Sourcing in China, the Land of Cutting Corners

One of the most common sourcing questions we are faced with in this day and age is the question of quality control in China. When talking to importers about their sourcing programs, it is a common belief among them that sourcing from China may mean serious cuts in costs AND quality. This should not be the case if you have the right procedures in place. That is often a lot of work. Many importers seem to have the attitude that “the factory knows what they are doing.” They hope for the best, keeping their fingers crossed.

I recently came across an interesting article written by a British writer and editor, James Palmer. He is the author of The Death of Mao: The Tangshan Earthquake and the Birth of the New China (2012). The article, “Chabuduo: Close Enough…,”  brings up a real and troubling issue many importers face when establishing and managing their China sourcing program.

Close Enough

Chabuduo: meaning “close enough”

This is a philosophy that plagues the China supply chains and trickles down into our own backyard in the US. The gate won’t lock? We’ll fasten it with wire. You want to source brown stuffed teddy bears? Here are some red ones instead. Close enough.  You got a good price, right? What are you complaining about?

As much as we’d like to ignore it and hope for the best, it is impossible for a serious China importer to run a successful sourcing operation with products at a good price but average, at best, quality. You can argue “I am doing my best, but ‘That’s China’.” The reality for many importers is that one bad shipment could mean closing their doors for good. Knowing there is a lack of quality control in Chin often translates into sleepless nights. Buyers wonder if the shipment that is about to arrive will be as expected. Not a good way to do business. Especially because the “worst-fear” prophesy often seems self-fulfilling: the Chinese factory that notices the buyer is not paying attention to details has a tendency to be less concerned too – and delivers “good enough” products.  It is a vicious cycle.

Fixing Quality Control in China

Worrying about this will not fix it.  So what will?  One of the first things most importers are concerned about is quality, second only to price. How can they avoid the pitfalls of such a common philosophy as Chabuduo in a place where it is socially acceptable? How can they ensure quality control in China to avoid leaving things to chance so that the goods arrive looking great?

Importers sourcing from China are not accustomed to the “Close enough,” philosophy, but have a “Can I do better?” attitude. The reason many importers go to China is to improve their products and mass produce them at an optimal price. The Chabuduo philosophy may exist in China at a certain level, but for China to be “The World’s Factory”, this philosophy surely cannot be the norm. If it is, it can be easily avoided.

Reflecting on this, I noted our clients do not seem to have this problem. Why is bad quality control in China not a concern for them? As it turns out, it is not that complicated.  I found out that they and their sourcing teams leave nothing to chance. They vet the factories in advance, they specify every painstaking detail, they check everything, and they do it every time.

Chabuduo seems to only happen when the procedures and the accountability system themselves are “Chabuduo “. Conversely, when you cross all the T’s and dot all the I’s, when you leave very little to chance and you stack the deck in your favor, the quality should be great. Not convinced? Look at professional manufacturers like Foxconn who make the iPhone in China: the quality of that product is the result of highly detailed processes that are rigorously applied.

In our 46+ years in business, our experience has shown that a great China sourcing program is the result of great procedures and a refusal to accept “good enough.” In the words of Jim Collins, author of Good to Great: Why Some Companies Make the Leap and Others Don’t, “Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice.”

Do you agree?  What has your China sourcing experience been?

By Jocelyn Trigueros

Editor’s Note: This blog was originally published in October, 2016.