Contract Manufacturing
Contract Manufacturing in China: Top 5 Pros and Cons for Western Companies
There is no doubt that making products in China can be an excellent choice for western companies to save more money and increase margins.
Due to the low costs of labor and natural resources, production costs are relatively low in China when it’s compared to other western countries.
But wait, do you think that everything is just perfect in China? Keep in mind that one cannot simply judge something based solely on the good points without knowing how many bad points exist as well.
In this article, we will explore the top five advantages and disadvantages of manufacturing in China so that you can evaluate whether it’s suitable to outsource your production to China or not. Let’s get started.
Advantage: Lower Operating Costs
Manufacturing costs often differ depending on many factors, including the availability of labor, raw materials quality, production techniques, and shipping routes. With cheap labor and abundant natural resources available in China, manufacturing companies can make products at a cheaper rate than Western companies.
As a result, many American or European-based businesses are willing to move their production to China due to this competitive cost advantage compared to their home countries.
Advantage: Supportive Policies
The Chinese government is always working to provide the most favorable cooperation conditions for foreign businesses. A good example is the ongoing “Made in China 2025” initiative, which aims to upgrade the country’s manufacturing sector.
Furthermore, the government offers lucrative financial benefits to create an attractive environment for Western-based businesses. These include reductions of taxes on profits made from patents and copyrights as well as subsidies for R&D projects.
Advantage: Well Developed Infrastructure
In the past decade, China has made significant progress in developing and improving its infrastructure around the whole country, and there are many projects still in construction.
Now, China has a comprehensive network of roads, railways, bridges, airports, and seaports that can support all kinds of manufacturing and even heavy industries like steel or aluminum production. There are many reasons why foreign companies should consider outsourcing their production to Chinese contract manufacturers but one important thing to note is how the country excels at quick delivery times due to the state-of-the-art transportation system it now has in place.
Advantage: High Flexibility
Production of goods within the Chinese manufacturing industry has undergone dramatic changes throughout the past two decades, moving away from a one-size-fits-all mentality towards a more customized approach. From raw material purchasing and fabrication to assembly as well as delivery, manufacturing in China is becoming more and more flexible than ever before.
The high flexibility of making products in China makes it possible for different companies around the world to have opportunities to produce goods that are made specifically for their target market.
These would be ideal circumstances for any company looking to introduce a new product. Companies can work on designing, prototyping some models, and then modifying the products until they are perfect enough to be released into the marketplace.
Advantage: Professional and Friendly Cooperation
Although there may be a few scammers among China’s manufacturers, for the most part they are highly trained professionals who have years of experience under their belt. They are always more than willing to accept your new ideas and take it upon themselves to make sure you will be completely satisfied with the end product, going out of their way to make sure that everything is done right.
This is because now more and more manufacturing companies understand the significance of having a good reputation in the field and they feel no need to cheat on others. Instead, these businesses want to create long-term relationships with their clients.
Disadvantage: Different Standards
The first disadvantage that Western companies are afraid of if that the standards in China are very different than what they’re accustomed to. Whereas an overseas brand might have certain safety requirements, testing procedures, or regulatory guidelines, these things might not be as prevalent (or enforced) in China. This can lead to problems with the final product quality if you don’t confirm carefully before cooperating with a contract manufacturing company.
If you’re going to outsource production to China, make sure you check for any laws or policies that would prohibit your business from doing what they need. Furthermore, you should stay up to date with any relevant regulations pertaining specifically to your industry so that there aren’t any legal hurdles holding back progress for your project.
Disadvantage: Quality Control Issues
Western companies often experience quality control problems when outsourcing the production of their items to a random factory in China. Problems are common with defective or damaged products and there is no easy way for these companies to rework or repair them, which leads to major losses.
Thus, as many foreign buyers are starting to adopt more stringent quality standards and techniques and work with more professional suppliers, this problem is gradually being resolved. Also, it’s now much easier for an overseas brand to rely on a third-party quality control company to conduct full inspections before and during the production process, especially if they’re paying upfront.
Disadvantage: More Controllable
Production scheduling is a necessity for all manufacturing operations. Foreign importers often find that it’s more effective and controllable to keep production close to home so long as they can maintain high levels of product quality and production timeline.
Producing in China can be challenging because of how fast things change. A perfect example of a sudden change could be when an essential machine stops working without warning, which can cause the whole production schedule to fall apart. So, it’s always important to make sure you’re prepared for anything before starting something new.
Disadvantage: Intellectual Property Theft
Protecting your intellectual property is a major concern when considering moving your manufacturing project to China. The country used to have notoriously lax copyright laws and it is not uncommon for Western companies to have their designs stolen or copied by their manufacturing partners or in-house employees.
If you are serious about protecting your IP and the brands that represent it, try to work with someone that can offer IP-right protective agreements before cooperation.
Disadvantage: Lack of Transparency
Many foreign-owned brands are unused to the lack of transparency in China’s manufacturing process. They prefer to meet with engineers in person to adjust their production methods or monitor quality.
Furthermore, with lower wages in China and government subsidies for manufacturing facilities, many export-oriented service providers may make an additional markup if you don’t negotiate price quotes with them. Especially when you don’t speak Mandarin or Cantonese, you could run the risk of paying more than what was originally quoted.
Is Outsourcing Production to China Right for Your Business?
When evaluating whether to move your production to China or not, you should review what will work best for your business in terms of costs, product quality, and quantity. There are advantages and disadvantages to each side, but whatever option your company decides on, it must remain committed to maintaining high levels of quality control because this level of commitment will be shown to yield higher profits in the end.
If you are ready to work with contract manufacturer in China, then look no further than Shield Works.
As a British-owned and operated company specializing in contract manufacturing and product assembly, we offer reliability and consistency while adhering to the highest standards of workmanship. Reaching out today so we can tell you how we can help with your project!
Contract Manufacturing in China: Why Your Business Needs an Intellectual Property Strategy and How to Develop One
The contract manufacturing industry in China has grown by leaps and bounds over the past decade and will continue to do so in the years to come. With more and more overseas businesses looking for alternatives outside of their country, moving production projects to China can be a viable option.
Manufacturing your product overseas can help you cut down on production costs, but if you’re not careful, it could also put you at risk of losing control over your intellectual property.
Brands rely heavily on their intellectual property assets to be more successful in the marketplace, whether it’s a product idea or visual elements. This alone should be enough for every business owner wanting to understand the need for an effective IP strategy and how it can be executed successfully.
In this article, we will explore the importance of developing an IP-right protective strategy for your brand and give you helpful tips on how to develop an effective strategy that is perfect for your company. Let’s dive in.
What is an IP Strategy?
IP stands for intellectual property, which is an umbrella term describing the set of intangible assets that are legally protected by a company or person from unauthorized use. Intellectual property comprises different forms of assets, including trademarks, patents, and copyrights.
To be more specific, assets such as business data, product ideas, logos, software, programs, and websites created by your company can all be considered intellectual property if they are legally registered.
When it comes to an intellectual property strategy, it differs from company to company across different countries. However, even though there are some universal best practices for intellectual property management within certain industries, each company also has its own unique set of priorities and methods to protect its IPs.
Why is an Intellectual Property Strategy Important?
Outsourcing your production to China can often be a frightening undertaking, particularly if you are new to the industry or do not yet have established strong connections with factories there.
Fear of losing control over your intellectual property rights is often at the forefront when many business owners think about producing goods overseas. No matter how big or small your company may be, it is vital that you put together a sound IP strategy before you begin producing anything out of concern for having your IP stolen without permission.
1. Ensure Exclusive Rights
One of the main advantages of creating an effective IP strategy when outsourcing your production project to China is to safeguard the safety and confidentiality of sensitive information.
To ensure your brand will live on, an effective intellectual property strategy can protect it in the long term. Keep in mind that your IP protective strategy can be more than just projecting your logo or product idea. You can include other important information that has great relevance to the IP such as product design draft, modification record, product launch plan, financial records, and internal company communications. Creating a proper IP strategy can be a great way to protect business details from leaking publicly or being accessed by your competitors and their employees.
2. Increase Business Value
For starters, many owners have unrealistic expectations about their company’s value. To be straightforward, your brand has value because you work to maximize its commercial potential. Consequently, your intellectual property strategy should be tailored to align with your business objective.
Nowadays, many people buy products or services for more than just the functional or convenient aspects, they want something else like uniqueness and creativity that a company can provide.
To increase your business value, an IP strategy provides peace of mind knowing that other companies will not be able to come along and copy or use your IP for themselves. Therefore, others can’t profit from what is rightfully yours, which ultimately helps your business by directly contributing to the business’s financial goals and growth prospects.
Helpful Tips for Developing an Intellectual Property Strategy
Protecting your intellectual property is a means to secure an economic advantage for your business and make sure you can defend your unique ideas, products, and services. Typically, an effective IP strategy should include the following steps:
1. File and Register Your IP
In today’s age of high-tech and instant communication, information leaks happen all the time. Though it may seem terrifying there isn’t much that you can do about this issue.
For overseas businesses engaging in import-export like yours, it’s suggested to file your IP information, register for protection with the relevant authorities in both your home country or original business location and China, and enforce your ownership rights accordingly.
Staying vigilant and maintaining records of what you’ve invented. If someone else gets their hands on confidential information in a breach, they may try to copy or adapt some of your work, which you could prove if you have documented evidence about when you created it.
2. Use Strong Nondisclosure Agreements
NNN stands for non-disclosure, non-use, and non-circumvention. An NNN Agreement is a type of confidentiality agreement used in business dealings with Chinese companies, particularly Chinese manufacturers.
When working with a contract manufacturer in China, it’s important to have a well-drafted and properly executed strong NNN agreement to strengthen your defenses against IPR violations like trade secret misappropriation, where some of their employees could share sensitive IP-related information with outsiders.
Also, it will ensure the protection of your intellectual property rights and offer dispute resolution in case the manufacturing company fails to uphold its obligations in the contract.
3. Keep a Close Eye on Your Manufacturer
Before choosing a production partner in China, it’s always a good idea to do due diligence carefully and keep a close eye on their company updates by continuous monitoring.
Firstly, you should understand the tiers and backgrounds of different suppliers to avoid being taken advantage of by middlemen or low-quality facilities.
Next, you need to be aware of how transparent each production stage is so that from communicating with the manufacturer to receiving your product, you’ll never have major problems related to your IP.
Are You Looking for A Contract Manufacturer in China?
Many businesses are outsourcing their production to China because of cost savings. But before you dive into outsourcing your production, you need to make sure that your intellectual property is adequately protected. Finding such a reliable manufacturer in China that can safeguard your IP can be daunting and time-consuming. Shield Works would like to be your local manufacturing partner that protects your IP and meets all your production needs.
Shield Works Precision Manufacturing Co., Ltd is the subsidiary of the C2W Group that has 17 years of providing supply chain management, quality control, and product development services in Asia.
We are a British-owned and managed company that has an IP-protected facility that can handle the needs of contract manufacturing, precision assembly, quality inspection, and warehousing.
Over time, we have developed a list of IP protective methods at our custom manufacturing and precision assembly facility that has proven 100% effective at preventing IP infringements.
- We have state-of-the-art fingerprint scan access for all production zones so that you can be assured that no one other than those who are authorized has been near your product.
- We will have legally binding NDAs with every external body that we may work with during the process of your production line, so nothing leaks out about what’s being made – from here and all across town.
- We partner with Innopat, a leading Zhuhai-based IP industry expert, to provide our clients with clear, no-nonsense advice and IP protection services.
Start your journey by reaching out today for more information and see how we will be able to meet all your demands under the same roof without taking any risks!
Manufacturing in China: 10 Tips to Peak Season Preparation (Part 3)
Even the most fruitful production and distribution chains can sometimes find themselves running out of capacity due to a shortage of trucks or freight, let alone when they are dealing with the large demand during peak shipping seasons.
Online stores and brick-and-mortar brands must keep up with the demand of orders coming in, and make sure that each package is delivered smoothly. During this surge, you must make a detailed strategy for your distribution.
To help to make it through without too many hiccups, in the last part of the peak season preparation, we will provide more tips about logistics to help you navigate the tough season. Let’s dive in.
Click here for the previous parts of the peak season preparation tips:
7. Review Packaging
As eCommerce made it possible for anyone to buy anything with a quick click, shopping experiences are becoming more important than ever before. It often involves getting all kinds of items in the same store and items will be delivered to a customer’s house with a beautiful package safe and sound.
When it comes to packaging, everyone loves getting a beautiful package waiting at their doorsteps. This sense of excitement is one of the best parts of the customer experience. To avoid any potential damage, it is important for your packaging not to be damaged in any way. For example, if you are shipping something fragile then it must be packed and shipped inside an enclosed six-sided box to prevent exposure during transit.
Also, you need to take your package design into account. Now, young generations tend to share their worthy unboxing moments on their social platforms such as Instagram, YouTube, Pinterest, and TikTok, which has a dramatic effect on potential buyers who research reviews prior to making a purchase. In fact, product unboxing videos have become an integral part of the online buying experience. Admittedly, the product packaging gives the first impression to a new customer. We all know that people don’t always buy something because it’s cheap – they buy it because they feel connected with the brand.
In addition, try to make your package easy to open. No one wants to tear the package with a long-awaited item in heavy plastic that’s almost impossible to open. If people have the frustration of opening a package, they probably won’t turn to shop again.
8. Manage Shipping
You make sure to do everything right before the peak season arrives. You approve the manufacturing process, follow up on inspections and review website design and product copywriting time after time; all in an effort to leave your customers satisfied. Now – you are just one step away from shipping out this merchandise.
However, during the festive period, the demand for freight capacity is at a high during peak season. Global supply chain efficiencies can get disrupted as all the online direct-to-consumer (DTC) brands are struggling to deliver their products on time as late deliveries can negatively impact the customer’s perception of the brand, leading to lost sales in the future.
Therefore, one way to manage your shipping properly is by collaborating with multiple logistics companies to increase visibility and take advantage of all available shipping capacity will increase profitability and ensure prompt delivery of your products.
Besides, you need to think outside the box. For example, airfreight can be effective by providing rapid service, while LCL (“Less-than-Container-Load”) shipments can be your alternative that is cheaper and just a bit slower. The point is that now is the perfect time to explore more shipping options so that you can get your package delivered faster without feeling like you need to break the bank while doing so.
9. Secure Sufficient Capital
Regardless of your company’s size or industry sector, working capital is an important metric to achieve success during the holiday season. This is because you may need more funds readily available to increase inventory, hire some part-time staff, set up holiday displays, and invest in advertising.
Consider whether you have the positive working capital needed to ensure that your business operations are running smoothly. Because there will likely be a spike in extra expense during the peak season. For instance, an increase in shipping rates for couriers coming from the production facility to your warehouse and then being sent to customers’ doorsteps. Make sure you take this into account when calculating how much you will pay for deliveries with your distributors.
Human capital is an important aspect of planning for peak season. With new rules and regulations surrounding the COVID-19 pandemic, many businesses have had to reduce the number of staff present on the shop floor to comply with new physical distancing rules. However, as peak season approaches, your warehouse needs to find a way to increase productivity while keeping your workers safe. This can mean adding more shifts on weekends or evenings to increase capacity.
Keep in mind to recruit and train enough staff to handle logistics and other work. If you don’t do this, then orders might not get fulfilled on time or customers will be left waiting. Also, try to have a standard process that everyone on your team can follow correctly. Make sure that all packages will be verified, all staff that receives stock does it the same way, and that all boxes are verified, received, and unpacked together, accurately counted, and checked for accuracy.
10. Stay Organized
A great way to excel in the peak season is to be well-prepared for anything from manufacturing to distribution to shipping. The more prepared you are for the upcoming peak season beforehand, the better you can stay efficient and proactive and avoid any issues that may arise.
Shield Works Precision Manufacturing is a company that has experience and knowledge in navigating the struggles of the peak shipping season. We provide visibility into your supply chain and will help you through the process without risks. We can help you during the craziness that comes with busy production and shipping! Contact us today if you want to know how our one-stop-shop solution is for success even during the most challenging peak season.
An Overview of Processes, Regulations, and Quality Standards of OEM Manufacturers
Want to know more about OEM manufacturers and not sure who to trust? It can be hard to know who to trust when it comes to OEM manufacturers. How do you know that the processes and standards they adhere to are up to par?
There are a lot of shady OEM manufacturers out there, and it’s hard to know who you can trust. Not only do these companies often cut corners, but they also don’t always adhere to quality standards or regulations.
We can help you. At Shieldwords Precision Manufacturing, we are very careful to follow all the steps and standards for quality.
We are ISO9001, 14001, and 45001 certified. We also have a long history of supplying high-quality products to some of the world’s biggest brands.
Read on for more details:
Must-Have an Effective Supply Chain Process
The OEM manufacturer must have a good supply chain process. This means that the parts and materials needed to make the product arrive on time and are the right parts.
The supplier needs to check that the materials are the same as prior approval. This is important so that we can keep track of where things come from.
Must Adhere to Regulations
OEM manufacturers have to follow certain rules set by their industry or government. These rules include safety guidelines to keep workers safe from harm in the production environment.
They must also meet environmental regulations to protect the planet.
OEM manufacturers need to have a quality control system that meets international standards, such as ISO 9000.
They Must Have Consistency
OEM manufacturers in China need to make sure that their products always meet customer expectations. Not only for things like how well it works. But also, how long it lasts, and how safe it is.
They help customers throughout the design and development process. This is to understand their needs and create custom solutions to meet them.
This means always checking to make sure the quality is good. We do this at every step of production. That way, if there is a problem, we can fix it right away. That’s one of the benefits of outsourcing your OEM manufacturing.
Must Meet Customer Requirements
OEM manufacturers use strict processes to make sure their products are high quality and meet regulations,. But also standards, and customer specifications. They also have to be careful when choosing suppliers.
OEM manufacturers need to make sure that their products are high quality and meet customer requirements.
They can do this by monitoring quality throughout production and having a strong system in place to ensure the safety of workers.
Let’s dig deeper into each of these areas and more:
What Processes Verify Materials Received?
It is important to make sure that the materials suppliers give us are of good quality. This way, we can be sure that the products we receive meet our requirements. To do this, we use a process called quality control.
Suppliers must provide materials that meet the approved specifications. But also provide documentation to prove it.
Suppliers do extra safety tests on the products and the production areas. The people who make the product also check to make sure everything is okay before despatch.
With these exact steps in place, makers can rest assured that their received materials are up to par and adhere to safety standards.
What Types of Regulations Exist?
OEM manufacturers must adhere to a wide variety of regulations to remain competitive in the industry. These include safety regulations such as those on the structure and design of products.
There are environmental standards that factories have to follow. They can’t pollute the air or water. And there are other standards that businesses have to follow. These depend on what kind of business it is.
It is important for manufacturers to follow international standards. This makes sure their products are high quality.
There are standards for production, including ISO 9000. This establishes requirements for quality management systems. Other standards are more specific and depend on the product category or industry.
OEM manufacturers need to know about these changing guidelines. So they can stay in business and be successful.
How Do OEM Manufacturers Ensure Customer Satisfaction?
OEM companies want to provide good products and services that customers will like. This includes talking with customers often. But also making sure the products are high quality.
OEM manufacturers check every detail during production. This goes from design to final assembly, to make sure it meets customer standards.
Additionally, they run tests on parts even after they’re assembled to identify any flaws or issues before delivery.
OEM manufacturers provide custom solutions to their customers by communicating with them. But also inspecting products with care.
This way, they can make products that meet customer expectations and that are reliable.
How Do OEM Manufacturers Protect Workers?
OEM manufacturers must focus on keeping their workers safe from potential hazards. This means making sure proper safety protocols are in place.
Training is a must, both for operating equipment and protecting against injury. Protective clothing such as goggles and gloves should also be provided where necessary.
Employers need to be careful of any dangerous materials in the workplace. But also take the right measures to respond.
Of course, it is also important to take regular breaks and have good ventilation in the workplace. Both of these things are essential for creating a safe working environment.
What Quality Control Systems Are Typically Employed?
These systems involve regular inspections, testing, and verification of materials used in production. This includes tests performed both at the supplier’s facility and upon delivery.
The OEM manufacturer has a quality assurance team. This team does extra testing to make sure the product is good.
Quality control systems help to make sure that products are made correctly. This includes keeping track of production materials used. But also tracks changes during production, and saves information from the process.
Additionally, these systems help to make sure that products are without mistakes. But also that they meet customer expectations.
How Can an OEM Manufacturer Ensure the Quality of Their Products?
OEM Manufacturers must ensure the quality of their products. They do this by developing and implementing rigorous quality control plans. These plans account for customer specifications and expectations.
To do this, regular inspections of production processes should be carried out to check for defects or inconsistencies. Periodic tests on materials used in production are also necessary for quality assurance.
In addition, inspections upon delivery can be done by an established quality assurance team to ensure a high standard of product.
OEM manufacturers should source their components from reliable suppliers to prevent issues with quality. Investing in modern machinery can help maintain a consistent level of product quality as well.
It is important to test the product and make sure it is of good quality before selling it to customers. This way they know they are getting a good product.
What Other Standards Must Be Met by an OEM Manufacturer?
OEM manufacturers must meet the standards set by ISO 9000. They might have to follow other rules too, depending on what they make.
Automotive manufacturers have to make sure their cars follow the standards set by AMECA. They also have to make sure their cars don’t pollute the air too much.
Aerospace manufacturers have to follow quality management systems. These must be in the AS9100 regulations.
Also, any product that is going sold to people must meet safety standards. These are set by organizations like UL (Underwriters Laboratories).
It is up to the OEM manufacturer to be aware of these requirements and ensure their products are suitable and safe for use.
How Do OEM Manufacturers Get a Consistent Supply of Parts and Materials?
Maintaining supply chain management systems is essential for OEM manufacturers. They must ensure they have a consistent supply of parts and materials.
OEMs can figure out how many products they need by talking to suppliers. This way they get to see how fast they can make things.
This way, the OEMs can give their customers what they want without running out of things to sell. It is important for the supplier and the OEM manufacturer to have good communication.
This way, orders can fulfill with more speed to meet customer needs or respond to changes in demand. In this way, OEMs can make sure that their production lines are always running well.
What Role Does Quality Assurance Play in the Production Process?
It is very important for OEM Manufacturers to have quality assurance. This means that every product made meets certain standards. Quality assurance includes everything from the first design to the final inspection.
They make sure that all components are up to standard and fit together properly before the finished product leaves the facility.
Manufacturers make sure that each stage of production completes to expectations.
This meets industry guidelines and helps protect the manufacturer’s reputation. Customers get safe and high-performing products.
When a product has quality assurance, it means that the product is reliable and people can trust that it will work well. OEM Manufacturers are companies that make sure their products have quality assurance.
Why Do You Need an Efficient Supply Chain Process?
An efficient supply chain means that original equipment manufacturers (OEM) can reduce costs. This ensures fewer production delays and higher quality.
This happens when they have suppliers who they can rely on to provide the things they need in a timely way.
OEMs can avoid spending extra money on expedited shipping and focus on other aspects of the production process.
With modern technology such as automation and tracking systems, they can better keep track of inventories. This helps make sure there is always enough stock available for production.
OEMs can test materials and inspect products before delivery. This way they can make sure the products meet all safety standards and that they are what the customer wants.
These benefits enable OEMs to remain competitive while ensuring customer satisfaction.
How Do OEM Manufacturers Monitor Production Quality?
Detailed monitoring of quality levels during production is critical for OEM manufacturers. Quality assurance teams are typically responsible for testing materials and inspecting products at each step of the production process.
This is to make sure they meet all safety standards and customer requirements.
Additionally, modern technology such as statistical process control (SPC) software can be used to track product performance and detect any potential defects in real time.
By utilizing these methods, OEMs can ensure that their customers receive consistent, high-quality products every time.
OEMs should also implement continuous improvement systems that allow them to identify areas of improvement in their processes in order to further enhance quality.
With regular monitoring, OEMs can be confident that their products consistently meet or exceed industry standards.
What Safety Guidelines Must Be Followed to Protect Workers?
Strict guidelines must be followed by OEM manufacturers to ensure the safety of their workers in the production environment. These include providing personal protective equipment (PPE).
This would include gloves, face shields, and masks, implementing appropriate noise control measures, maintaining clean and well-ventilated work areas, and establishing safe operating procedures for machinery.
Additionally, regular workplace inspections should be conducted to identify any potential hazards and take corrective action if necessary.
By following these guidelines, OEMs can make sure that their employees are safe from injury or illness while on the job.
What Else Must OEM Manufacturers Keep in Mind?
OEMs should also consider environmental regulations when producing goods. This includes monitoring emissions levels from factory operations and ensuring the proper disposal of hazardous materials.
Additionally, OEMs should strive to reduce energy consumption and promote sustainability in their operations by making use of renewable resources and reducing waste.
By keeping these issues in mind, OEMs can make sure that their products are not only reliable and high-quality but also environmentally friendly.
If you want to learn more about our outsourced OEM manufacturing services, contact us now.
Clear on All Things OEM Manufacturers?
Regulations and quality standards are important for OEM manufacturers because they ensure that products are made correctly and safely. Adhering to these regulations can be costly, but it is worth it to protect the consumer.
The process of becoming an OEM manufacturer is long and difficult, but companies who go through with it usually produce high-quality products.
If you want to learn more about this topic, be sure to check out our blog for more articles like this one!
Top Reasons to Use Contract Manufacturing for Start-ups
Contract manufacturing is a great solution for start-ups who need to manufacture a product but don’t have the resources to do it themselves. Contract manufacturing allows start-ups to outsource their manufacturing needs to a reliable, experienced third-party provider, which can save them both time and money in the long run. In this blog post, we’ll discuss the top reasons why contract manufacturing is such a great choice for start-ups.
Cost-Effective
When it comes to starting a business, cost can be a major factor in success. Thankfully, contract manufacturing can be an effective way to reduce costs while maintaining high quality production.
Contract manufacturing allows start-ups to outsource their production to a third party at a lower cost than if they were to produce the items themselves. This is beneficial for start-ups because it allows them to save money on expensive equipment and labor costs, allowing them to focus their efforts and resources on other areas of the business.
Additionally, contract manufacturers often have access to state-of-the-art equipment and technology that start-ups may not have access to, which can help ensure that products are of the highest quality. Overall, using contract manufacturing is an excellent way for start-ups to cut costs while still maintaining a high-quality product.
Scalable
As a startup, it can be difficult to find the resources and capacity needed to scale up production of your product. Contract manufacturing offers start-ups the scalability they need to quickly adjust their production rate to meet customer demands.
Because contract manufacturing is based on a project basis, you’re able to easily scale up or down depending on your production needs. This can make it easy to manage your costs while still producing a high-quality product.
With the right contract manufacturer, startups can easily scale up production without having to invest in extra machinery or staff. This allows them to concentrate on other aspects of their business while leaving the production side of things to an experienced team.
Additionally, contract manufacturers are often well-connected in the industry, and can provide access to suppliers and other resources that can be hard to find on your own. With their help, you can easily find the parts and materials you need for your product at the best price available, allowing you to maximize your profits.
Quick Turnaround Times
One of the biggest advantages of contract manufacturing for start-ups is the quick turnaround times. Compared to an in-house manufacturing setup, contract manufacturing offers significant savings in terms of time and cost. When you outsource manufacturing, you’re able to produce your product in a fraction of the time compared to traditional production methods. This can be especially beneficial for start-ups who are looking to get their products to market as quickly as possible.
By utilizing contract manufacturing, you’ll have access to high-quality production equipment and expert technicians who are trained in advanced manufacturing processes. This allows you to produce your product in a shorter amount of time, which can lead to quicker market entry and faster returns.
Contract manufacturing also eliminates much of the overhead associated with in-house production, which can free up more resources for marketing and sales efforts.
Increased Flexibility
Contract manufacturing is an excellent option for start-ups that are looking to grow quickly and efficiently. One of the biggest benefits of contract manufacturing is increased flexibility, which can make the process of launching a product much easier.
With contract manufacturing, you don’t have to invest in costly equipment or facilities to produce your product. Instead, you partner with a contract manufacturer who will handle the production process for you. This means that you can focus on other aspects of your business, such as developing marketing strategies or building your customer base.
You also don’t have to worry about meeting large minimum order quantities when working with a contract manufacturer. This allows you to test the market before investing in a large inventory. And because you’re not tied down to one particular manufacturer, you can easily switch to another if you’re not happy with the quality or prices you’re receiving from the first.
Contract manufacturers can also provide additional services such as product design, packaging, assembly, and testing. This can reduce the amount of time it takes to launch a product as well as ensure quality control throughout the entire production process.
By partnering with a contract manufacturer, start-ups can gain access to more advanced technologies and experienced personnel, without having to invest in their own production facilities. This can help startups stay competitive in the market and bring their products to market faster.
Improved Quality Control
One of the main advantages of using contract manufacturing for start-ups is improved quality control. Contract manufacturing allows businesses to focus on quality, rather than quantity.
Because contract manufacturers specialize in their field and have years of experience, they can often produce a higher quality product than a start-up could achieve with the same amount of resources.
Contract manufacturers also typically use the latest technology and have the most up-to-date production processes in place, ensuring that products are produced consistently and with minimal defects. Additionally, contract manufacturers can provide access to advanced testing and quality assurance services to ensure that products meet required standards. This can help to reduce product returns and improve customer satisfaction.
Finally, by using contract manufacturing, start-ups can benefit from the expertise of experienced professionals who know what it takes to produce high-quality products. They will be able to guide your business through the entire production process, from design and prototype testing to final assembly. With their knowledge and experience, contract manufacturers, like Shield Works, with 17 years in the industry, can help you create products that are not only cost-effective but also reliable and of the highest quality. Contact us today!
Exploring Different Contract Manufacturing Solutions for Your Business
Did you know that the global output of manufacturing increased by over 20% from 2020 to 2021? This is a significant number, and it highlights the importance of contract manufacturing services in today’s economy.
Contract Manufacturing Solutions enable businesses to outsource specific tasks or projects that would be too expensive and time-consuming to complete in-house.
When selecting a contract manufacturing service, there are several factors to consider.
In this blog post, we will explore the different types of contract manufacturing services available. We will also discuss the benefits and drawbacks of each one.
What Is Contract Manufacturing: An Overview
Contract manufacturing is an outsourcing service that provides specialized production and assembly services to other companies. This process involves transferring all or part of the manufacturing process to an external contract manufacturer.
In contract manufacturing, the contract manufacturer may be responsible for:
- Designing
- Producing
- Testing
All according to the specifications provided by their client. The contract manufacturer also assumes responsibility for:
- Raw materials
- Components sourcing
- Supply chain management
Contract manufacturing allows companies to focus on their core competencies through efficient resource use and cost reduction. This can be especially beneficial for startups who don’t yet have access to large-scale manufacturing capabilities of their own.
Contract Manufacturing Services: What’s Available
Contract manufacturing services can provide a cost-effective way for businesses to get their products manufactured according to their exact specifications. This type of service is typically provided by specialized organizations with specific capabilities and expertise in production.
Contract designing and product engineering may also be part of the services offered, as well as:
- Purchasing
- Assembly
- Packaging
- Delivery
- And other related services
Companies benefit from a streamlined production process since all services are outsourced to one provider that can handle the entire job at once. For any business that is looking to streamline its supply chain while maintaining quality control and efficiency, contract manufacturing is worth exploring.
Let’s take a look at some popular services provided by the top custom manufacturers.
Precision Assembly
Precision assembly is a contract manufacturing service designed to provide customers with highly accurate and repeatable parts assembly processes. Production of complex assemble components requires specific skills, from understanding design requirements to assembling several intricate parts.
Precision assembly services save manufacturers time and money by allowing experienced contract manufacturers with the necessary industry knowledge and qualifications to professionally assemble a wide variety of components in high precision. Industries rely on contract manufacturers like precision assembly for reliable parts manufacture and assembly, especially when complex components must be built quickly and accurately in a cost-effective manner.
Custom Manufacturing
Custom manufacturing involves contract manufacturers producing made-to-order parts according to the customer’s specifications. Companies of all sizes in almost any industry may need custom manufacturers to help bring products to life.
They offer more flexibility than traditional contract manufacturers, who often have lower minimum order quantities and are more open to changes in design and materials.
Custom manufacturers are established to meet the needs of companies wishing to produce unique or multiple products that may not fit into a contract manufacturer’s production system. These services come in especially handy when it comes to small batch production runs that might otherwise be too:
- Costly
- Time-consuming
- Complex
Warehousing and Fulfillment
Warehousing and fulfillment services provide businesses with a range of solutions related to:
- Contract manufacturing
- Product storage
- Transport of goods
These services are beneficial for businesses when they need more control over the quality standards of contract manufacturing and want to reduce infrastructure costs.
Furthermore, warehousing and fulfillment services allow businesses to consolidate multiple shipments into one service. This helps with managing inventory levels effectively, as it ensures that goods are promptly shipped out for delivery with no delays. Ultimately, these services can help streamline business operations by providing comprehensive coverage from contract manufacturing to shipping goods out.
Order Consolidation
Order consolidation is a vital service that many contract manufacturers provide. When integrated into a contract manufacturing process, it streamlines the supply chain and helps businesses to save money.
Essentially, order consolidation involves taking orders from multiple vendors and combining them into one place so that they can be shipped from one location. This allows contract manufacturers to avoid multiple shipping charges and reduce the cost of handling large numbers of single-line orders.
Order consolidation also helps contract manufacturers to save time when dealing with multiple vendors by helping to accelerate the flow of goods and materials between suppliers. By opting for order consolidation services, businesses can increase their efficiency while cutting costs at the same time.
Quality Control
Quality control is an essential part of contract manufacturing services– from ensuring regulatory and product requirements are met, to testing raw materials and confirming final product specs.
Quality control engagements may include:
- Initial supplier set-up audits to assess any potential risks
- Continual monitoring of processes in place
- Verifying records’ accuracy
- Evaluating factory conditions
- Reviewing available resources
- And more
This provides contract manufacturers with a better insight into the entire product’s lifecycle and safeguards their ability to produce a high-quality end product. Quality control services are necessary when contract manufacturers commit to meeting certain standards set by their customers and industry regulations.
Supplier ID and Management
A Supplier ID and Management System is a process that can help businesses to contract out the manufacturing of their products to outside sources. This type of service is especially advantageous when companies need to contract out production instead of making their product themselves.
With this system in place, businesses can quickly and efficiently identify new suppliers and easily obtain price comparisons. They will also be able to track and manage supplier performance to ensure that contract manufacturers comply with the specifications listed in the contract.
Supplier ID and Management services allow companies a streamlined approach to finding contract manufacturers and maintaining important supplier records.
Contract Manufacturer: What Is the Right Choice for You?
While looking for a contract manufacturer, there are several factors to consider to make the right choice for your business. Some of the key points include:
- Cost
- Quality control
- Delivery times
- Inventory management
Businesses should also evaluate the contract manufacturer’s capabilities in terms of:
- Production capacity
- Technological advancements
- Scope of services
Finally, businesses need to ensure that they are selecting a contract manufacturer who understands their particular industry and has the expertise to help them achieve their goals. By doing your research and considering all of the available options, you can find the perfect contract manufacturing solution for your business.
As long as it meets all of your needs, it will help ensure that your products are built with quality and delivered on time. With the right contract manufacturer, your business will be able to grow and succeed.
Let’s take a look at some questions you should ask your potential manufacturer before going into business with them.
Where Are They Located?
It is important to find out the exact location of your contract manufacturer. You want to make sure that they are in a suitable environment, with the necessary infrastructure to support your production. It is also important to find out the type of transportation services available for shipping and receiving goods.
However, it is also crucial to make sure that their standards are aligned with your mission statement and values.
What Certifications Do They Have?
It is important to ensure that your contract manufacturer has the necessary certifications and accreditations to produce your goods. This will ensure that you are producing a product that meets industry standards and is up to par with the quality of other products on the market. Additionally, certifications show that the contract manufacturer is reliable and reputable.
How Is Their Quality Control?
Quality control is a critical element of the contract manufacturing process. You need to find out what processes the contract manufacturer has in place to ensure that the quality of their products meets the standards listed in your contract.
It is also important to ensure that they are using updated technologies and processes that meet the industry requirements.
Take a Look At Their Experience
Experience is key when it comes to contract manufacturing. Make sure that your potential contract manufacturer has the necessary experience to meet all of your needs. You should also ask for references and check into their past projects to get an idea of the quality of their work.
What Is Their Process?
The ideal process of a contract manufacturer should include:
- Access to global resources
- Monitoring and oversight of the production process
- Transparency in communication and operations
- Global integration
Access to global sources is paramount for businesses looking for contract manufacturing solutions as this allows them to source the best materials at competitive prices for their product.
In addition, having an open line of communication with their contract manufacturer allows businesses to have a better understanding of the production process and oversee the quality control measures that are put in place.
Transparency in communication is also important for companies as this fosters trust between them and their contract manufacturer. Transparency ensures that companies are made aware of any changes that may affect the production process or timeline so they can ensure that everything is running according to plan.
Finally, having a contract manufacturer with a strong global presence increases efficiency in terms of delivery times and access to more resources. This type of global integration also helps businesses expand into new markets without having to worry about finding local manufacturing solutions.
All these factors should be taken into consideration when searching for a reliable contract manufacturer who can provide solutions tailored specifically to your business needs.
What About Security?
Before signing any contract with a manufacturer, make sure that their data protection policies and processes are in line with industry standards. Make sure that all information shared between your company and the manufacturer is securely encrypted and stored. Additionally, you should also ask about the measures taken by the contract manufacturer to protect your intellectual property rights so that your products remain safe from misuse or theft.
By asking these questions when looking for contract manufacturing solutions, you can ensure that your business finds a reliable partner who can help it grow and succeed in the long run. You will be able to find a contract manufacturer who meets all of your needs while still maintaining competitive prices and quality control measures.
Upcoming and Current Trends in Contract Manufacturing: What to Know
For those looking for contract manufacturing services, it is important to stay up to date on the latest trends in the field. This ensures that projects are completed effectively and efficiently while avoiding any costly over-complication of processes.
Currently, many experts in the manufacturing industry are recommending that companies use product lifecycle management (PLM) software to streamline certain product assembly processes. In addition, there is a recent trend towards more hybrid models of advanced automation and traditional manual labor. This blended approach capitalizes on both manpower technology and automated solutions to maximize speed and accuracy across the entire workflow.
For those looking to contract high-quality product assembly services, it is invaluable knowledge to stay aware of these upcoming trends to efficiently get their products ready for market.
Get Started with Shield Works Today
If you’re looking for a contract manufacturer that can provide quality solutions tailored specifically to your business needs, Shield Works is here to help. We have over two decades of experience in the industry and are experts in providing high-quality product assembly services.
Contact us today to get started on contract manufacturing!
The Benefits of Outsourcing OEM Manufacturing Services
Did you know that China has accounted for 28% of worldwide manufacturing output?
It can be hard to keep up with the latest manufacturing trends and processes, especially when it comes to outsourcing.
Outsourcing your OEM manufacturing can seem like a daunting task. You’re worried about quality, delivery time, and price points. You don’t want to sacrifice your bottom line or product quality.
When you work with an experienced and reputable outsourced OEM manufacturer, you’ll get the best of all worlds. Quality products, on-time delivery, and competitive prices are all possible when you partner with the right company.
But that’s not all. Keep reading to learn all about the amazing benefits of outsourcing OEM manufacturing services!
What Is OEM Manufacturing?
OEM manufacturing is the process of designing and manufacturing products or components that will be sold by another company under its brand name. Many businesses choose to outsource OEM manufacturing services to stay competitive and meet consumer demand.
The Benefits of Outsourcing OEM manufacturing
There are several benefits to outsourcing OEM manufacturing. They include:
Staying Competitive
Outsourcing OEM manufacturing can help you stay competitive in today’s market. By working with a reliable and experienced manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to keep up with the competition and meet the needs of your customers.
Meeting Consumer Demand
Outsourcing OEM manufacturing can also help you meet consumer demand. By working with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and keep up with the competition.
Cost-Effective
Outsourcing OEM manufacturing can also be cost-effective. By working with a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to save money on production costs and stay within your budget.
Flexible Production Schedules
When you outsource OEM manufacturing, you’ll have the flexibility to choose when and how your products are produced. This will allow you to meet the demands of your customers and keep up with the competition.
Access to Expertise
When entrusting your product to an original equipment manufacturer (OEM), you want to be sure that it is in good hands. This is why it is important to consider the experience and expertise of the company you are outsourcing to.
A company with a long history in the industry is likely to have a wealth of knowledge and skills that can be put to use in manufacturing your product. In addition, look for a company that employs certified professionals.
This will give you peace of mind knowing that your product is being handled by experts. When you have access to experienced and skilled professionals, you can be confident that you will get the best possible quality for your products.
Improved Quality
Outsourcing OEM manufacturing can also lead to improved quality. By working with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and improve the quality of your products.
Enhanced Customer Service
When you outsource OEM manufacturing, you’ll have access to enhanced customer service. With a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers, avoid conflict and provide them with the best possible service. In today’s competitive marketplace, it’s essential to offer outstanding customer service.
By partnering with a reputable manufacturer, you can be sure that your products will meet the highest standards. This will give your customers confidence in your brand and help to build loyalty. In turn, this will lead to more sales and continued success for your business.
Increased Sales
Increased sales are one of the main advantages of outsourcing OEM manufacturing. When you partner with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers and increase your sales. In addition, outsourcing gives you the flexibility to scale up or down as needed, which can help you respond quickly to changes in demand.
As a result, outsourcing can be a highly effective way to grow your business and improve your bottom line.
Improved Delivery Times
When you outsource OEM manufacturing, you’ll have access to improved delivery times. By working with a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers and improve your delivery times. In today’s highly competitive marketplace, being able to deliver products quickly is essential.
With improved delivery times, you’ll be able to stay ahead of your competition and keep your customers happy. When you work with a reputable manufacturer, you can count on getting your products delivered on time and in perfect condition.
This will help you build a loyal customer base and keep your business growing. If you’re looking for a way to improve your delivery times, outsourcing OEM manufacturing is the answer.
Greater Efficiency
When it comes to manufacturing, efficiency is key. The faster you can get your products to market, the better. That’s why outsourcing to electrical OEM manufacturers can be such a boon for businesses.
By partnering with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and improve your efficiency.
In today’s competitive marketplace, that can make all the difference. So if you’re looking to streamline your manufacturing process, outsourcing OEM manufacturing is worth considering.
Ready to Outsource OEM Manufacturing?
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 OEM 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.
If you want to ensure a high level of quality control, contact us now to see how we can help with your OEM manufacturing
6 Ways to Streamline Your Custom Manufacturing Process
Several industries rely on original equipment manufacturing (OEM). It plays a critical role in the business world, with Data Bridge reporting that it’s valued at $39,503.36 million.
Your custom manufacturing processes can set you apart from your competitors. Enhancing your systems can help you become more efficient. The question is, how can you improve your processes?
There are several tips for improving your customer manufacturing processes. These tips can help you with several types of processes, including control, primary, and support processes.
We’ll outline six of these steps in this guide. So, keep reading to learn more about the best improvements for your manufacturing process!
1. Discover Places Where Waste Occurs
First, look for places in your manufacturing company that waste time or resources. It may take some work to notice it, but many manufacturing companies have redundant processing stages or tasks.
There are several examples of such tasks. Many custom manufacturing services repeat one necessary task several times. However, the task only needs completion once.
How can you tell what processes cause waste? First, examine every stage of your manufacturing process. Does each step add value to your product or your custom manufacturing services?
If not, consider revising the process. Remove those unnecessary steps, so each phase of the process improves your product.
Then, move on from your processes to examining your machinery. The manufacturing industry relies on top-notch machinery to produce the best products.
So, consider whether your machinery is up-to-date. If your machinery seems outdated, consider investing in a new machine. New equipment can speed up your processes and improve your product quality.
2. Improve Your Custom Manufacturing Service Quality
It’s crucial to make improvements throughout your process. These improvements can greatly enhance your final product and cost less money in the long run. So, how can you begin improving your quality?
First, start by discerning the best raw materials for your equipment. The department that receives these materials should have a checklist that includes every necessary resource.
Then, create a checklist for your quality control staff. This checklist should include some of the following criteria:
- Ensure every order is correct
- Ensure the quantity is accurate
- Check for potential defects
During the manufacturing process, inspect your stages once again. If any problems occur during the manufacturing process, halt the process.
This pause can give you time to address the issue and ensure it doesn’t happen again. Preventing errors can save time and money in the future.
3. Improve Team Communications Within Your Company
Another way to improve your custom manufacturing is to bolster internal communications between your teams. Your communication can make or break your manufacturing processes.
Fortunately, there are several ways to improve your team’s communications. One of the most common approaches is to use communication software and technology.
First, consider using communication software. For example, moving your internal documents to an online cloud server can make communication between teams more efficient. This way, your teams can access any essential files from a single source.
Another way to improve communication is to use radio systems. Radio devices can help people communicate over long distances on the company premises. This technology provides a convenient way to inform other workers of necessities and problems that arise on-site.
Some communication technology is simpler to use, as well as cheaper. For example, many companies use the smartphone app Slack to communicate with each other. Since people generally keep their phones on them, this can be a quick and effective way to boost communication.
4. Stick to Deadlines to Improve Custom Manufacturing
Increased communication can provide several permeable benefits. One example of this is the ability to communicate better about deadlines and other information.
Weak communication leads to confusion about several things, such as deadlines, task instructions, and company roles. When this confusion rises, it bottlenecks your operation.
This bottleneck makes the company less efficient when it affects your deadlines. So, follow these strategies to ensure you have clear deadlines:
- provide clarity for co-workers, suppliers, and customers about when their deadlines are due
- provide shared goals for everyone to hit
- motivate your employees to hit higher performance levels
Another critical factor is to set deadlines that your employees can reasonably meet. Clear deadlines do no good for your company if workers can’t feasibly meet them.
5. Go Paperless In Your Job
Another way to streamline your work processes is to get rid of paper documents. It’s much easier to lose paper files than to organize them. Paper documents also take up more space, allowing for a higher likelihood of workplace clutter.
In contrast, digital documents are much easier to track and locate. You won’t have to sift through dozens of boxes to find the necessary documents. Instead, you can discover the required files quickly because they’re in a single place.
6. Introduce On-The-Job Training
Another way to streamline your custom manufacturing is by introducing on-the-job training. Lifelong learning is an incredible way to improve your employee’s motivation and efficiency.
The primary aim of this training is to help employees make as much progress as possible. Ideally, this training should also take the shortest possible timeframe.
This training provides several advantages:
- explore the job’s daily tasks and details
- receive immediate feedback to correct any mistakes
- take less time to train and boost productivity
The best part about on-the-job training is that it gives an excellent way to evaluate your employees’ results. This feature allows you to determine which parts of your training program work and what needs revisions.
Find a Custom Manufacturing Service
Custom manufacturing companies can streamline their processes by using these tips. However, it’s challenging to find a company that incorporates these strategies into its operation.
That’s where our company comes in. We are a British-owned company that supplies custom manufacturing needs for many businesses. Contact us today if you need custom manufacturing services!
Manufacturing in China: 10 Tips to Peak Season Preparation (Part 2)
With the COVID-19 pandemic still affecting internationally in both production supply, business model, and customer shopping experience, there is no denying that holiday shopping seasons will be vastly different than what they once were.
Don’t be overwhelming. Luckily, we’ve got you back. Welcome to Part 2/3 of the “Manufacturing in China 10 Tips to Peak Season Preparation” series where we list the most important and useful tricks in production plans when it comes to peak seasons. If you want to review some of the previous tips, click here to see what they covered.
Today, we will show you more tips. Let’s dive into part two.
Click here for the previous parts of the peak season preparation tips:
4. Prepare for Warehouse Strategy
You may be aware that your warehouse will experience an influx of work thanks to the increased demand for your products during the upcoming peak holiday seasons. However, what you may overlook is that your warehouse will remain busy even afterward because it needs to deal with return volumes after promotions end.
In this case, you need to have a detailed warehousing strategy to operate your warehouse more efficiently during the peak season, including using a better system to keep track of each item and having more warehouse space and extra staff to handle the sales and returns. This is because poor strategies focus on maintaining the status quo and relying on outdated and simple inventory systems that may negatively affect your sales performance if they cannot share data between other supply chain platforms.
When it comes to predicting how much warehouse space you need for all your products throughout the peak season, be sure to account for more than just enough room by calculating inventory based on the previous number of orders or other relevant data.
Don’t risk leaving too little warehouse space for your inventory because it will be difficult to rent another warehouse during peak season – either the location is too distant or the lease prices are not affordable, and most importantly, you don’t have time to deal with it. But it’s also important not to overstock and be left with unsold inventory once the season is over, which can hurt your cash flow.
It’s not only essential to know your product units so that you can prepare internally for where they lie ahead, but you also need to keep your manufacturing partner in the loop so that they can allocate those same resources effectively. If you don’t, the resources might get promised to your competitor.
5. Diversify Production
In the past, many foreign buyers used to have a sense of building a strong, solid relationship with one manufacturer when outsourcing production to China. But this way of thinking has been thrown out in recent years.
From the threat of a global shutdown due to the pandemic to the Suez Canal blockage putting the transfer of goods at a standstill, it’s never been more important than ever before to make sure that your business is prepared for all potential eventualities.
To avoid supply chain disruption, it seems that more buyers are opting for diversifying production to lower the risk of delays and raise profit margins. In other words, rather than relying on only one supplier in manufacturing, they are securing deals with a few different factories or service suppliers. Not only can this option avoid single points of failure, but also creates a much more reliable and predictable supply chain, which is of paramount importance for your peak season preparation.
You can keep production costs lower through higher quantities when working with a single supplier in China, but when choosing multiple production partners, you can seize the opportunity for cost reductions through continued negotiation and reordering. Additionally, during peak seasons it is useful to work with different producers for an unlimited supply of goods when you have multiple SKUs.
6. Understand Lead Time
When it comes to production, you need to understand the lead time of your production project when you make an order before the peak season.
Typically, lead time is the amount of time between an order starting and finishing. To put it simply in your manufacturing situation, lead time is when you can measure the period from signing a production contract with your supplier up until the completion of production and its readiness to ship out.
Once you understand what the lead time means, take time to review potential problems which can affect your desired amount of lead time – for example, any foreseeable issues regarding raw materials being unavailable or too expensive. Discuss these with your supplier and see if they can do anything about it before finalizing a purchase order.
Of course, sometimes delays and disruptions can’t always be avoided. To prevent any potential issues, you need to act quickly and communicate effectively with your suppliers.
Keep in mind that the holiday season will be so busy that many manufacturing service providers may stop taking new orders a few weeks before. Thus, it’s crucial to make an order ahead of time with an accurate order volume to avoid getting behind on orders. Don’t forget to confirm what the exact time frame is from when an order is placed until when it’s shipped and arrives at your warehouse.
Also, stay up to date with your manufacturing partner to ensure that the production of your project will remain at its usual high standard within the time frame given. It will be a good idea for you to leave enough time not only just for production but also for the final inspection to ensure your product quality.
Key Takeaways
To be successful during the peak season, there are several things you need to think about beforehand and one of the most important parts is choosing a reliable and professional manufacturing partner to get your products made in high quality.
This is because working with a knowledgeable expert can help you handle the whole production without risks and avoid many potential problems, so you can focus on making a business strategy.
At Shield Works Precision Manufacturing, we provide a wide range of custom manufacturing solutions to suit any type of business – large or small. From prototyping through production and assembly, we’re able to take care of everything. Click here to discuss your project with our experts to achieve peak season success.
5 Tips for Choosing the Right Chinese Manufacturing Companies
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.
Competitive Prices
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.