I run a factory in China part of a larger company, we manufacture and supply their main raw material. I joined to design and build the facility and we have been in production for about 4 years. Our excess capacity is marketed to other companies similar to our parent company.
Because the industry is very quality conscious and regulated a lot of end users will specify a raw material source in the order, require approval trials before production or publish lists of sources approved by them. Depending on the particular process or how busy the customers' auditors are approvals can take a while to arrange. So even though we have some prestigious approvals (only holders in the country) we do not supply 100% of the raw materials to our parent company (and probably never will). I'd say we are at about 70% and will probably top out at 85%.
I have heard from two independent sources that a competitor is going around telling everyone that will listen; "their quality is so awful that even their parent company won't use their product, and they are coming to us for tonnes of material"
One source named the competitor, my first idea is to try get them off the approved suppliers list, the things we are not allowed to supply can be bought elsewhere (not my call but I do have a bit of clout in head office). And also getting on the road and visiting key and potential customers to put them straight.
WWYD?