Why Unauthorized Subcontracting Is A Big Problem [Podcast]

Unauthorized subcontracting could really hurt your business. You need to get your products made on time, but at what cost?

Our CEO Renaud is joined by Adrian from the team and they go through what this is and the dangers of it.

Think of it this way, you’ve spent time and money sourcing and validating a supplier who is capable of manufacturing your product at the level of quality you expect and in compliance with your market regulations. How would you feel if another manufacturer, totally unknown to you, was making your products out of components and materials you have no control over? Not great, right?

Listen here!

Listen: How to Reduce The Risk Of Unauthorized Subcontracting?

Watch: on Youtube

Episode 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…

We’ve created some great resources on this topic – read them and get help here:

• 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

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