CINXE.COM

<!DOCTYPE html> <html lang="en" dir="ltr"> <head> <meta http-equiv="X-UA-Compatible" content="IE=edge,chrome=1"> <link rel="apple-touch-icon" sizes="180x180" href="/sites/all/themes/doc/doc_theme/images/apple-touch-icon.png"> <link rel="icon" type="image/png" sizes="32x32" href="/sites/all/themes/doc/doc_theme/images/favicon-32x32.png"> <link rel="icon" type="image/png" sizes="16x16" href="/sites/all/themes/doc/doc_theme/images/favicon-16x16.png"> <link rel="manifest" href="/sites/all/themes/doc/doc_theme/images/manifest.json"> <link rel="mask-icon" href="/sites/all/themes/doc/doc_theme/images/safari-pinned-tab.svg" color="#5bbad5"> <link rel="shortcut icon" href="/sites/all/themes/doc/doc_theme/images/favicon.ico"> <meta name="msapplication-config" content="/sites/all/themes/doc/doc_theme/images/browserconfig.xml"> <meta name="theme-color" content="#ffffff"> <meta charset="utf-8" /> <meta http-equiv="X-UA-Compatible" content="IE=edge" /> <meta name="viewport" content="initial-scale=1" /> <link rel="shortcut icon" href="https://acetool.commerce.gov/sites/default/files/favicon_1.ico" type="image/vnd.microsoft.icon" /> <meta name="viewport" content="width=device-width, initial-scale=1.0, user-scalable=no" /> <meta name="description" content="Inputs from a foreign supply chain may lead to lower product quality, potentially costly product returns and legal liability. Overseas supply chains reduce U.S. manufacturers' flexibility to quickly react to their customers' changing demands and requirements." /> <meta name="MobileOptimized" content="width" /> <meta name="HandheldFriendly" content="1" /> <meta name="apple-mobile-web-app-capable" content="yes" /> <meta name="keywords" content="," /> <meta name="generator" content="Drupal 7 (http://drupal.org)" /> <link rel="canonical" href="https://acetool.commerce.gov/cost-risk-topic/product-quality" /> <link rel="shortlink" href="https://acetool.commerce.gov/node/23" /> <meta property="og:site_name" content="Assess Costs Everywhere" /> <meta property="og:type" content="website" /> <meta property="og:url" content="https://acetool.commerce.gov/cost-risk-topic/product-quality" /> <meta property="og:title" content="Product Quality" /> <meta property="og:description" content="Inputs from a foreign supply chain may lead to lower product quality, potentially costly product returns and legal liability. Overseas supply chains reduce U.S. manufacturers' flexibility to quickly react to their customers' changing demands and requirements." /> <meta property="og:updated_time" content="2018-03-20T09:36:17-05:00" /> <meta property="og:image" content="https://acetool.commerce.gov/sites/default/files/product_quality.jpg" /> <meta property="og:image" content="https://acetool.commerce.gov/sites/default/files/product_quality.png" /> <meta name="twitter:card" content="summary_large_image" /> <meta name="twitter:site" content="@CommerceGov" /> <meta name="twitter:url" content="https://acetool.commerce.gov/cost-risk-topic/product-quality" /> <meta name="twitter:description" content="Inputs from a foreign supply chain may lead to lower product quality, potentially costly product returns and legal liability. Overseas supply chains reduce U.S. manufacturers' flexibility to quickly react to their customers' changing demands and requirements." /> <meta name="twitter:title" content="Product Quality" /> <meta name="twitter:image" content="https://acetool.commerce.gov/sites/default/files/product_quality.jpg" /> <meta property="article:published_time" content="2016-08-26T14:15:59-05:00" /> <meta property="article:modified_time" content="2018-03-20T09:36:17-05:00" /> <meta itemprop="description" content="Inputs from a foreign supply chain may lead to lower product quality, potentially costly product returns and legal liability. Overseas supply chains reduce U.S. manufacturers' flexibility to quickly react to their customers' changing demands and requirements." /> <meta itemprop="name" content="Product Quality" /> <meta itemprop="image" content="https://acetool.commerce.gov/sites/default/files/product_quality.jpg" /> <title>Product Quality | Assess Costs Everywhere</title> <style> @import url("https://acetool.commerce.gov/modules/system/system.base.css?s22t96"); @import url("https://acetool.commerce.gov/modules/system/system.menus.css?s22t96"); @import url("https://acetool.commerce.gov/modules/system/system.messages.css?s22t96"); @import url("https://acetool.commerce.gov/modules/system/system.theme.css?s22t96"); </style> <style> @import url("https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/themes/base/minified/jquery.ui.core.min.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/themes/base/minified/jquery.ui.theme.min.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/themes/base/minified/jquery.ui.accordion.min.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/themes/base/minified/jquery.ui.tabs.min.css?s22t96"); </style> <style> @import url("https://acetool.commerce.gov/sites/all/modules/contrib/calendar/css/calendar_multiday.css?s22t96"); @import url("https://acetool.commerce.gov/modules/comment/comment.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/date/date_api/date.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/date/date_popup/themes/datepicker.1.7.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/date/date_repeat_field/date_repeat_field.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/custom/features/esa_reports/esa_reports.css?s22t96"); @import url("https://acetool.commerce.gov/modules/field/theme/field.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/fitvids/fitvids.css?s22t96"); @import url("https://acetool.commerce.gov/modules/node/node.css?s22t96"); @import url("https://acetool.commerce.gov/modules/search/search.css?s22t96"); @import url("https://acetool.commerce.gov/modules/user/user.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/views/css/views.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/back_to_top/css/back_to_top.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/accordion_menu/accordion_menu.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/ckeditor/css/ckeditor.css?s22t96"); </style> <style> @import url("https://acetool.commerce.gov/sites/all/modules/contrib/ctools/css/ctools.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/panels/css/panels.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/views_slideshow/views_slideshow.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/menu_minipanels/css/menu_minipanels.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/libraries/datatables-responsive/files/css/datatables.responsive.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/modules/contrib/radioactivity/css/radioactivity.css?s22t96"); </style> <style media="screen"> @import url("https://acetool.commerce.gov/sites/all/themes/adaptivetheme/at_core/css/at.layout.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/global.base.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/global.styles.css?s22t96"); </style> <style> @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/doc_galleria_theme/galleria.doc.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/fonts/docfont/docfont.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/fonts/source-sans-pro/stylesheet.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/colors.css?s22t96"); @import url("https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/color_scheme.css?s22t96"); </style> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/default/files/adaptivetheme/doc_theme_files/doc_theme.responsive.layout.css?s22t96" media="only screen" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.custom.css?s22t96" media="only screen" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.smalltouch.portrait.css?s22t96" media="only screen and (max-width:320px)" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.smalltouch.landscape.css?s22t96" media="only screen and (min-width:321px) and (max-width:480px)" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.tablet.portrait.css?s22t96" media="only screen and (min-width:481px) and (max-width:768px)" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.tablet.landscape.css?s22t96" media="only screen and (min-width:769px) and (max-width:1024px)" /> <link type="text/css" rel="stylesheet" href="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/css/responsive.desktop.css?s22t96" media="only screen and (min-width:1025px)" />      <script src="https://acetool.commerce.gov/sites/all/libraries/modernizr/modernizr.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/jquery/1.7/jquery.min.js?v=1.7.2"></script> <script src="https://acetool.commerce.gov/misc/jquery-extend-3.4.0.js?v=1.7.2"></script> <script src="https://acetool.commerce.gov/misc/jquery-html-prefilter-3.5.0-backport.js?v=1.7.2"></script> <script src="https://acetool.commerce.gov/misc/jquery.once.js?v=1.2"></script> <script src="https://acetool.commerce.gov/misc/drupal.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/fitvids/jquery.fitvids.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.core.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.widget.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.effect.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.accordion.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.tabs.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/jquery_update/replace/ui/ui/minified/jquery.ui.effect-highlight.min.js?v=1.10.2"></script> <script src="https://acetool.commerce.gov/misc/form-single-submit.js?v=7.98"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/fitvids/fitvids.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/back_to_top/js/back_to_top.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/custom/features/commerce_gov_general/js/crazyegg_script.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-collapse.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/views_slideshow/js/views_slideshow.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/menu_minipanels/js/menu_minipanels.callbacks.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/table_trash/js/table_trash.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/table_trash/libraries/variants/js/jquery.dataTables.bugfixed.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/table_trash/libraries/variants/js/FixedHeader.bugfixed.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/datatables/extras/FixedColumns/media/js/FixedColumns.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/datatables/extras/TableTools/media/js/TableTools.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/datatables/extras/ColReorder/media/js/ColReorderWithResize.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/table_trash/libraries/variants/js/datatables.responsive.bugfixed.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/datatables-responsive/example/lib/lodash/lodash.min.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/joyride/inc/js/joyride_start_link.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-prevent-multiple-submit.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-show-hide-more.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-scroll.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-media-browser.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-menu-toggle.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-info-toggle.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-tags-toggle.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/jquery.localscroll-1.2.7.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/jquery.scrollTo-1.4.3.1.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-scroll-anchors.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/cufon/cufon-yui.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/cufon/docfont_400.font.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/cufon/docfont.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-chrome-render-bug.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-tabs.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-ui-effects.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-tooltip-help.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-icon-columns.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-hide-empty-fieldset.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-login-button.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-holiday.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-tools-menu.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/scripts/doc-responsive-tables.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/themes/adaptivetheme/at_core/scripts/scalefix.js?s22t96"></script> <script>jQuery.extend(Drupal.settings, {"basePath":"\/","pathPrefix":"","setHasJsCookie":0,"ajaxPageState":{"theme":"doc_theme","theme_token":"_NlqlOxTvVpUYbSWxMD8cC07sEwgiT9K4Zaz1l_pNGI","js":{"sites\/all\/modules\/custom\/features\/commerce_gov_general\/js\/siteimprove.js":1,"sites\/all\/modules\/contrib\/menu_minipanels\/js\/menu_minipanels.js":1,"sites\/all\/libraries\/qtip\/jquery.qtip-1.0.0-rc3.min.js":1,"0":1,"1":1,"2":1,"3":1,"sites\/all\/libraries\/modernizr\/modernizr.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/jquery\/1.7\/jquery.min.js":1,"misc\/jquery-extend-3.4.0.js":1,"misc\/jquery-html-prefilter-3.5.0-backport.js":1,"misc\/jquery.once.js":1,"misc\/drupal.js":1,"sites\/all\/libraries\/fitvids\/jquery.fitvids.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.core.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.widget.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.effect.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.accordion.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.tabs.min.js":1,"sites\/all\/modules\/contrib\/jquery_update\/replace\/ui\/ui\/minified\/jquery.ui.effect-highlight.min.js":1,"misc\/form-single-submit.js":1,"sites\/all\/modules\/contrib\/fitvids\/fitvids.js":1,"sites\/all\/modules\/contrib\/back_to_top\/js\/back_to_top.js":1,"sites\/all\/modules\/custom\/features\/commerce_gov_general\/js\/crazyegg_script.js":1,"misc\/collapse.js":1,"sites\/all\/modules\/contrib\/views_slideshow\/js\/views_slideshow.js":1,"sites\/all\/modules\/contrib\/menu_minipanels\/js\/menu_minipanels.callbacks.js":1,"sites\/all\/modules\/contrib\/table_trash\/js\/table_trash.js":1,"sites\/all\/modules\/contrib\/table_trash\/libraries\/variants\/js\/jquery.dataTables.bugfixed.min.js":1,"sites\/all\/modules\/contrib\/table_trash\/libraries\/variants\/js\/FixedHeader.bugfixed.min.js":1,"sites\/all\/libraries\/datatables\/extras\/FixedColumns\/media\/js\/FixedColumns.min.js":1,"sites\/all\/libraries\/datatables\/extras\/TableTools\/media\/js\/TableTools.min.js":1,"sites\/all\/libraries\/datatables\/extras\/ColReorder\/media\/js\/ColReorderWithResize.js":1,"sites\/all\/modules\/contrib\/table_trash\/libraries\/variants\/js\/datatables.responsive.bugfixed.js":1,"sites\/all\/libraries\/datatables-responsive\/example\/lib\/lodash\/lodash.min.js":1,"sites\/all\/modules\/contrib\/joyride\/inc\/js\/joyride_start_link.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-prevent-multiple-submit.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-show-hide-more.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-scroll.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-media-browser.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-menu-toggle.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-info-toggle.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-tags-toggle.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/jquery.localscroll-1.2.7.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/jquery.scrollTo-1.4.3.1.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-scroll-anchors.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/cufon\/cufon-yui.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/cufon\/docfont_400.font.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/cufon\/docfont.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-chrome-render-bug.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-tabs.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-ui-effects.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-tooltip-help.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-icon-columns.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-hide-empty-fieldset.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-login-button.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-holiday.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-tools-menu.js":1,"sites\/all\/themes\/doc\/doc_theme\/scripts\/doc-responsive-tables.js":1,"sites\/all\/themes\/adaptivetheme\/at_core\/scripts\/scalefix.js":1},"css":{"modules\/system\/system.base.css":1,"modules\/system\/system.menus.css":1,"modules\/system\/system.messages.css":1,"modules\/system\/system.theme.css":1,"misc\/ui\/jquery.ui.core.css":1,"misc\/ui\/jquery.ui.theme.css":1,"misc\/ui\/jquery.ui.accordion.css":1,"misc\/ui\/jquery.ui.tabs.css":1,"sites\/all\/modules\/contrib\/calendar\/css\/calendar_multiday.css":1,"modules\/comment\/comment.css":1,"sites\/all\/modules\/contrib\/date\/date_api\/date.css":1,"sites\/all\/modules\/contrib\/date\/date_popup\/themes\/datepicker.1.7.css":1,"sites\/all\/modules\/contrib\/date\/date_repeat_field\/date_repeat_field.css":1,"sites\/all\/modules\/custom\/features\/esa_reports\/esa_reports.css":1,"modules\/field\/theme\/field.css":1,"sites\/all\/modules\/contrib\/fitvids\/fitvids.css":1,"modules\/node\/node.css":1,"modules\/search\/search.css":1,"modules\/user\/user.css":1,"sites\/all\/modules\/contrib\/views\/css\/views.css":1,"sites\/all\/modules\/contrib\/back_to_top\/css\/back_to_top.css":1,"sites\/all\/modules\/contrib\/accordion_menu\/accordion_menu.css":1,"sites\/all\/modules\/contrib\/ckeditor\/css\/ckeditor.css":1,"sites\/all\/modules\/contrib\/ctools\/css\/ctools.css":1,"sites\/all\/modules\/contrib\/panels\/css\/panels.css":1,"sites\/all\/modules\/contrib\/views_slideshow\/views_slideshow.css":1,"sites\/all\/modules\/contrib\/menu_minipanels\/css\/menu_minipanels.css":1,"sites\/all\/libraries\/datatables-responsive\/files\/css\/datatables.responsive.css":1,"sites\/all\/modules\/contrib\/radioactivity\/css\/radioactivity.css":1,"sites\/all\/themes\/adaptivetheme\/at_core\/css\/at.layout.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/global.base.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/global.styles.css":1,"sites\/all\/themes\/doc\/doc_theme\/doc_galleria_theme\/galleria.doc.css":1,"sites\/all\/themes\/doc\/doc_theme\/fonts\/docfont\/docfont.css":1,"sites\/all\/themes\/doc\/doc_theme\/fonts\/source-sans-pro\/stylesheet.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/colors.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/color_scheme.css":1,"public:\/\/adaptivetheme\/doc_theme_files\/doc_theme.responsive.layout.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.custom.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.smalltouch.portrait.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.smalltouch.landscape.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.tablet.portrait.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.tablet.landscape.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/responsive.desktop.css":1,"public:\/\/adaptivetheme\/doc_theme_files\/doc_theme.lt-ie9.layout.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/lt-ie9.css":1,"sites\/all\/themes\/doc\/doc_theme\/css\/lt-ie8.css":1}},"back_to_top":{"back_to_top_button_trigger":"100","back_to_top_button_text":"Back to top","#attached":{"library":[["system","ui"]]}},"fitvids":{"custom_domains":[],"selectors":["body"],"simplifymarkup":true},"menuMinipanels":{"panels":{"panel_664":{"position":{"target":"false","target_custom":"","type":"absolute","corner":{"target":"rightBottom","tooltip":"rightTop"}},"show":{"delay":"0","when":{"event":"click"},"effect":{"type":"false","length":"0"}},"hide":{"delay":"60000","effect":{"type":"false","length":"0"}},"style":{"name":"light","width":{"min":"0","max":"500"},"border":{"width":"0","color":"#d3d3d3","radius":"0"}},"mlid":"664"}}},"urlIsAjaxTrusted":{"\/cost-risk-topic\/product-quality":true,"\/search\/node":true},"table_trash":{".table-export-col1 table,table.table-export-col1":{"sDom":"T\u003C\u0022clear\u0022\u003Elfrtip","bFilter":1,"bSort":true,"bPaginate":false,"sPaginationType":"","iDisplayLength":-1,"bLengthChange":false,"bFixedHeader":false,"oTableTools":{"sSwfPath":"\/sites\/all\/libraries\/datatables\/extras\/TableTools\/media\/swf\/copy_csv_xls_pdf.swf"},"iExpandCol":0,"iBreakpointPhone":480,"iBreakpointTablet":768,"aiHideColsTablet":[2,3,4,5,6,7,8],"aiHideColsPhone":[1,2,3,4,5,6,7,8]},".table-export-col2 table, table.table-export-col2":{"sDom":"T\u003C\u0022clear\u0022\u003Elfrtip","bFilter":1,"bSort":true,"bPaginate":false,"sPaginationType":"","iDisplayLength":-1,"bLengthChange":false,"bFixedHeader":false,"oTableTools":{"sSwfPath":"\/sites\/all\/libraries\/datatables\/extras\/TableTools\/media\/swf\/copy_csv_xls_pdf.swf"},"iExpandCol":1,"iBreakpointPhone":480,"iBreakpointTablet":768,"aiHideColsTablet":[2,3,4,5,6,7,8],"aiHideColsPhone":[0,2,3,4,5,6,7,8]}},"adaptivetheme":{"doc_theme":{"layout_settings":{"bigscreen":"three-col-grail","tablet_landscape":"three-col-grail","tablet_portrait":"one-col-vert","smalltouch_landscape":"one-col-vert","smalltouch_portrait":"one-col-stack"},"media_query_settings":{"bigscreen":"only screen and (min-width:1025px)","tablet_landscape":"only screen and (min-width:769px) and (max-width:1024px)","tablet_portrait":"only screen and (min-width:481px) and (max-width:768px)","smalltouch_landscape":"only screen and (min-width:321px) and (max-width:480px)","smalltouch_portrait":"only screen and (max-width:320px)"}}}});</script> <script src="/sites/all/modules/contrib/usfedgov_google_analytics/js/Universal-Federated-Analytics-Min.js?agency=DOC" type="text/javascript" id="_fed_an_ua_tag"></script>  </head> <body class="html not-front not-logged-in no-sidebars page-node page-node- page-node-23 node-type-tool atr-7.x-3.x atv-7.x-3.2 site-name-assess-costs-everywhere section-cost-risk-topic"> <div id="skip-link" class="nocontent"> <a href="#main-content" class="element-invisible element-focusable">Skip to main content</a> </div> <div id="page-wrapper"> <div id="page" class="page"> <div id="header-wrapper"> <div class="container clearfix"> <header id="header" class="clearfix" role="banner">  <div id="branding" class="branding-elements clearfix circle-logo"> <div id="logo"> <div class="inner-logo-wrapper"> <a href="/"><img class="site-logo" src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/logo.png" alt="Assess Costs Everywhere" /></a> </div> </div>  <hgroup class="h-group" id="name-and-slogan"> <h1 class="alt-sitename"><a class="active" title="Home page" href="/">ACE Tool</a></h1> <h1 id="site-name"><a href="/" title="Home page">Assess Costs Everywhere</a></h1> </hgroup> </div> <div class="region region-header"><div class="region-inner clearfix"><nav id="block-system-main-menu" class="block block-system block-menu odd first block-count-1 block-region-header block-main-menu" role="navigation"><div class="block-inner clearfix"> <h2 class="block-title">Main menu</h2> <ul class="menu clearfix"><li class="first leaf menu666 joyride-start-link"><a href="/%23" title="Take a tour of this page" class="icon-binoculars menu-highlight joyride-start-link blink"><div class="menu-link-wrapper"><span>Take a Tour</span></div></a></li> <li class="leaf menu933"><a href="/" class="icon-home"><div class="menu-link-wrapper"><span>Home</span></div></a></li> <li class="leaf menu940"><a href="/ace-case-studies/case-studies" class="icon-books"><div class="menu-link-wrapper"><span>Case Studies</span></div></a></li> <li class="leaf menu941"><a href="/toolbox" class="icon-tool"><div class="menu-link-wrapper"><span>ToolBox</span></div></a></li> <li class="leaf menu942"><a href="/about-ace" class="icon-info"><div class="menu-link-wrapper"><span>About ACE</span></div></a></li> <li class="leaf menu943"><a href="/federal-resources" class="icon-commerce-bldg"><div class="menu-link-wrapper"><span>Federal Resources</span></div></a></li> <li class="last leaf menu944"><a href="https://acetool.commerce.gov/sites/default/files/ace_infographic.pdf" class="icon-bar2 " target="_blank"><div class="menu-link-wrapper"><span>ACE Infographic</span></div></a></li> </ul> </div></nav><nav id="block-menu-menu-tools" class="block block-menu even last block-count-2 block-region-header block-menu-tools" role="navigation"><div class="block-inner clearfix"> <h2 class="block-title">Tools</h2> <ul class="menu clearfix"><li class="first last leaf menu663"><a href="/search" class="search icon-search menu-minipanel menu-minipanel-664"><div class="menu-link-wrapper"><span>Search</span></div></a></li> </ul> </div></nav></div></div> </header> </div> </div> <div id="content-wrapper"><div class="container"> <div id="columns"><div class="columns-inner clearfix"> <div id="content-column"> <section id="main-content"> <div id="content"> <div id="block-system-main" class="block block-system no-title odd first last block-count-3 block-region-content block-main" > <div class="doc-one-stack at-panel panel-display clearfix" > <div class="region region-doc-one-stack-first"> <div class="region-inner clearfix"> <div class="panel-pane pane-entity-field pane-node-field-image no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <div class="field field-name-field-image field-type-image field-label-hidden view-mode-_custom_display"><div class="field-items"><figure class="clearfix field-item even"><img class="image-style-scale-1300x700" src="https://acetool.commerce.gov/sites/default/files/styles/scale_1300x700/public/product_quality.jpg?itok=vZrkkj49" width="1000" height="250" alt="Prdouct Quality" /></figure></div></div> </div> </div> </div> <div class="panel-separator"></div><div class="panel-pane pane-views pane-front-page-block-view no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <div class="view view-front-page-block-view view-id-front_page_block_view view-display-id-block_2 view-dom-id-4183a38ab90d16e717e89845a198f3df"> <div class="view-content"> <div class="item-list"> <ol> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/labor-costs"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/labor_costs.png?itok=D-NLZvfv" width="100" height="100" alt="Labor Costs" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/labor-costs">Labor Costs</a></div> </div></li> <li class="views-row views-row-2 views-row-even"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/travel-oversight"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/travel_oversight.png?itok=Wdi-DOz0" width="100" height="100" alt="Travel Oversight" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/travel-oversight">Travel & Oversight</a></div> </div></li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/shipping"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/shipping.png?itok=qKG21n3g" width="100" height="100" alt="Shipping" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/shipping">Shipping</a></div> </div></li> <li class="views-row views-row-4 views-row-even"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/inventory"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/inventory.png?itok=gaFtjtag" width="100" height="100" alt="Inventory" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/inventory">Inventory</a></div> </div></li> <li class="views-row views-row-5 views-row-odd"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/trade-financing-costs"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/trade_financing_costs.png?itok=0wqJgyyx" width="100" height="100" alt="Trade Financing" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/trade-financing-costs">Trade Financing Costs</a></div> </div></li> <li class="views-row views-row-6 views-row-even"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/product-quality" class="active"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/product_quality.png?itok=-ajI1W77" width="100" height="100" alt="Product Quality" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/product-quality" class="active">Product Quality</a></div> </div></li> <li class="views-row views-row-7 views-row-odd"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/energy-real-estate"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/energy_real_estate.png?itok=Zlzy2k13" width="100" height="100" alt="Energy Real Estate" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/energy-real-estate">Energy & Real Estate</a></div> </div></li> <li class="views-row views-row-8 views-row-even"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/intellectual-property"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/intellectual_property.png?itok=ox_HmCGh" width="100" height="100" alt="Intellectual Property" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/intellectual-property">Intellectual Property</a></div> </div></li> <li class="views-row views-row-9 views-row-odd"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/regulatory-compliance"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/regulatory_complaince_costs.png?itok=RC0ixLu1" width="100" height="100" alt="Regulatory Complaince" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/regulatory-compliance">Regulatory Compliance</a></div> </div></li> <li class="views-row views-row-10 views-row-even"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/political-security-risks"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/political_security_risks.png?itok=x4STSbjl" width="100" height="100" alt="Political Security Risks" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/political-security-risks">Political & Security Risks</a></div> </div></li> <li class="views-row views-row-11 views-row-odd views-row-last"> <div class="views-field views-field-field-image"> <div class="field-content"><a href="/cost-risk-topic/overview"><img class="image-style-scalecrop-100x100" src="https://acetool.commerce.gov/sites/default/files/styles/scalecrop_100x100/public/icon_ace_200x200.png?itok=1KvcPrCa" width="100" height="100" alt="Overview Big Image" /></a></div> </div> <div class="views-field views-field-title"> <div class="field-content imgtextoverlay"><a href="/cost-risk-topic/overview">Overview</a></div> </div></li> </ol></div> </div> </div> </div> </div> </div> <div class="panel-separator"></div><div class="panel-pane pane-entity-field pane-node-body no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <div class="field field-name-body field-type-text-with-summary field-label-hidden view-mode-_custom_display"><div class="field-items"><div class="field-item even"><ul> <li><strong>Inputs from a foreign supply chain may lead to lower product quality, potentially costly product returns and legal liability.</strong></li> <li><strong>Overseas supply chains reduce U.S. manufacturers' flexibility to quickly react to their customers' changing demands and requirements.</strong></li> </ul> <p>In the most basic sense, product quality means getting customers the product they want. At a minimum, a product of acceptable quality meets a set of previously agreed-upon specifications. However, quality can also be understood more broadly as the ability to quickly meet, if not anticipate, constantly changing market demand. In other words, it is no longer good enough for manufacturers to produce today a product that meets yesterday's specifications. Instead, firms must produce to meet today's real-time specifications and be able to turn on a dime in order to meet tomorrow's as well.</p> <h2>Meeting the Specs</h2> <p>There is anecdotal evidence of the role of product quality in U.S. manufacturers' decisions to reassess where they are producing or sourcing. The risk of product failure is real. Consider that 46 percent of respondents to a 2010 Accenture survey of North American manufacturing companies had "experienced product quality concerns as a result of offshored manufacturing and supply operations," and that 11 percent had product safety concerns. Increasingly, customers are asking for smaller, more frequent, more customized orders; transportation costs and commodity prices are rising; and exchange-rate pressures are increasing. In the same Accenture report, 61 percent of respondents indicated that they were considering shifting their manufacturing and supply bases closer to their customers to better meet demand.</p> <p>Furthermore, according to a <a href="https://www.strategy-business.com/article/11306" target="_blank">Booz & Company survey</a> of 200 manufacturing executives, "only 5 percent [of respondents] viewed offshore plants as better in quality [than U.S. manufacturing facilities], and only 14 percent said that other countries' facilities would respond more effectively to volatile demand." Additionally, a <a href="https://www2.deloitte.com/content/dam/Deloitte/us/Documents/strategy/us-2014-global-outsourcing-insourcing-survey-report-123114.pdf" target="_blank">2014 Deloitte survey</a> of over 150 public and private sector entities found that nearly 50 percent of offshoring companies cite poor service quality as a dissatisfying feature of their offshore vendors. (Other top-rated concerns were the reactive nature of their providers, lack of innovation and underqualified resources.)</p> <p>It is not easy to quantify the extent or cost of poor product quality of manufactured goods, let alone with respect to specific countries or geographic areas. Data from the Consumer Product Safety Commission (CPSC); however, does allow us to take a partial look at recalls by country. The CPSC publishes <a href="https://www.cpsc.gov/Recalls/" target="_blank">online</a> a listing of recalls by country or administrative area of manufacture and year. These recall counts point to sizeable growth over the past decade in the recall notices of Chinese-made consumer goods from 58 in 2002 to 179 in 2016 (with a peak of 302 in 2007). This is not surprising given the sharp rise in goods imported from China. In contrast, there were 73 recall notices of U.S.-made consumer goods, 5 for consumer goods manufactured in Canada and 13 for goods from Mexico.[<a href="#fn1" id="cite1" title="Link to footnote">i</a>]</p> <p>Recalls Under Consumer Product Safety Commission Jurisdiction By Country or Administrative Area of Manufacture, 2002-2016</p> <p><img alt="Line chart: Recalls for consumer products imported from China and other countries account for far more product recalls than do recalls for products manufactured in the U.S. Between 2002 and 2013, recalls for products manufactured in China increased faster than recalls of other products." src="//acetool.commerce.gov/sites/default/files/product_quality_-_cpsc_chart_2016_0.png" style="height:581px; width:800px" width="800" height="581" /></p> <p>Source: Economics and Statistics Administration analysis using data from the Consumer Product Safety Commission.</p> <h2>Product Returns and Liability</h2> <p>Whether subject to a recall or not, defective products must be reworked in the United States or make a return trip to the manufacturer. This decision hinges upon various factors, including the relationship and trust between the importer and exporter, and the <a href="//acetool.commerce.gov/cost-risk-topic/shipping">cost and time to ship</a> the defective good back to the country of origin. These direct costs and risks come into play when considering the savings required to compensate for longer <a href="//acetool.commerce.gov/cost-risk-topic/inventory">lead times</a> required when sourcing from afar.</p> <p>When product liability and litigation issues arise, offshore sources can make the issues even more complicated. As parties try to determine who is liable, two fundamental issues arise:</p> <ol> <li>In which jurisdiction will you pursue legal action?</li> <li>If you obtain a judgment against the foreign manufacturer, can and will it be enforced?</li> </ol> <p>Contracts may cover these issues, but contracts are also subject to dispute and judicial review. Legal counsel ultimately would help firms answer these questions; however, the U.S. State Department notes that – given the absence of treaties or international conventions on reciprocal recognition and enforcement of U.S. judgments – the recognition and enforcement of U.S. judgments ultimately will be decided abroad.[<a href="#fn3" id="cite3" title="Link to footnote">ii</a>]</p> <p>Data from the World Bank's Doing Business initiative further highlight the difficulty of traversing different countries' legal systems and the considerable variation in <a href="//acetool.commerce.gov/cost-risk-topic/regulatory-compliance">regulatory compliance costs</a>. These data capture the <a href="http://www.doingbusiness.org/data/exploretopics/enforcing-contracts" target="_blank">efficiency of contract enforcement</a> by comparing the time, cost and quality of judicial processes involved in a sale of goods dispute, covering the full period from when the lawsuit is filed until payment is made. As the table below highlights, the 420-day estimate for the United States is below the average for each of the major regions, though the 30.5-percent average cost as a share of the claim is around average. U.S. judicial processes, however, are among the best in the world. Individual countries may have shorter times or lower costs, but – when compared to the other major regions below – the United States is competitive across all three measures.</p> <table align="center" border="0" cellpadding="0" cellspacing="0" class="tableShaded" style="width:582px"> <tbody> <tr> <th> </th> <th><strong>Time<br /> (days)</strong></th> <th>Cost<br /> (% of claim)</th> <th>Quality of judicial processes (0-18)</th> </tr> <tr> <td style="vertical-align:bottom">United States</td> <td style="vertical-align:bottom">420</td> <td style="vertical-align:bottom">30.5%</td> <td style="vertical-align:bottom">13.8</td> </tr> <tr> <td style="vertical-align:bottom">East Asia & Pacific</td> <td style="vertical-align:bottom">560</td> <td style="vertical-align:bottom">49.1%</td> <td style="vertical-align:bottom">7.9</td> </tr> <tr> <td style="vertical-align:bottom">Eastern Europe & Central Asia</td> <td style="vertical-align:bottom">486</td> <td style="vertical-align:bottom">26.6%</td> <td style="vertical-align:bottom">10.3</td> </tr> <tr> <td style="vertical-align:bottom">Latin America & Caribbean</td> <td style="vertical-align:bottom">749</td> <td style="vertical-align:bottom">31.3%</td> <td style="vertical-align:bottom">8.4</td> </tr> <tr> <td style="vertical-align:bottom">Middle East & North Africa</td> <td style="vertical-align:bottom">653</td> <td style="vertical-align:bottom">25.0%</td> <td style="vertical-align:bottom">5.8</td> </tr> <tr> <td style="vertical-align:bottom">OECD High Income Countries</td> <td style="vertical-align:bottom">553</td> <td style="vertical-align:bottom">21.3%</td> <td style="vertical-align:bottom">11.0</td> </tr> <tr> <td style="vertical-align:bottom">South Asia</td> <td style="vertical-align:bottom">1,099</td> <td style="vertical-align:bottom">30.6%</td> <td style="vertical-align:bottom">6.5</td> </tr> <tr> <td style="vertical-align:bottom">Sub-Saharan Africa</td> <td style="vertical-align:bottom">655</td> <td style="vertical-align:bottom">44.3%</td> <td style="vertical-align:bottom">6.4</td> </tr> </tbody> </table> <p>Source: Economics and Statistics Administration analysis using data from the World Bank, Doing Business project.</p> <h2>Flexibility</h2> <p>Meeting customers' specifications means providing them with what they wanted at the time they placed the order. Sourcing domestically can help firms gain the flexibility to allow them to react more quickly to customers' changing demands and requirements. A shorter distance between design operations, manufacturing facilities and customers facilitates "<a href="https://www.usm.edu/sites/default/files/groups/center-logistics-trade-and-transportation/pdf/accenture-made-in-america.pdf" target="_blank">providing custom products, responding effectively to customer requests and ensuring delivery excellence in spite of demand swings</a>," the hallmarks of high quality.</p> <p>For larger companies, this thinking equates to a regional manufacturing strategy, and, for many, it is not new thinking. Honda Motors, which established the <a href="https://www.honda.com/operations/what-were-made-of-and-what-we-make" target="_blank">first Japanese auto assembly plant on U.S. soil</a> in 1982, is an oft-cited example of a manufacturer that has long strived to locate manufacturing, research and development and sales centers near its customers. Similar sentiment underlies Airbus's decision to build a $600 million <a href="http://company.airbus.com/careers/Our-locations/Mobile-alabama.html" target="_blank">aircraft assembly plant in Alabama</a>, as well as Whirlpool's 2013 decision to reshore <a href="https://www.manufacturing.net/news/2013/12/whirlpool-re-shoring-some-production-ohio-plant" target="_blank">production of front-load washing machines</a> from Mexico to Ohio; both companies seek to bring production close to their key markets, not just in the United States but also overseas.</p> <p>Still, the benefits of locating close to one's customers are relevant not just to major manufacturers but to all manufacturers. The earlier-cited Accenture survey found that product quality was the second most cited issue facing firms with offshore operations. The first issue was cycle or delivery time – in other words, the ability to respond to customers' needs.</p> <p>A number of U.S. suppliers have regained business from U.S. clients who needed support quickly when offshored goods were of subpar quality. Consider the case of <a href="//acetool.commerce.gov/ace-case-studies/amfor-electronics-inc-portland-oregon">AmFor Electronics, Inc.</a> in Portland, Oregon. This company has gained the capacity to go from a drawing to the production of the first article in just two weeks. As a result, it has gained new business from U.S. clients after being asked to step in and respond to errors in products from its offshore competitors.</p> <h2>Conclusion</h2> <p>Sourcing or producing in the United States may help reduce product quality risks and increase flexibility in responding to customer needs.</p> <p>[<a href="#cite1" id="fn1" title="link to citation">i</a>] Following the United States, the top recall counts in 2014 were from Taiwan (22), Mexico (9), India (9), and Canada (5).<br /> [<a href="#cite3" id="fn3" title="link to citation">ii</a>] According to the State Department, "[t]here is no bilateral treaty or multilateral international convention in force between the United States and any other country on reciprocal recognition and enforcement of judgments. Although there are many reasons for the absence of such agreements, a principal stumbling block appears to be the perception of many foreign states that U.S. money judgments are excessive according to their notions of liability. Moreover, foreign countries have objected to the extraterritorial jurisdiction asserted by courts in the United States. In consequence, absent a treaty, whether the courts of a foreign country would enforce a judgment issued by a court in the United States depends upon the internal laws of the foreign country and international comity. In many foreign countries, as in most jurisdictions in the United States, the recognition and enforcement of foreign judgments is governed by local domestic law and the principles of comity, reciprocity and res judicata (that is, that the issues in question have been decided already.)"</p> </div></div></div> </div> </div> </div> </div> </div> </div> </div> </div> </section> </div> </div></div> </div></div> <div id="tertiary-content-wrapper"> <div class="container clearfix"> <div class="last-updated">Last updated: 03/20/2018 - 09:36</div> <div class="region region-tertiary-content"><div class="region-inner clearfix"><section id="block-social-share-social-share" class="block block-social-share odd first block-count-4 block-region-tertiary-content block-social-share" ><div class="block-inner clearfix"> <h2 class="block-title">Social Share</h2> <div class="block-content content"><a href="http://facebook.com/sharer.php?u=https%3A%2F%2Facetool.commerce.gov%2Fcost-risk-topic%2Fproduct-quality&t=Product%20Quality" class="social-share-facebook" title="Share to Facebook" target="_blank">Facebook</a> <a href="https://plus.google.com/share?url=https%3A%2F%2Facetool.commerce.gov%2Fcost-risk-topic%2Fproduct-quality" class="social-share-googleplus" title="Share to Google Plus" target="_blank">Google Plus</a> <a href="http://twitter.com/intent/tweet?url=https%3A%2F%2Facetool.commerce.gov%2Fcost-risk-topic%2Fproduct-quality&text=Product%20Quality" class="social-share-twitter" title="Share to Twitter" target="_blank">Twitter</a> </div> </div></section><section id="block-views-doc-orgs-groups-block-1" class="block block-views even block-count-5 block-region-tertiary-content block-doc-orgs-groups-block-1" ><div class="block-inner clearfix"> <h2 class="block-title">Bureaus & Offices</h2> <div class="block-content content"><div class="view view-doc-orgs-groups view-id-doc_orgs_groups view-display-id-block_1 org-list collapse-level-2 view-dom-id-066181cc280a10162fcd66714bc97143"> <div class="attachment attachment-before"> <div class="view view-doc-orgs-groups view-id-doc_orgs_groups view-display-id-attachment_1"> </div> </div> <div class="view-empty"> <p>No matching organizations.</p> </div> </div></div> </div></section><nav id="block-menu-block-1" class="block block-menu-block odd last block-count-6 block-region-tertiary-content block-1" role="navigation"><div class="block-inner clearfix"> <h2 class="block-title">Main menu</h2> <div class="block-content content"><div class="menu-block-wrapper menu-block-1 menu-name-main-menu parent-mlid-0 menu-level-1"> <ul class="menu clearfix"><li class="first leaf menu-mlid-666 menu666 joyride-start-link"><a href="/%23" title="Take a tour of this page" class="icon-binoculars menu-highlight joyride-start-link blink"><div class="menu-link-wrapper"><span>Take a Tour</span></div></a></li> <li class="leaf menu-mlid-933 menu933"><a href="/" class="icon-home"><div class="menu-link-wrapper"><span>Home</span></div></a></li> <li class="leaf menu-mlid-940 menu940"><a href="/ace-case-studies/case-studies" class="icon-books"><div class="menu-link-wrapper"><span>Case Studies</span></div></a></li> <li class="leaf menu-mlid-941 menu941"><a href="/toolbox" class="icon-tool"><div class="menu-link-wrapper"><span>ToolBox</span></div></a></li> <li class="leaf menu-mlid-942 menu942"><a href="/about-ace" class="icon-info"><div class="menu-link-wrapper"><span>About ACE</span></div></a></li> <li class="leaf menu-mlid-943 menu943"><a href="/federal-resources" class="icon-commerce-bldg"><div class="menu-link-wrapper"><span>Federal Resources</span></div></a></li> <li class="last leaf menu-mlid-944 menu944"><a href="https://acetool.commerce.gov/sites/default/files/ace_infographic.pdf" class="icon-bar2 " target="_blank"><div class="menu-link-wrapper"><span>ACE Infographic</span></div></a></li> </ul></div> </div> </div></nav></div></div> </div> </div> <div id="footer-wrapper"> <div class="container clearfix"> <footer id="footer" class="clearfix" role="contentinfo"> <div class="region region-footer"><div class="region-inner clearfix"><nav id="block-menu-menu-footer" class="block block-menu odd first last block-count-7 block-region-footer block-menu-footer" role="navigation"><div class="block-inner clearfix"> <h2 class="block-title">Footer</h2> <div class="block-content content"><ul class="menu clearfix"><li class="first leaf menu2484"><a href="https://www.commerce.gov/"><div class="menu-link-wrapper"><span>U.S. DEPARTMENT OF COMMERCE</span></div></a></li> <li class="leaf menu2485"><a href="https://www.commerce.gov/about"><div class="menu-link-wrapper"><span>ABOUT COMMERCE</span></div></a></li> <li class="leaf menu2486"><a href="https://www.commerce.gov/page/contact-us"><div class="menu-link-wrapper"><span>CONTACT US</span></div></a></li> <li class="leaf menu2487"><a href="https://www.commerce.gov/page/privacy-policy"><div class="menu-link-wrapper"><span>PRIVACY POLICY</span></div></a></li> <li class="leaf menu3120"><a href="http://www.osec.doc.gov/ofm/OFM_Publications.html"><div class="menu-link-wrapper"><span>Agency Financial Report</span></div></a></li> <li class="leaf menu3121"><a href="http://www.osec.doc.gov/ocr/EEOPolicy.html"><div class="menu-link-wrapper"><span>EEO Policy</span></div></a></li> <li class="leaf menu2490"><a href="http://www.osec.doc.gov/opog/FOIA/default.html"><div class="menu-link-wrapper"><span>FOIA</span></div></a></li> <li class="leaf menu3122"><a href="https://gobierno.usa.gov/"><div class="menu-link-wrapper"><span>GobiernoUSA.gov</span></div></a></li> <li class="leaf menu3119"><a href="http://www.oig.doc.gov/"><div class="menu-link-wrapper"><span>Inspector General</span></div></a></li> <li class="leaf menu673"><a href="http://www.osec.doc.gov/ocr/nofear/nofear.htm"><div class="menu-link-wrapper"><span>No Fear Act</span></div></a></li> <li class="leaf menu668"><a href="http://www.usa.gov/"><div class="menu-link-wrapper"><span>USA.gov</span></div></a></li> <li class="leaf menu3118"><a href="http://www.oig.doc.gov/Pages/Hotline.aspx"><div class="menu-link-wrapper"><span>Whistleblower Protection</span></div></a></li> <li class="last leaf menu2488"><a href="http://www.whitehouse.gov/"><div class="menu-link-wrapper"><span>Whitehouse.gov</span></div></a></li> </ul></div> </div></nav></div></div> </footer> </div> </div> <div id="mobile-menu-wrapper"> <h2 class="menu-toggle-btn"> <a class="search" href="#"><span class="fonticon icon-search" aria-hidden="true"></span><span class="title">Search</span></a> <a class="menu" href="#"><span class="fonticon icon-menu" aria-hidden="true"></span><span class="title">Menu</span></a> </h2> <div id="mobile-search" class="mobile-menu mobile-menu-toggle"> <form class="search-form" action="/search/node" method="post" id="search-form--2" accept-charset="UTF-8"><div><div class="container-inline form-wrapper" id="edit-basic--2"><div class="form-item form-type-textfield form-item-keys"> <label for="edit-keys--2">Enter your keywords </label> <input type="text" id="edit-keys--2" name="keys" value="" size="40" maxlength="255" class="form-text" /> </div> <input type="submit" id="edit-submit--4" name="op" value="Search" class="form-submit" /></div><input type="hidden" name="form_build_id" value="form-lbI5bMor6BUhgKd4i_Z26oJdsUHwe2pYQzbA1CCOJm8" /> <input type="hidden" name="form_id" value="search_form" /> <input type="image" id="edit-submit--5" name="submit" src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/images/button-search.png" class="form-submit" /></div></form> </div> <div id="mobile-menu" class="mobile-menu mobile-menu-toggle"> <div class="container"> <div class="region region-mobile-menu"><div class="region-inner clearfix"><section id="block-accordion-menu-1" class="block block-accordion-menu odd first last block-count-8 block-region-mobile-menu block-1" ><div class="block-inner clearfix"> <h2 class="block-title"><none></h2> <div class="block-content content"><div class="accordion-menu-wrapper accordion-menu-1 accordion-menu-name-menu-1 accordion-menu-source-main-menu"> <h3 class="accordion-header accordion-header-1 first no-children odd menu-mlid-666 joyride-start-link"><a href="/%23" title="Take a tour of this page" class="icon-binoculars menu-highlight joyride-start-link blink accordion-link">Take a Tour</a></h3> <div class="accordion-content-1"></div> <h3 class="accordion-header accordion-header-2 no-children even menu-mlid-933"><a href="/" class="icon-home accordion-link">Home</a></h3> <div class="accordion-content-2"></div> <h3 class="accordion-header accordion-header-3 no-children odd menu-mlid-940"><a href="/ace-case-studies/case-studies" class="icon-books accordion-link">Case Studies</a></h3> <div class="accordion-content-3"></div> <h3 class="accordion-header accordion-header-4 no-children even menu-mlid-941"><a href="/toolbox" class="icon-tool accordion-link">ToolBox</a></h3> <div class="accordion-content-4"></div> <h3 class="accordion-header accordion-header-5 no-children odd menu-mlid-942"><a href="/about-ace" class="icon-info accordion-link">About ACE</a></h3> <div class="accordion-content-5"></div> <h3 class="accordion-header accordion-header-6 no-children even menu-mlid-943"><a href="/federal-resources" class="icon-commerce-bldg accordion-link">Federal Resources</a></h3> <div class="accordion-content-6"></div> <h3 class="accordion-header accordion-header-7 last no-children odd menu-mlid-944"><a href="https://acetool.commerce.gov/sites/default/files/ace_infographic.pdf" class="icon-bar2 accordion-link">ACE Infographic</a></h3> <div class="accordion-content-7"></div> </div> </div> </div></section></div></div> </div> </div> </div> </div> </div> <div class="region region-page-bottom"><div class="region-inner clearfix"><div class="menu-minipanels menu-minipanel-664"><div class="two-50 at-panel panel-display clearfix" id="mini-panel-search"> <div class="region region-two-50-top region-conditional-stack"> <div class="region-inner clearfix"> <div class="panel-pane pane-block pane-search-form pane-search no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <form action="/cost-risk-topic/product-quality" method="post" id="search-block-form" accept-charset="UTF-8"><div><div class="container-inline"> <h2 class="element-invisible">Search form</h2> <div class="form-item form-type-textfield form-item-search-block-form"> <label class="element-invisible" for="edit-search-block-form--2">Search </label> <input title="Enter the terms you wish to search for." placeholder="Search..." type="text" id="edit-search-block-form--2" name="search_block_form" value="" size="15" maxlength="128" class="form-text" /> </div> <div class="form-actions form-wrapper" id="edit-actions"><input type="image" id="edit-submit" name="submit" value="Search" src="https://acetool.commerce.gov/sites/all/themes/doc/doc_theme/images/button-search.png" class="form-submit" /></div><input type="hidden" name="form_build_id" value="form-b5ygtMbiQlkBbtmKr992w3sh9hz4_EtD5dev7BXp7II" /> <input type="hidden" name="form_id" value="search_block_form" /> </div> </div></form> </div> </div> </div> </div> </div> <div class="region region-two-50-first"> <div class="region-inner clearfix"> <div class="panel-pane pane-custom pane-2 no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <p><a class="button" href="https://dir.commerce.gov/"><span class="fonticon icon-users"></span><span class="title">Person finder</span></a></p> </div> </div> </div> </div> </div> <div class="region region-two-50-second"> <div class="region-inner clearfix"> <div class="panel-pane pane-custom pane-3 no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <p><a href="//acetool.commerce.gov/search" class="button"><span class="fonticon icon-learn"></span><span class="title">Advanced search</span></a></p> </div> </div> </div> </div> </div> <div class="region region-two-50-bottom region-conditional-stack"> <div class="region-inner clearfix"> <div class="panel-pane pane-custom pane-1 no-title block"> <div class="block-inner clearfix"> <div class="block-content"> <a href="https://data.commerce.gov/" class="button"><span class="fonticon icon-pie"></span><span class="title">Search over 40,000 Datasets</span></a> </div> </div> </div> </div> </div> </div> </div></div></div><script src="https://acetool.commerce.gov/sites/all/modules/custom/features/commerce_gov_general/js/siteimprove.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/modules/contrib/menu_minipanels/js/menu_minipanels.js?s22t96"></script> <script src="https://acetool.commerce.gov/sites/all/libraries/qtip/jquery.qtip-1.0.0-rc3.min.js?s22t96"></script> <script>jQuery(function() { jQuery('.accordion-menu-1').accordion({ animated: 'slide', autoHeight: false, clearStyle: false, fillSpace: false, event: 'mousedown', header: 'h3', collapsible: true, navigation: false, icons: { 'header': 'icon-plus', 'headerSelected': 'icon-minus' }, cookie: { path: '/' }, active: false, heightStyle: 'content' }); jQuery('.accordion-menu-1 .accordion-header.no-children').each(function(index, element) { jQuery(this) .unbind('.accordion') .children('.ui-icon') .removeClass('icon-plus') .addClass('icon-minus'); }); });</script> <script> jQuery(document).ready(function($) { //Modernizr.load({test: Modernizr.placeholder, nope: '/sites/all/modules/custom/doc_global/doc_global.doc-ie-placeho$ if (!('placeholder' in document.createElement('input'))) { $.getScript('/sites/all/themes/doc/doc_theme/scripts/doc-ie-placeholder.js'); } }); </script> <script> jQuery(document).ready(function($) { //Modernizr.load({test: Modernizr.placeholder, nope: '/sites/all/modules/custom/doc_global/doc_global.doc-ie-placeho$ if (!('placeholder' in document.createElement('input'))) { $.getScript('/sites/all/themes/doc/doc_theme/scripts/doc-ie-placeholder.js'); } }); </script> <script> jQuery(document).ready(function($) { //Modernizr.load({test: Modernizr.placeholder, nope: '/sites/all/modules/custom/doc_global/doc_global.doc-ie-placeho$ if (!('placeholder' in document.createElement('input'))) { $.getScript('/sites/all/themes/doc/doc_theme/scripts/doc-ie-placeholder.js'); } }); </script> </body> </html>