Are you considering outsourcing your manufacturing to China? If that’s the case, you’re not alone! In recent years, contract manufacturing in China has emerged as a desirable and cost-efficient option for businesses from all corners of the globe to have their goods manufactured efficiently and reliably.
In this blog post, we’ll take a look at the process of contract manufacturing in China. We’ll explore the different steps involved, the benefits, and the challenges associated with contract manufacturing in China. So, let’s get started!
What is Contract Manufacturing?
Contract manufacturing refers to the practice of outsourcing the production process of a company’s products to a third-party manufacturer.
This third-party manufacturer, which is also known as the contract manufacturer, is responsible for making the products according to the specifications and requirements provided by the company.
Contract manufacturing allows companies to outsource the design, assembly, testing, packaging, and shipping of products or components. This enables them to focus on core competencies and allows specialists to handle the manufacturing process. It should be noted that the ideas, designs, and intellectual property are all retained by the company, not the contract manufacturer.
Contract manufacturing is often used when a company needs a cost-effective, effective, and functional solution for producing large orders or specific parts and components.
The Benefits of Contract Manufacturing in China
Contract manufacturing in China offers a range of benefits to Western businesses. By outsourcing the production of goods, companies can free up resources to focus on other aspects of their business such as marketing, research and development, and customer service.
1. Cost Savings
One of the biggest advantages of contract manufacturing is the potential cost savings. Outsourcing production to a third-party manufacturer can reduce overhead costs such as labor and materials. Contract manufacturing also offers economies of scale and efficient use of resources, allowing businesses to get more for their money.
Additionally, contract manufacturers are able to provide more scalability than in-house production. This allows companies to take advantage of economies of scale and produce larger batches of products with greater efficiency. Contract manufacturing can also provide businesses with flexibility in terms of production capabilities, as they can switch between different manufacturers as needed.
3. Expert Guidance
Finally, contract manufacturing allows companies to benefit from the expertise of experienced industry professionals who are familiar with the specific needs of their industry. With access to such experts, companies can have peace of mind that their products will meet industry standards and specifications. Furthermore, contracting with a reputable Chinese contract manufacturer gives businesses the confidence that their product will be produced according to strict ethical standards and will arrive on time and within budget. Ultimately, by leveraging the benefits of contract manufacturing in China, companies can create high-quality, innovative products while saving money in the long run.
4. Quality Control
Quality control is another advantage of contract manufacturing. Manufacturers typically have the latest technology and equipment to produce goods with high-quality standards. They also have experience in producing goods to meet the specifications of their customers. This means that businesses can trust that their goods will be produced according to their specifications and in compliance with any applicable regulations.
5. Access to New Markets
Contract manufacturing can also open up opportunities for businesses to enter new markets. Manufacturers often have expertise in local markets and knowledge of local regulations that can be beneficial when entering a new market. Additionally, manufacturers may have established relationships with distributors or other businesses in the area that can help expand a business’s presence.
What to Consider When Choosing a Contract Manufacturer in China?
Choosing a contract manufacturer in China can be a cost-effective way to make your products, but it’s important to choose the right partner. Here are some factors to consider when selecting a contract manufacturer in China.
1. Background Research
Background research is an essential part when finding a reliable manufacturer in China. It involves gathering information about their company status, gaining a deeper understanding of their experience and expertise, and knowing about their services and cost structure.
You can check their website, and social platforms to see what services they offer. Furthermore, it can be a good idea to visit their manufacturing plant and office in person to see whether the actual producer or merely an intermediary.
2. Experience and Capability
After investigating a selection of different contract manufacturers, you should narrow it down to three to five of them to take a deep look at their experience and capabilities.
Compare these few contract manufacturers with experience in producing similar products to yours. You can reach out to them via a detailed e-mail to find out if they are capable of satisfying your production needs regarding quality, quantity, and timeframe.
You should also take into consideration the geographical location of the potential contract manufacturing supplier. This is because China is a huge country, so the location of the manufacturer can impact several aspects of the production process, including lead time, shipping costs, and access to raw materials and labor.
In addition, the location of the manufacturer can impact the quality of the products produced. For example, manufacturers located in regions with a high level of pollution may produce items that do not meet quality standards due to environmental factors.
Negotiating the terms of the manufacturing contract can have a significant impact on the success of the partnership. Before finalizing a contract manufacturing company, make sure to negotiate the terms of your contract before entering into an agreement.
Be sure to discuss timelines, payment terms, quality control, and any other issues that may arise during production. This will help ensure that both parties are aware of their respective responsibilities and expectations.
Look for a manufacturer that is responsive and has good customer service. They should be able to address any concerns or issues promptly and provide regular updates on the production process.
Stay Ahead of the Game with Shield Works
Many overseas companies prefer to work with a contract manufacturer in China that is Western owned. This is because they may perceive that a company with a Western management background and Chinese experience will have higher standards and more positive responses, leading to a greater sense of assurance regarding product quality.
If you are searching for a contract manufacturing company that can fulfill all your security requirements, then Shield Works is the right choice for you.
Shield Works is a British-owned and managed company that specializes in IP protective and high-quality contract manufacturing and product assembly services in the Greater Bay Area in Southern China. Our team of experienced engineers, procurement professionals, and production managers has been helping clients around the world bring their products to life with quality, speed, and affordability.
At Shield Works, we understand the challenges of contract manufacturing, and we’re ready to help you stay ahead of the game. Our full-service approach helps you achieve your goals faster by minimizing cost and risk. We take care of everything from product design and prototyping to production and final inspections, so that you can focus on what matters most: getting your product to market.
Whether you need complex machinery or simple components, Shield Works has the experience and resources to deliver high-quality results at competitive prices. We strive to create long-term relationships with all of our customers, so you can trust us to be your partner for years to come. For more information about our contract manufacturing services, contact us today. We look forward to helping you bring your product vision to life.
You’ve probably heard about contract manufacturing in China and have wondered if it’s the right choice for your business.
To help you make an informed decision, we’ve put together this guide on some common contract manufacturing mistakes in China, so you can avoid confusion and issues with your Chinese manufacturers and create a strong partnership that benefits both parties involved. Let’s jump right in!
1. Not Understanding the Contract Manufacturing Process
Outsourcing contract manufacturing to China provides many benefits, but it does come with some risks for those who don’t know what they’re doing. Several issues commonly arise when outsourcing to China so make sure you’re aware of them before taking on this task.
One of the major issues that will hurt your business is not knowing the production process from the beginning. You should know what exactly you will be getting in return before going ahead with your work.
Before working with a contract manufacturing company in China, you need to decide what will you want them to take care of for you, for example:
- What are your raw material needs?
- What type of technology will you utilize for this project?
- Are there any prototypes or product samples that require checking out before moving on to the next phase?
- Does your desired item require a custom design?
- Will you use quality control services and when will they be necessary?
- What defect rate can you accept?
From sourcing raw materials and product testing to mass production and final inspection, list all information you need to know before finalizing a particular manufacturing partner because they will help you develop clear expectations about timeframes and product quality.
2. Not Having a General Frame
A new manufacturing project is an exciting endeavor, and often everyone is eager to get started. Though it may seem like you’re jumping right into things, please take some time to discuss this with your suppliers at the beginning. They will appreciate the main information they’ll need to understand what exactly it is that you want them to do.
Try not to overwhelm your vendor with excessive information from the start. It’s best to give them just enough information for them to understand what you need, but also keep in mind that they may have a standard procedure for whatever it is you’re looking for. To make sure things stay consistent, mention your expectations, standards, and deadlines early on. To do this efficiently, don’t go overboard when first explaining your needs. Remember that there might be certain procedures involved with whatever is going to happen.
3. Not Maintaining Constant Communication
Many companies make the mistake of not maintaining constant communication with their Chinese production partner.
To avoid mixed messages or missed signals, it’s important that you stay in contact with your Chinese suppliers for updates. Even something as simple as learning about the production progression can keep things more transparent, which can help to get your product made successfully and correctly, especially when you can’t be physically in China now.
Furthermore, if there are any problems or changes in the timeline, then you need to have a line of communication with your supplier so that both sides can react quickly. The sooner you catch a problem, the easier it will be to fix.
4. Not Involving Enough People
Manufacturing processes abroad tend to be far more complicated than initially perceived when you are new to the field, so it is important that you stay proactive and create a checklist of people to work with.
Your project will go through many different steps before it is completed. From a project manager, engineer, product designer, and quality inspector, ensure that every person you will work with knows what their tasks entail, so no one falls behind or ends up unprepared for an upcoming step.
Do not allow yourself to fall into the trap of continuing to allow the production process to have only a single perspective. Instead, expand the perspectives and make the same communication group. When things go wrong, it would be easier to know who has which responsibilities and thus you know how to optimize it.
5. Not Having Continuous Improvement Process
In a project-based manufacturing environment in China, the ever-changing needs of design and engineering, combined with the constant demand for customized products make it so hard to produce anything without proper planning. Without constant improvement plans, things can go south very quickly.
No two projects are the same, so sometimes you may need additional resources, or you will want to adjust your team or process during the project.
You should always have a plan for anything that might go wrong when working with manufacturers abroad. In this case, it’s better to have a flexible and clear improvement process, allowing you to spot trouble early on and address issues before they get out of hand.
Consider Working with an Experienced Contract Manufacturer
Even if you plan, it can still be easy to get confused when selecting the right contract manufacturing company in China. This decision should not be rushed as many things need to be considered carefully as many different factors need to be considered, like proximity of the factory, capacities, costs, payment terms, communications with your team on-site as well as an understanding of whether or not the supplier will perform duties such as product design for you.
An experienced and reliable manufacturing partner can help to prevent and solve problems correctly. In this case, look no further than Shield Works.
Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive contract manufacturing services. We focus on the provision of a tailor-made solution, and we communicate your requirements in your native language to avoid misunderstandings. Start your journey by reaching out today to discuss your product and learn how we can help.
Doing business in China can be very rewarding, but before you dive in you need to know what pitfalls to avoid.
If you don’t do your homework, finding a reliable manufacturer to develop your products can be costly and time-consuming.
One of the most important things to remember when working with a contract manufacturer in China is that you want to work with someone who has been vetted and who has a good reputation.
To do this, it’s best to ask these five questions before signing any agreements or making any deposits. Let’s keep reading.
1. What Services Do They Provide?
Since you have no prior experience with manufacturing overseas, you may be limited when it comes to understanding the services your manufacturing partner might offer.
So the first question you have to ask your prospective contract manufacturers in China is: what services do they provide?
As you may know, not every manufacturing company is built in the same way.
Some companies offer a one-stop solution while others may be an expert in a certain part of the industry with high-quality assurance.
Therefore, knowing what each manufacturer specializes in will help you choose the best one that provides you with all of your requirements for success.
2. How Much Experience Do They Have?
If you have an idea of what exactly your product should be, like size, functions, and main materials, you need to find someone who can make your product with relative experience.
Experience is what matters the most when selecting a dependable manufacturer in China.
There are hundreds of thousands of manufacturing suppliers on Alibaba, however, it can be difficult to verify them online.
Everyone seems to say that they know how to solve your problems.
But you have no way of knowing whether or not they are managing a proper facility for producing your desired goods.
Therefore, based on their work experience, they can prove themselves as capable of working effectively with others who share the same needs.
3. How Big Is The Facility?
Knowing the size of their facilities will provide you insight into if they have enough capacity to handle your project.
Sometimes, you may consider using a smaller factory in hopes that they would be easier to deal with and they would pay more attention to your products.
This can be a wrong decision for you to make.
Because if the factory is too small, you may find yourself waiting for one of their existing customers to finish production so you can get started.
Avoid a new or small factory. More often than not, these factories have only been around for a short period of time and they lack the equipment and skilled employees a more established factory should have.
It’s also helpful to ask about the number of employees and departments available.
Keep in mind that if a company has many employees, then it means their facility is larger (thus with more space) and they’ve been around longer, which means they’ve had time to learn from past mistakes and refine techniques – putting them ahead of newer competitors in terms of experience.
4. What Is Their Production Capacity?
It is essential that you find out what their production capacity is.
That’s because production capacity is an integral part of your future success.
You may have been working with a specific manufacturer for years but now you decide to switch over to someone new or you’re just getting started working with this manufacturing company, but it doesn’t matter.
Because either way, you’re looking forward to introducing your product to the marketplace.
You do not want to wait weeks or even months for your product because your suppliers have too many other clients on the way.
It would be best if you find out how fast their production process goes because this will give you an estimate of when you can expect to receive what you ordered.
5. What Quality Assurance Steps Do They Take?
Quality assurance is just as important as choosing a qualified manufacturer.
Several factories in China seem to believe in their quality control process.
However, bad things happen all the time.
If you don’t want to end up with shoddy products or a nonresponsive vendor, check out what other customers have said about them online.
A reliable manufacturer should have a list of case studies or testimonials shown on their homepages. Pay attention to the details of this information. You may later find yourself avoiding a lot of trouble by doing so.
In addition, keep in mind that the more quality assurance steps the manufacturer will take, the lower the risk of defective products and components you will receive.
Typically, there are three quality control services in the industry:
- Pre-Production Inspections
- In-Process QC Inspections
- Container Loading Inspections
In this case, make sure you understand the differences between each product inspection and how your manufacturer conducts the QC process.
Need Professional Help With Your Manufacturing Project?
Don’t be afraid to ask questions. Doing the proper research before making a decision can help you avoid trouble.
If you’re looking for a professional contract manufacturer in China to work with, come to Shield Works.
Our expert team will do everything they can to make sure your project moves smoothly and efficiently. We are well-trained and have been working in this industry for many years – so no matter what you need to be done, we’ll figure it out for you.
With our British ownership and management background combined with manufacturing know-how, we take pride in keeping quality at the forefront of every job – so there won’t be any need to worry about defective products. Contact us to discuss your project today!