The prevalence of Chinese manufacturing companies has grown immensely in recent years. This is due, in part, to the country’s large population and corresponding workforce. Additionally, Chinese wages have remained relatively low compared to other nations, making the country an attractive option for businesses looking to cut production costs.
When it comes to manufacturing products, Chinese companies are often the go-to choice for businesses all over the world. This is because these companies can offer high-quality products while keeping costs low.
However, with so many Chinese manufacturing companies to choose from, how do you know which one is right for your business? In this blog post, we will give you five tips for choosing the right Chinese manufacturing company!
Keep reading to learn about product manufacturing and product assembly by using Chinese manufacturing.
What Are Chinese Manufacturing Companies?
As the name suggests, Chinese manufacturing companies are those that are based in China and produce products for businesses all over the world. These companies often have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, Chinese manufacturing companies often have a wealth of experience and expertise in a variety of different manufacturing processes. This means that they can typically produce products to a very high standard.
Also, many Chinese manufacturing companies work with a variety of different businesses, from small startups to large multinational corporations. This means that they are typically very flexible and can tailor their services to meet the specific needs of their clients.
Who Has Access to These Companies?
Anyone who wants to manufacture products in China can do so! However, it is important to keep in mind that not all manufacturing companies are created equal.
There are many fly-by-night operations that claim to be able to produce high-quality products at low costs, but in reality, they often use substandard materials and processes. As a result, the products they produce are often of poor quality and may even pose a safety risk.
Therefore, it is important to be careful when choosing a Chinese manufacturing company. Make sure to do your research and only work with those that have a good reputation and can provide you with a portfolio of happy clients.
What Type of Manufacturing Can They Perform?
One of the advantages of working with Chinese manufacturing companies is that they often have experience with a wide range of different manufacturing processes.
This means that they can typically produce products using a variety of different methods, including injection molding, stamping, casting, and assembling.
Furthermore, many Chinese manufacturers also offer design and prototyping services. This means that they can help you bring your product ideas to life and create prototypes that you can use to test the market before committing to large-scale production.
Other types of manufacturing services that Chinese companies can provide include packaging, labeling, and shipping. This means that they can take care of everything for you from start to finish, making the manufacturing process as hassle-free as possible.
What’s Their Quality Control Like?
Surprisingly, quality control in China has come a long way in recent years. In the past, there were many stories of products being shipped from China that were defective or of poor quality.
However, nowadays, Chinese manufacturers have implemented strict quality control measures to ensure that their products meet international standards.
In fact, many Chinese companies now offer a money-back satisfaction guarantee to their clients. This means that if you are not happy with the quality of the products you receive, you can return them for a full refund.
Moreover, most Chinese manufacturers offer a warranty on their products. This means that if something does go wrong, you will be covered and can get your money back or have the product replaced free of charge.
Is It Expensive to Manufacture Products in China?
Manufacturing products in China is often much cheaper than manufacturing them in developed countries such as the United States or Europe.
This is because Chinese companies have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, many Chinese manufacturers offer discounts for large orders. This means that if you are planning on manufacturing a large number of products, you can often get a lower price per unit by doing so in China.
Overall, manufacturing products in China is a great way to save money and get high-quality products.
However, it is important to be careful when choosing a manufacturer and to make sure that you work with a reputable company that has a good track record.
What Qualities Should the Right Chinese Manufacturing Company Possess?
Now that we’ve answered some of the most frequently asked questions about working with Chinese manufacturing companies, let’s take a look at what qualities the right one should possess:
A Good Reputation
As we mentioned before, there are many fly-by-night operations that claim to be able to produce high-quality products at low costs. However, in reality, these companies often use substandard materials and processes, which results in products of poor quality.
Therefore, it is important to make sure that you work with a Chinese manufacturer that has a good reputation. You can do this by reading online reviews or asking for referrals from friends or business associates who have worked with Chinese manufacturers in the past.
A Portfolio of Happy Clients
Any reputable Chinese manufacturer should be able to provide you with a list of happy clients that they have worked with in the past.
This is a good way to gauge their level of experience and to get an idea of the type of products they are capable of producing.
A Commitment to Quality
The right Chinese manufacturer should be committed to producing high-quality products. They should use high-quality materials and employ skilled workers who take pride in their work.
Furthermore, they should have a strict quality control process in place to ensure that all products meet or exceed international standards.
The right Chinese manufacturer will offer competitive prices without compromising on quality. They should also offer discounts for large orders, which can help you save even more money.
Excellent Customer Service
The right Chinese manufacturer will offer excellent customer service. They should be responsive to your questions and concerns and should always be available to help you with any issues that may arise.
How Do You Choose the Right Chinese Manufacturing Company?
With so many Chinese manufacturing companies to choose from, it can be difficult to know how to select the right one for your needs.
However, by following the tips above, you can be sure to find a company that possesses all of the qualities you are looking for. In addition, here are five tips to help you choose.
1. Do Your Research
The first step in choosing the right Chinese manufacturing company is to do your research.
This means looking into the different companies that are available and seeing what they have to offer. You can read online reviews, talk to other businesses that have used these companies, and get a feel for what each one is like.
Your research phase should also include a visit to the company’s factory. This will allow you to see firsthand how they operate and to get a better feel for their capabilities.
Also, be sure to ask lots of questions during your visit so that you can get a better understanding of what the company is all about.
2. Consider Your Needs
When you’re looking into different Chinese manufacturing companies, it’s important to consider your own needs. What type of product do you need to be manufactured? What are your budget constraints?
By taking the time to think about your specific needs, you’ll be able to narrow your choices and find the best company for your business.
Moreover, it’s important to be realistic about your needs. For example, if you’re looking for a company to manufacture a complex product, you shouldn’t expect to find a company that offers rock-bottom prices.
Instead, you should focus on finding a company that can provide you with a good quality product at a reasonable price.
3. Check Their Quality Control
One of the most important things to look for in a Chinese manufacturing company is quality control. You want to make sure that the products you’re getting are well-made and meet your standards.
Ask about their quality control process and what steps they take to ensure that their products are up to par.
However, it’s important to keep in mind that not all companies will have the same quality control standards. Some may be more strict than others.
As such, it’s important to find a company whose quality control standards meet your needs and expectations.
4. Compare Prices
Of course, you’ll also want to compare prices when you’re choosing a Chinese manufacturing company.
Get quotes from different companies and see who offers the best price for the manufacturing services you need.
Pricing structures are critical when it comes to finding the right company. For example, some companies may charge by the hour while others may charge by the project.
It’s important to find a company that offers a pricing structure that works well for your business.
5. Go With Your Gut
In the end, it’s important to go with your gut feeling when choosing a Chinese manufacturing company.
If you have a good feeling about a particular company, then chances are they’re the right choice for you. Trust your instincts and choose the manufacturing partner that you feel good about!
Of course, your instinct should be supported by valid reasons. For example, if you have a good feeling about a company because of their excellent customer service, then that’s a strong reason to go with them.
If you have a good feeling about a company because of its competitive prices, then that’s another good reason to choose them.
Common Mistakes With Chinese Manufacturing Companies
Now that you know how to choose the right Chinese manufacturing company, it’s time to avoid some common mistakes. These mistakes can cause big problems for your business, so it’s important to be aware of them.
1. Not Asking Enough Questions
When you’re looking for a manufacturing partner, it’s important to ask lots of questions. This will help you get a better understanding of the company and its capabilities. Make sure to ask about their quality control procedures, turnaround times, and pricing.
2. Not Getting a Contract in Place
Before you start working with a Chinese manufacturing company, it’s essential to get a contract in place.
This will protect your business in case there are any problems with the manufacturing process. Be sure to include all the important details in the contract, such as payment terms, delivery times, and quality standards.
3. Not Monitoring the Manufacturing Process
Once you’ve chosen a manufacturing partner and signed a contract, it’s important to stay involved in the manufacturing process.
This means keeping an eye on the quality of the products and making sure they’re being produced on time. If you’re not monitoring the process, it’s easy for things to go wrong.
4. Not Being Prepared for Problems
Even if you do everything right, there’s always a chance that something will go wrong with the manufacturing process.
That’s why it’s important to be prepared for problems. Have a plan in place for how you’ll handle delays, quality issues, and other potential problems.
The Right Company for You
Choosing the right Chinese manufacturing company is essential for your business. Be sure to ask lots of questions, get a contract in place, and monitor the manufacturing process.
And don’t forget to be prepared for problems. With careful planning, you can avoid common mistakes and find a manufacturing partner that’s right for you.
If you’d like help finding the right company to suit your needs, get in touch with us today. We have a team of experts who can help you find the perfect manufacturing partner for your business. Contact us now to get started.
As early as October through January, this is the time of year when the majority of eCommerce brands experience a huge spike in sales. But if you’re unprepared for this sudden rise in sales and don’t plan accordingly then it will hurt your business because your customers are unable to order products or receive them quickly enough.
With peak season quickly approaching, you should prep for production and there are many points to consider when taking on the pressure of doing everything at once and all the additional cost involved with producing more goods during this time.
With so many headaches around you, it can be hard to concentrate and make the right decisions. However, don’t let this discourage you from starting. Welcome to our “Manufacturing in China: 10 Tips to Peak Season Preparation” series which list the most important and useful production tricks that will make it easier for you to get started in manufacturing without much fuss. Let’s dive into part one of this three-part series.
1. Know about the Peak Season
Most businesses experience fluctuating levels of customer traffic throughout the course of a year. The slowest time of the year is often referred to as the low season or off-season, while the busiest time of the year is typically called the high season or peak season.
Though many seasonal peaks might seem similar, they vary depending on factors that differ from industry to industry. Factors such as population density, weather patterns, and available modes of transportation can determine the amount of traffic in an industry. For example, a business that sells swimming wear has better traffic during the summer months while others work best when it’s wintertime. So, it’s important to set a timeline and schedule for the peak season that your business focuses on.
Therefore, if your team is unaware of the span and the length of peak seasons, then your company is likely rising to incur unnecessary expenses throughout the year. And if your peak season lasts much longer than expected, there may not be enough employees or products available to meet all the demand coming from potential customers during this time.
In light of this, your company should always analyze the number of major holiday promotions, such as Black Friday, Cyber Monday, thanksgiving weekend, and Christmas. It may still be difficult to pin down the span of peak season for all industries but taking precautions, like reading some recent sales data, can help you diminish the consequences.
2. Forecast Demand
With the exponential growth of eCommerce around the world, more and more people are willing to make a purchase online. If you have both physical locations and an eCommerce store, it becomes readily apparent that digital traffic has increased even more than before and will continue to grow in popularity.
Therefore, you can forecast production demand for your store before peak season based on the different traffic sources.
Demand forecasting is one of the most crucial tools for brands to use in determining the best possible supply rates and building up adequate resources. This way, they can minimize their risks and costs. Furthermore, it enables collaboration between the outbound and inbound processes of the company, such as procurement, production, sales, and marketing. By predicting future demand, you can optimize current inventory levels by monitoring which products sell faster than others and predict when certain stocks will need to be replenished.
To forecast your production needs before peak seasons, one of the best ways is by staying on top of fashion trends. Following some influencers in your niche on TikTok and Instagram and leveraging the right hashtags can help learn about what your target customers are interested in currently and also gives you an idea of who you could be competing with. Then, you will have a better sense of what’s going to sell and be able to plan accordingly. It also means that you can monitor your inventory levels, so you will know ahead of time if something gets discontinued. This way, you won’t run out of your most popular items when the peak season comes.
3. Adjust Inventory
Nothing is more frustrating than running out of the most popular item in your store and turning down a potential customer because you don’t have enough inventory throughout the peak season.
To make sure that everyone who enters your store has a positive shopping experience, one of the most important parts is to make sure that your store is fully stocked and that you have plenty of your bestsellers readily available so that there will never be a need for backorders.
Inventory management is an essential part of ensuring a business’s profitability. Some businesses have too little inventory, unable to meet customers’ expectations by supplying enough available products, which often drives customers away to another brand or alternative items. However, excess inventory not only ties up valuable cash flow, but also carries the risk of damage and costs more to store and track.
So, it becomes important to know when to replenish stocks in what quantities, and at what price. If this happens too often or too late, then your margins will suffer. It is recommended that you take note of what sells the best and make sure you will have enough of those items available during the peak seasons, otherwise you risk losing out on both profits and potential customer base.
Peak seasons will be much different in the near future because of recent international dealings. In order to stay competitive, you need to prepare for these sudden changes and disruptions all the time.
If you’re looking for a reliable and professional company that can help with your production project before peak seasons, look no further than Shield Works Precision Manufacturing in China. There is no such thing as a “one-size-fits-all” approach to meet everyone’s needs, we can offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here. Start your journey by reaching out today for more information.
Every year, about 30,000 new products appear in the market. Not all these new products succeed. Many of them fail because their manufacturing processes have flaws.
In this article, we will cover the dos and don’ts of product manufacturing. These tips can help you avoid common pitfalls and ensure that your product meets your specifications. Keep reading to get the details.
Do Confirm if Global Sourcing Is Right for You
Before choosing a manufacturing partner, learn how global sourcing works so you can make an informed decision.
The biggest pro of global sourcing is that it saves you time and money. Instead of having to build up your production facilities from scratch, you can use existing companies. They will already have all the necessary equipment for manufacturing your product.
There’s also a downside to global sourcing. You’ll have less control over the quality of your product.
Because foreign manufacturers are far away, you won’t be able to supervise the manufacturing process. This can lead to expensive mistakes.
Consider the benefits and disadvantages of global sourcing before you decide to go this route. If you’re still unsure, consider using a contract manufacturer instead.
Don’t Forget to Consult Your Team
Before you commit to a manufacturer, it’s important to speak with your team. This includes your designer and any other stakeholders. You should also speak with your business partner to make sure they’re on board with the decision as well.
If you’re working with a designer who has experience in global sourcing, they’ll be able to give you advice on which manufacturers are the best fit for your brand.
You should also consider bringing in a consultant to help you make this decision. A consultant will provide an objective opinion. They can advise you on the best course of action.
Do the Research on the Company You Plan to Work With
Before you start any work with your product partner, make sure they’re a good fit for you. Research the company, its past products, and any future developments they’re planning.
Check out their website, review their services, and look for any reviews on social media sites. Find out if the manufacturer has experience working with customers in your industry. This is especially important if you’re looking for a manufacturer of niche products.
If you can’t find anything that makes them stand out from their competition, consider working with someone else.
Do Have Someone Visit a Potential Partner
Visiting a potential partner is a great way to get a feel for their operation. You also get to scan their facilities. It’ll be easy to see if they have the equipment you need.
There’s also a chance for you to build a face-to-face relationship with the team you’ll be working with. A good rapport with your manufacturer will maximize your chances of receiving first-rate items.
Visiting also allows you to get a sense of their communication skills. Some countries, like China, still keep their travel restrictions. If you can’t visit them in person, call them on the phone, or have a 3rd-party to check out for you.
Do Have an Audit Process
You should have an audit process in place to ensure quality. You can do this by having a third-party audit your product, or you can do it yourself. Some manufacturers will also conduct audits on their own.
The audit should be standardized and repeatable. This will ensure consistency between audits and make it easier to identify issues.
Don’t Assume That You Know Everything About Manufacturing
It’s easy to become overconfident when you think you know everything about your product. The manufacturer has a better idea of what goes into making your product than you would.
They’ll know how many steps are involved, how long each step takes, and how much labor is required. You may think the finished product should look a certain way, but it might not be as simple as that.
The manufacturer will have an opinion on the best way to make your product. It’s important that you listen to them. If they suggest a change that improves quality or efficiency, consider implementing it.
Do Know Who Owns the Intellectual Property Rights
When manufacturing products overseas, it’s important that you own the intellectual property rights. You can prevent others from copying your design and selling it themselves.
Before manufacturing your product, register your IP with a patent office. This will give you legal protection against imitators who try to sell a copycat version of what you’re making.
Don’t Sign a Contract Without Reading It
You should always get a contract before working with a manufacturer. The contract will outline the responsibilities of both parties and specify important details, like payment terms, for example.
It’s important to read the contract carefully. Make sure it includes all of your specifications and requirements, as well as any disclaimers or exclusions.
Do Double Your Budget
If you’re working with manufacturers overseas, the cost of shipping your products can add up quickly. You’ll have to factor this into your budget.
The best way to lower shipping fees is by having everything manufactured, stored, and shipped from one place. Your manufacturer would have to provide warehousing services for this to be possible.
Don’t Base Your Decision on Price Alone
It’s easy to get caught up in the excitement of finding a manufacturer that will make your product at a cheaper rate than you expected. However, what’s more important is whether they can meet your quality requirements.
Price is always relative. If you find a manufacturer that charges more than your initial budget, think about whether their quality of work is worth the additional cost.
Do Factor in Delays
It’s important to remember that delays are inevitable when shipping products. Weather, holidays, and weekends can all contribute to the delay of your product delivery. You should factor these delays into your timeline so that you don’t miss any of your deadlines.
Don’t Forget to Have a Contingency Plan
No matter how thorough your research and planning are, there are always going to be bumps in the road when working with a manufacturing company. You need to prepare yourself for these potential scenarios:
- The quality of your product doesn’t meet your expectations
- Your manufacturer doesn’t deliver on time
- Prices increase
- Raw materials are low in supply
You will need to have a contingency plan in place so that you can mitigate these problems. For example, if your manufacturer is going to be late on delivery, find a carrier. This will ensure that your product gets to its destination on time.
Do Understand Quality Assurance Procedures
You’ll want to make sure that your manufacturer can provide reliable documentation on their quality control processes. There should be clear documentation of the process that your product goes through, including test results and inspection reports. You should also get a sample of your product from the manufacturer to make sure that they’re meeting your quality standards.
Do Get Your Product Tested
You should have your product tested and certified by a third party before it leaves the factory. This will ensure that your product meets international standards and is safe for use.
Also, test the product yourself before it goes on the market. You don’t want to find out later that your product is defective or dangerous. By testing it yourself, you can catch these issues before they become a problem for consumers.
Don’t Forget to Check the Manufacturer’s Experience
Always review the experience level of your manufacturer. If they have a new factory, they might not have the resources to meet your quality requirements. Consider their reputation and the size of their company before making a decision.
Do Choose a Country With Low Labor Costs
As you look at countries where your product will be manufactured, it’s important to choose one that offers low labor costs. This can save you a lot of money.
Choosing China for product development is often a good choice for small and large orders. They have some of the lowest labor costs in the world but also maintain high levels of quality control.
Don’t Pick a Manufacturer Who Doesn’t Speak Your Language
Communication is one of the most important components of a successful business. If you can’t communicate with your manufacturer, you’re going to have a hard time building and maintaining trust with them. You want your expectations to be received and understood in a way that works for both parties.
This doesn’t mean that the manufacturer has to be a native English speaker. They just need to communicate effectively in your language.
If you’re working with someone who doesn’t speak your native tongue, choose a manufacturer who works with translators and interpreters. These roles can help bridge the communications gap between you and your product partner.
Do Check Their Certifications
Make sure that the manufacturer you hire is certified in the manufacturing process. This includes credentials from organizations, such as ISO certifications. These organizations ensure that your product is manufactured safely and reliably.
This is important for your company’s reputation and your customers’ safety.
Don’t Ignore the Importance of Safety
You may want a price break, but don’t cut corners on safety. This means ensuring that your product partner has quality control systems in place for their employees. This includes making sure that their facilities are clean and free of contaminants.
You also want to make sure that their employees have the proper training for the equipment they’ll be using to make your products.
Do Calculate the Production Cost per Item
The cost per item will depend on the number of items produced. You can calculate it by dividing the total production cost by the number of items produced.
For example, suppose you manufacture 100 units for a production cost of $1,000. If you divide this $1,000 by 100, then you get a total cost per unit of $10.
You can then compare this number with the price you want to charge for your product. If it’s too high, then you may need to cut back on some of your production costs or look into finding a cheaper manufacturer.
Don’t Neglect to Get a Prototype Assembly
A prototype offers many benefits. It will help you get a better understanding of your product and identify any potential issues. Once you find these problems, you can correct them before they become too costly to fix later.
You should also order a prototype so you can test your product. The more time spent testing the product in advance, the fewer problems there are likely going to be when it comes time for mass production.
Do Get a Non-Disclosure Agreement
A non-disclosure agreement is a legal contract that prevents any parties involved in your project from disclosing certain information about the project. This can include anything from product plans to pricing and marketing strategies.
Non-disclosure agreements ensure confidentiality and safety. Team members can’t release sensitive information to others who might wish to use it against you.
Don’t Manufacture Several New Products at Once
When you’re manufacturing a new product, it can be tempting to think about creating other items and getting them on store shelves as well. This is a mistake. Manufacturing multiple products at once will only slow down your production schedule.
Focus on perfecting one product at a time until it’s ready for the market. That way, you can stick to your timeline and keep your costs down.
Partner With a Forward-Thinking Product Manufacturing Company
The process of product manufacturing can be quite complex, so it’s essential to partner with the right company. Use an experienced manufacturer that can help you with product design, prototyping and testing, as well as mass production.
Shipping and logistics are also important aspects of production. Work with a company that can handle all of your shipping needs.
Shield Works Precision Manufacturing Co. can help you bring your product to life. We’re a full-service contract manufacturer in China that also offers warehousing and shipping. Contact us today to learn more about our services.
To make an inquiry about what your custom manufacturing partner can do for you, you will need to know how to approach them and how much it’s going to cost you. As an international importer, you don’t want to pay any more than necessary, and that means asking the right questions and working with someone who can give you quality products at an affordable price.
To help, we’ve compiled some tips on starting that conversation with your manufacturing partner in China so that you can find what you’re looking for while avoiding costly mistakes.
What is a Professional Inquiry Like?
A professional inquiry is a request for information. When you need to learn about the supplier’s catalog, pricing, and payment terms or ask for product samples, you will need one. It enables your team to review your ideas and needs.
How to Make a Professional Inquiry?
Rather than a one-time contact, making an inquiry should be an ongoing process. By following these steps, you will be able to think more thoroughly and systematically about how best to inquire.
Step 1: Get in Touch with Potential Supplies
The first step to filtering some reliable suppliers is knowing their backgrounds to evaluate if they fit your needs. For example:
- Background and experience
- Production Capacity
- Product Catalog
- Main Market
It is necessary to determine what the supplier focuses on. A good way of assessing this is by checking whether they have related production lines. For example, if you need to make PCB products, you should find those who have PCB production lines in their facilities. Otherwise, be wary of suppliers who are pretending to be factories but are trading companies or there are risks involved.
Also, it may be beneficial for you to make a decision by contacting around 10 potential suppliers from the start for more information comparisons.
To successfully receive responses from suppliers, it’s also important to mention both who you are and what product/service you need for your business or project. If not, most of them will not respond.
Step 2: Request Quotations Clearing
People in business are under pressure, and so the quicker you can get to the point and more specific you can be, the more likely you are to receive a reply. In this case, before requesting quotes from potential suppliers, you need to prepare a production proposal. It doesn’t have to be the same as what will end up being produced or shipped, but it does provide an important reference point for evaluating rates.
Another reason for quoting based on your production plan is that almost every manufacturing company needs to know your general production plan, including units, materials, and deadlines so they can provide detailed pricing, and nothing will be confusing or misunderstood.
Keep in mind that using a cookie-cutter template taken from a website may not accurately convey the message you want. So, spend some time creating tailored business inquiries so you can get what you need in a short time. For example, if you need to know the total costs for completing your products, it’s important to specify which type of pricing. Instead of simply asking about the general prices, request quotations in FOB (free on board) price that is not a pure product price but includes shipping fees coming off the factory floor to the harbor and other related costs.
Step 3: Be in Touch with Them Briefly
Before moving on, you can remove some manufacturers from your list that don’t meet your standards and reply accordingly.
After receiving quotations, reach out to them directly over the phone (either online or by phone) to discuss how they can handle your project as well as share other pertinent details.
Sending an email is more traditional but calling will leave a lasting impression to show that you didn’t indiscriminately send out Requests for Quotations (RFQs) to all the suppliers on your list. This means they are likely to respond faster and think highly of your project. It’s also beneficial because it shows your sincerity and interest in partnering with them, which makes the process easier for both parties and can be a good way to establish friendly relations with your potential suppliers.
Moreover, don’t forget to ask them to send over some on-site pictures or videos since you are not available to pay a visit to their factories currently. If you have any questions, try to approach a factory audit service company once you have narrowed your search down to 1 or 2 candidates.
Step 4: Negotiate Based on Value, Not Cost
Cost is often one of the priorities that comes up when finalizing a project. It’s common for factories to ask overseas buyers for their budgets at the beginning of their negotiation process. However, many foreign buyers would prefer not to disclose their budget because they want the factory to understand that they are looking for value and quality, not just a cheap price.
If you are asked about your budget, it’s a good idea to be honest and emphasize that you are looking for long-term partnerships where quality and service are more of the priorities, which helps build trust and ensure that both parties are on the same page from the start.
When finalizing the supplier for your company, there are many different factors to take into account, such as whether or not they have the capacity to deliver quality products, outstanding communication skills, and exceptional customer service. In addition, it’s important to find suppliers that can protect your IP rights, so you don’t compromise any of your work-in-progress ideas and designs.
Don’t forget, the price and the quality are inexorably linked in China. Negotiating a low price with any supplier usually means they will just shrug it off and say ‘sure’ and then go out of their way to find ways to give you the cheapest possible products. A universal rule of life is that everything gets what it pays for. Keep in mind that you make this decision based on what will help your company succeed in the long run.
Step 5: Choose the Most Professional Supplier
In the last step, it’s time to give more information about your product and your quality requirements to the most interesting candidates. Don’t hesitate to give them your target price if it is very different from what they offer you. Ask them to justify their price level precisely.
As a buyer, it is imperative that you select the most professional supplier. This will allow for your orders to be processed with the utmost urgency and care. Luckily, there are many ways for you to determine who is the best choice for you. If you’re looking for a company that has all your needs covered, reach out today for more information and see how we will be able to make them worth every penny!
Chinese manufacturing is one of the largest sectors on Earth. With a GDP of 193885 CNY HML, as of June 2021, Chinese manufacturing makes up an enormous part of the Chinese economy.
In fact, China assembly service and OEM manufacturers are the largest producers and assemblers on the planet. It makes up nearly twice the GDP of Japan, who are themselves world leaders in manufacturing and assembling technological goods.
The question is – why are product assembly services in China and OEM manufacturers in China so prevalent? Why is it such a stronghold of OEM manufacturing and product assembly?
We’re going to take a look at OEM manufacturing in China to find out! By examining the history of OEM manufacturing and product assembly in China, we’ll help you have a better understanding of where the industry is headed!
The History of Chinese Manufacturing
A quick glance at the history of Chinese manufacturing reveals that China hasn’t always been the global superpower they are today. Before 1980, China was a relatively small player in the global manufacturing industry. In the 1970s, China was roughly tied with Italy in terms of manufacturing output.
That all changed in 1980. China slowly started to overtake the industrial powers, one by one. By 2010, they had even overtaken the United States. Prior to 2010, this was unthinkable, as the U.S. was the world’s largest manufacturing superpower.
What happened? How did China go from being a largely agrarian society to the manufacturing superpower of product assembly services in China and OEM manufacturers in China we know today?
Chinese Manufacturing in the 1980s
Like every industry in China, the industrial manufacturing plants are owned by the government. 1980 saw the beginning of widespread reforms and innovations that would eventually culminate in the manufacturing superpower we know today. China’s transition was not without its growing pains, though.
The 1980s saw the rise of large, centrally-owned manufacturing plants. These manufacturing plants were made possible by small-scale towns and large townships supplying the necessary workforce. Thanks to these innovations, China quickly became one of the world’s leading exporters of coal, construction materials, and leather.
China also increased their output of more traditional exports. These included bicycles and textiles.
Chinese manufacturing had also made serious headway in a variety of more modern industries. They were beginning to catch up on consumer goods. Updated equipment also allowed Chinese manufacturers to substantially cut costs. These innovations also allowed Chinese managers more autonomy, further cementing their place as global business leaders.
These updates were not without their hardships, though. The increased focus on manufacturing pushed China’s energy infrastructure to the limits. These limitations meant that Chinese plants and minds could only operate at 70 – 80% of their capacity.
Local politics also prevented China from fully inheriting their potential during the 1980s. Local management prevented manufacturers from achieving maximum productivity. So did Communist labor policies like the “iron rice bowl” and guaranteed lifetime tenure for employees.
Chinese Technology in the 1980s
There are many different reasons China lagged behind in manufacturing during the 1980s. A general lack of technology is one of the most prevalent, though.
Until the late ’80s, China was quite behind in terms of technological development. They’d recently made great strides in overall technology, helping them to catch up with the rest of the world. The ’80s saw the introduction of nuclear power, satellites, and widespread computing for example.
In terms of manufacturing, though, they had a lot of catching up to do. Much of their industrial technology was still from the 1950s, for instance.
Part of the reason for this discrepancy was a disconnect between research and development and the factories themselves. This was an era when China was finding itself as an innovator. Between the years of 1979 and 1984, the number of major Chinese scientific discoveries increased from 2,790 to 10,000.
Likewise, the number of inventions approved by the government went from 42 to 264.
There are a few different reasons for these discrepancies. One was the lack of intellectual institutions. The other was that factory managers were too busy meeting quotas to focus on R&D.
At that time, knowledge was pursued for knowledge’s sake. Chinese researchers hadn’t started thinking about industrial applications yet. This also meant that research wasn’t taken that seriously.
This all changed in 1985. That’s when CPC published the “Resolution on the Reform of the Science and Technology Management System.” This resolution specified the importance of science and technology for economic progress.
These changes saw increased collaboration between the factories, research centers, and universities.
Technological Innovations in the 1980s
The results were still mixed. These innovations saw some improvements in the metallurgy industry. That’s because metallurgy was already fairly well-established in the country.
The electronics industry was slower to evolve, though. It was still fairly compartmentalized by the end of that decade.
China’s technological isolationism started to break in the ’80s, though. Manufacturers started importing some West German cold-rolling technology. This was imported into the Anshan iron and steel complex in Liaoning Province.
The electronics industry took longer to develop, though. The innovations helped, but it wasn’t yet enough. Chinese electronics manufacturers were still limited by a lack of raw materials and skilled labor.
Since it’s such an important part of how China got to be such a global manufacturing superpower, let’s turn our attention to OEM. We’ll start with some history. Then we’ll turn our gaze towards the future.
But first.. what is OEM, anyway?
What Is OEM?
OEM stands for “original equipment manufacturing.” It’s originally from the Dutch phrase “onder eigen merk.” This roughly translates as “under one’s brand.”
OEM manufacturers produce goods for other businesses. Companies that buy from OEM manufacturers are called “value-added resellers” (VARs). Generally, VARs will add additional components. This increases the value, thus the name.
Already, you’re probably starting to imagine the role that OEM manufacturers play in industries like product assembly in China.
OEMs generally operate as B2B. Recently, there’s been a rise in OEMs selling directly to individuals with niche interests, though. This includes electronics hobbyists, who look to OEMs for components, for example.
How OEM Works
OEM manufacturers sell specific goods to VARs.
For an illustration, think of Intel. Many PC companies use Intel processors. The PC companies would be the VAR, in this case. Intel would be the OEM.
OEMs can assemble products as well, though. This is another area where OEMs intersect with product assembly services in China. iPhones are the best example of this trend. iPhones are assembled in Longhua District of Shenzhen city, China.
Benefits Of Working With An OEM
There are a lot of different benefits of working with OEM manufacturers. Let’s take a look at some of the leading benefits of working with an OEM manufacturer, to give you some ideas.
OEM manufacturers don’t try and do it all. Instead, they focus on a small handful of products. Then they make them really, really well.
Focusing on specific products lets the OEM manufacturer produce those goods in large batches. This lets them sell their products at the lowest-possible prices.
OEM manufacturers tend to work with many of the world’s biggest and most advanced companies. This means they have the latest, most state-of-the-art understanding of their industry. They can share their wisdom and experience with you and your brand, as well.
In today’s hyper-competitive business world, it’s essential to cut costs and find savings wherever we can. We agonize over our HR payroll for hours looking to shave off a dollar or two. Why wouldn’t we do the same for our components?
OEM’s specialization lets them keep their prices as low as humanly possible. They’re some of the most affordable electronics on Earth, which is part of how China became such a manufacturing powerhouse in the first place.
This also means you can pass these savings on to your customers. In times of global recession and financial hardship, which are becoming increasingly common, every dollar counts. Consumers are far more likely to purchase the less expensive option.
Your business’s future could literally depend on saving even a few cents per component.
OEM manufacturers are set up and ready to go. They’re primed to produce large quantities of whatever you need in as little time as possible. If you need good, reliable, inexpensive components, OEM manufacturers are just what you’re looking for.
Letting OEM manufacturers worry about the manufacturing frees you up to focus on other things. Instead of having to run around and deal with all of the logistics of physically producing products, you’re free to expand your customer base or work on developing new projects.
This, in and of itself, can become a lucrative business model. You can design and develop a new product and then let Chinese OEM manufacturers produce them for you. Meanwhile, you can create your next project or design.
You’ll be ready to begin manufacturing your next product by the time the first one’s hitting the shelves!
The Future of Chinese OEM Manufacturing
Even with all of these benefits, the future of OEM manufacturing in China is far from set in stone. The complications to the global supply chain, in the wake of the COVID-19 pandemic, has shaken the Chinese manufacturing industry, for one thing.
It’s also made some raw materials difficult to come by, reproducing some of the conditions of OEM manufacturing in the ’80s. These problems are relegated to China, though. They’re problems facing the entire global manufacturing industry.
This means there are also opportunities to be had from the restructuring.
Chinese OEMs have emerged as global leaders in electrical car production, for example. Volvo, Polestar, and BMW all assemble their vehicles in China, for example.
Tesla produces almost half of their vehicles through Chinese OEM manufacturers, as well.
Chinese OEMs also have almost a monopoly on semiconductor assembly. Almost all microchip manufacturers are in Asia, after all. The same goes for batteries.
These challenges come in the wake of similar shifts during the 2010s. Chinese manufacturing underwent a paradigm shift during that decade, as well, as China began to lose many of their historical advantages.
Years of being the leader of the global manufacturing industry meant that China had become rather well-off by the 2010s. Chinese workers were beginning to collect wages comparative to what their U.S. counterparts used to make. Customers were beginning to have increasingly high demands, as well, after years of living in a globalized economy.
Chinese manufacturers managed to adapt, anyway. Given the past 40 years, there’s every indication that will always continue to do so.
Why You Need Chinese OEM Manufacturing
While Chinese OEM manufacturers are experiencing difficulties, like every other industry, they’re also primed to become the only game in town. With such an advanced infrastructure of government-controlled manufacturing, there’s every likelihood they will take the global lead in manufacturing even more than they already have in the next few years.
This means it’s in your best interest to line up your OEM suppliers now and begin cultivating your relationships.
Are You Looking For Precision Manufacturing?
You’ll find it here! With over 16 years in the Chinese manufacturing industry, Shield Works Precision Manufacturing has the experience, as well as the local knowledge, to meet all of your Chinese OEM manufacturing needs.
Shield Works Precision Manufacturing offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here.
If you’re ready to find out how high-quality manufactured goods can elevate your business and help you to reach your goals and realize your potential, get in touch with us today to find out how a trusted manufacturing partner can boost your business needs!
There are many different considerations to keep in mind when choosing who will be responsible for manufacturing your products in China.
Whether you’re looking for a new manufacturer or thinking about an alternative option, it’s better to ask these 5 questions to evaluate if a manufacturing company can be your partner before finalizing anything. Let’s get started.
1. How Long Have They Been in the Industry?
If you’re looking for a quality contract manufacturer in China, it’s important to see how long they’ve been in business.
If they have been in the manufacturing industry for many years, you can be sure that their quality will be top-notch and that they know what they are doing.
If they have only been in business for two or three years, then this may not be the best option because there is more chance that they will not have experience with certain techniques or processes.
Also, by knowing the history and background of a supplier, you will have a better idea of their company development. Are they expanding or shrinking? What are some possible causes for these changes? With that knowledge at hand, not only can you learn more about how they operated in the past, but also you can make predictions about their future changes and think strategically before deciding whether or not worth working with them for the long term.
2. What Is Their Current Customer Base?
Asking your potential supplier about their current customer base gives you a clue as to what types of projects and customers they are taking on.
The more information you have, the better idea you’ll have of how well-versed they are in different industries and if there will be a good fit for what you’re looking for from them.
One of the most useful ways to estimate the customer base that your contract manufacturing supplier has is by reviewing the case studies and testimonials on the supplier’s website.
3. Are They Aware of International Standards?
A contract manufacturer should understand all the most common domestic and international standards, as well as its quality control procedures. Without knowing standards, the manufacturing company will not be able to apply related certifications, thus they are not allowed to produce certain products even though they have capacities.
If you want a production partner who will work with you on every step of the process, look for a company that specializes in your field so they can answer all your questions. This way they can help you develop your prototype and create a production plan before they start producing any items.
4. Do They Understand Your Product?
Finding a contract manufacturer that understands your product and idea can be an important consideration because they will be making your products to reach your expectations and requirements.
Many times, contract manufacturing companies are also responsible for product design and prototyping, so they should know your products as deeply as you do. Especially when it comes to PCB manufacturing because there are so many components and complicated techniques involved in this process.
Also, an experienced manufacturing partner that knows your products can provide much more useful information beforehand such as if there are any specific materials you might need, how to source the best raw materials to produce quality items, and how much production time is needed.
A red flag in the partnership with a contract manufacturer is that they don’t ask you any questions but keep saying yes instead. This can mean they don’t care about your product, or they are simply unable to communicate with you.
5. Who Will Manufacture Your Product?
As many overseas buyers complain about the scams of the manufacturing sector in China, you must pay more attention to who will be the real one to take care of your production.
Some companies claim that they are a legitimate manufacturer with appropriate facilities, but it turns out those claims might just be fake news upon further due diligence. If you want to how to identify whether a manufacturing company is real or not, click here to learn more about know how to spot a real factory or a trading company in China.
6. How Does Quality Control Work?
Quality control is extremely important in manufacturing. If your product is not up to your standards, you need a manufacturer that will work with you until the product meets your expectations.
Before you find a manufacturer, it’s important that you understand what quality control practices they follow and how they handle products with defects or errors.
In most cases, defects or errors are referred to as AQL which stands for Acceptable Quality Levels. These levels can vary depending on the industry and company. For example, if you’re making electronic products, then the acceptable defect rate might be higher than for outdoor fitness equipment.
It’s essential that you understand the manufacturer’s policies before signing any contracts so that there won’t be any surprises down the line.
The search for a manufacturing partner can be long and arduous, and it also may take some effort on asking questions and getting information from a supplier, but when you consider just how much time and money will be saved by taking these steps, it’s worth it!
Many overseas companies may feel more comfortable working with a Western-owned contract manufacturing company in China because they think that a company with western management background has higher standards and more positive reactions, so they don’t need to worry about product quality and communication.
If you’re on the way to looking for a company that has all your security needs covered, we can help! Start your journey by reaching out today for more information and see how we will be able to make them worth every penny!
As an entrepreneur, when you start working with a contract manufacturer in China, it can be tempting to simply not ask any questions and just trust that your Chinese partner will do everything necessary to manufacture your product correctly, on time and within budget. However, doing so can end up costing you precious time and money if you run into any issues with the product later on down the road or don’t receive what you expected from the manufacturer. That’s why it’s important to ask these 5 key questions every time you work with a new contract manufacturer in China.
1) What materials are available?
Some of the materials that are available for contract manufacturing include metal, plastic, and rubber. These can vary depending on what industry the manufacturer is focused on.
For example, if the manufacturer is focused on metal, they will be able to provide manufacturing services for metals like steel and aluminum. If they have a wider focus on plastics or rubber, then they may be able to manufacture more items that contain these materials.
This is important because it will give you an idea of what your options are for this particular company and how wide their capabilities really are. Knowing which types of materials they work with will also help you decide which type of contract manufacturer might be best suited for your needs.
If you’re looking for someone who can handle all types of products, then you’ll want to find someone who works with as many different materials as possible. However, if you need someone who specializes in one particular material only (for example, metal), then finding a company that focuses only on metal products might be better.
2) What techniques do they use?
Contract manufacturers use many different techniques. Some of these include injection molding, extrusion, and machining. They may also specialize in one or two of these manufacturing processes.
For example, if you’re interested in making a product with key metal components, it would be best to work with someone who specializes exclusively in metal injection molding. By doing so, you can ensure the highest quality products and efficient turnaround times.
In addition, you may want to ask what they can do regarding special coatings and logos. If you have something that requires extreme heat resistance or chemical resistance, it would be best to work with someone who has experience dealing with these types of coatings.
3) Do they have minimum order quantity
One of the first questions you should ask is what their minimum order quantity is. If they don’t have any, then you should probably keep looking and find one that does. This is a red flag for indecent quality.
If they do have a minimum order quantity, then you should find out exactly what that is. If you’re on a budget, this is important because it will give you some flexibility and cost control when it comes to production runs. You’ll be able to experiment with different designs and sizes of products without committing too much money or ending up wasting an excessive amount of product inventory.
It’s also possible that there are other benefits to having a higher order quantity, such as being eligible for wholesale prices or receiving discounts.
4) How Long Have They Been in Business?
One of the first questions you should ask is how long have they been in business. Ideally, you want a company that’s been around for at least five years and has experience with your industry. If not, it’s worth asking about their team’s experience and what they’ve accomplished over the course of those years.
For instance, a contract manufacturer might have experience working with other brands or companies within your niche. Once you find out how long they’ve been in business and what they’re capable of doing, it’ll be easier to decide if they’re the right partner for you.
It is not only about how long they’ve existed, but also their history of working with an international customer. If they are able to provide references, then it will make your decision much easier. Their past clients can either confirm or deny whether they will provide excellent service as well as quality products. The relationship between the customers and manufacturers are quite important so this question is worth asking when you meet them in person.
In addition, if possible try to talk to the owners directly and find out more about their background. In order for them to grow successfully and continuously learn new skills, these factors are crucial especially when thinking about potential expansion. Asking these types of questions before hiring a contract manufacturer will help both parties understand what type of expectations each side has from one another from the start!
5) Do they offer in-house design?
If you’re looking for design services, it’s important to find out whether the contract manufacturer can provide them. If they do, there are follow-up questions you might need answers to.
Does the manufacturer have an R&D department? If so, how many people work there? What are their credentials and what are they working on now?
If they don’t have an R&D department or if they only employ a small team, it might be difficult for them to get work done quickly or meet your expectations. In that case, you may want to consider hiring another company for design as well as manufacturing.
Good candidates for China contract manufacturing don’t come by easily. Shield Works is one of them with over 17 years of experience, spread out over the vast array of the industry in the region. Our background is the UK, and our expertise is in China. This combination means we’re knowledgeable in affordable China-made products. We would be happy to help your company be successful, if you’re interested! Contact us today!
Are you wondering what an OEM is, and how it can help your business production? You’re not alone. Many people are unaware of the benefits of Original Equipment Manufacturer services.
In essence, an OEM is a company that manufactures products for other companies.
When you work with an OEM, you can outsource the entire manufacturing process, from design to delivery. This allows you to focus on your core business while still producing high-quality products.
As the world of manufacturing continues to grow and evolve, more businesses are turning to Original Equipment Manufacturers (OEMs) to help them with their production needs.
Well, there are many benefits to working with an OEM, so read on to start understanding the benefits of OEM for your business.
Access to Expert Knowledge and Experience
Working with an OEM can provide considerable advantages when launching or improving a product. The most significant benefit is access to the OEM’s wealth of knowledge and experience.
Their team will have an intimate understanding of every aspect of product design and manufacturing and will be able to offer support and guidance at every stage of the process.
This can be invaluable for businesses that are new to the industry, or who are looking to make significant improvements to their products.
In addition, partnering with an OEM can help ensure a high-quality control level, as they will have established methods and procedures to ensure that all products meet strict standards.
Ultimately, working with an OEM can be the difference between launching a successful outcome and seeing it fail miserably.
Working with OEM manufacturers in China can save you money in the long run for a number of reasons. They are able to source the best materials and components at the most competitive prices.
In addition, they can help streamline your production process so that it is more efficient and cost-effective. OEMs also have a wealth of experience and knowledge that can be invaluable in helping you to avoid costly mistakes.
As a result, working with a China assembly service can help you to save money and improve the quality of your products.
As anyone who has ever worked with a large company knows, it can be difficult to get them to make even small changes to your order. They often have inflexible policies and procedures that make it hard to get things done.
That’s why working with an OEM can be such a breath of fresh air. They understand that every business is different and that each has its own unique needs.
So they’re willing to work with you to create a solution that is tailored specifically to your needs. This can be a huge benefit if you have a complex production process or if you need to make last-minute changes to your order.
You’ll never have to worry about being locked into contract manufacturing or having to follow inflexible rules. With an OEM, you’ll always be able to get the flexible solution you need.
With all of this in mind, why on earth would you try to go it alone?
One of the advantages of working with an OEM is their ability to scale up or down according to your needs. This means they can do small orders for start-ups and large orders for established businesses.
This gives you the ability to grow your business without worrying if your OEM partner can keep up. Another advantage of working with an OEM is that they usually have a lot of experience in the industry.
They know the ins and outs of mass production, which means they can help you troubleshoot any problems that might arise during the manufacturing process and find solutions to the issues faced.
And because they’re experienced, they can usually offer advice on how to improve your product assembly from top to bottom.
Finally, working with an OEM can save you money because they often have relationships with suppliers and can get discounts that you wouldn’t be able to get on your own.
So if you’re looking for a manufacturing partner that offers a China product assembly service, an OEM is a good option to consider for your long-term manufacturing success.
Time is one of the most precious commodities for any business owner. There are only so many hours in the day, and often it feels like there is more work to be done than there is time to do it.
This is where working with OEM manufacturing can be a real lifesaver. By entrusting them with the production process, you free up your own time to focus on other areas of your business.
This can be a huge advantage, especially for small businesses that may not have the staff or resources to handle all aspects of production internally.
In addition, because OEMs are experts in their field, they can often complete the work more quickly and efficiently than if you were to try to do it yourself. This also leaves you free to do what you do best and grow the business.
This can save you even more time in the long run. Ultimately, working with an OEM can help you to make the most of your time and resources, allowing you to focus on what you do best.
When you partner with an OEM, you can also reduce the risk involved in bringing a new product to market. That’s because they have extensive experience in the design and manufacturing process.
They will be able to identify potential problems early on and find solutions before they become major issues. This can save you a lot of time, money, and headaches down the road.
For example, if there are issues with the design of your product, they will be able to work with you to find a solution that meets your needs while also ensuring that the final product is of high quality.
In addition, because OEMs have established relationships with suppliers, they will be able to get you the best possible price for your components. This can help to reduce your overall costs and improve your margins.
Finally, by working with an OEM, you will have access to their customer service and technical support teams. This can be extremely helpful if you run into any problems after your product has been launched.
In short, partnering with an OEM can help you to avoid many of the risks associated with bringing a new product to market.
Improved Quality Control
Quality control is essential for any business that manufactures products. Defects or subpar products can lead to customer dissatisfaction and even legal problems.
When you work with an experienced Original Equipment Manufacturer (OEM), they can help you develop a quality control system that will ensure that your products meet your standards before they leave the factory.
Because OEMs are experts in manufacturing, they know all the ins and outs of the production process and can identify potential issues that could lead to defects or subpar products.
Having a strong quality control system in place can help you avoid costly problems down the road. Working with an OEM from the start can save you time, money, and headaches in the long run.
Enhanced Customer Satisfaction
Any business owner knows that customer satisfaction is essential for long-term success. After all, happy customers are more likely to come back and do repeat business.
Because OEMs are focused on quality control, partnering with one can help you ensure that your products meet or exceed your customers’ expectations. As a result, you may see an improvement in customer satisfaction levels over time.
And that, in turn, could lead to more repeat business and higher levels of customer loyalty. So if you’re looking for ways to enhance customer satisfaction, partnering with an OEM may be the way to go.
As businesses increasingly look for ways to reduce their environmental impact, original equipment manufacturers (OEMs) have become an increasingly popular option.
OEMs are typically more environmentally friendly than other businesses due to their use of fewer resources and production of less waste. In addition, OEMs typically have a lower carbon footprint than other businesses.
As a result, choosing an OEM can be a great way for businesses to reduce their environmental impact.
There are a number of factors to consider when choosing an OEM, but the potential environmental benefits should definitely be taken into account.
In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways, such as by providing you with a good reputation, access to a skilled workforce, and networking opportunities.
OEMs are an important part of the global economy, and they play a vital role in many industries, including automotive, computing, and electronics. There are many benefits to working with an OEM.
These include such things as access to skilled labor, economies of scale, and R&D resources. In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways.
For example, community involvement can provide you with a good reputation. If you’re associated with a well-respected company, it can rub off on you positively.
In addition, community involvement can give you access to a skilled workforce. Local talent is always in demand, and by working with an OEM you may have first dibs on the best candidates.
Finally, networking opportunities abound when you’re involved in the community. You’ll meet new people and build relationships that can be beneficial to your business.
Overall, there are many advantages to working with an OEM. When choosing an OEM partner, be sure to consider their level of community involvement. It can make a big difference for your business.
In these difficult economic times, it’s more important than ever to support businesses in our community. This is another benefit of partnering with an OEM partner.
When you partner with an OEM, you’re not only getting high-quality products and services, but you’re also helping to create jobs and stimulating the local economy.
This can have a positive ripple effect on the whole community, making it more attractive to other businesses.
So when you’re looking for a partner to help meet your needs, remember the importance of supporting your local economy. Partnering with an OEM is a win-win for everyone involved.
What Are the Different Types of OEM Agreements?
There are two types of OEM agreements: exclusive and non-exclusive.
An exclusive agreement means that the OEM is the only supplier for the specific product or component being manufactured. This type of agreement gives the OEM more control over quality and production, but it also limits your options if you want to switch suppliers in the future.
A non-exclusive agreement, on the other hand, allows you to work with multiple OEMs simultaneously. This gives you more flexibility, but it also means that you’ll have to manage multiple relationships.
When choosing an OEM partner, it’s important to consider your long-term needs and objectives. If you anticipate needing a lot of flexibility in the future, a non-exclusive agreement may be the best option.
If you want to ensure a high level of quality control, an exclusive agreement may be the way to go. But contact us if you need more help.
Whatever type of agreement you choose, make sure that you have a clear understanding of the terms and conditions before signing on the dotted line.
Ready to Use an Original Equipment Manufacturer?
When it comes to your business, you always want what’s best for production. Efficiency and quality are important, which is why working with an original equipment manufacturer can be extremely beneficial.
They have the experience and understanding of your product to help improve manufacturing. Not only will they provide high-quality parts, but they can also save you time and money in the long run.
For more on this topic and others like it, be sure to check out our blog!
New product development is not an easy task, especially for those without experience in dealing with overseas new product development and manufacturing.
It may seem trivial at first if one of these unfortunate events takes place, such as months of delay, high defective rates, increased cost overruns that don’t match initial planning and other obstacles that come up at the last minute which could lead to disastrous results if they’re not dealt with quickly and efficiently enough.
In this article, we’ll explore what can go wrong with new product development in China and how you can prevent your costly mistakes from occurring.
1. Expectations Don’t Match the Reality
The first hurdle for the new product development process in China is your expectations don’t meet reality.
Product development and manufacturing in China are complicated processes so understanding what to expect from these processes beforehand can help manage your expectations correctly.
It’s important to work with an experienced Chinese Product Development Company that can offer reasonable estimates for the costs and timelines of your project so that you are prepared before production begins. If not dealt with properly, it becomes easy to make mistakes such as ordering too many products or neglecting orders altogether – leading to either excess inventory at hand or no merchandise available at all.
2. Communication Breakdown
A major factor in product development failure is a communication breakdown between you and your new product development supplier.
If you don’t provide enough information about what you need or don’t understand what the supplier is telling them, problems will inevitably arise.
The lack of communication can lead to additional delays and costly mistakes being made. There are three main ways that communication breaks down during the new product development process.
Firstly, if you don’t know how to articulate your requirements and standards, your supplier won’t be able to effectively manufacture your products.
Secondly, some overseas clients often don’t know how to accurately interpret feedback from their suppliers and vice versa, which could end up in poor product quality
Thirdly, it could be that there is no clear understanding of who has the final say when making key decisions about the project at hand. In these cases, product manufacturing problems tend to come out later, as changes cannot be made quickly enough.
To avoid these types of problems, careful translation is necessary and frequent communication should take place between you and your supplier to ensure understanding. Also, both parties should be responsible for taking swift action to figure out what went wrong with the failed process before other problems arise. Communication should be frequent and thorough to prevent potential misunderstandings before they become problematic.
3. Design Issues
Designers may make mistakes during the process of designing a new product, or the manufacturing company in China may misinterpret the design specifications.
For example, if you’ve designed a toy that is supposed to be round, but the manufacturer misinterprets this as a square and cuts it on its side instead of top to bottom, it will not turn out as desired.
There are also language barriers that can lead to issues with the design. Many terms for a round do not refer to the same object (circular, spherical), which can confuse. The phrase “I want two circles one centimeter apart” could be translated as “two semicircles or two full circles”, depending on what terminology is being used.
If a design cannot be executed as planned, it is important to have a contingency plan. It is important to know when to cut your losses and redesign the product rather than pushing ahead with something that won’t work.
4. Poor Quality Control Processes
Poor quality control processes can result in many serious problems in the new product development process, making it more difficult to your production deadlines, resulting in canceled orders, and negative reviews of your product.
Defective products may also lead to higher customer returns due to units that have not been properly inspected before they are shipped. All these will negatively impact your business’s bottom line and reputation.
So, quality inspection should be done with special attention to prevent the inclusion of defective or non-conforming goods in shipments. Of course, getting product quality right from the start and ensuring it meets your expectations and standards will save time, money, and frustrations later.
5. Wrong Product Development Supplier for your project
Suppliers of product development services will vary in terms of costs, scales, qualities, expertise, and capabilities. It is important to determine these factors when selecting a China-based supplier for product development needs.
If you are in search of an experienced manufacturer for electronic goods when your supplier only specializes in the manufacture of home appliances, then it would be wise not to work with them due to a lack of capacity which will ultimately lead to delay or cost overruns.
Many factors contribute to product development failure in China, some of which can be controlled and some that are completely out of your control. You need to understand these factors so you can better manage them and hopefully prevent them from happening again in the future.
If you’re seeking a company to fill all your new product development needs, look no further than Shield Works. We are a British-owned and managed company specializing in providing dependable product development and precision manufacturing services. We take pride in creating quality products with consistent processes to guarantee both quality and consistency every time, so you never have to worry about anything going wrong during this process. Start your journey by reaching out today for more information and see how we can make sure that the process goes smoothly.
China manufacturing. It is one of the most well-known industries in the country, and it has a strong global presence.
It is known as a leader in the manufacturing industry because China commands 28% of the global manufacturing industry. For perspective, the United States is second place on that list at just over 16%.
With the country having such a strong manufacturing presence, you may be tempted to do business over there. If you have this interest, you have to look into contract manufacturers.
What do you need to know about contract manufacturing? What do you need to get started?
This is your guide.
Remember Your Intellectual Property
You have to remember that when you are doing business in China, there are different intellectual property laws than in your home country. If you are coming from the United States, you need to be aware that there is much less protection for intellectual property in China than there is back home.
So, if you have a product where success relies on you being the exclusive provider of it, you need to do your homework about intellectual property laws in China before drawing up a contract. Make sure you go through all of the proper channels and have all of the paperwork to protect your intellectual property as much as possible there.
Set Quality Requirements
The next thing that you have to do is make sure you set up quality requirements in your contract. This can help protect you from a business that may not be known to operate with the highest standards.
Putting your standards and requirements in writing strengthens your position and gives you a higher chance of getting quality results. The reason for this is with having this in writing; you have something to fall back on if something goes wrong along the way.
Whereas if the lack of quality comes up unexpectedly, you may be stuck dealing with it if you signed the wrong type of contract with this company. Make sure you spell this out and figure out what quality requirements you want before agreeing to do business with a company.
Be Very Detailed
When it comes to contracts, in general, you want to have as many details listed as possible. Manufacturing in China is no different.
A contract helps make clear what your standards are, what your expectations are, and what you are expecting a manufacturer to provide. For example, if you have a quota for how many items need to be shipped every week for one product, you should put that in your contract.
What standards need to be put in place? How much money are you going to pay the manufacturer? How are you determining that price? What is the size and color of the product requirement?
These are things that you need to think about in terms of details in a contract. You may also want to consider how long you want this contract to last and if you want to be exclusive with this manufacturer.
If you do, then that can have an influence on what the contract terms are and how much you are going to agree to give a manufacturer.
Go Over Pricing
Along with the above, you need to go over the pricing and payment procedures with your manufacturer. It is a detail of the contract, but it is arguably the most important detail.
The reason is that having the pricing and payment structures laid out could be the difference as to whether your business survives or not. This is because if there is a misunderstanding, you may not have the funds to pay for litigation or even to pay what you owe.
Go over this carefully and make sure you understand exactly how much you have to pay and what exactly you are getting in return for this payment.
Prepare for Disputes
Going off of the above, the best way to put out a potential fire is to prepare for one that might come up. This includes disputes because it is likely that you may have at least a minor one with the manufacturer that you choose to do business with.
Try not to worry too much because this is a normal thing to go through. About 85% of people in business experience a conflict at one point or another.
The best way that you can handle this is to prepare for the worst and hope for the best. Essentially, be aware of any possible problems in the future and come up with plans to resolve them.
Find a Reliable Manufacturer
Finally, you are going to need to have a reliable manufacturer by your side. It is best to have someone that has a good reputation in the industry and someone that has taken good care of colleagues. If you do not know anybody like this, perhaps check reviews and testimonials.
Having a good manufacturer can save you time and money, along with any potential business headaches in the future.
Get Started With Contract Manufacturing
These are some of the key things that you need to know when it comes to contract manufacturing. Two of the most important things that you need to make clear are the pricing and payment of services, along with the quality you expect. In general, it is best to have all details covered with a reliable manufacturer.
Are you ready to get started? Message us today to take the leap.