Tag: sourcing

A new Prime Minister for India… Sourcing & manufacturing opportunities expected from positive economic impact

A gentleman from India recently raised a discussion during a class that concerned the newly elected Prime Minister Modi. For many unaware, the recent election in India was considered a “a landslide victory for opposition leader Narendra Modi.” This particular student was drawing the connection regarding the expected economic impact on the region.

The media isn’t short on coverage for this international event, but Forbes did indicate two interesting reasons why something like this would move the Sensex index up 4.5%, which was the highest in five years.  It’s expected to continue to increase, and here’s why:

1) Modi’s platform focused on pro-business economic development.

2) “It would appear that the National Democratic Alliance, a group that is led by Modi’s Bharatiya Janata party, is going to take over 300 seats, which would mean a government that would not have to solicit coalition partners and the compromises that would necessarily go with doing so. India has often been impeded by policy paralysis caused by unstable coalitions and this would help the new government to act more decisively – although the long-standing issue of deadlock between federal, state and local governments isn’t going away (nor should it, really, in India’s sophisticated democracy).” ~Forbes

The Wall Street Journal connected the election to the international economy as well, indicating

Negotiating in the global marketplace

An article recently posted to Inc. discusses charts by Richard Lewis that “reveal how to negotiate with people from around the world.” As a third-party quality provider, this is a key value for us because we absolutely agree that cultural considerations are key in negotiation and general business activities and it can be a significant barrier in sourcing activities in particular. Having local knowledge and cultural expertise is a competitive edge for us, no doubt.

Lewis’ book, When Cultures Collide, further discusses the topic, and we’ll be checking it out.  The Inc. article quoted and paraphrased the following from this source:

  • Canadians, compared to Americans, tend to be more low-key and inclined to seek harmony, though they are similarly direct.
  • English tend to avoid confrontation in an understated, mannered, and humorous style that can be powerful or inefficient.
  • Germans rely on logic but “tend to amass more evidence and labor their points more than either the British or the French.”

Global Manufacturing: Current Reality & Emerging Trends

Companies sourcing from China and greater Asia have enjoyed relatively stable conditions for nearly 20 years. Unfortunately, conditions affecting raw materials, labor, logistics, quality, regulations and currency translations are now changing rapidly and inducing disruptions in supply chain structures across the region while also creating new opportunities in other countries.

In Michael L. Hetzel’s most recent seminar, we review the current reality of manufacturing in China, Greater Asia, The Americas and Europe along with the present and expected trends emerging throughout the world. Michael, Pro QC’s VP/Americas, provides information that will enable you to enhance your understanding of the present conditions and emerging trends in order to create and maintain effective manufacturing strategies, minimize total costs and anticipate potential supply chain disruptions that can lead to delivery delays, increased warranty costs and product recalls.

GlobalBusinessProfessor.com has posted this content to their website with unlimited access.  View the complete seminar here.

Managing quality in long distance supply chains

Michael L. Hetzel, Pro QC’s VP/Americas, partnered with GlobalAutoIndustry earlier today to share some insight and recommendations regarding managing quality in long distance supply chains.

The seminar, which was hosted by GlobalAutoIndustry.com, touched on a wide range of quality challenges unique to those engaged in international procurement.  Michael reviews the cost issues and various considerations for selecting capable and ethical suppliers.  In addition, he incorporates important quality tools necessary for assessing and verifying conformance.  He discusses the considerations for using local staff or 3rd party quality providers as a way to monitor and ensure continuous improvement.

After the seminar, one of the questions asked was what he would consider the number one challenge in international supply chain management.  Michael didn’t hesitate to cite cultural issues and followed up with the importance of “becoming an expert on the country, target area and culture.”

In his closing remarks, it’s clear that sourcing risk can’t be eliminated.  But, the goal is clear in that there are several ways in which you can reduce the risk as much as possible.   “The foundation of a good outcome is in the preparation.”  Michael also tells us to assume nothing and abandon all preconceptions.

The presentation materials can be downloaded here: Hetzel Slides – Managing Quality in Long Distance Supply Chains – GlobalAutoIndustry.com 5-16-12.

If you would like additional information, contact Michael directly at mlhetzel@proqc.com.

Ever wonder what happens during a product quality inspection?

Pro QC’s Shenzhen, China office provides an on-site demonstration of in-process and pre-shipment quality inspections.

http://www.youtube.com/watch?feature=player_detailpage&v=YNNjtZWVwp0

Comments and suggestions are always welcome and appreciated!  Our goal is to provide valuable content to those interested in learning more about quality related concepts and processes that we have over 20 years of experience providing.