If you’re outsourcing your quality control service, there are certain things to consider before making a decision on where to have the work done. For example, if you have a technical product that needs very precise assembly or you need custom packaging, then having it done locally in your country may be the best option. However, if the only thing that matters to you is cost and you don’t mind shipping your product across the world, then China could be an excellent option for your 3rd-party quality control service since it has been making technological advances and offers competitive prices compared to other countries.

Flexibility to Fit All Project Types

One of China’s most appealing features as a third-party quality control provider is its flexibility. Clients can hire QC inspectors in China and conduct quality checks on site or they can choose one of several remote services including email, video conferencing, etc. The ability to select the services that fit each project’s needs and budget allows foreign clients to easily choose an affordable and efficient QC solution in China. Companies can also customize their China QC program according to their specific needs and requirements by partnering with China Quality Control Services. This makes it easy for companies from all industries to outsource inspection projects quickly without worrying about making complex adjustments throughout their program.

State-of-the-Art Testing

When you hire a third party to do quality control, you’re going to get it done state-of-the-art testing in a way that not many other countries can offer. You’ll get multiple quality checks, making sure your product matches every specification possible. This is important because when you use 3rd party suppliers, your products might be produced by different factories – there’s nothing stopping each of those from using different production and testing methods. When you outsource quality control services to an outside firm, you can rest assured all your products have been tested against all specifications across all factories that made them. Only after they’ve passed those tests can they ship out to customers and only if they pass inspection will they move forward in shipping. In short: Quality is guaranteed!

Experienced Staff

Quality control workers in China are well-educated and experienced, with many having years of quality control experience. It’s important to choose a good partner who has in-depth knowledge of quality standards so you can make sure your product meets them. They will also ensure that your products are safe for consumers before they ever arrive at your doorstep. Good Chinese QC staff will make sure any issues with quality or safety are detected and corrected during production, ensuring that every product that leaves their facility passes international standards. You’ll also want to check references carefully; ask other businesses that have worked with your potential partners what their experience was like.

Low Cost

This can be very important in low price markets. If you’re looking at introducing your product into China or any other low-price market, it’s likely that you need to be able to offer a cost competitive solution. By outsourcing your QC testing to 3rd party providers, you can concentrate on value added services such as technical support and distribution, thus reducing overall costs and still providing an acceptable level of confidence in your products quality. This makes Chinese companies a particularly good option if you are planning to go after emerging markets where cost is king!

Globally Recognized Accreditation

The 3rd-party QC services in China are frequently accredited by some of the most globally recognized bodies and all facilities they accredit must conform to some incredibly strict standards that provide unparalleled safety and protection. This can go a long way toward putting your mind at ease. As an example, ISO/IEC 17025:2005 was created by International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC). It is considered the global benchmark standard for assessing calibration laboratories and provides guidelines on how such labs should be set up. Moreover, it outlines specific testing procedures that labs must adhere to in order to maintain their ISO accreditation. In other words, if you’re looking for accuracy and reliability, look no further than a 3rd-party QC provider located in China.

First-Class Customer Service

It’s no secret that first-class customer service is key to success. With manufacturing jobs moving overseas in droves, it’s becoming harder and harder to ensure consistent quality. Even if you have a team of dedicated quality control workers at your disposal, their language and cultural barriers can prevent them from doing an effective job at ensuring high standards are met. A 3rd party English speaking team can do wonders for your business – after all, who understands what makes customers happy better than someone who actually is a customer? In China, this isn’t hard to come by.  You will find many people who speak fluent English and other languages as well. This makes it easy to communicate with them about any issues or concerns they may have with your product. Many companies choose China because they want a company that will be there every step of the way during production, and not just when something goes wrong. You need someone who will help make sure things go right from start to finish. They will work closely with you on design decisions and offer suggestions on how to improve things like packaging or shipping methods so that everything goes smoothly once production begins.

Shield Works, founded and managed by British and based in China, is one of them with years of experience in the industry and an in-house team of bilingual engineers well versed in quality control standards and procedures. If interested, please feel free to contact us.

Outsourcing product assembly to China may seem like the easiest and most cost-effective solution to getting your product out on the market, but there are plenty of things you should consider before taking this route. If you’re not careful, you could end up spending more money on additional time and resources to get your products back than if you had stayed within your home country. To help you save yourself from these potential pitfalls, here are 9 things you should know before outsourcing product assembly to China.

1.      Confirm The Basics

When you’re outsourcing anything, it’s important to make sure you have as many details worked out in advance as possible. That’s what makes product assembly different from most business processes: there’s no room for last-minute changes or rework. When dealing with international outsourcers like those in China, things can be even more complex; for example, if a supplier misreads your email and ships 100 units instead of 10, it could cost you thousands of dollars (and waste even more time). It is critical that you confirm every detail—length and width of each piece, exact location of holes or slots—before starting work. If any instructions are unclear or seem incomplete, ask your supplier to confirm them before proceeding.

2.      What Are Your Shipping Requirements?

One of your primary concerns should be where your products will ship from. If a made in China label is part of your business plan, then it’s important to understand what your options are for product assembly and shipping. What kind of shipping timeline do you need? Talk to multiple suppliers and share your expected lead time, incoterm and final delivery details? One big perk of manufacturing in China is flexibility. Your candidates can go great lengths to win your order. Figure out what your priorities are and don’t easily settle on one option too soon. Depending on what’s most important—quality or price—you might have some better options than others.

3.      What Is Your Communication Style?

One of the most important steps in product assembly outsourcing is making sure you’re communicating with your supplier effectively. Choose a communication style that works for you and stick with it: whether it’s email, phone calls/video conferences, instant messaging, find out what your preferred method of communication is and don’t waiver from it. If email is what you like best, make sure that your emails are on time and detailed; if you prefer conference calls, try to speak over each other as little as possible; if video conferencing is easier for you, get into a routine where both parties participate instead of just watching. The IM application, WeChat, is widely used in China. If you prefer instance responses, this might be the way to go. Regardless of how formal or informal you think your communications should be—stick with one style that works best for both parties.

4.      Do You Need To Check on Quality?

If your product is new or complex, then you should definitely have someone on-site check on quality control. If it’s a well-established and simple design, some entrepreneurs may choose to trust their suppliers more and forgo regular visits. Either way, keeping in contact with your supplier can go a long way toward preventing mistakes before they happen. With the pandemic going on, it’ll be nearly impossible to travel to China physically. You might as well make good use of technology, like video recording! Use it to record yourself demonstrating how your product works so that you can send it over if questions arise during production (for tips on how best to do these types of videos). WeChat is great since it can work in any countries.

5.      How Important Is Price?

One of your most common concerns is likely price. Oftentimes, people are under time constraints and are forced to choose what they think is a lower-cost option. But often, you end up spending much more when poor quality or communication causes delays in production and parts get lost in transit. The best way to ensure that price isn’t a deal breaker for your product assembly is by finding reliable manufacturers who adhere to agreed-upon pricing structures. Finding a manufacturer that doesn’t sacrifice quality or support for low costs will keep your project on schedule and under budget—not just at launch but moving forward as well. By establishing clear ground rules with your manufacturers from day one, you can reduce problems that lead to overruns later on down the line.

6.      Do You Need Drawings/Sketches?

Sending drawings/sketches is ideal if you have a firm idea of what you want your product assembled, but no prototype. If you’re still in process with your design, it’s a good idea to wait until it’s finished before sharing. That way, whoever you hire can work off something concrete and visual. Many outsourcers use CAD technology for products with multiple parts or components; because foreign workers don’t always speak English fluently, drawings are a must for these types of projects.

7.      Do You Have a Timeline?

Give yourself a deadline for when you want your product assembled and shipped. When outsourcing overseas, it can be difficult to gauge how long things will take, which can cause stress as you try to juggle multiple deadlines. Having a set timeline will allow you to manage your schedule more accurately. Many companies that work with foreign manufacturers are also able to provide assistance with logistics and shipping should you need help getting your products delivered on time.

8.      Set Up Quality Control Throughout Manufacturing Process

When you’re outsourcing product assembly to China, it’s important that every stage of manufacturing undergoes quality control. Inspecting your products at each step ensures that a simple mistake or oversight at one point in production doesn’t snowball into a mass shipment of defective products—which can mean expensive returns, dissatisfied customers and even lawsuits. It can also help identify exactly where problems arise—and thus where additional quality-control measures should be implemented. Quality control is particularly important when outsourcing manufacturing because a hasty approach may skip important steps. For example, some manufacturers will cut corners by putting too much glue on an item or not applying enough pressure during gluing—both of which could render it unusable or prone to breakage.

9.      Find the Right Supplier and Start Communicating with Them

It’s important that you find a company that specializes in product assembly. Some companies are not able to assemble products, and will send your components to another supplier who can    complete assembly. Finding a reliable, competent partner will help make outsourcing a positive experience for both parties. Once you’ve found someone you want to work with, communicate clearly and directly in order to make sure each party understands what’s expected from them. Transparency is especially important when it comes to communication, as that way you’ll avoid misunderstandings or confusion which could delay your project schedule.

Shield Works is always ready to be your trusted partner for product assembly with our in-house and bilingual engineers. If you have questions regarding our contract assembly service, please don’t hesitate to contact us!

In the past two decades, the importance of ensuring product quality has become increasingly vital to manufacturers of all sizes in China and abroad. Unfortunately, there are still many companies that don’t take proper precautions to guarantee the safety of their products, sometimes even taking advantage of consumers by selling them low-quality goods. Fortunately, some 3rd-party service providers in China have created more effective measures to ensure product safety and help educate manufacturers about different ways to improve quality control on their end. Here are some reasons why you should consider using one of these services to ensure the quality of your products before sending them out into the world.

Why choose a 3rd party QI Service in China?

Choosing a 3rd party QI company (or individual) can be an effective way to ensure that your product arrives at its destination without any flaws or defects. It also shows potential consumers that you are interested in quality and safe products. When considering whether or not a 3rd party QI company is right for you, it’s important to remember that a 3rd party inspection does not change your product safety requirements. Instead, you will have an expert ensuring that all of your requirements are met before your product is shipped out of China. Without doing so, there is a greater chance of a mistake being made somewhere along its route toward distribution, leading to loss of money and valuable time on your end.

How do you pick the right one?

You’ll want to look for a company that has a team of experienced, 3rd-party quality inspection professionals. Keep an eye out for terms like 3rd party, certified, and ISO 9001. All of these describe professionals who have undergone training and are specially trained for audits, inspections, and analysis. While you should definitely make sure your inspector is certified by a 3rd party (anybody can label themselves as an expert), what really matters is their level of experience. As you shop around for companies that offer inspection services, ask about their methodology and whether they have any internal quality control processes. Does your inspector use random sampling or statistical models?

What do they look for?

Inspectors examine many aspects of a product and its packaging during quality inspection, including how it is constructed, what materials were used, how it is packaged and labeled, whether it complies with safety regulations and so on. If a product is intended for children or if it is inherently unsafe (such as chemicals), inspectors will look for warning labels or other ways to make sure consumers understand potential dangers. Inspectors also check for durability. Items such as stuffed animals may be inspected to ensure they’re safe enough that a child won’t choke on one of its parts. Electrical devices are often tested by connecting them to outlets and looking for sparks or open wires that could cause injury.

Why is this important?

When it comes to manufacturing, quality control is of utmost importance. While most entrepreneurs and buyers understand that quality control is crucial for any product, a lot of people overlook how important 3rd party quality inspection services in China can be when it comes to ensuring product safety. If you want your products and customers protected, get quality inspection services from a qualified 3rd party like C2W. You don’t have to worry about getting faulty goods anymore as all your products will be inspected before they go out of production. So if you want quality products every time, invest in trusted 3rd party quality inspection service providers today!

What should you expect from a good 3rd party QC company in China?

There are a lot of 3rd party QC companies in China that offer QC service. But how do you know which one is good? The first thing is they must be qualified. There are many provincial or national standard certifications  related to quality control that a 3rd party quality inspection company should have. Don’t just trust them by their words, you can confirm by yourself. Don’t hesitate to ask them for their references! The second thing is that your supplier should work with them as well. This will ensure communication between both ends during every step of production and transportation, so there won’t be any errors due to miscommunication.

The Takeaway

Your manufacturer in China may have told you it is unnecessary to hire a QC service because their products are promised to have high quality with quality warranties. When things go wrong and there’s a problem with your order, however, that warranty is worthless. To protect yourself against faulty manufacturing or defective products—and therefore ensure safe delivery of your goods—3rdquality inspection services are worth your time and money. Not all 3rd-party inspectors are created equal, so consider how often they’ve worked with your specific product and choose one you’re comfortable working with.

To learn more about quality control services for Chinese goods or to speak with experts in the quality control industry, feel free to reach out and get in touch with us here at any time!

Do you have an electronic product or system design that’s perfect, but don’t have the budget to manufacture it? Would you like to get your product on the market faster than would be possible by in-house manufacturing? If so, consider outsourcing some or all of your manufacturing to China. If you choose to do this, it’s important to plan ahead and ensure that everything will run smoothly. Here are six tips for outsourcing electronic manufacturing to China

Start Small

If you have no experience with manufacturing, then begin by outsourcing one small job. This will give you valuable insight into how your product is made and how much it will cost. If everything works out, then you can consider larger production runs later on. It’s important to remember that outsourced electronic manufacturing is generally a process-driven industry, which means costs vary greatly based on scale. In addition, don’t forget that different suppliers specialize in different areas of electronic manufacturing, so choose wisely and select a company that specializes in your specific product!

Choose a Reputable Supplier

While there are numerous suppliers located in China, it’s important to choose one that is reliable, bilingual and experienced with western culture. The process of outsourcing electronic manufacturing to Chinese factories is a detailed one, and requires a bilingual manufacturer with experience in your product industry. Asking around at trade shows or on websites such as Alibaba can help you find just that. Once you’ve found a factory you like, make sure to check out their work (website photos are not always representative of actual products), and write up an agreement that outlines both parties’ responsibilities before any manufacturing begins. Once you have a contract signed by both parties, it is time to start gathering documentation required by customs officials.

Understand Costs

Before you outsource, it’s important to understand your costs. You need a good sense of what you’re going to have to spend in order to get your electronic product made in Asia. If you are outsourcing electronic manufacturing in Shenzhen, China, take some time and learn about all of your options before making a final decision. Costs can vary depending on if you are looking at domestic Chinese companies or manufacturers that are located outside of Shenzhen but still within Mainland China. Some companies will quote higher prices due to their experience working with larger manufacturers and being able to offer high-quality parts faster than smaller shops who may not be as experienced with large OEM orders.

Get Samples

Before you invest in getting a bunch of units manufactured, it’s always good to try a sample run first. This way, you can test whether there are any flaws with your design and get a sense of how many revisions your manufacturer will ask for before they produce quality products. There are also some up-front costs associated with getting samples, but it’s still much cheaper than going through a full production run only to find out that something is wrong. And once you’ve got samples in hand, you can even use them as leverage to negotiate better prices from your factory.

Save Money with Fewer Prototypes

When developing a new circuit, it’s important to test each new iteration by building a prototype. Unfortunately, prototyping is expensive, especially when you factor in labor costs. The more prototypes you need to create and test, the higher your bill will grow. One way to save money on manufacturing is outsourcing your prototyping work overseas. You can get a board made quickly and affordably at Chinese manufacturing houses like Seeed Studio and Canavas.

Make Your Specs Simple

To reduce costs, you should make your specifications as clear and simple as possible. This is especially true in regards to materials selection. For example, if you need 100 circuit boards made and one of them requires a rare-earth element found only in one mine in Russia, be sure that’s stated up front. On top of reducing costs, clear specs also improve communication between you and your manufacturer.

Shield Works is one of your best choices with a self-owned IP protection zone, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, especially in electronic manufacturing. Please feel free to contact us if you are interested.

The Chinese government is on a mission to produce 70% of the world’s electronic components. When you think about it, that’s an ambitious goal.

However, electronics aren’t the only thing manufactured within its borders. In fact, China manufactures a considerable share of the world’s goods.

If you’re considering outsourcing products or services to China, however, how would you manage risk? Well, with some insider insight, you can safely reap the benefits of product assembly in China.

Keep reading to learn more about how to secure supply chain risk for product assembly services in China.

Understanding Supply Chain Risk

Global supply chain risk is one of the biggest concerns of the world’s shippers. You never know when your supply chain could become exposed to an unanticipated vulnerability.

These occurrences can lead to increased costs. Even worse, you could end up with unhappy customers. It’s critical for you to mitigate these and other supply chain issues.

More supply chain stakeholders are turning to supply chain risk management for this reason. The term refers to the processes, strategies, and tools used to reduce supply chain risk. They can help you to identify dangers that could affect your supply chain.

The Benefits of Managing Risk

Your company could enjoy considerable benefits from a supply chain risk assessment. For instance, a risk assessment can help you reduce profit loss. It can also help you to ensure peak efficiency in production, fulfillment, and delivery.

This kind of evaluation will also improve the speed and effectiveness of your company. It will help you to respond to emerging situations that could affect your supply chain.

A risk assessment will also help you keep up with regulatory issues and maintain compliance. Moreover, it will help you create a reliable process for managing unexpected interruptions in your supply chain.

Even More Benefits of Effective Supply Chain Management

China’s assembly companies have unmatched expertise in putting together complex goods like electronics. Still, regular risk assessments can help you protect the reputation of your brand.

They’ll help you increase your competitive advantage. Also, risk assessments will help you improve customer satisfaction.

Most customers take for granted that you’ll deliver products whenever they need them. In reality, however, supply chains are quite fragile. For every activity and every level of your supply chain, there’s a risk of disruption.

The Importance of the Risk Mitigation Process

Your supply chain might only have one supplier. Alternatively, it could have thousands.

Imagine a pharmaceutical company that needs a third party to supply pill bottles. It may also need another supplier for the external packaging. Meanwhile, this company might also need an additional supplier to handle labeling and other aspects of product packaging.

You may have your own employees who manage various tasks, like taking orders. Yet, you more than likely use a third-party credit processing company. In turn, that company might contract with another firm to perform credit checks.

Any point in this supply chain is subject to vulnerability. The reliable, timely delivery of your goods would depend on all these suppliers. If any of them fails to perform as expected, you might not have the ability to deliver your goods on time and at the right price.

Effective Risk Management Matters

With a risk management process, you’d start with identifying the parties in your supply chain. You must emphasize the most critical suppliers.

Next, you’d assess them for regulatory compliance. You can then go on to assess your suppliers’ suppliers.

You must review every supplier for insights into past performance. You must also assess their potential risks to your supply chain.

If you discover issues, you must address them immediately. It’s important to resolve your findings as quickly as possible.

In the end, you should set up a monitoring system with real-time dashboards and up-to-date reports. This kind of system allows for continuous monitoring of your suppliers and notification of any critical changes.

Key Risk Management Points to Consider

There are four primary steps in this process. They include:

1. Identification
2. Quantification
3. Mitigation
4. Response

You must identify the risks that can impact your supply chain. You must also identify where you can find these risks in your supply chain.

Next, you must estimate the potential financial, operational, and reputational impact of these risks. Then, you can develop strategies to offset the negative impact of various forms of supply chain disruption.

Finally, you must figure out how quickly you can respond to a disruption. You must also assess how long it would take your company to recover from this kind of event.

Product Assembly Services in China

Suppose you were to hire a product assembly company in China. In that case, you must perform robust due diligence and risk mitigation. You must uphold the integrity of your imported goods.

In the United States, for example, there’s growing interest in countering controversial business practices. With this in mind, the US government has issued an advisory about potential exposure to these kinds of activities in certain regions. United States lawmakers expect companies to perform robust due diligence to combat allegedly unwelcome business practices in these territories

Protecting Your Interests in China

Furthermore, this advisory is an interagency effort. Involved organizations include the following:

• Department of Labor
• Departments of State
• Homeland Security
• Treasury Commerce
• United States Trade Representative (USTR)

These agencies are working together to draw attention to supply chain risk to US businesses related to areas of special interest.

The advisory warns that US businesses must have an awareness of their legal exposure. They must know whether partner entities in the area are linked to companies that maintain disputable business practices.

If so, decision-makers in these firms could face liability for criminal statutes and sanctions. Meanwhile, their companies could face export controls and import prohibitions.

Areas of Special Concern

Again, many companies are deemed responsible for these allegedly disputatious practices have headquarters in specific areas. In these areas, it’s implied that many cases of aforementioned business practices occur. These companies participate in various industries, including:

• Agriculture
• Cell phones
• Construction
• Cotton
• Electronics assembly
• Footwear
• Gloves
• Noodles
• Sativa
• Sugar
• Textiles
• Toys

What Can You Do?

If you believe you’ve become exposed to liability, you must increase auditing and other supply chain due diligence practices. In the above reference, for instance, you’d monitor for warning signs of a potentially disreputable business partner’s savory business practices.

This would become especially important if you were to continue doing business with a possibly distasteful company. In this case, you’d closely watch a company that hides the origin of its goods or ownership.

You’d also practice extreme caution with a company that has high revenue but a low reported number of employees. You could evaluate this circumstance by reviewing the company’s contributions to China’s social insurance program.

You could also monitor for a company’s use of terms that seem to indicate that a company is spinning its unfair practices. This elevated level of due diligence is essential when dealing with suppliers to ensure the integrity of your company’s brand and reputation.

Stay Informed

As a business operator, it’s also important to stay informed about developing sanctions and Withhold Release Orders (WROs). You must also monitor goods highlighted by the Department of Labor. The agency maintains a list called List of Goods Produced by Child Labor or Forced Labor.

The list includes the names of products and companies subject to WROs. You should also monitor for names on Department of Treasury lists. These documents include Specially Designated Nationals (SDN) and Blocked Persons lists.

Conduct Independent Audits

There are anti-sanction laws in China. As a result, you could find it’s difficult to secure reliable and independent information from native entities. You could even have trouble eliciting accurate information from your legal aid in China.

Accordingly, when working with a service provider in China, you should also conduct independent, on-site audits when possible. This practice promotes increased supply chain transparency.

Your Responsibilities as an Importer

You can’t defend yourself from liability by claiming a lack of knowledge. For example, you could find out the first or second level of your supply chain in China has disappeared.

It’s counterproductive to use lack of knowledge as a defense. This kind of defense will set you back if the Chinese government engages your company.

This position will make it much harder for you to gather an origin to destination paper trail. You’ll need this information to satisfy any inquiry or detention notice from the Chinese government.

Doing Your Due Diligence

You must remain prepared for a government inquiry, especially if you suspect foul play on the part of a supplier. In this instance, you may need to gather supporting purchase records.

You might also need to gather production documents. You could also need to collect labor documentation.

Overall, you might gather the same information you would need during an unfair trade investigation. These types of investigations might include antidumping or countervailing duty verification.

The Big Picture

When you partner with a reputable OEM manufacturing service provider in China, your biggest benefit is cost savings. The assembly service will create your products in bulk. As a result, you’ll save money on production costs.

Furthermore, you’ll find that the products are of superior quality. Still, it’s vital to maintain strict testing standards. If you’ve hired competent OEM manufacturers in China, they can withstand your testing.

Leveraging a China Assembly Service

There’s a good reason why OEM manufacturers in China provide the most outsourced production in the world. China has advanced production capabilities.

These capabilities make it easy for companies to meet massive production numbers. More importantly, the companies can do so at an affordable price.

It’s true that China is one of the first regions hit by the pandemic. Yet, the government has been able to contain it largely within the region.

It’s for these reasons that large brands like Apple and Nike outsource their contract manufacturing to China. In light of the pandemic, the nation’s positioned as one of the first countries that can dive back into full steam manufacturing.

Partnering for the Win

Some companies couldn’t exist without China’s assembly services. China service providers have specialized technology that allows them to create components that many companies couldn’t produce on their own.

When outsourcing product assembly services, you allow another company to produce your product. Yet, you’ll keep all intellectual property and trademarks.

Still, another company manages production. In China, this process often takes place through a network of multinational suppliers.

It’s vital to locate and secure an agreement with a China assembly company that you can trust. An experienced consulting company can help you to do just that.

Let Us Help You Safely Navigate Your Importing Risks

Now, you have a better understanding of risk when working with product assembly services in China. If you need to find a reputable China service provider, Shield Works Precision Mfg. can help.

Please feel free to contact us today to learn more about reputable assembly services in China.

As your business grows, it’s likely that you’ll begin looking at outsourcing some of your manufacturing processes to other countries with cheaper labor costs, such as China. The problem with this practice in the past was the amount of time and money it took to hire workers overseas, monitor their progress, and then ship product back to your warehouse once they were finished. Today, contract manufacturing in China make all of these things easier, making the financial benefits that much more attractive.

Shipping Costs

Depending on where you source your goods, costs for shipping can be prohibitive. Before deciding to manufacture abroad, make sure you fully understand all shipping costs and regulations. In some cases, it’s cheaper to have a freight forwarder who specializes in international shipping do all of your importing from a single location, instead of importing from multiple countries with multiple carriers. On top of import duties, make sure you factor insurance into your cost breakdowns as well. If you’re not handling all shipping related tasks yourself, make sure you find someone who is qualified to handle these duties; if done improperly, shipping companies could lose or damage inventory which could lead to costly product recalls down the road. China’s labor forces are less expensive than other regions while its developed infrastructures mean that delivery times will be shorter because products will spend less time getting through customs. Many large retailers use Chinese manufacturers due to their central locations and short delivery times — many major ports in China are only a few hours away by ship — compared to other manufacturing locations like Mexico or Brazil, which could take up to two weeks for products to reach their destinations by sea.

Currency Conversion

One of the most common concerns about investing in Chinese manufacturing is currency risk. But RMB is very stable given the current climate. It has appreciated a mere 1.3% against the USD over the past year. And, looking back to 2005, when China joined the WTO and opened its borders to western-style investment and trade, RMB has only depreciated roughly 4%. There’s no reason not to be bullish on RMB for years to come. The currency is well-managed by the Chinese government (albeit with some nefarious strings attached), making it a very safe bet for dollar denominated transactions.

Freight Forwarder Costs

Freight Forwarders cost less in China, both in price and percentage of gross profit. Generally speaking, freight forwarders keep anywhere from 5% to 7% of a company’s gross profit as their service fee, but in China they can often cut that to 3%. For example, take a 4 million dollar shipment: A Freight Forwarder might only charge $80,000 instead of $200,000.

Quality Control Costs

There are many reasons why quality control services in China are cheaper but better than many other countries. Quality control services in China have been developed for years, and it has become mature enough. The cost of quality control services in China has been reduced a lot, and it’s much cheaper than other places like Hong Kong and Taiwan. Factories pay less attention on their manpower costs, they tend to hire more workers with less experience and skills, which makes the production lines much slower than before. Factories produce their goods with lower requirement of quality than international standard levels because they hope to sell them in domestic market easily, not paying too much attention on products defects caused by human errors.

Labor Costs in China

Labor costs are still lower than other countries despite rising and labors there are more skilled. While the rise may seem like it’s not worth taking a risk on an overseas location, consider that other manufacturing countries such as South Korea and India have labor costs that are double or even triple what workers make in urban areas of China. Furthermore, according to management consultant The Boston Consulting Group (BCG), labor productivity actually increased in 2013 by 18%, which means that wages have been increasing steadily while work conditions remain favorable for employers. Owing to its high-quality workforce, innovative industry and strong infrastructure network, China has built up global supply chains over time. Most companies choose to locate their factories there due to its strategic location connecting major Western markets. Despite being 3 times farther away from Europe than Mexico and almost 4 times farther away than Bangladesh, more products go through Chinese ports into Europe because Chinese coastal cities are closer.

How Does This Relate To My Product Idea?

You can focus more on renovating and marketing your product by outsourcing manufacturing to China. Since it costs less to manufacture abroad, you can put that money back into your product and save a bundle on quality control in China. If it doesn’t work out, you can switch factories easily without losing much of your initial investment. However, outsourcing isn’t right for every type of business and manufacturing abroad takes time to figure out—but if you’re willing to take a risk and have faith in your company’s vision, getting started with China production could be a smart choice for your bottom line.

With the British background and China base of Shield Works as well as our international bilingual team members and 3PL services worldwide, it is a great option to enjoy quality of China manufacturing and hassle-free process. Leave all your manufacturing troubles to us. If interested, please feel free to contact us.

Original Equipment Manufacturing (OEM) refers to the production of equipment made to the specifications of another company or manufacturer. This business model has been applied by companies around the world and is very common in China’s manufacturing industry, due to its extremely competitive market and high-quality products at reasonable prices. However, there are several key factors that are unique to the OEM model that you must be aware of before beginning your venture into China’s Original Equipment Manufacturing market.

Original Equipment Manufacturer (OEM)

If you are new to importing and plan to start your own business, then Original Equipment Manufacturer (OEM) is a good place to start. OEM refers to products produced by other companies that are rebranded or sold under another company’s name. For example, if you own a clothing line, you could consider approaching different apparel companies and getting their apparels made with your branding on them and then sell them yourself. When looking at starting an OEM business it’s important that all parties understand what is expected of each other and how everything will work together in order to make sure it ends up as a positive experience for everyone involved.

Finding a Good Supplier

Finding a good supplier is probably one of your biggest challenges. There are literally thousands of manufacturers and suppliers out there, each with its own website, reputation, capabilities and pricing. The problem is that you can’t get to know every single one, even if you try. So what do you do? Find an original equipment manufacturer (OEM) with whom you can work long-term. This way, once your first orders start rolling in, they’ll be able to follow up on it without ever bothering you. Just make sure they’re easy to contact by email or the chat app everyone uses there, WeChat, to be specific—you’ll need them to be responsive because customer satisfaction is key when things go wrong or when there’s something that needs fixing or changing on the spot.

Factories vs. OEMs

While it’s important to understand how both factories and OEMs operate, each has its own purpose. Factories will typically manufacture products to order based on a minimum order quantity (MOQ). That is, they will produce your product based on however many pieces you purchase; with that said, there is no guarantee of quality. OEMs (Original Equipment Manufacturers) are different because they have a brand or intellectual property that gives them more autonomy over their manufacturing decisions; as such, OEMS will have stringent processes in place for ensuring quality control. With that said, choosing between factories and OEMs can come down to where your manufacturing budget aligns best with your business goals.

Outsourcing is never simple

Researching, scouting, and getting to know potential manufacturers and vendors is time-consuming. And when it comes time to find someone you can trust, it’s difficult to know where to start. At last year’s CES technology trade show in Las Vegas, there was a firm presented as a go-to manufacturer of devices that look like iPads but cost far less. But when we investigated further, we found that almost everything about them was false—they weren’t made by Apple; they didn’t even look like real iPads. The products were unlicensed knockoffs sold through some big retail chains in the US—which said nothing about them being fake or inexpensive.

Dealing with hiccups

A manufacturing hiccup can be anything from an underperforming supplier to a supply chain delay, but it can severely disrupt your production schedule. What do you do if there’s some kind of snag? Your first step is to identify what exactly has gone wrong. If you need help, ask questions and get as much information as possible so that you can resolve it quickly. Ask yourself: What is your problem really? Is there just one issue or several issues adding up? Is it something that you can solve on your own or is it something that needs additional resources and support? Next, figure out how important solving this problem right now really is—and decide what resources are required to get things back on track.

It’s a common misconception that manufacturing in China is expensive. In fact, it’s quite affordable, especially when you compare it to labor and material costs in other developed countries. But we understand your concerns regarding culture, communication and IP protection, as we, C2W, are a one-stop manufacturing solution provider founded and managed by British and based in China, with our own production facility and in-house bilingual engineers. If you are interested in getting to know more about how we can be of help with your product manufacturing while protecting your IP, please feel free to contact us.