How to Reduce The Risk Of Unauthorized Subcontracting?

In this episode... Our CEO Renaud is back with Adrian and talks about a serious problem for buyers: unauthorized subcontracting. This is where the supplier you think is manufacturing your products, outsources the work to someone else that you have no knowledge of and haven't given permission to work on your products. This, obviously, is not a good situation...let's explore it in more detail.   Show Sections 00:00 - Greetings, catching up with Renaud, and some discussion about his India trip and the various content we created about it (check the links below). 04:13 - Introducing the topic: Unauthorized subcontracting. 05:04 - What is subcontracting/unauthorized subcontracting? 07:45 - Why this happens in China quite a lot and how it affects social audits. What problems does unauthorized subcontracting cause? 12:41 - Non-compliance.  13:41 - Poor quality. 17:51 - IP at risk. 19:26 - Products made in banned areas or staff where slave labor is a concern. How to reduce the risks of unauthorized subcontracting happening? 23:16 - 1. Factory data collection. 26:45 - 2. Plan to improve capacity and reduce delays. 32:40 - 3. Sign a manufacturing agreement with the supplier. 34:09 - 4. Give the supplier a pre-order confirmation. 35:57 - 5. Follow up on production. 36:38 - 6. Utilize unannounced audits. 41:14 - Extra: Travel to China in Summer 2022. 44:13 - Wrapping up.    Related content... How To Create A Valid Manufacturing Contract In China To Protect Your IP Read a whole series of blog posts about vetting Chinese suppliers to help you find a lower-risk supplier Renaud was interviewed about social audits in this news article - unauthorized subcontracting has a serious effect on these Get help from Sofeast to source great suppliers Audit your supplier's processes with one of our process management audits in order to reduce the risks of them not coping and subcontracting Sofeast project managers check on and manage your supplier to assure that the project is on track   Get in touch with us Connect with us on LinkedIn Send us a tweet @sofeast Prefer Facebook? Check us out on FB Contact us via Sofeast's contact page Subscribe to our YouTube channel   Subscribe to the podcast  There are more episodes to come, so remember to subscribe! You can do so in your favorite podcast apps here and don't forget to give us a 5-star rating, please: Apple Podcasts Spotify Stitcher Google Podcasts TuneIn Amazon Podcasts Deezer iHeartRADIO PlayerFM Listen Notes Podcast Addict Podchaser