TESCOM has consigned production to mainly Chinese vendors. Our main trading components are cable assembly and LCD devices. We have contracts with around 8 vendors for our cable manufacturing business, and 5 vendors for LCD. Our most important activityin China is inspection of goods in our China QD center in Shenzhen. This we call SQD. SQD means Quality and Delivery in Shenzhen. SQD has our total procurement function in south China. SQD ensures 100% acceptance inspection for all incoming products. Our goal is zero defects in outgoing products through SQD management. In fact we offer not just a filtering function but also a supervising to our consignment vendors. If any parts are rejected during SQD, our quality staff will instruct the vendor's staff and make corrective action immediately.Furthermore, for each new vendor we make our own factory audit and for each existing vendor to assist in increased production we carry out periodical audit as well.