Domestic Partner
Product-quality issues also had to be considered when evaluating moving from the “known” (domestic) to the “unknown” (overseas). No one in our industry foresaw the product safety concerns that surfaced over the past two years. Initial product quality discussions were far more mundane, and centered around things like agreed quality levels and lot-to-lot consistency. In many cases, the issues on the table looked much like those one would raise for discussion with another American factory in a traditional make-or-buy negotiation. What we have learned since is that manufacturing standards in China are not managed or regulated as strictly as they are in the United States. Who would have thought that melamine would find its way into milk powder? Or that the quality standards agreed upon by the contracting party would not be adhered to by the sub-contractor’s sub-contractor?
- People:
- Mel Ellis
- Places:
- New York City
- United States