Typical Problems and Issues

Manufacturing abroad has had mixed results with some companies unable to capitalize on the comparative advantages inherent in the locales where they have located facilities. This has been the result of misunderstanding of local cultures and an inability to manage the language and even time differences. As follows are a few of the typical problems when it comes to sourcing from overseas, and specifically China:

Material Quality: Materials can have substantial levels of impurities causing problems in finishing. Some manufacturers use uncertified / cheap or a high amount of recycled materials resulting in signifcant outgassing or splotching after anodizing.

Lack of Quality Oversight: The samples a factory provides can ultimately differ from what the customer ultimately receives. In addition to this common hazard, when a factory is in a rush to produce goods, they may relax their quality standards for the final batch of goods.

Varying Cost Structures: Pricing is highly factory dependent particularly when it comes to China. With so many "moving parts" manufacturing in China cost structures differ significantly from high costs and low qualities to low costs and high quality and just about everything in between. For this reason it is critical that buyers not be married to any given factory with total variances in pricing as high as 30%. By continually vetting and seeking new vendors, Riverstone focuses on ensuring your pricing remains competitive.

Culture focused on Relationships: China is still a developing nation with her citizens still learning about standards of practice. China is highly relationship driven. Pricing and production can depend substantially on the existing relationship irrespective of the financial potential of that relationship.

Communication Difficulties: Besides obvious language differences, different time zones can cause gaps in communication and hassles when dialogue is required. More specifically to manufacturing, many factories may not be familiar with standards like GD&T that may be commonplace in North America.

Factories with Financial Difficulties: Some factories live from letter of credit to letter of credit, using the funds from one future order to pay for the materials of an existing order with financial problems brought about by poor management. This can cause significant hardship to customers who may experience disruptions, or worse, a complete loss of their order.

By offering strict scrutiny over production (we provide inspections/monitoring based on the ISO 2859 single sampling plan level II (MIL-STD-105E), and as required even 100% inspections), an existing relationship base with over 25 other factories, western trained engineers, and a sales presence in North America, Riverstone Manufacturing is able to help its clients avoid these problems.

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