Quality Products International

China Manufacturing Blog

Credit Checks and Company Reports for factories across China

by admin on Nov.16, 2011, under China Manufacturing Blog

While China has faired better than most economies after the Global Financial Crisis, one would be naïve to think that companies here are not immune to financial problems.

In the manufacturing sector especially there has been a lot of pressure, with rising costs, both real costs of wages and improved worker benefits, the stronger Yuan and other factors are putting pressure on exports pricing.

The export market as a whole has shrunk and while the domestic economy is stronger than many around the world it is has not filled the void left by markets in Europe and USA, especially for many factories that western clients may be buying from.

The next result is that there is an increase of local and foreign owned companies in China failing or simply closing.

Doing direct searches and or credit checks on Chinese companies can be difficult and time consuming.

Language is of course an major barrier for most, and even then understanding the complexities of Chinas various provinces and districts is a complicated process.

Some companies will commission audits either on their own or at the behest of retail clients and it is fair to say that any factory that has a good result in a formal social or quality audit will probably be sound.

Where formal Audits are not required a combination of factory vetting and a credit check can be far more cost effective.

If there is doubt about a factory, particularly after an audit, a credit check /company report can be considered for further validation.

None the less QPI Ltd can arrange credit checks and company reports can be completed by local specialists in all provinces of China in some cases for less than US$100. That is small price to pay against deposits and full payments that will normally be many thousands of dollars.

Contact QPI Ltd for more details.

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Container Loading Inspections – follow up on PSI

by admin on Nov.03, 2011, under China Manufacturing Blog

A Container Loading Inspection involves an inspector checking that the correct product is loaded safely into the container typically before it leaves the factory.

It is conducted after and normally separately to other inspections such as PSI.

Once the  container is loaded it is fitted with a tamper evident security seal before leaving the factory.

Always consider a Container Loading Inspection

Container Loading Inspections should seriously be considered for first shipments out of a new factory. Especially if that factory has not been vetted or subjected to an audit, credit or background check.

These inspections are especially relevant if there has been a dispute or QC concerns with a shipment.

Many clients query why a container loading inspection is required and / or why that cannot be conducted by the QC inspector as part of the Pre Shipment Inspection (PSI).

Container Loading Inspection is an additional safety check

If a client has some concern about the factory they should seriously consider a Container Loading Inspection.

It is a wise option for new factories and / or if something appears a little “off” or there is some suspicion.

It is especially wise, if there has been a significant QC issue on a shipment and it should be considered mandatory if there has been a major disagreement with a factory or supplier.

Typically payment occurs sometime between product completion and arrival at the clients warehouse.

Once the Pre Shipment Inspections (PSI) results in a PASS report, to confirm the product meets requirements, the goods are normally stored in the factory warehouse. The shipping is booked and a container dispatched from the shipping company to the factory for loading.

The main risks are that:

- goods may  not be loaded correctly and with due care

- the correct goods are not loaded, or

- no goods are loaded!

Poor Container Loading

This should be easy, and normally is a simple process that goes smoothly. If the factory has a sound QC system, they should take due care of loading as well….and often do!

In busy periods container loading is sometimes completed by small teams of contract workers or day laborers. They have had no part in the careful construction of your product and will be long gone by the time you find they have mishandled it.

Similarly the truck driver either of their own accord, or at the direction of the shipping company will often pressure the loading crew to load the container as quickly as possible so the truck can complete the delivery to the shipping yard as soon as possible, again with no real regard for your product.

If the goods are delicate obviously due care should be taken, if it is a mix of heavy and light products, the container should be loaded with heavy at the bottom.

However, it is often the case that if left unsupervised, other factors will determine what happens.

Often the box closer to the warehouse door will be the first into the container and may well be crushed, if it should have been top loaded.

Containers will often be “layer loaded” so the entire floor is filled, and the workers walk the next layer in on top. Sometimes walking boards are placed to protect each lower layer, either way, sometimes the lower layers are simply damaged.

Cartons are often sent down chutes on the side of buildings to move it from the upper level of a warehouse to the truck. It is often with no damage and unfortunately sometimes with no care.

We have seen containers opened at distribution centers that were loaded just on one side of the container, leaving most of the container empty. As that narrow stack of cartons fell during transit, much of the product was damaged as the corners of some cartons landed on the sides of others.

Similarly is not uncommon to see containers packed so tightly, product is damaged as it wedged in. It is  better choose between shipping a small percentage in the next consignment, by LCL or even leaving behind, rather than damage most of the product in the consignment.

…again, often all goes well. The question is, how important is the consignment to the client, and how much is the reliability of the factory proven?

Poor product or no Product Loaded

If there has been dispute about QC, and especially if extensive re-work has been required it needs to be checked!

Often a follow up PSI will be conducted…..BUT….

It is quite possible that poor quality product is mixed back into the shipment after the PSI.

….again, normally the PSI is completed in a day, the inspector leaves the factory and container is loaded a following day.

As part of the container loading inspection, a smaller number of random boxes are rechecked to confirm they contain the correct product.

Sometimes it can be even more sinister.

On one consignment of Flat Screen TV’s, the factory loaded the container before the inspector arrived. The factory reluctantly unloaded some boxes which appeared OK and were obviously for the benefit of customs should they inspect on export as they sometimes do.

After much reluctance on the part of the factory more boxes were unloaded to reveal that most boxes in the container were void of any TV’s with some rocks in each to make up enough weight to avoid raising suspicion.

To be fair to most factories in China, this was an extreme and rare case. The factory had not been vetted or checked. The client simply found a “good deal” on line, paid the deposit and would have paid (and lost) the full value of the shipment if not for the inspection!

So why not complete both PSI and Container Loading Inspection on the same day? There are typically two complications with trying to complete both on the same day.

PSI is normally a full day on its own

To optimize the PSI, it is normally designed to fill one man day. The aim is to inspect the maximum number of items in line with the checklist that is designed to ensure the clients requirements have been met.

A thorough inspection requires complete focus and no distractions.

There may be scope to trim down an inspection so that there is time to supervise loading in the same day, and QPI Ltd is open to doing that, if it is the particular wish of the client, however the container booking logistics also need to be considered.

PSI is normally conducted a few days before container loading

Neither the factory or the shipping companies are keen to have containers at factories for longer than required.

The container loading is normally booked once a PASS report is confirmed. The truck carrying the shipping container is sent from the shipping yard to the factory and the truck waits at the factory while the container is loaded.

If the client wants the container loaded on the same day as the PSI, there is a risk that PSI will result in  a FAIL and consignment will be rejected. The container booking is then wasted and the truck returns with an empty container to the shipping yard.

Obviously there are costs involved with the aborted booking. Typically they are a few hundred dollars.

If production / inspection / shipping the deadline is tight, it is certainly worth considering! The client will normally have to commit to paying the extra container booking / trucking charges should the PSI result in a FAIL of serious PENDING report, and obvious delays, however it can sometimes ensure that a shipment sails on time.

Normally there is a window of a few days between inspection and shipping. If that is the case and there are any reasons to consider a container loading inspection, it will probably be cheaper to pay for the container loading inspection than the container return and re-booking fee…..or the other costs associated with risk to the integrity of the shipment.

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Factory Vetting – even when full audit is not required

by admin on Nov.03, 2011, under China Manufacturing Blog

Most major retailers and brand managers require factories to be audited, both for ethical trading reasons and confirm the quality / capacity capabilities of the factory to manufacture the product to the standard required.

QPI Ltd can conduct such audits where required.

However a full formal audit is not always mandatory. In that case the client may consider not conducting audit as they can be quite expensive. The big problem is that sometimes that means the factory vetting process is neglected completely and sometimes with serious consequences.

Without some process to vet, verify or check a new factory or supplier, clients put themselves at real risk.

Most orders require a significant deposit, which is a large financial commitment and there are issues such as IP, or even complications like one “off samples” or tooling being sent, but not returned.

QPI Ltd has some options that are far more cost effective than a full formal audit but still protect the clients interests and mitigate many of the risks.

Comfort Check

Many clients just want to know that the factory exists  and can produce what will be ordered.

The idea of the comfort check is something a much more professional than asking a friend to drive past, and a lot less expensive than a full audit.

Many “factories” on the internet are nothing more than a “trading company” operating out of a bedroom, or one type of factory trying to sell other products from another factory, to widen their customer base, or drum up additional business.

….all of which may or may not be acceptable to a client, however it is good to know what the true situation is.

The QPI Ltd comfort check can confirm that the factory exists, and appears capable and in good order.

We can confirm that they have the facilities needed to make the products being considered, check they have QC procedures in place, observe the level of workmanship to see that comparable products and quantities are being produced.

Credit Check

While common in most parts of the western world, they are a little more complicated and less accessible in China.

…..however still very necessary.

QPI Ltd can conduct credit checks & company reports on companies in all provinces of China at competitive rates.

Something worth considering before sending large sums of deposit money to contact found on the internet!

After Vetting

Obviously the follow up of a well defined product brief as well as considerations to QA/QC, lab testing and inspections such as DUPRO (During Production Inspection), Pre Shipment Inspections (PSI) and  container loading inspection should be considered.

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Rising costs in China

by admin on Apr.05, 2011, under China Manufacturing Blog

The question of price quality balance in China is not a new one.

There are many factors influencing both, however the bottom line quastion normally come down to…

Can China remain competitive, particularly as the manufacturing base develops in other parts of Asia.

Procurement Leaders recent article:

Cheap goods from China could be ending

The years of cheap goods from China could be over according to Li & Fung, one of the largest suppliers of Chinese goods for western retailers.

Li & Fung, which supplies apparel and other consumer goods to Walmart, Gap and Debenhams, among others, has said that due to higher labour costs in China, which have resulted in wage increases of about 20% this year, “a new era in sourcing with higher prices had begun.”

Speaking to the Financial Times, Bruce Rokowitz, president of Li & Fung Trading, said, “The biggest topic on the minds of everyone in this business is that higher prices are really here to stay. At this point, retailers are not sure what they can pass on to consumers and what they cannot.”

These higher labour costs are moving the production of goods, such as clothing; away from China to countries such as Vietnam, Indonesia and Bangladesh, which have far lower wage costs.

Full Article

Some factors that continue to contribute to China’s competitiveness, particularly in areas such as the PRD (Pearl River Delta) generally relate to the strong local infrastructure, with regards to other suppliers, QC, lab testing, ease of travel for buyers, shipping and so forth.

QPI Ltd can help you find competitive suppliers in China, and assist with QC across Asia.

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QPILtd Artificial Flowers

by admin on Jan.26, 2011, under China Manufacturing Blog

Flowers… are a proud assertion that a ray of beauty outvalues all the utilities of the world.  ~Ralph Waldo Emerson, 1844

Everyone enjoys the brightness that flowers bring to a room.

For some fresh, or live flowers can create problems, they require extra care, may lead to allergy problems, and of course a bunch of less than fresh flowers wilting in a vase of stale water is less than desirable.

QPILtd offers a wide range of exquisite quality flowers, plants, vines, shrubs, palms, ferns, Topiaries, and small trees, many so realistic they are hard to tell apart from the real thing.

Extensive Range of Existing Flowers

Extensive Range of Flowers

Detail from petal, Pistil and Stamen, including stigma, anther, stalk, filament,  can all be included and features like water droplets can be added on petals and leaves, to enhance the realism and freshness.

QPI Ltd lilies and plants

Yelllow Lilies

There are also more avant-garde options such as metallic or artificial looking colours.

The designs in our factory show room are almost infinite and certainly too numerable to list, so please contact us to ask for your particular requirement.

The factory has molds for a wide range of:

Roses, Carnations, Daffodils, Lilies, Irises Daisies, Poppies, Orchids, Bamboo, Mistletoe, Poinsettia, Sunflower, Hydrangea, Dahlia, Chrysanthemum, Tulips, Flax, Violets, Germaniums, Pansies, Marigolds, Water Lilies, Hibiscus, Petunias, Gardenias, Gladiolus, Freesias, Holly, Bromeliad, Cactus, Cyclamen, Spathiphyllum, Clematis, and many more.

Pink and Yellow Tulips

Tulips various colours

For the more popular varieties such as roses we have them available in various stages of blooming, from a tight bud to an open blossom.

Elephant Ear Plants

Flower Arrangements

Floral arrangements are available including bunches of assorted flowers, including extra fillers and foliage such as vines and sprays.

Arrangements can include:

Boutonnieres, Basket Arrangements, Hanging Baskets, Center Pieces, Corsages, Tussie-Mussie and garden style arrangements.

QPILtd Hanging Basket

Hanging Basket - QPI Ltd

The artificial flowers can be fabricated from a wide range of materials including silk polyester and a range of fabrics.

Many flowers from QPI Ltd

Assorted Flowers

Promotional Items

Flowers can also be mounded on lapel pins or cards for fund raising.

Baskets can be prepared with you product and or logo for promotional items.

Order Volume

Our factory is flexible with volume, we have realistic MOQ’s (Minimum Order Quantities) and with our very wide range of existing moulds we have something to meet most needs.

On the other hand, we can design something specifically to meet your needs and make the molding to suit.

So far we have not established our upper limit on shipment quantity and delivered consignments of a million flowers and more.

Please contact us QPILtd for more information.

Véase el artículo en español

Hanging Basket Pansies and foliage - QPI Ltd

Hanging Basket Pansies and foliage - QPI Limited

Pansy hanging basket - QPI Ltd

Pansy hanging basket - Quality Products International Limited

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QPILtd Christmas Products

by admin on Jan.24, 2011, under China Manufacturing Blog

While Christmas and the New Year are just past, we have product shipping for Northern Summer and the lunar New Year looming.
Christmas Wreath 25cm - 10" QPILtd

Christmas Wreath 25cm - 10"

Orders and production is now getting underway for Christmas.
Blue Christmas Bells from QPI

Blue Christmas Bells with sliver trim 12" - 30cm

Quality Products International Limited has a wide range of Christmas products available.
Christmas Balls - QPILtd

Christmas Balls 14" - 36cm

Last year we worked to ship as many as one million units of some products. We worked with the client and the factory together to ensure the product was developed as the client required, the quality met expectations, the product shipped on time, and all importantly that the pricing was competitive!
Christmas Baskets from QPILtd

Santas' Helper Christmas Baskets 7 x 8" (18 x 20cm) and 5 x 6.5" (12.5 x 16.5cm)

We would welcome the opportunity to assist you with your Christmas range.
Santa Christmas Basket from QPILtd

Santa Basket 7 x 6" (18 x 15cm)

Please contact QPI for some product ideas.
Christmas Wreath 35cm - 14"  - QPILtd

Christmas Wreath 35cm - 14"

If you have your own suppliers in place, we would be happy to offer our QC services, to ensure your production goes smoothly and is compliant!
We can offer assistance with:
- Lab testing
- Factory Audits (Ethical – Social and Production – Quality)
- Dupro (During production inspection and sampling)
- Pre Shipment Inspection
- Container Loading / Sealing Inspections
Christmas Stocking  - pouch from QPI Ltd

Christmas Stocking 8.5 x 10" (21.5 x 25.5cm)

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CNY Alert!

by admin on Jan.03, 2011, under Asia Business, China Manufacturing Blog

文章简体中文文章繁體中文

See also: CNY dates 2011 – 2019 CNY Village life Post CNY Production Caution

With the new years eve behind us, and business in the west is ramping up for the year.  Here is a friendly reminder from QPILtd that CNY is fast approaching!

Chinese New Year celebrates the New Year according to the Lunar calender, and as such varies from year to year.

See CNY dates 2011 – 2019 for this year, as well as coming years for easy reference.

It is also seen as the advent of Spring, even though much of country will be under a thick cover of snow, CNY is also often referred to as the “Spring Festival”

Most factories will be rushing to get production out before the holidays, and clients should expect freight prices to increase significantly in the second half of January.

Almost all business and particularly factories in Mainland China will be closed for about week or more in early February, with some closing from Friday 28th January to Monday 7th February.

Many business in Hong Kong and across South East Asia will be closed for a few days around 2nd and 3rd of February.

It is worth noting that within China Mainland, CNY is the major family holiday. As such it represent the largest annual human migration on the planet,  with approximately 200Million people returning to their home towns to celebrate the Spring Festival.

Travel within China will be crowded and expensive. As an example many train travelers will only be able to get a “standing ticket” for journeys that may be 20 – 30 hours long.

Clients should also bear in mind that many factories have a slow start after CNY.

Often workers will stay on at home for an extended holiday, or choose the new year to look for different work.

From a quality perspective, that can often mean that the factory who was reliably shipping product last year, may have new middle management, supervisors and production staff. That can often lead to Quality Control issues!

QPI Ltd remains ready to assist with DUPRO (during production), PSI (Pre Shipment Inspection) and other QC matters.

Most of our QC team will be off work for the first week in February, however we will have a limited office staff operating right through CNY.

We recommend using our   qpig (at) qpig (dot) hk  email during CNY as it is also directed to our colleagues in the UK office.

All the best from the entire QPI team for 2011 and the coming year of the Rabbit.

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WEEE Revisions close to being implemented.

by marcoc on Oct.25, 2010, under Asia Business, China Manufacturing Blog, General News

Article en Français . Articulo en Español . 文章简体中文 . 文章繁體中文 . Artikel in deutscher SpracheСтатья на русском языке

On September 8, 2010 the European Parliament’s ENVI Committee (Committee for the Environment, Public Health, and Food Safety) released its final report on changes that it wished to see in the recast of the Directive on waste electrical and electronic equipment (WEEE).

Two recommendations that will affect manufacturers are that the WEEE directive should now apply to all electrical and electronic devices that are not expressly excluded. Since the exclusions are only for large immobile plant based systems or large commercial installations, this directive will now cover almost every consumer item and household device on the market today.

The second item that affects us is that the directive requires that all municipalities will endeavor to recoup the costs of separating this waste from normal household waste, managing and disposing of it in the appropriate manner, from the polluters. In this case the polluters are defined as the manufacturers, importers, and retailers, not the end-user. Thus we can see that some sort of duty or fee will be levied on almost all consumer/ household devices in the near future.

Considering the tough markets that we are in at the moment, we must now take into account a possible increase in the costs of goods and what that will mean to volumes and market share in the European Union.

Author M. Charlin

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QPI announces 4G Android mobile phone by end of 2010

by marcoc on Sep.29, 2010, under China Manufacturing Blog

Article en FrançaisArticulo en Español文章简体中文文章繁體中文Artikel in deutscher SpracheСтатья на русском языке

Quality Products International Ltd, in conjunction with one of its key mobile technology partners has development work underway for a 4G Android handset.

What is 4G?

The key differentiation of true 4G over 3G is “Super Wi-Fi” (Wi-Max – LTE) compatibility. Some people have been marketing various 3G extensions as 4G, one example is 3.9G. 3.9G is an interesting “stepping stone” product. It is compatible with 4G rather than 3G, however it does not meet the IMT Advance 4G requirements and falls short of what true 4G has to offer! The new 4G network infrastructure, offers data speed that is about 10 times faster than 3G. A nominal rate of 100Mbits while client is moving at high speeds up to 1Gbits while client is stationary. It will in fact be faster than many fixed connections. It has a promise of much wider range, with fewer dead spots, and better possibilities of extending into less populated areas.

2G & 3G Compatibility

True 3G and 4G are not cross compatible. As the 4G roll out will be massive undertaking for network providers, it may be some time before 4G has coverage in all areas or all countries current covered by 3G. As such QPI will launch a dual 3G – 4G phone. Users can take advantage of 4G where available and still utilize the standard GSM network just like and 2G & / or WiFi hotspots as with 3G devices

Quad Band

For maximum versatility we will offer Quad band, which allows full global roaming, in USA, Europe, Asia, Africa, India and Australia.

What features would you like!?

The development phase is the best time to incorporate new ideas. QPI is in the process of patenting some new and completely unique ideas that will show up in our 4G Android.

That said we would love to hear from users about what they want! If there are features that you love in your current phone and would miss if you transitioned, please tell us about them! If there is a feature that you wish for but have not found, please share it with us, if we can build it into this new product we shall do so.

See update. Announcement expected after CNY

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QPI makes 1 million pins for a single order / shipment

by admin on Sep.24, 2010, under Asia Business, China Manufacturing Blog

Article en Français . Articulo en Español文章简体中文文章繁體中文

Quality Products International Ltd has recently been commissioned by a gifts and premium company to make over one million pins for one of their key clients.

Pins, like wrist bands are a popular promotional / awareness campaign device and very useful for charities as fundraising

In this case the pins are both complex and urgent.

Some pins are simple metal pressed items or s piece of cut ribbon, these are complex with various fabric and plastic molded components requiring several stages of production.

They also need to be produced to a tight deadline, and as with most promotional events, timing is critical to the success of the entire campaign.

QPI Ltd has extensive experience in quality control in Asia, with management and inspection personnel here full time. Our team is well placed to manage the production directly with QPI staff on the factory floor supervising IQC and key stages of production, as well as performing final random inspection.

If you or your client have a item that needs special attention, please contact us and find how we can assist you.

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