The cost of importing low quality product

 

If you import products from China, have you calculated what poor quality costs you?

As the buyer, you probably have to pay for:

1. QC inspections (because you can’t trust your suppliers’ quality)

2. Unsellable products that you receive as part of the shipments

3. Penalties from your customers when they find quality issues

But it doesn’t stop there… You also have to pay for certain costs that are included in the manufacturer’s price:

4. Defects found before shipment and reworked
5. Scrapped material
6. ISO 9001 certifications (they feel the need a third party accreditation to conceal their quality system’s shortcomings) ISO 9001

This is why many people believe the costs of quality account for 30-40% of a product’s total landed cost.

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