Solving Major Quality Defects, Navigating an Unreachable Supplier, and Meeting an Unmovable Deadline for a U.S. Phone Accessories Company
Overview: A U.S.-based corporate gifting company was working with a new manufacturer in China to create a custom-printed power bank.
The initial samples met their specifications, so the client approved them and placed a purchase order. They also provided a 50% deposit as per the agreed-upon terms. Sometime later, the client was notified that the goods were ready to ship so the balance was paid. The goods were shipped as confirmed by the client’s forwarder. All seemed well.
The Problem: When the goods were received and inspected, the quality was so bad that the batch was rejected. It was deemed unusable, even if reworked locally in the U.S.
The client contacted the vendor and complained about the quality, demanding the goods be replaced or credited. Following the first complaint, emails went unanswered and phone calls were ignored. There was no further contact from the vendor.
The products were intended as gifts at a large corporate event, so the delivery date was fixed. What would move is the client’s reputation, unfortunately in the wrong direction.
The Solution: SureSource was urgently contacted by the client and asked for help to try and resolve the situation.
Step #1: Find the Real Supplier: SureSource visited the vendor address and confirmed it was an empty residential address even though it was purported to be a factory. The client selected the vendor from an online trading index. There are many reputable companies on these platforms, but great care must be taken to ensure the companies exist, can supply the product, and are who they claim to be.
A common problem is that individuals often portray themselves as a factory, sometimes with the blessing of the real factory that is providing the goods. This not only inflates prices but also provides little if any support when things go wrong. If it will cost a vendor money, they simply disappear. The client is unable to establish the real source of the product, let alone the authenticity of test results and certifications. This is of even greater concern if previous shipments have been accepted and dispersed through retail or online outlets to end users. The cost of field failures or safety events is often far greater than the value of the goods involved.
Step #2: Verify and Audit: SureSource contacted the Chinese forwarder to identify the pickup address of the goods. This led them to the actual factory which manufactured the goods.
SureSource set up a meeting with the factory posing as a buyer and asked for a factory tour. The factory was very low-grade, dirty, and highly unorganized and there was little sign of online testing or documentation. They did try to take photographs but were prevented from doing so. Back in the meeting room, SureSource showed the factory a photo of the faulty goods (recognizable by the custom printing) and requested to know who these goods had been supplied. Suddenly, the atmosphere became very sour, no information was divulged, even though SureSource indicated to the factory that we represented the US Customer, and we were asked to leave the building immediately. All of this information was passed on to the client.
Step #3: Quickly Find a Reputable Manufacturer: SureSource quickly identified a reputable source for these products, ensured product performance met specifications, and confirmed the validity of the certifications (in this case the FCC). SureSource communicated this back to the client in a detailed factory audit report. Once the factory was approved by the client, samples with custom printing were produced for approval.
The Results: Once approved, SureSource was able to expedite delivery and arrange for air shipment so that the goods were delivered in time for the corporate event.
Though SureSource could not retrieve the client’s funds directly, they did preserve the client’s reputation and their relationship with their customer. They also established a reliable and trustworthy source for the client for future needs. SureSource became their go-to vendor for all future client production, providing a predictable supply chain that allowed the client to grow their business.
Conclusion: SureSource demonstrated exceptional problem-solving skills and a commitment to client success in a challenging situation. By ensuring product quality and timely delivery, SureSource upheld its reputation as a dependable partner in managing complex supply chain challenges. This case exemplifies SureSource’s capacity to deliver one-stop-shop solutions that effectively mitigate risks associated with global manufacturing and supply chain intricacies.
SureSource: Your Safe Pair of Hands in Asia.
Click here to see examples of SureSource’s custom batteries.
