In 2018, the global Contract Manufacturing Organisation (CMO) was valued at $92.42 billion. Business is booming, and more companies than ever are now using contract manufacturing.
So, what is it, and is it right for you?
Let’s find out.
What Is Contract Manufacturing?
Businesses that use contract manufacturing hire other companies to produce their products for them. This provides smaller businesses with a significant advantage.
They can sell their products on a large scale without needing the assets required to run a large warehouse or factory.
It’s the dream of any entrepreneur or business owner: Your product will be manufactured swiftly and sold in vast quantities by a contract manufacturer.
This process can save time and money, all while increasing the reach of your business. A contract manufacturer can be based anywhere, but China and the U.S provide some of the most popular services.
The Benefits of Contract Manufacturing
Businesses of all shapes and sizes can benefit from contract manufacturing. Here are just a few of the ways it can help you:
The Hiring of Service or Labor
With contract manufacturing, it’s also possible to subcontract labor. For example, if you’re a smaller company, you might not have enough employees to make your production process run smoothly.
In these cases, you can outsource. This method is popular with many large-scale manufacturers, especially as you’ll be able to select manufacturers who are experts in your specific field.
You Gain an Operational Advantage
If the demand for a specific product is high, and a contract manufacturer can provide the capacity to meet this demand, you’ll generate more profit.
In some cases, you’ll also be able to work with contract manufacturers if you’re looking to pilot a new product. They’ll be able to test the market for you before you launch into large-scale manufacturing, saving you time and resources.
This is one of the most significant benefits of contract manufacturing. They’ll have the resources, time, and manpower to adapt to the specific needs of your product.
This means it can often get to the market quicker than you can achieve by working in-house.
You’ll also find that many suppliers offer a range of services. These can include warehousing and 3PL services, quality inspection and testing, manufacturing, order consolidation, assembly, IP servicing, and more.
If you outsource and select the appropriate supplier, the expansion opportunities are vast. Your customers will also be satisfied with more resources.
CM’s can provide high-quality testing and assembly, so your products are guaranteed to be safe and fully functional.
You Can Enter Different Markets
As a merchant, it can sometimes be hard to trade and perform business in other countries.
When you outsource and provide contracts to manufacturers in different countries, you’ll find it much easier to sell your products outside your national market.
It can also be cheaper to enter other markets through contract manufacturing, so you’ll give yourself the best chance to generate more profit.
You Can Dedicate More Time to Selling
Marketing is an important business. Suppose you can’t target potential consumers effectively. In that case, the quality of your products won’t matter because you won’t be reaping the rewards.
If you use contract marketing, you’ll be allowing other people to handle the practical side of your business while you focus on selling. As a result, you’ll be able to strike a better balance and give yourself a fighting chance in the market.
High-Quality and Low-Cost
Your products will be safe in the hands of professionals who can use their expertise to maximize the quality of your products. Many contract manufacturers are experts in production activities.
They can often perform this work to a higher standard than most businesses who choose not to outsource.
What Are the Disadvantages?
The benefits of contract manufacturing are substantial, but the process doesn’t come without its disadvantages. These can include the following:
Lack of Control
You’ll lose control over your production activities. If you have solid and existing production skills, you might choose not to outsource. If you’d prefer to hand-pick your employees yourself, this may also be a problem.
Although you’ll be able to select the manufacturer yourself, you won’t be able to choose individually or approve the people who manage your products. Your CM will take care of this for you.
Potential Delivery Delays
Contract manufacturers work on a colossal scale. Sometimes, due to a heavy workload, they may not produce products on time, and your customers could experience some delays.
Potential Outsourcing Problems
If you choose to outsource abroad, you could be interacting with people who speak different languages and live in different time zones. If you’re impatient, communication could become stressful for all parties involved. Make sure you’re happy with who you’re outsourcing to.
What channels will you use to communicate? Are you happy to speak with manufacturers in different time zones, even if it’s not during your business hours? These are all critical questions to consider.
Are You Ready to Get Started With Contract Manufacturing?
We hope that having read this blog post you now have a clearer idea of why you need contract manufacturing.
If you’re looking to hire a labor force, access better equipment and facilities, and/or have goods built, contract manufacturing could be a perfect solution.
You’ll also be able to negate start-up costs, improve product quality, concentrate on your brand and keep up with seasonal demand.
Contract manufacturers like Shield Works offer companies an array of different services and high levels of expertise. So if you’re looking for a reliable manufacturer and want to move your production to China, contact Shield Works today for more information.
It’s no secret that outsourcing your manufacturing obligations can save you plenty of time and money. In fact, China is one of the most popular destinations to do so.
But, not every entrepreneur knows everything they should about contract manufacturing in China. So, we’ve put together a guide with all the details you should keep in mind.
Let’s get started.
1. You Need to Find a Reliable Supplier
As you might guess, you’ll need to find a reputable supplier before you can move forward with your manufacturing obligations. Although this responsibility can seem overwhelming at first, is not as difficult as you might anticipate.
In general, you’ll want to consider the following factors before you make your decision:
- The size of the factory
- The location
- Total production capacity
To elaborate on this last point, you should decide whether or not you want your supplier to exclusively manufacture for your business during the production process. Once you’ve figured out the necessary criteria, you can begin your search.
Keep in mind that either you or a dedicated professional must visit the actual facility before production begins. This is to ensure that the facility meets all your needs and that you aren’t being misled.
2. You Must Register Your IP
Unfortunately, many entrepreneurs are unaware of the fact that they need to register their intellectual property in China. This means that you should pursue any necessary patents, trademarks, or copyrights.
Foregoing this obligation can easily become a significant obstacle for your production process if another entity in China decides to register your IP under their name.
Not only will this prevent you from manufacturing a product, but you could also run into legal issues for infringing upon their copyright. Due to the murkiness of international law, it can be highly difficult to prove that you were the original creator and owner of a particular IP.
Even after you have registered your IP in China and found a reputable manufacturer, there is one extra step you need to take.
You must have your manufacturer sign a nondisclosure, non-use, non-circumvention (NNN) agreement in order to further protect your rights. Anyone who attempts to avoid this obligation is someone that you should never work with.
3. Prioritize Quality Control
Ideally, you would be able to provide your manufacturer with the necessary information and then receive a high-quality product. But, this isn’t always how things turn out.
It’s not uncommon for you to encounter quality issues while outsourcing your production overseas. Fortunately, though, this is often a result of misdirection that can be resolved through communication.
The best way to accomplish this is to have a third party regularly conduct QC checks during the production process. This will allow you to catch issues as quickly as possible and then take steps to remedy them.
Failure to do so could easily result in dissatisfied customers, delayed deadlines, etc. Put simply, brushing off your quality control obligation comes with a strong risk of hurting your brand’s image.
4. Preserve Approved Samples
It’s not abnormal for different batches of products to have inconsistencies between them. To elaborate, the first few rounds of Chinese contract manufacturing may meet your standards while subsequent batches may fall short.
To help keep everything on track, it’s essential that you preserve copies of approved samples. This will give your manufacturer a solid reference that they can strive to duplicate in the future.
Additionally, you can use an approved sample as an index of whether or not a current batch meets your standards. If it doesn’t, your manufacturer is obligated to make changes.
But, these can take a significant amount of time to complete. This also means your manufacturer may not be able to adhere to your time constraints.
So, it’s in your best interest to have multiple high-quality samples that your manufacturer can use in order to streamline the production process. In the event that your standards change, you should obtain new samples as quickly as possible.
5. Establish an Original Equipment Manufacturer (OEM) Agreement
For those who are unfamiliar with this type of document, this is an agreement between you and your manufacturer that aims to remove any form of ambiguity in your relationship.
This means that you need to elaborate upon any minute details that could cause complications in the future. In practice, you’ll find yourself having to clearly define the color you want your product to be, the projected timeline, etc.
In fact, colors are defined by Pantone number as opposed to terms like ‘red’ or ‘blue.’
Other factors to consider include:
- Ownership of tooling
- Dispute resolution
- Payment terms
- Quality requirements
The same can be said about product weights and dimensions. In addition to all of this, you’ll need to ensure that this agreement is enforceable in China and not just the United States.
This often means working with a Chinese legal professional to help you navigate the nuances of Chinese law. Additionally, it’s required that you write the document in Chinese.
Otherwise, your manufacturer could break all of your guidelines and suffer no consequences.
Contract Manufacturing In China Can Be Game-Changing
So, it’s essential that you keep the above information in mind. From here, you’ll understand everything you should about contract manufacturing and can then make the most of this opportunity.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.
Are your manufacturing costs running your business into the ground? Are you looking for a better way to have your goods produced? If so, you should consider turning to Chinese manufacturing.
There are several benefits of choosing a foreign manufacturer. To help you determine whether it’s the right decision for you, we’re going to discuss those benefits below.
The most obvious benefit of Chinese manufacturing is lower costs. Costs are lower in China for a variety of reasons.
For one, there are fewer regulations on Chinese businesses. As such, they have much lower overhead costs. This enables them to produce an item at a lower price, thus allowing them to pass a lower price on to the customer.
There’s also the fact that labor costs in China are substantially lower than in the United States. Workers don’t need to be paid as much, thus lowering the overall cost of manufacturing. Again, these savings are passed on to the consumer.
If you want high-quality products at a very reasonable price, having your products made in China is the ideal option. You’ll save tons of money, allowing you to get your business out of the red as soon as possible.
Not only do Chinese manufacturers work cheaply, but efficiently as well. As such, they can produce a substantial number of products in just a short amount of time.
This could bode well for your business, especially if you’re struggling to keep up with demand. The rapid manufacturing pace of Chinese factories will maintain a steady stream of products into your warehouses. You’ll never have to worry about whether you have enough supply on hand.
What makes Chinese manufacturing so efficient? 1. Less regulation, and 2. Practice! These companies have fine-tuned their operational processes, allowing them to be extraordinarily consistent in their manufacturing efforts.
Odds are, your business won’t stay the same size forever. At some point, you’re probably going to want it to grow. After all, it’s growth that increases revenue, and increasing revenue is one of the primary goals of running a business, right?
The key is for you to have a manufacturer who can keep up with demand when the time comes. Chinese manufacturers are more than suited to do so.
As was noted above, Chinese manufacturers can produce unbelievable amounts of products in just a short amount of time. So, if you ever need to scale up your business, a Chinese manufacturer will be able to accommodate you. Just make the call and your wish will be granted.
Knowledge of the Product
It doesn’t matter what your product is. Odds are, there is a Chinese manufacturer that has manufactured it at length. This is a good thing, as it means that your product can be made to perfection.
This wouldn’t necessarily be true of other types of manufacturers. After all, if they’ve never manufactured your product before, they’re likely not going to do it perfectly the first time. In fact, it could take months or even years before they’re able to adequately manufacture your product.
Utilizing Chinese manufacturing allows you to take advantage of a tried and true knowledge base. These manufacturers have manufactured your type of product many times before and will have no problem doing it again for your business.
An Enhanced Ability to Try New Products
You’ve been selling a single product for a while now, and have seen some good success along the way. But, at this point, you’ve reached about as high as you can reach with it. For this reason, you’re considering selling new products in addition to your original product.
The issue, of course, is that it costs money to sell new products. But with Chinese manufacturing, you can greatly reduce your cost obligation, thus making it easier (and less risky) to facilitate the change.
Were you to use an American manufacturer, you would have to pay a substantial amount of money just to get the new product made. This would be fine if you knew that the product would sell as intended, but you can’t make that guarantee. In other words, it’s tremendously risky.
So, if you’re interested in expanding to new products, there’s really only one option: you have to use a Chinese manufacturer.
When you think of Chinese manufacturing, you might think of poor quality. Yes, in some cases, that is certainly true. After all, not all manufacturers are created equal.
But that’s the case in the United States as well, just as anywhere else. In the end, it’s all about the manufacturer you choose. Some will do a good job, some will do a decent job, and some will do a fantastic job.
Just be sure to vet your manufacturer before signing any contracts. Ask to see examples of their past work and make sure that you’re totally satisfied with the quality.
Remember: Chinese manufacturers have devoted substantial amounts of time working on these products. As such, many of them have perfected the processes, and know exactly how to create the product in question.
Interested in Utilizing Chinese Manufacturing?
What do you say? Are you interested in utilizing Chinese manufacturing? If so, we here at Shield Works are the people to see.
We manufacture a wide variety of goods and do so at a low rate. If you’re at all interested in manufacturing in China, we have you covered.
Contact us today to discuss your needs!
Original equipment manufacturers (OEMs) can help a business with its production processes at a cost-effective price.
They can also be a reliable source that helps drive your business to the next level by taking care of some essential business tasks.
However, if you choose the wrong partner, this can cause production problems. Delivery delays could even result in your company losing customers.
Fortunately, there are several crucial aspects you can look for when deciding how to choose an original equipment manufacturer.
Read on to learn how to find the right OEM supplier for your business.
Original Equipment Manufacturers Quality Standards
Customers have more options than ever before, and if your products fall below their standards, they will simply buy from one of your competitors.
There are many stories about companies purchasing cheap goods that suffer from a severe lack of quality.
While you will want to keep your production costs affordable, it’s important to remember you may have to pay slightly more to obtain superior merchandise.
You should ask if the OEM service adheres to ISO standards throughout their manufacturing process. In addition, the company should train all their staff and ensure that employees are encouraged to report any potential issues.
When a company can identify potential problems early on, there is less likely to be a delivery delay. This can be a vital factor if you need a supply of high-demand products quickly to satisfy your customers’ needs.
A reliable OEM will be proactive and agree on the standards you require before they begin the production process. Then, they can examine their finished items in line with these terms.
By checking all products before they leave the factory, an OEM ensures you do not have to return items when they reach your premises.
When deciding how to choose an OEM, an open and honest line of communication is essential. To maintain your high standards, you can ask the company if they provide access to their site.
There is no need to have a physical presence on the premises because you can use technology to gain 24/7 access.
Whether you are at your desktop computer or using a mobile device, you can always get a live update on the production process.
If the OEM is happy to allow you to view their work through a secure video feed, this provides peace of mind that they will deliver what they promise.
You can even request access to specific locations along the production process. For example, you could view their quality control area to ensure you are satisfied with the finished article.
You may be wondering should you get an OEM if you are worried about the quality of their work. After all, if you haven’t worked with them before, you only have their word that they manufacture high-quality merchandise.
But, you can have more confidence when you partner with an OEM that uses independent third-party testing. When choosing your supplier, you can ask how you can communicate with the independent testers.
It’s best if you can discuss your product quality with them directly. This means you have the reassurance that the factory is working to the agreed standards.
Although the factory should also have its own internal quality control team, an extra layer of testing is reassuring. There is a reduced chance of inferior products slipping through the net.
It can be challenging to outsource your production needs to a company based in a different country. If companies don’t provide you with real-time information, then how do you follow the order progress?
You may also have to inform customers when they can inspect their goods. In this scenario, it’s important to have access to production analytics at all times.
You may be in a different time zone from your OEM and don’t have time to wait for a manager to get to the office.
Before partnering with an OEM service, you can query if they use a manufacturing software system.
For example, you may want to know about the production output, so you know when your order will be ready for shipping. In addition, if deliveries are later than expected, you should be able to view production downtime.
If a supplier consistently has too much downtime, you can decide to move your business to a different OEM.
Access to analytics can also be important as you will expect your supplier to take corrective action when there are issues.
Business doesn’t always run smoothly, and your OEM needs to know how to fix any issues that could have a negative impact on your company.
If you can see this information through the analytics software, it can be reassuring that your products are in good hands.
OEM IP Protection
If other companies steal your Intellectual Property (IP), they could target your customer base. Therefore, when selecting your OEM service, it’s good practice to ask about IP protection measures.
You can query if they have designated zones for specific processes. Also, how do they protect your information? Your partner company should have robust hiring procedures and use the latest technology to protect your data.
It’s also a good idea to work with a company that helps you register your IP in China. This can make it easier to obtain the protection you need for your products without having to navigate the required steps on your own.
Partner with Shield Works Today
Shield Works is a British-owned and managed OEM based in China. We are one of the leading original equipment manufacturers and have been providing our services to satisfied clients for over 15 years.
We operate to the highest quality standards and use the latest technology to provide our clients with the products they need.
We work closely with our partners to ensure we meet delivery times and exceed expectations.
Contact the Shield Works sales team to book a consultation today.
Are you wondering how to improve your ability to assemble your products?
When you run a business, you need to know how to make high-quality items for as little money as possible. For a lot of companies, this proves to be a challenge. They need to stay within their budget while crafting items their clients want to buy.
Doing it in-house can get expensive, so quite a few turn to outsourcing their assembly process. But what do you need to know before outsourcing product assembly?
We go into the top 5 things to know below. Keep reading to learn more!
1. What Is Outsourced Product Assembly?
Many companies take advantage of outsourced product assembly, but do you know what it is?
Outsourcing assembly occurs when a business hires a third-party company to build the items they use or sell. The third-party business might build them in either part or whole, depending on the agreement reached between the two companies.
So, when you first start outsourcing your product construction, think about the items you would like the other company to make. Then, search for businesses equipped to build your items and begin talking to them about entering a working relationship!
2. It Saves Money
Why would people want to outsource their products? Doesn’t it make more sense for companies to produce everything on their own?
When a company makes its own products, it must employ people to create them. This raises the overall cost of running the business. It can especially hurt small companies, which may not have the funds to employ a large number of workers.
Working with another company can cut your production costs. When you do this, you do pay for the work to get done, but the other company provides and employs the workers. As such, you don’t need to worry about paying for salaries or taking new people onto your payroll.
Usually, the other company has its roots in another country, such as China. The cost of production in most of these countries runs cheaper than in other nations, so you will not have to spend as much on creating your final product. It also helps you foster productive and positive business relations with professionals in another country!
3. Not Every Assembly Company Will Work Well for You
Many companies grow eager to save money on their products and agree to work with a third-party company too soon. Just like any other business partnership, you want to make sure you find the right manufacturing company for your needs.
To do this, brainstorm all the qualities a company will need to make your product. Do they have the right materials and items?
You should also ask whether they have worked with any companies like yours in the past. This lets you know whether they’ve created products like yours below.
In addition, pay attention to how well you get along with the workers at the company. Do they handle your questions in a professional manner? Do they have great client services? Because you will work with this company for a considerable time, you should try to find one with which you enjoy working.
4. Ask About Timeline
As you start talking to a company, you should ask them about how long it takes them to produce items and ship them. This impacts the amount of time it takes you to deliver your clients the materials they ordered. As such, you want to find a company that makes high-quality items without taking too much time.
Your timeline discussions should include conversations on what happens when unforeseen circumstances occur. Natural disasters, for instance, might interrupt the company’s ability to get your product to you. So, you should know what measures the company takes to keep their production running well in the midst of emergencies.
At this time, ask who you should contact in the case of an urgent situation. This gives you a person to go to instead of wasting time trying to figure out who to contact.
5. Make Sure Your Intellectual Property Remains Safe
Other countries have different laws surrounding the protection of intellectual property. As a company, you should prioritize keeping your intellectual property safe and uncompromised.
As such, you should research the intellectual property laws in the country where your products will be made. If they don’t have a good track record of protecting the rights of other companies, you should look to make your products elsewhere.
You should also look into the software your company uses and see how it keeps your data secure. Do they use technology known for its privacy features? Is it on par with the security measures you take for your business? Do they perform routine security updates and checks?
A leak of your intellectual property could cause huge damages to your business, including piracy and a loss of data. So, if you want to keep your business safe, look into how other companies will protect your information.
Ready to Outsource Your Product Manufacturing?
So, are you thinking of outsourcing your assembly process?
Outsourcing product assembly serves many companies well. It helps them get the same great products for a fraction of the production cost. In addition, it frees them to focus on innovation and growing their business instead of worrying about building their items.
Here at Shield Works, we provide you with great product manufacturing services. British-owned and located in China, we employ qualified individuals dedicated to giving our clients the best items for the best price. Contact us today to learn more about what we can do for you!
Custom manufacturing is the ability to manufacture, design or engineer original products in line with personalised requests. This is done on a made-to-order basis, giving you complete control over the manufacturing process.
Reputable and Experienced
Unlike most other manufacturing companies, the custom manufacturing company can adapt to your personal needs. They can offer you fully customised manufacturing procedures and equipment. In addition, they can even develop bespoke assembly lines to meet your requirements.
With the ability to operate flexibly and adapt quickly to innovative ideas, Shield Works is reputable due to our parent company’s 14 years of experience. China 2 West has knowledge of every stage in the manufacturing process. It means that Shield Works begins as an expert in a vast range of areas.
Shield Works welcome any new ideas related to customised Manufacturing from our clients. We also accept the challenge by offering a vast amount of dedication and support for such ideas. This support can come in the form of: new training, new equipment, techniques and even specialized processes. All of these can be introduced at our facility, helping to enhance our manufacturing strategies. We are able to bring your ideas to life.
Protect Your Interest
Our commitment to customised manufacturing stems from our belief in moving forward and improving business. Driving forward with the latest innovative products and strategies is crucial in continuous growth and success and we want to share this vision with our clients.
Furthermore, you can be sure that when discussing new ideas there will be no losses in communications. Our diverse team can speak an array of languages, including Chinese. So we can deal with new ideas smoothly and directly.
The custom manufacturing company In China can help If you have a special process you would like to relocate from your shop floor. What’s more, they might offer critical IP sensitive step of the manufacturing process that you would prefer to keep away from your Chinese supply chain.
Shield Works also offers you a vast range of IP protective steps to give you extra security. It’s important when doing business abroad, in case our customised manufacturing wasn’t quite enough for you. For example, Shield Works has state-of-the-art finger print access secure production zones to protect your interests and provide full IP protection at the source of manufacture. We will also have legally binding non-disclosure agreements with every external body that we may work with during the process of your assembly line in order to ensure this is protected.
Are you tired of the expensive cost of contract manufacturing in your home country? You really should consider contract manufacturing in China to help lower your spending!
Knowing how to find a contract manufacturer in China may feel like an intense task. However, it is not as difficult as you might think. All it takes is following a step-by-step process.
To learn how to find the best OEM manufacturers in China, keep reading.
What Is Contract Manufacturing?
If you aren’t familiar with contract manufacturing, let’s cover the basics.
Contract manufacturing means that your company is looking for another company to take responsibility for part of the production process for your products. This can be a great way to collaborate and split duties with another company to complete your production more effectively.
So, how do you find a contract manufacturer in China?
What to Do Before Finding a Manufacturer in China
You’re still searching for a contract manufacturer, but there are still some important tasks you need to complete before you solidify one.
File Your Intellectual Property Rights
This is a very important step. You will need to register your intellectual property rights (or IP rights) in China.
Your product’s IP includes any watermarks, trademarks, and other copyrights associated with it. If you are not the first company to do this, then some other company may step in.
That’s right: the first company that registers IP rights in China is the one who gets them. Even if your company is the only one of its kind, your IP rights could be at risk if you don’t register them in China.
How to Find a Contract Manufacturer in China
Finding the right contract manufacturing in China is essential. You want to make sure you and your contract manufacturer are on the same page when it comes to producing your products.
Here are some things to consider when beginning your search for OEM manufacturers in China.
1. Do Your Research First
The most important thing to do in the beginning stages is to do proper research on product development as well as contract manufacturing in China.
You need to develop your product idea to the fullest. This helps you know how much money and time it will take to create your product in bulk.
It can also give you some idea of what customers want and will expect from your product as well.
2. Know the Kinds of Factories in China
There are three kinds of factories in China, and all of them vary.
A raw materials factory is what it sounds like: it makes everything you will need to make your product to begin with. Once these materials are made, they are then sent to a component factory.
Unlike a raw materials factory, a component factory makes part of your end product but not all of it. That’s a job for the assembly factory.
Again, the assembly factory sounds like what it is. Your product is assembled in full here.
One thing to keep in mind is that not all factories will do all three types of manufacturing work. You will need to double-check with the factory itself to see what they can offer and do for your product.
3. Find the Right Contract Manufacturing in China
Finding OEM manufacturers in China can feel like a dubious task. The good news is that you have several places you can look for options.
One easy way to research potential manufacturers is to look online. Alibaba, MadeInChina, and many other places can lead you in the right direction, but you may have some delays due to the COVID-19 pandemic. There are also trade shows and other opportunities to find contract manufacturing too.
You still need to do your research for the one that fits best with you. You can learn more about Shield Works’ manufacturing services here. As a British-owned manufacturer in China, we know how to overcome cultural barriers to get you the products you need.
Avoid using a sourcing agent: we’re here to help!
What to Do Once You Have a Manufacturer
Once you have a manufacturer picked out, you still need to do a couple of things. Let’s break it down step by step.
1. Draw Up an NNN Agreement in Chinese
An NNN agreement is a “non-disclosure, non-use, non-circumventing” agreement. This means that your IP rights will be protected even further.
It must be written in Chinese so that it is seen as genuine in the eyes of a Chinese court.
2. Create an OEM Agreement
An OEM agreement stands for Original Equipment Manufacturer agreement. This is where you write all of the details of your product. Be as specific as possible.
Like the NNN agreement, this one must be written in Chinese as well. In a Chinese court, the terms of the contract will only be enforceable if written in Chinese.
3. Quality Control
Quality control assurance throughout the production process will save you a headache later. This means making sure you keep certified product samples onhand too.
A good way to do this is to have a third party perform quality control procedures on your manufacturer. Though the factory may have its own quality control team, it is always best to have an outside perspective too.
Contract Manufacturing in China
Finding the right contract manufacturing in China takes time, like anything. When you find the right contract manufacturer, your product’s production process will run smoothly.
Traversing a different culture and language for contract manufacturing is stressful. Lucky for you, Shield Works is here!
Let us be your chosen manufacturer in China. Contact us today so we can get started!
What is a 3PL Company?
3PL stands for Third Party Logistics. A 3PL provider, such as C2W, offer outsourced logistics services. Essentially this means that we will help provide management over one (or more) procurement and fulfilment activities.
Fulfilment activities refer to the process of distribution and shipping.
Procurement activities simply involve acquiring or selecting goods, services and work required for your specific job. Such roles can include: the process of selecting vendors, strategic vetting or actually purchasing the goods.
Therefore, 3PL providers deal with the physical movement of your goods from point A to B, as well as providing other services involved in the journey (such as warehousing, terminal handling, packaging etc.).
What are the benefits of using a 3PL Company?
The number one benefit of using a 3PL Company is monetary savings! By using a 3PL Company, this removes the financial pressure on your company for having to fund warehouse storage and staff who monitor supply chain processes. By asking us to do this for you, it means you only pay for the service package itself and can pick and choose when you use these services. Ultimately, by using 3PL providers you aren’t paying for warehouse and maintenance all year round. I mean what online business DOESN’T love saving?
In this era, good online service is largely linked to access to quick and efficient shipment and delivery. Online shopping is becoming increasingly popularity as the high street slowly dies meaning that your online company’s efficiency in shipment and delivery will undoubtedly be a commonly used metric for measuring customer satisfaction.
Using a 3PL provider means your e-commerce business can gain significant customer loyalty and satisfaction by letting the professionals deal with fulfilment services. This process will be made even easier with our western owned and managed company because we believe in western standards of communication and service.
Another important benefit to consider when deciding on your 3PL Company is performance.
Due to our expertise and experience in 3PL services here at C2W, efforts in e-commerce procurement and fulfilment activities will be more time and cost-effective than less mature manufacturing companies. We have a verified history of successfully meeting demand and are able to scale operations consistently and smoothly.
Here at C2W, we remove the stress of such demands so that you can focus on the things that matter, improving and growing your online business.
Supply Chain Management
By hiring C2W as your 3PL Company, we can also analyse the supply chain and define any cracks, enabling us to provide efficient solutions and improvement to e-commerce efficiency of your business.
Hiring a 3PL company cuts out the middle man, meaning you can do business more directly and have one point of contact when dealing with your goods or services. We handle a broad spectrum of services meaning that you don’t have to hire a freight forwarder in the process (who don’t actually deal with shipment or fulfilment themselves). And as all businessmen know, direct business is straight talking business!
When acting as your 3PL provider, C2W takes direct responsibility for your goods or services. You can be assured to receive reliable services and be sure that C2W will take accountability for business. Unlike a freight forwarder, who acts as an intermediary player in the chain, we are held directly accountable for your shipment processes. With C2W 3PL, you can put your mind at ease.
Some of the 3PL services we offer:
The following list is just a minor sample of the wide range of 3PL Services we offer here at C2W. For a more detailed, please visit our 3PL services offered in China and the US under our ‘Services’ page.
- Receive and inventory all incoming products
- Manage full inventory in the US using our professional WMS (Warehouse Management System; SkuVault)
- Drop-shipments for all orders (pick and pack)
- Fulfilment of FBM (Fulfilled By Merchant) Amazon Orders
- Restock Amazon warehouses for products shipped FBA (Fulfilled by Amazon)
- Quality control
Contact us for an accurate quote based on your project. Please don’t hesitate to get in touch with any questions you may have!
At Shield Works we believe in precision assembly meaning that we focus on every detail right down to the last millimetre. We appreciate the fact that no two customers have the same requirements. We are able to provide you a personalised assembly line unique to your business.
This blog aims to describe all things about assembly. At the same time, it will give you an insight into how Shield Works enables you to, quite literally, ‘mind your own business’ with our top-of-the-range assembly lines.
Shield Works is an in-house precision assembly facility. This means that we tailor your assembly line to be exactly how you want. Moreover, how you need it to suit your individual requirements. This flexible and forward-thinking attitude sets us apart from competitor because it means that you get your business, your way.
Guaranteed Intelligent Property protection
- IP – Intellectual Property.
- NDA – Non-Disclosure Agreements
Apart from offering a suite of premium assembly and manufacturing solutions, we understand the value of your product and have implemented all measures to ensure your IP is protected. Given our extensive knowledge of manufacturing in China and understanding the struggles of long-distance professional relationships, we bring you a sense of security in this decision. It’s not unknown that assembly and other production services in China can sometimes come at a risk to IP. However, at Shield Works, we offer a dedicated system focused around secure IP protection.
At Shield Works we have state of the art finger print access secure production zones to protect your interests. In addition, we provide full IP protection at the source of manufacture. Also, we provide legally binding NDAs with every external body that we work with during the process of assembly line. We need to ensure your products are safe and sound.
Furthermore, Shield Works offers exclusive IP protections, Patent, Trademarking & Copyright Services. In an effort to ensure your product is well protected, Shield Works has partnered up with Innopat. Innopat is a leading Zhuhai based IP agency authorized by the National Intellectual Property Administration of China.
It is highly recommended to register the eligible IP within China as early as possible and also to understand the full range of IP that you would need to file for such as utility, design, invention, as well as trademarks and copyrights.
Unlike any other assembly facility, Shield Works offers you top-of-the-range services related to the productivity of your assembly line and workers. We understand that business abroad has problems like poor communication, indirect contact and a lack of control over what is going on in your facility. This is not in-line with Shield Work’s values of integrity and transparency and we work to break this stigma. Shield Works have implemented a system which gives you full access to key information.
Each worker will be given a unique login and account which allows them to record which part of the line they have been working on and track how many units have been made during their shift. This is with the aim of providing you with real-time reports of how effective your assembly processes are going.
These online logs will be collected and sent directly to you, the boss, to make sure you’re completely in-the-know about your business. Our clients will receive an automatic direct message with a timely report to know more about the on-site assembly line.
If there were any glitches in productivity during the day you would receive a full update on where in the assembly line, who was supervising the assembly at that exact time and the steps that have been taken to address the complications. These are just a few examples amongst a whole range of data and information you will have access to.
Everything’s your business with Shield Works assembly lines. We offer the unique opportunity to access 24hour CCTV of your assembly line.
We believe that it’s imperative to have full transparency and access to information in order to develop trusting professional relationships. To be in-the-know about your products and work force is an extremely important aspect to business relationships, especially when there are distances and time-zone differences to consider.
Shield Works offers you a system in which you are can check-in on business in one second. This means that your business and its success is exactly where it should be…at your fingertips! We hope that this visibility eases the anxieties you may have around business abroad.
If you’re the OEM (original equipment manufacturer) of a design spec, then production is one of your most important considerations. Unfortunately, many companies stumble when it decides to make their OEM products in-house or through outsourcing. In most cases, outsourced OEM products are cheaper and quicker. But, is this always the best course of action? In this article, we’ll explore whether or not outsourcing your OEM production is the best course of action. Let’s get started!
Outsourced OEM Production
Outsourcing your OEM production involves allowing another manufacturer to produce your product. You keep all the trademarks and intellectual property, but another company does the production.
Most often, this is done with multinational suppliers. Consulting companies with expertise in finding manufacturers will usually help you get in touch with the right company. Let’s take a look at some of the pros and cons involved in this method.
The biggest advantage that comes with OEM production is cost. Since the outsourcing company is creating your product in bulk, you typically end up saving money on production costs. What’s more, the final product is generally of superior quality. As long as you have strict testing standards, then the outsource OEM firm should be able to meet them if they’re competent.
Many outsourced OEM companies also have specialized technology that allows them to create components you wouldn’t be able to create on your own. In the past, OEM production typically only worked for larger companies. However, this is beginning to change. Smaller companies with excellent design skills can take advantage of this type of outsourcing.
It allows them to avoid dealing with factory floor production skills, which take a lot of energy and money to manage. Instead, they can focus on more design and promotion while allowing a skilled workforce to handle the production.
Unfortunately, there are some downsides to outsourcing your OEM productions. For one thing, you’re at the mercy of your supplier when it comes to quality control. As such, you’re responsible for any problems that might occur at the end of the day. Furthermore, you may have difficulty finding an OEM production firm that’s willing to take you on.
These companies generally only like dealing with clients that create a lot of demand. As such, smaller companies may have a difficult time finding multinational production firms, especially if their products are hard to make.
Finally, if you don’t go with a company that you’re sure of, then you may be at risk of property theft. This occurs when a manufacturer infringes or steals your intellectual property right. It occurs enough in the business, that you should inquire what the company is doing to fight against it.
In-House OEM Production
In-house production put vertical integration ahead of scale and affordability. Typically, in-house OEM production worked best for smaller companies. However, that’s beginning to change. Let’s take a lot at some of the pros and cons involved in this method.
The biggest advantage to in-house production is the amount of control you get over your product. As the OEM, you’re naturally an expert when it comes to producing your work. As such, you don’t need to spend time teaching someone else to make it. In-house can also be more advantageous when it comes to scheduling concerns.
Since you don’t need to ship your product or parts over long distances, you can meet your scheduling needs more easily. In-house production also allows you to make more advanced components.
If your product requires a specific part that’s difficult to make, then you’ll have a lot of difficulties finding an OEM manufacturer to make it. However, with enough demand, you can find some custom manufacturing options.
It shouldn’t come as a big surprise that there’s a huge shortage of skilled workers in America. Though this problem was a long time coming, it’s been exasperated by the COVID-19 pandemic. As a result, the New York Times predicts that two million skilled jobs could go unfilled by 2025.
As such, finding workers for your in-house production may prove difficult. Another big factor is that it will cost even more to make your product in-house. The sad reality is that overseas production is much more affordable than domestic. What’s more, outsourced OEM production is typically higher in quality than in-house. So, ultimately, you’ll be paying more for a potentially inferior product.
Why China Is Uniquely Qualified to Handle OEM Product Manufacturing
There’s a reason why the vast majority of OEM outsourced production goes toward China. China accounts for over 28% of all global manufacturing output. The advanced production capabilities in the country make it easy to meet huge product numbers at an affordable price.
In particular, clothing and electronic brands like Nike and Apple outsource their manufacturing work to the company. In the wake of the COVID-19 pandemic, China is poised to be one of the first countries to dive back into the manufacturing industry.
Despite being one of the early countries to be hit, the government has been able to largely contain the spread within the country. As such, China will have more skilled laborers than many other countries combined to meet OEM product demands.
Ready to Save Money On Your OEM Production? Contact Shield Works
We hope this article helped you learn whether or not outsourced OEM product manufacturing is the right decision for your company. Ultimately, the decision depends on your specific set-up. But, the right arrangement can allow the company to divide and conquer in ways that are simply impossible while maintaining an in-house division.
So, how do you find the right manufacturer? Look no further than Shield Works. Our British-owned company works out of China to provide you with affordable manufacturing solutions, as well as expertise in nearly every product category. But, don’t take our word on it. Contact us today so we can walk you through what we can do for you.