products available in Asia in general and China in particular, where it has its own staff overseeing quality control in different production plants.
It is currently opening an office in China to provide even closer supervision of the quality focus and governance required for doing business in China.
“The Chinese are among our best suppliers in Asia and we love their “can-do” attitude,” said Mr Sly. “Through our network of internationally accredited manufacturers in China and elsewhere, their competitiveness means we can supply an exceptionally high level of product at exceptionally competitive prices."
“But sourcing from China is a case where the devil is in the detail: the difference between a raging success and a flaming failure can be proper time and effort invested in understanding your market and having in place the highest standards of quality control."
"If you don’t understand the quality governance issues in dealing with China, you might as well butt your head against the Great Wall,” concluded Mr Sly.
