Chinese Imports, again

I must have ESP (or some other cable network).  Yesterday I mentioned that US government-imposed restrictions on Chinese products might have consequences.  You may recall that I suggested a more grass-roots approach to the problem of cheap Chinese goods.  Lo and behold, our government did just what I suggested that they not do yesterday.  (Big surprise!)

The government has imposed new duties on Chinese steel pipe.  Chinese pipe manufacturers have been taking advantage of subsidies by their government to dump low-priced pipe on the US market, costing thousands of American jobs this year.  It’s hoped that the tariffs will slow down the flood (pun intended) of low-price, low-quality steel pipe and restore lost American jobs.  Stay tuned to see how the Chinese respond.

I promised yesterday that I’d give you a little insight into the process of sourcing Chinese goods, from a manufacturer’s perspective.  Here goes.  For the last year before my “retirement” I was involved in purchasing new items for my former employer, specifically small electrical and furniture items.  It was a very frustrating and disappointing task.

For the most part, Chinese manufactures aren’t set up to supply quality merchandise.  In fact, it often seemed like a “foreign” concept to them.  While we may try to spec a premium item from them, they are geared up to produce “low price” items for the mass merchants.  When their production lines are set up to produce millions of “just good enough” items for the big box stores, an order for a few thousand quality items just isn’t worth their time.  Make no mistake, the big boxes and their big buying power are very much in charge of the products that are shipped to the US, even to other suppliers.

Here’s a typical scenario.  I would email a supplier asking them to send me a sample of an item based on my specifications.  A few weeks would go buy and samples would arrive that basically were nothing like I asked for.  Nine times out of ten they would fail our QC tests.

I would send the testing results to the manufacturer asking them to correct the problems and send me what I asked for in the first place.  A few weeks would pass and I’d get new samples, exactly like the first ones.  Strike two!

Keep in mind that we were paying high air freight rates to get these samples shipped to Saint Louis.

This would go on for several cycles and maybe, if we were lucky, we would finally get something close to what we asked for.  Sometimes we never did get what we wanted.

I spent over a year working on two particular items and never did get what I wanted.  Often the response was that such-and-such big box chain sold thousands (sometimes millions) of the inferior products and why was I so particular?

A simple process of building something that would pass minimal quality standards took months and often never did result in a salable product.  If I had hair, I would have pulled it out.

Bottom line, there is no motivation for  the Chinese manufacturer to build anything above minimal standards.  They flood the market with low-priced, low-quality merchandise.  American manufacturers can’t compete.  So, they either lower their quality to reduce the price, or move their operations off shore where labor costs and benefits are much lower than they are here.  Even then, they are going to face higher returns and damage to their reputation because the imported goods aren’t what their consumers expect.

Don’t get me wrong.  I have Chinese friends, including some who I’ve worked with as suppliers.  Because China is a totalitarian state, they are under a lot of pressure to tow the company line.  Language problems and a society where the Chinese people are accustomed to low-quality products often make it almost impossible to explain to them that we want good products.

The solution, as I pointed out yesterday, is for American consumers to demand quality and to be willing to pay for it.  Until that happens, this problem is only going to get worse and at some point it will be too late to fix it.

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Show Me Quality


Monday (December 7), the winners of the Malcolm Baldrige National Quality Award were announced. And the winners are:

Notice anything about the winners?  Let me help you out.  Three of the five winners were from the state of Missouri.  I don’t like to brag, but it is my blog so I’ll brag if I want to.  Quality improvement is running rampant here in the Heartland of America.

It’s the first time in the history of the award that three organizations from the same state have won in the same year.  The three awards tie Missouri with Texas (a slightly larger state) for the most award recipients.

All three Missouri Baldrige winners are past recipients of the Missouri Quality Award.  Did I mention that I’m an examiner for MQA?

Congratulations to all five winners!

The Baldrige is no beauty contest.  It takes a lot of hard work by a dedicated team and committed management to win the nation’s top quality award.  But the trophy is secondary to the impact that the Baldrige process has on an orgaznization.  There’s a lot of good information on improving your processes and results on the Baldrige web site, the MQA site, or on the site of your local award program.  If you have any questions, please leave a comment here or you can email me.