China Travel – Series of how to deal with Chinese supplier?–Subcontract
Normally when we place the order with a factory, we think that factory will produce our order there. But in fact many factories subcontract to their worked factories.
If the buyers don’t ask QC inspectors to inspect during the production period, they will never know their orders are produced by other factory.It is not the one you placed the order or sign the contract.
But if you go to check the goods during the production period, you will find your order is produced by another factory even by several different factory for different parts.
Two main reasons are as follows:1) the factory has a lot of production missions.They can’t able to produce more.2) reducing some costs and have more profits, they have to devide the works. Big factory has big production costs, so they have to ask small factories or workshops to work with them for some small parts or small orders,
But when your order are produced by other factory, if everyting goes well, it seems doesn’t make differences.If the order are produced by several factories, the qualities/grades may be various.
For example, we had a plastic injection order with a trading company.The trading company took us to a big injection factory-NO.1st which my buyer and we felt good enough. We signed the contract. Later the trading company sub-contracted our order to several factory-No.1st and 2rd.When I went to inspect during the production period, i found 2rd factory subcontracted some parts to another factory-3th.We found some quality problems in the 3th factory, we reported to the supervisor, he said, i don’t know. We did it according to 2rd factory’s instruction. He said there are several persons contacted him. (his meaning is that, the trading company and the 2rd factory both contacted him.) he didn’t know who they should listen to. So we had to speak to 2rd factory and also speak to the trading company.The order went through many middle men.Things become complicated and messed.
So i really suggest the buyers to cover this term in sales contract.(nowadays, the contract are quite simple, i don’t think most of the contract state the quality clearly.)Especially when you come to visit the factory and approve their products and production alibility and think the whole order will be produced by that factory, you need to know the above situation may happens sometimes. To avoid it, the term can state like this: the whole order should be produced by XXX factory only.If XXX factory want to subcontract the order to their business partners, the seller should discuss with the buyer and get the approval first before production.
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