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Managing product safety of imported Chinese goods

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  • Berman, Barry
  • Swani, Kunal

Abstract

While recent recalls and scares have focused greatly on Chinese manufactured toys and foodstuffs, the issue of product safety extends to a wide variety of Chinese-produced goods. The supply chain in China is characterized by cost pressures and quality fade, multiple levels of outsourcing often involving small producers, a large number of counterfeit goods, Chinese cleverness at evading detection, and poor product safety surveillance by both the Chinese and U.S. governments. While some of these characteristics are present in other developing economies, few countries--save China--face all of these issues. To best counteract these forces, companies which outsource goods from China need a well-defined strategy to improve product safety. This strategy should encompass the practices of developing an organizational unit responsible for product safety, securing greater control over raw material sourcing in China, using extreme care in choosing Chinese subcontractors, conducting continuous product testing by multiple parties, being especially vigilant for counterfeits, and improving product traceability. Toward the end of ensuring items which meet quality standards, product safety auditing allows firms to assess their management of product safety of Chinese-made goods.

Suggested Citation

  • Berman, Barry & Swani, Kunal, 2010. "Managing product safety of imported Chinese goods," Business Horizons, Elsevier, vol. 53(1), pages 39-48, January.
  • Handle: RePEc:eee:bushor:v:53:y:2010:i:1:p:39-48
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    References listed on IDEAS

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    1. Lyles, Marjorie A., 2008. "Appreciating cultural differences in China: An interview with Robert A. Eckert, Chairperson of the Board and CEO of Mattel, Inc," Business Horizons, Elsevier, vol. 51(6), pages 463-468.
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    Cited by:

    1. Yang, Zhilin & Jiang, Ling (Alice), 2015. "Managing corporate crisis in China: Sentiment, reason, and law," Business Horizons, Elsevier, vol. 58(2), pages 193-201.
    2. Matthias Thürer & Balram Avittathur, 2017. "How do Indian firms source from China? Implications on cross-border supply chain management," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 44(4), pages 247-258, December.
    3. Montecchi, Matteo & Plangger, Kirk & Etter, Michael, 2019. "It’s real, trust me! Establishing supply chain provenance using blockchain," Business Horizons, Elsevier, vol. 62(3), pages 283-293.
    4. Grimm, Jörg H. & Hofstetter, Joerg S. & Sarkis, Joseph, 2014. "Critical factors for sub-supplier management: A sustainable food supply chains perspective," International Journal of Production Economics, Elsevier, vol. 152(C), pages 159-173.
    5. Yaron Yehezkel, 2014. "Motivating a Supplier to Test Product Quality," Journal of Industrial Economics, Wiley Blackwell, vol. 62(2), pages 309-345, June.
    6. Jaber, Mohamad Y. & Zanoni, Simone & Zavanella, Lucio E., 2014. "Economic order quantity models for imperfect items with buy and repair options," International Journal of Production Economics, Elsevier, vol. 155(C), pages 126-131.
    7. Li, Huashan & Bapuji, Hari & Talluri, Srinivas & Singh, Prakash J., 2022. "A Cross-disciplinary review of product recall research: A stakeholder-stage framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).

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