By now, we’re all well aware of the not-so-stellar reputation of made-in-China products.

Even Lenovo – one of China’s proudest homegrown brands - tries not to draw attention to its Chineseness beyond mainland borders, and for good reason. Subpar quality scandals continue to plague all kinds of companies involved in Chinese production – pharmaceutical, toothpaste, milk, toy – you name it.

Now when the China price was the concerning issue in the popular press - due to rising labor costs, a stronger yuan, and inflation – some suggested moving manufacturing operations out of China to “cheaper” places like Vietnam.

Because we won’t play devil’s advocate – and China clearly is the devil since it’s killing babies with poison milk – we’d like to suggest considering basing your manufacturing operations in India.

Forget for a moment whether Fonterra – the New Zealand joint venture partner in a Chinese dairy company that reportedly manufactured tainted milk resulting in the injury and deaths of babies - did or didn’t know about the company’s problems early on. And whether they should or shouldn’t have raised red flags to the public the moment they knew.

Let’s face it: An ounce of dead baby prevention is worth much more than a pound of dead baby cure. Because there ain’t no cure for dead babies.

So even the most appropriate amount of attention to a product defect won’t be as good as appropriately preventing defects in the first place.

How do you do that?

Consider moving manufacturing to India.

Why?

According to CIO News, excellent communication with the staff of overseas suppliers is seen as critical to success, and trouble brews from the lack of it. And it’s both easier for English-speakers to speak English with Indians than Chinese, and it’s easier to communicate with Indians, period.

The Pragmatic Outsourcing blog puts it best:

There is no comparison in communication skills of consulting work force in India and China. Command of English language for majority of people we interviewed in India was far stronger than mine. In China the situation was opposite, more so the more skilled and senior the resource the lower his/her language skills.

Language in just one of many dimensions of communication. There are many skills important for bridging cultural differences and communication gaps. When it comes to dealing with USA companies Indian consultants have a huge lead on Chinese in many aspects, just to name a few:

• Body language / facial expressions – much easier to understand and follow
• Overall presentation skills
• Understanding of professional lingo
• Grasp on general rules of professional communications and office etiquette

With communications being one of the most important aspects of majority outsourcing initiatives India [has] a huge lead on China.

Earlier this year when Methotrexate, an anticancer medication, was reportedly contaminated at the hands of Shanghai Pharmaceutical, we contacted ShanghaBio Corp., which works on drug development, to ask how foreign pharmaceutical companies can ensure quality of drugs or drug components developed in China.

Shi Yao Zhou, director of business development, provided some hints on how to avoid chemical snafus that may have occurred at Shanghai Pharma – and guess what? His number one tip was that if you have outsourced lab work to China, make sure your laboratory is abiding by Good Laboratory Practice (GLP). This is the laboratory equivalent of GMP, or Good Manufacturing Practice.

And how do you do that? Communication – which again – is much easier to do in India.

Meanwhile, India should be a serious contender for manufacturing operations. There’s a long list of foreign manufacturers there, according to The McKinsey Quarterly. They include: “Cummins, DaimlerChrysler, and Toyota Motor in auto components and engineering; and Degussa as well as Rohm and Hass in specialty chemicals.”

The Quarterly continues:

Moreover, it is no accident that these particular companies have chosen India. All operate in skill-intensive industries requiring advanced technical expertise—areas in which India is likely to become a primary sourcing and manufacturing base.

Indeed, McKinsey research supports the view that the next wave of global outsourcing in manufacturing will take place in just these kinds of industries. In addition to auto components and assembly, they include fabricated metal products, machinery, pharmaceuticals, and telecom equipment.

Maybe it’s time to add dairy to that list, or your company’s product.

    Channel: Vital News     |