In this installment of our discussion surrounding the challenges of importing goods from international suppliers as defined by the Department of Commerce we will discuss product quality and issues encountered when sourcing from outside of the United States. Follow us as we discuss issues from product quality to travel and logistics to intellectual property. Read our last installment on trade financing costs here.
The end goal for businesses is getting customers the product that they have purchased produced and delivered seamlessly. When working with any product or material supplier, quality of the product, including the material that goes into a product, is of utmost importance. The significance of product quality can be looked at in two ways. It can refer to fulfilling the agreed upon terms (ie. materials, dimensions, etc.) or it can refer to being receptive to market changes and customer needs. If a supplier cannot produce a product that fulfills market and consumer needs, it is not a quality product.
Physical product quality issues can include:
- Product defects
- Incomplete products
- Product Safety
- Unregulated materials
- Incorrect assembly causing product failure
Product quality and service quality go hand in hand. Many times when service quality is poor, product quality will be poor and vice versa. Product quality issues are unfortunately not a rare occurrence in the manufacturing world, but when an international supplier is involved the ramifications from product quality issues can be more severe and costly.
Logistical Issues
The distance involved in working with international suppliers can play a big role in product quality complications. Products can already take up to weeks or months to arrive in the United States. If the products are defective or have any type of quality issue, one of three things may happen; the product will have to be sent back for replacement and a subsequent second shipment, a new shipment of the product will have to be sent out or the product will have to be disposed of and refunded. These issues can add months to the product fulfillment timeline. Therefore, it is important to weigh the benefits of cost savings when working with an offshore supplier versus the significantly extended lead times.
Legal Issues
When product quality issues lead to litigation, there are additional obstacles to maneuver when working with an international supplier. The Department of Commerce Ace Tool states, “As parties try to determine who is liable, two fundamental issues arise: In which jurisdiction will you pursue legal action? If you obtain a judgment against the foreign manufacturer, can and will it be enforced?” In the instance that a business spends the additional capital on legal counsel to fight an issue, even if it is ruled in the business’s favor, your business runs the risk of a judgment not being enforced. When working with domestic suppliers, on the other hand, businesses do not run the risk of legal judgments being overturned or funds being depleted with no results.
Custom Rubber Corp. strives to respond to all of its customers’ product quality concerns efficiently and effectively. Custom Rubber Corp. is happy to provide replacement parts, reworked parts and/or financial credit and disposal depending on what the situation calls for. Custom Rubber Corp. understands that product quality problems occur occasionally. That’s why we strive to show our customers that we are their trusted partner by responding quickly and efficiently to these situations. Our timely and effective responses to customer quality concerns strengthen and grow our relationships.
To learn more about how Custom Rubber Corp. can help with all custom rubber component needs, contact us today!