Thursday, April 3, 2008

Quality Problems - What Happens Now?



Quality problems can happen with all suppliers. Our customers reduce their risk of having quality problems by working with us. Since we are on-sight in factories and perform our own inspections, the chance of receiving products that are not correct or the way the customer wants them is greatly reduced.

It rarely makes sense to pay the high cost to return products for rework. In some cases it does, but that is the exception. It is very rare for a Chinese factory to agree to a refund. Even with our relationships and leverage, it just doesn't happen. What we can negotiate often are for free replacement of items that are somehow not up to expectations. The great majority of the time the problems are issues that were not clear or included at all in the specification, even though we do our best to identify all of the attributes that are important to the customer.

Bottom line - whether you work with OPSA or have another mechanism for working with Asian factories, don't a refund to be an option. Try to negotiate for rework or free replacement.

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