Outsourcing Product Assembly in China: What to Know
Outsourcing product assembly to China can help grow your business and increase your bottom-line.
It’s a step that many companies are taking to help bolster their manufacturing process, reduce turnaround times, and save on costs.
But finding the right product assembly partner isn’t always easy and problems often arise due to business misunderstandings. To mitigate any issues there are some important things to know.
After all, is outsourcing really worth it for your business? And how do you find the right assembly partner in China? Keep reading to find out.
Benefits of Outsourcing Product Assembly
More and more businesses are opting to outsource their product assembly process to China. Why? Because it provides several benefits over the traditional in-house approach.
Here are some of the main benefits of outsourcing product assembly.
Assembling complex products often requires a hefty investment. For example, many electrical products need to be assembled by expert technicians. This means companies will have to hire new talent to get the job done.
On the other hand, rapid assembly may require expensive machines. Investing in this kind of equipment is expensive.
Assembly partners already possess the correct expertise and equipment to get the job done. Outsourcing this process allows companies to save on these large costs.
Outsourcing partners are experts at product assembly. They understand how to complete the process with minimal difficulty.
Access to Experts
Product assembly can be a complicated task. Depending on the product, it may require expertise beyond the capacity of your business. This is where an assembly partner comes in.
Product assembly companies already have the talent and knowledge to complete the assembly process. Their technicians assemble goods all day long and they know exactly what they’re doing.
Shorter Lead Times
Using an assembly company can decrease your lead time. In-house turnaround times are generally much longer, and, as everyone knows, time is money.
Assembly companies are experts at what they do. Their processes are refined and their technicians work fast.
With the right outsourcing partner, it’s easy to scale up your assembly. Scaling-up in-house requires investing in more machines and hiring more employees.
Assembly companies already have the necessary equipment and technical knowledge. They will be happy to take on more work. And when you need to increase production, you don’t have to worry about logistical headaches.
Things to Know About Product Assembly Outsourcing
When it comes to outsourcing product assembly, there are some important things to understand. It all starts with drawing up a detailed strategy.
Define Your Strategy
Having a proper plan is crucial for the success of any new project. After deciding to outsource product assembly to China, there are several things to think about. You need to consider all the variables before beginning the transition.
The first step is to bring together all of the business leaders. Ensure everyone agrees about the benefits of outsourcing assembly. Once the leaders are all on board, set up a team to manage the project.
Remember to plan for the long-term when analyzing the financial benefits. A long-term approach is important for the success of your business.
Understand the Costs
Before outsourcing product assembly, you need to understand your in-house manufacturing costs. This helps when you’re choosing and comparing different assembly partners.
In fact, failing to understand your current costs of assembly can result in more money lost.
Choose Your Partner Carefully
There are many product assembly companies in China, so which one should you choose? The truth is that not all partners are created equal. Quality is a sliding scale.
When searching for a partner, you should keep in mind your own business needs and goals. Find a partner that specializes in the service that you need. And remember to read past all the showy sales speak.
Find out whether their services are cohesive enough to help you save costs. Some assembly partners are more streamlined than others.
Protect Your Intellectual Property Rights
Keeping your intellectual property safe is important for the success of your business. Outsourcing to China may be appealing, but remember to do your due diligence.
If your intellectual property is stolen or leaked, this could be a big set back to your business.
It’s important to ensure that your chosen partner’s data systems are secure. You should also do some research on the intellectual property laws in China.
Remember, the size of your outsourcing partner matters. If you’re a medium-sized manufacturer, look for a partner of similar size. Larger assembly companies often struggle to service smaller accounts.
A large scale assembly company might cause delays to your production line. To avoid this, find an assembly partner in China who services businesses of similar sizes to yours.
Many problems that occur when first outsourcing assembly to China are due to poor communication. This usually happens due to the language barrier and differences in business culture.
In China, most staff don’t have a high level of English. It’s mostly sales members that can communicate proficiently with customers.
The good news is, if you’re aware of these issues beforehand, you can mitigate problems down the road. One way to ensure success is by writing up the specifications of your business agreement in Chinese.
Let Shield Words Take Care of Your Product Assembly
Outsourcing your product assembly to China is a big step but it comes with a lot of benefits.
Before making the switch, it’s important to have a clear plan in place. Assemble a team to handle the project and choose a partner that meets your business’s needs. Lastly, remember to ensure the protection of your intellectual property.
If you’re looking for an outsourcing partner in China, look no further than Shield Works. We’re a British-owned assembly company based in Zhuhai. We’re driven by quality and we offer customized solutions. Contact us today.