Trade Risk: Representative Samples?

Related entries: Business Issues, General, Risk & Law, Trading

Further to our post on payment risk our expert, Kurt De Haan, here looks at how to reduce the risk of relying on those nice, shiny samples that were (specially selected) before the contract was confirmed…

So you have asked for and received samples from your China supplier and they “look good” right? So will your mass-produced shipment be the same quality as your carefully “hand-picked” samples? For most importers worldwide the answer is probably not.

One key reason for this is that many China factories bring in seasonal, part-time, or newly hired workers when they have orders to process and then let them go when the orders are finished. Additionally, many factories have “sample” departments where their very best craftsman work cautiously to produce the best possible samples. However, if the supplier’s “hand-picked” samples are non-conforming to your quality standards, the mass- produced product will almost certainly be non-conforming as well.

So because selecting and sending “good” samples is just human nature, you can expect to receive good samples from both good and poorer quality factories alike. The moral here is simply: Do not base positive purchase decisions on the seemingly good quality of samples you have received if the samples were selected by the supplier. Instead consider using in-process and / or pre-shipment inspections to ensure you get the quality you need.

China Business Services offers a range of risk management, due diligence and inspection services in China. Please contact us to discuss your requirements, or visit the Our Services section of the website for more details.

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2 Responses to “Trade Risk: Representative Samples?”

  1. Archive » Due Diligence = Sound Sleep| China Business Blog Says:

    […] dollars spent on in-process or pre-shipment inspections can save time and money later on. Inspections also put suppliers on notice that they are being monitored. In combination with sens […]

  2. Archive » Trust (And Test And Inspect)| China Business Blog Says:

    […] It can also help filter out bad suppliers who refuse to allow inspections at all, or whose deliveries do not live up to their samples. Using third-party inspectors also helps protect p […]

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