The next time you need to manufacture and sell your product, you might consider outsourcing the assembly work to China. While this solution will certainly save you time and money, it’s not without its challenges, so take some time to prepare yourself before going all-in on outsourcing your manufacturing and assembly line to China. Here are seven tips for outsourcing your assembly line successfully to China.
1) Know your facts
When outsourcing anything, it is important to cover all your bases beforehand. Product assembly, however, is unlike most business processes because. all revisions have to happen ahead of time, and things are more complex when outsourced to international firms in Asia.
To illustrate, 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- from the length and width of each piece to the location of holes or slots -before you start your project.
In the event that any directions are confusing or feel like they’re missing information, please get in touch with your supplier.
2) Find a company that suffices
You need to consider where your products will be shipped from. If a made in China label is part of your business plan, you should know what your options are for assembly and shipping.
Is it important for you to discuss your upcoming lead time, incoterms, and final delivery details with multiple suppliers? Making a product in China is flexible. Your candidates can go to great lengths to win your business. You may have better options depending on the factors that matter most to you, such as price or quality.
And if one company fails to live up to their promises, there’s always another willing contender who might give you a better deal. In many cases, international trade is all about bargaining and negotiation.
A good way to start the process of finding a reliable overseas manufacturer is by looking at current job listings for manufacturing positions in Asia. Or search for manufacturers who already make your type of goods.
3) How you communicate
The most crucial step in product assembly outsourcing is effective communication with your supplier. Make a choice of communication style and stick to it be sure to find your favorite form of communication, and stick to it.
For example, if you prefer email, then make sure that your emails are punctual and detail oriented. In a phone call, talk less than the other party as often as possible, while in video conferences, start talking more often.
The WeChat application is well used in China. It might be the perfect solution for people who want quick replies. Regardless of what level of formality you think you should have with another person–stay with one style that is appropriate for the two of you.
4) Have a presence on-site for quality
In the case of new or complex products, you should definitely have someone on-site checking quality control. In the case of well-established and simple products, some entrepreneurs may trust their suppliers much more and forgo regular quality control visits.
It will be nearly impossible to travel to China physically with current restrictions. Keeping in touch with your supplier can help prevent mistakes before they occur. Video-record yourself demonstrating how your product works so that you can send it over if questions arise during production (for tips on how to do these types of videos). With WeChat, you can use it anywhere in the world.
5) Price and quality can co-exist, with the right manufacturer
People often choose what they believe to be a lower-cost option due to time constraints. Poor quality or poor communication will often cause production delays and parts to get lost, resulting in much higher costs.
By finding reliable manufacturers who adhere to agreed-upon pricing structures, you’ll ensure that price won’t be a deal breaker.
If you find a manufacturer who does not compromise quality for low costs, your project will stay on schedule and under budget from launch to completion. Establishing clear ground rules with your manufacturers from the beginning can prevent problems that result in overruns later on.
6) Have A Timeline
Try setting a deadline for when you would like your product assembled and shipped. Since outsourcing overseas is difficult, as it may take long without knowing how long things will take, it may be stressful to be juggling different deadlines.
Setting a deadline will enable you to schedule and manage your time better, because many companies that work with foreign manufacturers are also able to help you with logistics and delivery, so you’ll be able to deliver your product on time.
7) Quality Control System All The Way
When you’re outsourcing product assembly to China, it’s important that every step of manufacturing undergoes quality control. Inspecting your products at each step guarantees that an oversight or mistake during one stage of production doesn’t cascade and lead to a shipment of defective products—which can result in expensive returns, dissatisfied customers, and even lawsuits.
It can help identify the root of problems, thus what additional quality control measures are needed to keep them from arising. Quality control is crucial for outsourced manufacturing since a short-sighted approach may miss an important step. For instance, some manufacturers may put too much glue on an item or use the wrong type of glue for it, both of which would render it unusable or break it very easily.
A manufacturer with great experience can help you go a long way, like Shield Works. We have 17 years of experience with industry-spanning expertise. If you have any questions regarding our contract assembly service, please do not hesitate to contact Shield Works.
The prevalence of Chinese manufacturing companies has grown immensely in recent years. This is due, in part, to the country’s large population and corresponding workforce. Additionally, Chinese wages have remained relatively low compared to other nations, making the country an attractive option for businesses looking to cut production costs.
When it comes to manufacturing products, Chinese companies are often the go-to choice for businesses all over the world. This is because these companies can offer high-quality products while keeping costs low.
However, with so many Chinese manufacturing companies to choose from, how do you know which one is right for your business? In this blog post, we will give you five tips for choosing the right Chinese manufacturing company!
Keep reading to learn about product manufacturing and product assembly by using Chinese manufacturing.
What Are Chinese Manufacturing Companies?
As the name suggests, Chinese manufacturing companies are those that are based in China and produce products for businesses all over the world. These companies often have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, Chinese manufacturing companies often have a wealth of experience and expertise in a variety of different manufacturing processes. This means that they can typically produce products to a very high standard.
Also, many Chinese manufacturing companies work with a variety of different businesses, from small startups to large multinational corporations. This means that they are typically very flexible and can tailor their services to meet the specific needs of their clients.
Who Has Access to These Companies?
Anyone who wants to manufacture products in China can do so! However, it is important to keep in mind that not all manufacturing companies are created equal.
There are many fly-by-night operations that claim to be able to produce high-quality products at low costs, but in reality, they often use substandard materials and processes. As a result, the products they produce are often of poor quality and may even pose a safety risk.
Therefore, it is important to be careful when choosing a Chinese manufacturing company. Make sure to do your research and only work with those that have a good reputation and can provide you with a portfolio of happy clients.
What Type of Manufacturing Can They Perform?
One of the advantages of working with Chinese manufacturing companies is that they often have experience with a wide range of different manufacturing processes.
This means that they can typically produce products using a variety of different methods, including injection molding, stamping, casting, and assembling.
Furthermore, many Chinese manufacturers also offer design and prototyping services. This means that they can help you bring your product ideas to life and create prototypes that you can use to test the market before committing to large-scale production.
Other types of manufacturing services that Chinese companies can provide include packaging, labeling, and shipping. This means that they can take care of everything for you from start to finish, making the manufacturing process as hassle-free as possible.
What’s Their Quality Control Like?
Surprisingly, quality control in China has come a long way in recent years. In the past, there were many stories of products being shipped from China that were defective or of poor quality.
However, nowadays, Chinese manufacturers have implemented strict quality control measures to ensure that their products meet international standards.
In fact, many Chinese companies now offer a money-back satisfaction guarantee to their clients. This means that if you are not happy with the quality of the products you receive, you can return them for a full refund.
Moreover, most Chinese manufacturers offer a warranty on their products. This means that if something does go wrong, you will be covered and can get your money back or have the product replaced free of charge.
Is It Expensive to Manufacture Products in China?
Manufacturing products in China is often much cheaper than manufacturing them in developed countries such as the United States or Europe.
This is because Chinese companies have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, many Chinese manufacturers offer discounts for large orders. This means that if you are planning on manufacturing a large number of products, you can often get a lower price per unit by doing so in China.
Overall, manufacturing products in China is a great way to save money and get high-quality products.
However, it is important to be careful when choosing a manufacturer and to make sure that you work with a reputable company that has a good track record.
What Qualities Should the Right Chinese Manufacturing Company Possess?
Now that we’ve answered some of the most frequently asked questions about working with Chinese manufacturing companies, let’s take a look at what qualities the right one should possess:
A Good Reputation
As we mentioned before, there are many fly-by-night operations that claim to be able to produce high-quality products at low costs. However, in reality, these companies often use substandard materials and processes, which results in products of poor quality.
Therefore, it is important to make sure that you work with a Chinese manufacturer that has a good reputation. You can do this by reading online reviews or asking for referrals from friends or business associates who have worked with Chinese manufacturers in the past.
A Portfolio of Happy Clients
Any reputable Chinese manufacturer should be able to provide you with a list of happy clients that they have worked with in the past.
This is a good way to gauge their level of experience and to get an idea of the type of products they are capable of producing.
A Commitment to Quality
The right Chinese manufacturer should be committed to producing high-quality products. They should use high-quality materials and employ skilled workers who take pride in their work.
Furthermore, they should have a strict quality control process in place to ensure that all products meet or exceed international standards.
The right Chinese manufacturer will offer competitive prices without compromising on quality. They should also offer discounts for large orders, which can help you save even more money.
Excellent Customer Service
The right Chinese manufacturer will offer excellent customer service. They should be responsive to your questions and concerns and should always be available to help you with any issues that may arise.
How Do You Choose the Right Chinese Manufacturing Company?
With so many Chinese manufacturing companies to choose from, it can be difficult to know how to select the right one for your needs.
However, by following the tips above, you can be sure to find a company that possesses all of the qualities you are looking for. In addition, here are five tips to help you choose.
1. Do Your Research
The first step in choosing the right Chinese manufacturing company is to do your research.
This means looking into the different companies that are available and seeing what they have to offer. You can read online reviews, talk to other businesses that have used these companies, and get a feel for what each one is like.
Your research phase should also include a visit to the company’s factory. This will allow you to see firsthand how they operate and to get a better feel for their capabilities.
Also, be sure to ask lots of questions during your visit so that you can get a better understanding of what the company is all about.
2. Consider Your Needs
When you’re looking into different Chinese manufacturing companies, it’s important to consider your own needs. What type of product do you need to be manufactured? What are your budget constraints?
By taking the time to think about your specific needs, you’ll be able to narrow your choices and find the best company for your business.
Moreover, it’s important to be realistic about your needs. For example, if you’re looking for a company to manufacture a complex product, you shouldn’t expect to find a company that offers rock-bottom prices.
Instead, you should focus on finding a company that can provide you with a good quality product at a reasonable price.
3. Check Their Quality Control
One of the most important things to look for in a Chinese manufacturing company is quality control. You want to make sure that the products you’re getting are well-made and meet your standards.
Ask about their quality control process and what steps they take to ensure that their products are up to par.
However, it’s important to keep in mind that not all companies will have the same quality control standards. Some may be more strict than others.
As such, it’s important to find a company whose quality control standards meet your needs and expectations.
4. Compare Prices
Of course, you’ll also want to compare prices when you’re choosing a Chinese manufacturing company.
Get quotes from different companies and see who offers the best price for the manufacturing services you need.
Pricing structures are critical when it comes to finding the right company. For example, some companies may charge by the hour while others may charge by the project.
It’s important to find a company that offers a pricing structure that works well for your business.
5. Go With Your Gut
In the end, it’s important to go with your gut feeling when choosing a Chinese manufacturing company.
If you have a good feeling about a particular company, then chances are they’re the right choice for you. Trust your instincts and choose the manufacturing partner that you feel good about!
Of course, your instinct should be supported by valid reasons. For example, if you have a good feeling about a company because of their excellent customer service, then that’s a strong reason to go with them.
If you have a good feeling about a company because of its competitive prices, then that’s another good reason to choose them.
Common Mistakes With Chinese Manufacturing Companies
Now that you know how to choose the right Chinese manufacturing company, it’s time to avoid some common mistakes. These mistakes can cause big problems for your business, so it’s important to be aware of them.
1. Not Asking Enough Questions
When you’re looking for a manufacturing partner, it’s important to ask lots of questions. This will help you get a better understanding of the company and its capabilities. Make sure to ask about their quality control procedures, turnaround times, and pricing.
2. Not Getting a Contract in Place
Before you start working with a Chinese manufacturing company, it’s essential to get a contract in place.
This will protect your business in case there are any problems with the manufacturing process. Be sure to include all the important details in the contract, such as payment terms, delivery times, and quality standards.
3. Not Monitoring the Manufacturing Process
Once you’ve chosen a manufacturing partner and signed a contract, it’s important to stay involved in the manufacturing process.
This means keeping an eye on the quality of the products and making sure they’re being produced on time. If you’re not monitoring the process, it’s easy for things to go wrong.
4. Not Being Prepared for Problems
Even if you do everything right, there’s always a chance that something will go wrong with the manufacturing process.
That’s why it’s important to be prepared for problems. Have a plan in place for how you’ll handle delays, quality issues, and other potential problems.
The Right Company for You
Choosing the right Chinese manufacturing company is essential for your business. Be sure to ask lots of questions, get a contract in place, and monitor the manufacturing process.
And don’t forget to be prepared for problems. With careful planning, you can avoid common mistakes and find a manufacturing partner that’s right for you.
If you’d like help finding the right company to suit your needs, get in touch with us today. We have a team of experts who can help you find the perfect manufacturing partner for your business. Contact us now to get started.
As early as October through January, this is the time of year when the majority of eCommerce brands experience a huge spike in sales. But if you’re unprepared for this sudden rise in sales and don’t plan accordingly then it will hurt your business because your customers are unable to order products or receive them quickly enough.
With peak season quickly approaching, you should prep for production and there are many points to consider when taking on the pressure of doing everything at once and all the additional cost involved with producing more goods during this time.
With so many headaches around you, it can be hard to concentrate and make the right decisions. However, don’t let this discourage you from starting. Welcome to our “Manufacturing in China: 10 Tips to Peak Season Preparation” series which list the most important and useful production tricks that will make it easier for you to get started in manufacturing without much fuss. Let’s dive into part one of this three-part series.
1. Know about the Peak Season
Most businesses experience fluctuating levels of customer traffic throughout the course of a year. The slowest time of the year is often referred to as the low season or off-season, while the busiest time of the year is typically called the high season or peak season.
Though many seasonal peaks might seem similar, they vary depending on factors that differ from industry to industry. Factors such as population density, weather patterns, and available modes of transportation can determine the amount of traffic in an industry. For example, a business that sells swimming wear has better traffic during the summer months while others work best when it’s wintertime. So, it’s important to set a timeline and schedule for the peak season that your business focuses on.
Therefore, if your team is unaware of the span and the length of peak seasons, then your company is likely rising to incur unnecessary expenses throughout the year. And if your peak season lasts much longer than expected, there may not be enough employees or products available to meet all the demand coming from potential customers during this time.
In light of this, your company should always analyze the number of major holiday promotions, such as Black Friday, Cyber Monday, thanksgiving weekend, and Christmas. It may still be difficult to pin down the span of peak season for all industries but taking precautions, like reading some recent sales data, can help you diminish the consequences.
2. Forecast Demand
With the exponential growth of eCommerce around the world, more and more people are willing to make a purchase online. If you have both physical locations and an eCommerce store, it becomes readily apparent that digital traffic has increased even more than before and will continue to grow in popularity.
Therefore, you can forecast production demand for your store before peak season based on the different traffic sources.
Demand forecasting is one of the most crucial tools for brands to use in determining the best possible supply rates and building up adequate resources. This way, they can minimize their risks and costs. Furthermore, it enables collaboration between the outbound and inbound processes of the company, such as procurement, production, sales, and marketing. By predicting future demand, you can optimize current inventory levels by monitoring which products sell faster than others and predict when certain stocks will need to be replenished.
To forecast your production needs before peak seasons, one of the best ways is by staying on top of fashion trends. Following some influencers in your niche on TikTok and Instagram and leveraging the right hashtags can help learn about what your target customers are interested in currently and also gives you an idea of who you could be competing with. Then, you will have a better sense of what’s going to sell and be able to plan accordingly. It also means that you can monitor your inventory levels, so you will know ahead of time if something gets discontinued. This way, you won’t run out of your most popular items when the peak season comes.
3. Adjust Inventory
Nothing is more frustrating than running out of the most popular item in your store and turning down a potential customer because you don’t have enough inventory throughout the peak season.
To make sure that everyone who enters your store has a positive shopping experience, one of the most important parts is to make sure that your store is fully stocked and that you have plenty of your bestsellers readily available so that there will never be a need for backorders.
Inventory management is an essential part of ensuring a business’s profitability. Some businesses have too little inventory, unable to meet customers’ expectations by supplying enough available products, which often drives customers away to another brand or alternative items. However, excess inventory not only ties up valuable cash flow, but also carries the risk of damage and costs more to store and track.
So, it becomes important to know when to replenish stocks in what quantities, and at what price. If this happens too often or too late, then your margins will suffer. It is recommended that you take note of what sells the best and make sure you will have enough of those items available during the peak seasons, otherwise you risk losing out on both profits and potential customer base.
Peak seasons will be much different in the near future because of recent international dealings. In order to stay competitive, you need to prepare for these sudden changes and disruptions all the time.
If you’re looking for a reliable and professional company that can help with your production project before peak seasons, look no further than Shield Works Precision Manufacturing in China. There is no such thing as a “one-size-fits-all” approach to meet everyone’s needs, we can offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here. Start your journey by reaching out today for more information.
OEM Manufacturing – it’s the reason why some of your favorite products are made in China, and the reason why you might be able to find a more affordable version of that product at your local store. What exactly does OEM mean? Simply put, OEM stands for original equipment manufacturing and it’s often used in reference to products like electronics, automobiles, and various types of machinery – basically anything that would need to be customized or configured according to customer needs before being sold.
What is OEM Manufacturing and its current state in China
OEM manufacturing is a type of manufacturing activity where a company manufactures and sells products or parts of a product for another company, putting the products under the company’s own branding. The manufacturer will manufacture the product according to specifications and then ship it to the buyer. Generally, the buyer will only provide money, expertise and trade secrets. The manufacturer will handle everything from production and shipping logistics to distribution.
It has become a very common type of manufacturing in China now. It accounts for more than 50% of all industrial output in China just last year.
There are mainly three types of OEM manufacturers: Original equipment manufacturers (OEMs) who produce goods based on other companies’ specifications; System integrators who design and assemble the systems but don’t fabricate any components themselves; and Contract manufacturers who buy components made by other firms that have been designed by system integrators.
For western businesses, an OEM manufacturer is a very popular option. It can provide products of good quality at a lower price than they could do it themselves. It offers them a chance to outsource complicated production tasks and focus on what they do best.
The Pros and Cons of OEM Manufacturing in China
The pros of OEM manufacturing in China are that it is less expensive than the United States, Europe, Japan and South Korea. Workers there are skilled because they are more educated with most having graduated with high school diploma, but they are paid less than their western counterparts.
Production times tend to be faster because there is a larger supply chain of suppliers and factories. Most companies send their product engineers over early on so they can set up production lines and make sure everything is operating smoothly before products start arriving from overseas, which can mean better quality control too. If you’re looking for lower costs and want something fast, then this could be the way to go.
However, you should also know about some disadvantages. For example, the deteriorating relationship between the US and China has made their bilateral trade more difficult than ever. Punitive tariffs between the two nations have made it more expensive for an American company to produce its goods there. In response, many Chinese manufacturers have started up factories in Southeast Asia as a major workaround.
How to Find a Reputable OEM Manufacturer in China
In order to find a reliable manufacturer, you will want to do as much research as possible. There are many manufacturers in China, so it is important that you know what to look for when choosing one. Here are some things you should consider:
– Is the factory certified? A factory with ISO certification is usually a good place to start.
– How long has the company been around? The longer a company has been around, the better chance they are dependable and trustworthy.
– What products do they specialize in manufacturing? Some factories specialize in just a few products while others can manufacture anything. Ask yourself if your product would be made by someone who specializes in it or not. It can be helpful to visit their website and read about their capabilities before making your decision on who to use.
– Check their website or other social media presence. Does it look professional? Does it appear active? These questions can help you determine how reputable the company is.
– Are there reviews online for them? Read them carefully and make sure that they’re from legitimate sources. Any reviews from sites like Alibaba are probably fake because these websites get paid by sellers to post reviews on their behalf. Reviews from real buyers often provide very useful information about a supplier’s reliability, such as whether or not they deliver quality products quickly, answer emails promptly, return phone calls, etcetera.
– Do they have an English-speaking customer service staff? If not, you might need to find someone who does as quite likely they don’t much experience in dealing with western customers. Nowadays most manufacturers certified to export have English-speaking staff members in this regard.
Avoiding Scams When Manufacturing in China
There are many scams out there that try and lure companies into thinking they’re getting a great deal on OEM manufacturing in China. If you’re going to do business with someone in the country, make sure you’ve done your research about their company history, including what kind of certifications they have for their products.
You should also be on the lookout for any red flags when it comes to how much the company wants for their services or if they are insisting that you pay upfront before anything is agreed upon. Remember, if it sounds too good to be true, then it probably is. It’s best to do as much due diligence as possible before agreeing to work with a new supplier. Even after you find one, stay vigilant by checking up on them often so that you don’t end up being scammed.
The last thing you want is problems with quality or time management along with possible legal issues. That’s why you should keep in touch with them on a regular basis so there aren’t any surprises for either party involved. It’s always important for manufacturers and clients to work together closely so they can best understand one another and work together to meet each other’s needs.
Shield Works is an ISO-certified and British-owned and managed OEM manufacturer that check all the boxes aforementioned with 17 years of experience in China. Contact us to see how we can help!
Quality control can be an expensive aspect of running your own business, but it doesn’t have to be prohibitively expensive. In fact, following these five tips will help you make quality control more affordable so that you don’t break the bank while keeping your customers satisfied with their experience using your product or service.
1) Use 3rd-party QC Services
It is typical for 3rd-party QC services to charge fees for their services, but their work can also streamline communication between you and your factory. As a result, you’ll still need to conduct regular inspections yourselves throughout each month while your 3rd-party inspector is at your production facility.
You can prevent problems from going undetected until after goods have been shipped to customers by using 3rd-party inspectors regularly during production cycles. Quality control in China can save you thousands of dollars if you make a little extra effort now.
2) Creating Good Relationships with Suppliers
No one’s going to succeed at a China manufacturing operation without strong supplier relationships. It’s as simple as that. When suppliers have on-time, high quality product, meet customers’ requirements, and have some flexibility when needed, you can have confidence in presenting your products in front of customers.
But if a supplier flubs orders, doesn’t pay attention to detail, or other poor quality factors, it will eventually affect your brand. It’s not good. Though the issue of how to obtain the perfect supplier doesn’t have a one-size-fits-all answer, there are ways to lower the risk and make sure it is within your budget.
Solidify a strong relationship with your supplier to ensure things will run smoothly and that your money is better spent on quality control and less on disaster clean-ups.
3) Be Clear On Your Metrics
One important purpose of having an amicable relationship with your supplier is to ensure smooth communication with your supplier, so you can be precise about your standard of quality. You need a clear understanding of the metrics that are relevant in this process. They are not all universal but there are some standards that are considered common denominators like color, shape, and size consistency.
These qualities need to be consistent across each batch or box coming from the manufacturer because these qualities vary between different batches and boxes based on the manufacturer’s processes and equipment used. And this affects product cost and customer satisfaction; if there is variation in one area then it will lead to other areas being out of whack too!
4) Get Critical Feedback While Your Product Is Being Manufactured
A big mistake many entrepreneurs make when manufacturing a product is assuming that everyone is as invested in its success as they are, when they’re likely to be working with other people to assemble different components. Without meeting directly with vendors or having them to directly collaborate with your team, it can be hard to spot errors, such as low-quality materials or things that don’t match up correctly.
The easiest way to catch these and other errors is by asking vendors for critical feedback from suppliers or manufacturers as soon as possible during production. It’s not possible to be perfect all the time, but communication can minimize problems during the production phase, which saves time and money in the long run. So if you want to get quality control more affordable for your business, it’s essential that you plan ahead of time how to handle mistakes and issues so you can work out any kinks before production starts.
5) Be Involved in Every Step of The Way
Your involvement in the production process not only brings oversight but also enhances your understanding of your product. If you are hands-on, it will be easier to pinpoint where improvements need to be made and find the source of a problem.
You may not be able to come on site but having someone represent you there is a great way to maintain presence. A 3rd-party QC service is a great option in this case.
Invest in a good QC service and treat it like you would your own. You want someone that is not only thorough but also honest. You should expect to spend money on QC, so don’t be cheap when hiring a service provider. Remember, you are looking for a partner, not just an inspector.
Quality control is one of those things that might seem insignificant compared with overall costs and time, but it can make a significant contribution to your bottom line in more than one way. QC services in China are available at Shield Works with our own professional team members with over 17 years of experience! Don’t hesitate to contact us!
Chinese manufacturing is one of the largest sectors on Earth. With a GDP of 193885 CNY HML, as of June 2021, Chinese manufacturing makes up an enormous part of the Chinese economy.
In fact, China assembly service and OEM manufacturers are the largest producers and assemblers on the planet. It makes up nearly twice the GDP of Japan, who are themselves world leaders in manufacturing and assembling technological goods.
The question is – why are product assembly services in China and OEM manufacturers in China so prevalent? Why is it such a stronghold of OEM manufacturing and product assembly?
We’re going to take a look at OEM manufacturing in China to find out! By examining the history of OEM manufacturing and product assembly in China, we’ll help you have a better understanding of where the industry is headed!
The History of Chinese Manufacturing
A quick glance at the history of Chinese manufacturing reveals that China hasn’t always been the global superpower they are today. Before 1980, China was a relatively small player in the global manufacturing industry. In the 1970s, China was roughly tied with Italy in terms of manufacturing output.
That all changed in 1980. China slowly started to overtake the industrial powers, one by one. By 2010, they had even overtaken the United States. Prior to 2010, this was unthinkable, as the U.S. was the world’s largest manufacturing superpower.
What happened? How did China go from being a largely agrarian society to the manufacturing superpower of product assembly services in China and OEM manufacturers in China we know today?
Chinese Manufacturing in the 1980s
Like every industry in China, the industrial manufacturing plants are owned by the government. 1980 saw the beginning of widespread reforms and innovations that would eventually culminate in the manufacturing superpower we know today. China’s transition was not without its growing pains, though.
The 1980s saw the rise of large, centrally-owned manufacturing plants. These manufacturing plants were made possible by small-scale towns and large townships supplying the necessary workforce. Thanks to these innovations, China quickly became one of the world’s leading exporters of coal, construction materials, and leather.
China also increased their output of more traditional exports. These included bicycles and textiles.
Chinese manufacturing had also made serious headway in a variety of more modern industries. They were beginning to catch up on consumer goods. Updated equipment also allowed Chinese manufacturers to substantially cut costs. These innovations also allowed Chinese managers more autonomy, further cementing their place as global business leaders.
These updates were not without their hardships, though. The increased focus on manufacturing pushed China’s energy infrastructure to the limits. These limitations meant that Chinese plants and minds could only operate at 70 – 80% of their capacity.
Local politics also prevented China from fully inheriting their potential during the 1980s. Local management prevented manufacturers from achieving maximum productivity. So did Communist labor policies like the “iron rice bowl” and guaranteed lifetime tenure for employees.
Chinese Technology in the 1980s
There are many different reasons China lagged behind in manufacturing during the 1980s. A general lack of technology is one of the most prevalent, though.
Until the late ’80s, China was quite behind in terms of technological development. They’d recently made great strides in overall technology, helping them to catch up with the rest of the world. The ’80s saw the introduction of nuclear power, satellites, and widespread computing for example.
In terms of manufacturing, though, they had a lot of catching up to do. Much of their industrial technology was still from the 1950s, for instance.
Part of the reason for this discrepancy was a disconnect between research and development and the factories themselves. This was an era when China was finding itself as an innovator. Between the years of 1979 and 1984, the number of major Chinese scientific discoveries increased from 2,790 to 10,000.
Likewise, the number of inventions approved by the government went from 42 to 264.
There are a few different reasons for these discrepancies. One was the lack of intellectual institutions. The other was that factory managers were too busy meeting quotas to focus on R&D.
At that time, knowledge was pursued for knowledge’s sake. Chinese researchers hadn’t started thinking about industrial applications yet. This also meant that research wasn’t taken that seriously.
This all changed in 1985. That’s when CPC published the “Resolution on the Reform of the Science and Technology Management System.” This resolution specified the importance of science and technology for economic progress.
These changes saw increased collaboration between the factories, research centers, and universities.
Technological Innovations in the 1980s
The results were still mixed. These innovations saw some improvements in the metallurgy industry. That’s because metallurgy was already fairly well-established in the country.
The electronics industry was slower to evolve, though. It was still fairly compartmentalized by the end of that decade.
China’s technological isolationism started to break in the ’80s, though. Manufacturers started importing some West German cold-rolling technology. This was imported into the Anshan iron and steel complex in Liaoning Province.
The electronics industry took longer to develop, though. The innovations helped, but it wasn’t yet enough. Chinese electronics manufacturers were still limited by a lack of raw materials and skilled labor.
Since it’s such an important part of how China got to be such a global manufacturing superpower, let’s turn our attention to OEM. We’ll start with some history. Then we’ll turn our gaze towards the future.
But first.. what is OEM, anyway?
What Is OEM?
OEM stands for “original equipment manufacturing.” It’s originally from the Dutch phrase “onder eigen merk.” This roughly translates as “under one’s brand.”
OEM manufacturers produce goods for other businesses. Companies that buy from OEM manufacturers are called “value-added resellers” (VARs). Generally, VARs will add additional components. This increases the value, thus the name.
Already, you’re probably starting to imagine the role that OEM manufacturers play in industries like product assembly in China.
OEMs generally operate as B2B. Recently, there’s been a rise in OEMs selling directly to individuals with niche interests, though. This includes electronics hobbyists, who look to OEMs for components, for example.
How OEM Works
OEM manufacturers sell specific goods to VARs.
For an illustration, think of Intel. Many PC companies use Intel processors. The PC companies would be the VAR, in this case. Intel would be the OEM.
OEMs can assemble products as well, though. This is another area where OEMs intersect with product assembly services in China. iPhones are the best example of this trend. iPhones are assembled in Longhua District of Shenzhen city, China.
Benefits Of Working With An OEM
There are a lot of different benefits of working with OEM manufacturers. Let’s take a look at some of the leading benefits of working with an OEM manufacturer, to give you some ideas.
OEM manufacturers don’t try and do it all. Instead, they focus on a small handful of products. Then they make them really, really well.
Focusing on specific products lets the OEM manufacturer produce those goods in large batches. This lets them sell their products at the lowest-possible prices.
OEM manufacturers tend to work with many of the world’s biggest and most advanced companies. This means they have the latest, most state-of-the-art understanding of their industry. They can share their wisdom and experience with you and your brand, as well.
In today’s hyper-competitive business world, it’s essential to cut costs and find savings wherever we can. We agonize over our HR payroll for hours looking to shave off a dollar or two. Why wouldn’t we do the same for our components?
OEM’s specialization lets them keep their prices as low as humanly possible. They’re some of the most affordable electronics on Earth, which is part of how China became such a manufacturing powerhouse in the first place.
This also means you can pass these savings on to your customers. In times of global recession and financial hardship, which are becoming increasingly common, every dollar counts. Consumers are far more likely to purchase the less expensive option.
Your business’s future could literally depend on saving even a few cents per component.
OEM manufacturers are set up and ready to go. They’re primed to produce large quantities of whatever you need in as little time as possible. If you need good, reliable, inexpensive components, OEM manufacturers are just what you’re looking for.
Letting OEM manufacturers worry about the manufacturing frees you up to focus on other things. Instead of having to run around and deal with all of the logistics of physically producing products, you’re free to expand your customer base or work on developing new projects.
This, in and of itself, can become a lucrative business model. You can design and develop a new product and then let Chinese OEM manufacturers produce them for you. Meanwhile, you can create your next project or design.
You’ll be ready to begin manufacturing your next product by the time the first one’s hitting the shelves!
The Future of Chinese OEM Manufacturing
Even with all of these benefits, the future of OEM manufacturing in China is far from set in stone. The complications to the global supply chain, in the wake of the COVID-19 pandemic, has shaken the Chinese manufacturing industry, for one thing.
It’s also made some raw materials difficult to come by, reproducing some of the conditions of OEM manufacturing in the ’80s. These problems are relegated to China, though. They’re problems facing the entire global manufacturing industry.
This means there are also opportunities to be had from the restructuring.
Chinese OEMs have emerged as global leaders in electrical car production, for example. Volvo, Polestar, and BMW all assemble their vehicles in China, for example.
Tesla produces almost half of their vehicles through Chinese OEM manufacturers, as well.
Chinese OEMs also have almost a monopoly on semiconductor assembly. Almost all microchip manufacturers are in Asia, after all. The same goes for batteries.
These challenges come in the wake of similar shifts during the 2010s. Chinese manufacturing underwent a paradigm shift during that decade, as well, as China began to lose many of their historical advantages.
Years of being the leader of the global manufacturing industry meant that China had become rather well-off by the 2010s. Chinese workers were beginning to collect wages comparative to what their U.S. counterparts used to make. Customers were beginning to have increasingly high demands, as well, after years of living in a globalized economy.
Chinese manufacturers managed to adapt, anyway. Given the past 40 years, there’s every indication that will always continue to do so.
Why You Need Chinese OEM Manufacturing
While Chinese OEM manufacturers are experiencing difficulties, like every other industry, they’re also primed to become the only game in town. With such an advanced infrastructure of government-controlled manufacturing, there’s every likelihood they will take the global lead in manufacturing even more than they already have in the next few years.
This means it’s in your best interest to line up your OEM suppliers now and begin cultivating your relationships.
Are You Looking For Precision Manufacturing?
You’ll find it here! With over 16 years in the Chinese manufacturing industry, Shield Works Precision Manufacturing has the experience, as well as the local knowledge, to meet all of your Chinese OEM manufacturing needs.
Shield Works Precision Manufacturing offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here.
If you’re ready to find out how high-quality manufactured goods can elevate your business and help you to reach your goals and realize your potential, get in touch with us today to find out how a trusted manufacturing partner can boost your business needs!
As an entrepreneur, when you start working with a contract manufacturer in China, it can be tempting to simply not ask any questions and just trust that your Chinese partner will do everything necessary to manufacture your product correctly, on time and within budget. However, doing so can end up costing you precious time and money if you run into any issues with the product later on down the road or don’t receive what you expected from the manufacturer. That’s why it’s important to ask these 5 key questions every time you work with a new contract manufacturer in China.
1) What materials are available?
Some of the materials that are available for contract manufacturing include metal, plastic, and rubber. These can vary depending on what industry the manufacturer is focused on.
For example, if the manufacturer is focused on metal, they will be able to provide manufacturing services for metals like steel and aluminum. If they have a wider focus on plastics or rubber, then they may be able to manufacture more items that contain these materials.
This is important because it will give you an idea of what your options are for this particular company and how wide their capabilities really are. Knowing which types of materials they work with will also help you decide which type of contract manufacturer might be best suited for your needs.
If you’re looking for someone who can handle all types of products, then you’ll want to find someone who works with as many different materials as possible. However, if you need someone who specializes in one particular material only (for example, metal), then finding a company that focuses only on metal products might be better.
2) What techniques do they use?
Contract manufacturers use many different techniques. Some of these include injection molding, extrusion, and machining. They may also specialize in one or two of these manufacturing processes.
For example, if you’re interested in making a product with key metal components, it would be best to work with someone who specializes exclusively in metal injection molding. By doing so, you can ensure the highest quality products and efficient turnaround times.
In addition, you may want to ask what they can do regarding special coatings and logos. If you have something that requires extreme heat resistance or chemical resistance, it would be best to work with someone who has experience dealing with these types of coatings.
3) Do they have minimum order quantity
One of the first questions you should ask is what their minimum order quantity is. If they don’t have any, then you should probably keep looking and find one that does. This is a red flag for indecent quality.
If they do have a minimum order quantity, then you should find out exactly what that is. If you’re on a budget, this is important because it will give you some flexibility and cost control when it comes to production runs. You’ll be able to experiment with different designs and sizes of products without committing too much money or ending up wasting an excessive amount of product inventory.
It’s also possible that there are other benefits to having a higher order quantity, such as being eligible for wholesale prices or receiving discounts.
4) How Long Have They Been in Business?
One of the first questions you should ask is how long have they been in business. Ideally, you want a company that’s been around for at least five years and has experience with your industry. If not, it’s worth asking about their team’s experience and what they’ve accomplished over the course of those years.
For instance, a contract manufacturer might have experience working with other brands or companies within your niche. Once you find out how long they’ve been in business and what they’re capable of doing, it’ll be easier to decide if they’re the right partner for you.
It is not only about how long they’ve existed, but also their history of working with an international customer. If they are able to provide references, then it will make your decision much easier. Their past clients can either confirm or deny whether they will provide excellent service as well as quality products. The relationship between the customers and manufacturers are quite important so this question is worth asking when you meet them in person.
In addition, if possible try to talk to the owners directly and find out more about their background. In order for them to grow successfully and continuously learn new skills, these factors are crucial especially when thinking about potential expansion. Asking these types of questions before hiring a contract manufacturer will help both parties understand what type of expectations each side has from one another from the start!
5) Do they offer in-house design?
If you’re looking for design services, it’s important to find out whether the contract manufacturer can provide them. If they do, there are follow-up questions you might need answers to.
Does the manufacturer have an R&D department? If so, how many people work there? What are their credentials and what are they working on now?
If they don’t have an R&D department or if they only employ a small team, it might be difficult for them to get work done quickly or meet your expectations. In that case, you may want to consider hiring another company for design as well as manufacturing.
Good candidates for China contract manufacturing don’t come by easily. Shield Works is one of them with over 17 years of experience, spread out over the vast array of the industry in the region. Our background is the UK, and our expertise is in China. This combination means we’re knowledgeable in affordable China-made products. We would be happy to help your company be successful, if you’re interested! Contact us today!
Are you wondering what an OEM is, and how it can help your business production? You’re not alone. Many people are unaware of the benefits of Original Equipment Manufacturer services.
In essence, an OEM is a company that manufactures products for other companies.
When you work with an OEM, you can outsource the entire manufacturing process, from design to delivery. This allows you to focus on your core business while still producing high-quality products.
As the world of manufacturing continues to grow and evolve, more businesses are turning to Original Equipment Manufacturers (OEMs) to help them with their production needs.
Well, there are many benefits to working with an OEM, so read on to start understanding the benefits of OEM for your business.
Access to Expert Knowledge and Experience
Working with an OEM can provide considerable advantages when launching or improving a product. The most significant benefit is access to the OEM’s wealth of knowledge and experience.
Their team will have an intimate understanding of every aspect of product design and manufacturing and will be able to offer support and guidance at every stage of the process.
This can be invaluable for businesses that are new to the industry, or who are looking to make significant improvements to their products.
In addition, partnering with an OEM can help ensure a high-quality control level, as they will have established methods and procedures to ensure that all products meet strict standards.
Ultimately, working with an OEM can be the difference between launching a successful outcome and seeing it fail miserably.
Working with OEM manufacturers in China can save you money in the long run for a number of reasons. They are able to source the best materials and components at the most competitive prices.
In addition, they can help streamline your production process so that it is more efficient and cost-effective. OEMs also have a wealth of experience and knowledge that can be invaluable in helping you to avoid costly mistakes.
As a result, working with a China assembly service can help you to save money and improve the quality of your products.
As anyone who has ever worked with a large company knows, it can be difficult to get them to make even small changes to your order. They often have inflexible policies and procedures that make it hard to get things done.
That’s why working with an OEM can be such a breath of fresh air. They understand that every business is different and that each has its own unique needs.
So they’re willing to work with you to create a solution that is tailored specifically to your needs. This can be a huge benefit if you have a complex production process or if you need to make last-minute changes to your order.
You’ll never have to worry about being locked into contract manufacturing or having to follow inflexible rules. With an OEM, you’ll always be able to get the flexible solution you need.
With all of this in mind, why on earth would you try to go it alone?
One of the advantages of working with an OEM is their ability to scale up or down according to your needs. This means they can do small orders for start-ups and large orders for established businesses.
This gives you the ability to grow your business without worrying if your OEM partner can keep up. Another advantage of working with an OEM is that they usually have a lot of experience in the industry.
They know the ins and outs of mass production, which means they can help you troubleshoot any problems that might arise during the manufacturing process and find solutions to the issues faced.
And because they’re experienced, they can usually offer advice on how to improve your product assembly from top to bottom.
Finally, working with an OEM can save you money because they often have relationships with suppliers and can get discounts that you wouldn’t be able to get on your own.
So if you’re looking for a manufacturing partner that offers a China product assembly service, an OEM is a good option to consider for your long-term manufacturing success.
Time is one of the most precious commodities for any business owner. There are only so many hours in the day, and often it feels like there is more work to be done than there is time to do it.
This is where working with OEM manufacturing can be a real lifesaver. By entrusting them with the production process, you free up your own time to focus on other areas of your business.
This can be a huge advantage, especially for small businesses that may not have the staff or resources to handle all aspects of production internally.
In addition, because OEMs are experts in their field, they can often complete the work more quickly and efficiently than if you were to try to do it yourself. This also leaves you free to do what you do best and grow the business.
This can save you even more time in the long run. Ultimately, working with an OEM can help you to make the most of your time and resources, allowing you to focus on what you do best.
When you partner with an OEM, you can also reduce the risk involved in bringing a new product to market. That’s because they have extensive experience in the design and manufacturing process.
They will be able to identify potential problems early on and find solutions before they become major issues. This can save you a lot of time, money, and headaches down the road.
For example, if there are issues with the design of your product, they will be able to work with you to find a solution that meets your needs while also ensuring that the final product is of high quality.
In addition, because OEMs have established relationships with suppliers, they will be able to get you the best possible price for your components. This can help to reduce your overall costs and improve your margins.
Finally, by working with an OEM, you will have access to their customer service and technical support teams. This can be extremely helpful if you run into any problems after your product has been launched.
In short, partnering with an OEM can help you to avoid many of the risks associated with bringing a new product to market.
Improved Quality Control
Quality control is essential for any business that manufactures products. Defects or subpar products can lead to customer dissatisfaction and even legal problems.
When you work with an experienced Original Equipment Manufacturer (OEM), they can help you develop a quality control system that will ensure that your products meet your standards before they leave the factory.
Because OEMs are experts in manufacturing, they know all the ins and outs of the production process and can identify potential issues that could lead to defects or subpar products.
Having a strong quality control system in place can help you avoid costly problems down the road. Working with an OEM from the start can save you time, money, and headaches in the long run.
Enhanced Customer Satisfaction
Any business owner knows that customer satisfaction is essential for long-term success. After all, happy customers are more likely to come back and do repeat business.
Because OEMs are focused on quality control, partnering with one can help you ensure that your products meet or exceed your customers’ expectations. As a result, you may see an improvement in customer satisfaction levels over time.
And that, in turn, could lead to more repeat business and higher levels of customer loyalty. So if you’re looking for ways to enhance customer satisfaction, partnering with an OEM may be the way to go.
As businesses increasingly look for ways to reduce their environmental impact, original equipment manufacturers (OEMs) have become an increasingly popular option.
OEMs are typically more environmentally friendly than other businesses due to their use of fewer resources and production of less waste. In addition, OEMs typically have a lower carbon footprint than other businesses.
As a result, choosing an OEM can be a great way for businesses to reduce their environmental impact.
There are a number of factors to consider when choosing an OEM, but the potential environmental benefits should definitely be taken into account.
In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways, such as by providing you with a good reputation, access to a skilled workforce, and networking opportunities.
OEMs are an important part of the global economy, and they play a vital role in many industries, including automotive, computing, and electronics. There are many benefits to working with an OEM.
These include such things as access to skilled labor, economies of scale, and R&D resources. In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways.
For example, community involvement can provide you with a good reputation. If you’re associated with a well-respected company, it can rub off on you positively.
In addition, community involvement can give you access to a skilled workforce. Local talent is always in demand, and by working with an OEM you may have first dibs on the best candidates.
Finally, networking opportunities abound when you’re involved in the community. You’ll meet new people and build relationships that can be beneficial to your business.
Overall, there are many advantages to working with an OEM. When choosing an OEM partner, be sure to consider their level of community involvement. It can make a big difference for your business.
In these difficult economic times, it’s more important than ever to support businesses in our community. This is another benefit of partnering with an OEM partner.
When you partner with an OEM, you’re not only getting high-quality products and services, but you’re also helping to create jobs and stimulating the local economy.
This can have a positive ripple effect on the whole community, making it more attractive to other businesses.
So when you’re looking for a partner to help meet your needs, remember the importance of supporting your local economy. Partnering with an OEM is a win-win for everyone involved.
What Are the Different Types of OEM Agreements?
There are two types of OEM agreements: exclusive and non-exclusive.
An exclusive agreement means that the OEM is the only supplier for the specific product or component being manufactured. This type of agreement gives the OEM more control over quality and production, but it also limits your options if you want to switch suppliers in the future.
A non-exclusive agreement, on the other hand, allows you to work with multiple OEMs simultaneously. This gives you more flexibility, but it also means that you’ll have to manage multiple relationships.
When choosing an OEM partner, it’s important to consider your long-term needs and objectives. If you anticipate needing a lot of flexibility in the future, a non-exclusive agreement may be the best option.
If you want to ensure a high level of quality control, an exclusive agreement may be the way to go. But contact us if you need more help.
Whatever type of agreement you choose, make sure that you have a clear understanding of the terms and conditions before signing on the dotted line.
Ready to Use an Original Equipment Manufacturer?
When it comes to your business, you always want what’s best for production. Efficiency and quality are important, which is why working with an original equipment manufacturer can be extremely beneficial.
They have the experience and understanding of your product to help improve manufacturing. Not only will they provide high-quality parts, but they can also save you time and money in the long run.
For more on this topic and others like it, be sure to check out our blog!
New product development is not an easy task, especially for those without experience in dealing with overseas new product development and manufacturing.
It may seem trivial at first if one of these unfortunate events takes place, such as months of delay, high defective rates, increased cost overruns that don’t match initial planning and other obstacles that come up at the last minute which could lead to disastrous results if they’re not dealt with quickly and efficiently enough.
In this article, we’ll explore what can go wrong with new product development in China and how you can prevent your costly mistakes from occurring.
1. Expectations Don’t Match the Reality
The first hurdle for the new product development process in China is your expectations don’t meet reality.
Product development and manufacturing in China are complicated processes so understanding what to expect from these processes beforehand can help manage your expectations correctly.
It’s important to work with an experienced Chinese Product Development Company that can offer reasonable estimates for the costs and timelines of your project so that you are prepared before production begins. If not dealt with properly, it becomes easy to make mistakes such as ordering too many products or neglecting orders altogether – leading to either excess inventory at hand or no merchandise available at all.
2. Communication Breakdown
A major factor in product development failure is a communication breakdown between you and your new product development supplier.
If you don’t provide enough information about what you need or don’t understand what the supplier is telling them, problems will inevitably arise.
The lack of communication can lead to additional delays and costly mistakes being made. There are three main ways that communication breaks down during the new product development process.
Firstly, if you don’t know how to articulate your requirements and standards, your supplier won’t be able to effectively manufacture your products.
Secondly, some overseas clients often don’t know how to accurately interpret feedback from their suppliers and vice versa, which could end up in poor product quality
Thirdly, it could be that there is no clear understanding of who has the final say when making key decisions about the project at hand. In these cases, product manufacturing problems tend to come out later, as changes cannot be made quickly enough.
To avoid these types of problems, careful translation is necessary and frequent communication should take place between you and your supplier to ensure understanding. Also, both parties should be responsible for taking swift action to figure out what went wrong with the failed process before other problems arise. Communication should be frequent and thorough to prevent potential misunderstandings before they become problematic.
3. Design Issues
Designers may make mistakes during the process of designing a new product, or the manufacturing company in China may misinterpret the design specifications.
For example, if you’ve designed a toy that is supposed to be round, but the manufacturer misinterprets this as a square and cuts it on its side instead of top to bottom, it will not turn out as desired.
There are also language barriers that can lead to issues with the design. Many terms for a round do not refer to the same object (circular, spherical), which can confuse. The phrase “I want two circles one centimeter apart” could be translated as “two semicircles or two full circles”, depending on what terminology is being used.
If a design cannot be executed as planned, it is important to have a contingency plan. It is important to know when to cut your losses and redesign the product rather than pushing ahead with something that won’t work.
4. Poor Quality Control Processes
Poor quality control processes can result in many serious problems in the new product development process, making it more difficult to your production deadlines, resulting in canceled orders, and negative reviews of your product.
Defective products may also lead to higher customer returns due to units that have not been properly inspected before they are shipped. All these will negatively impact your business’s bottom line and reputation.
So, quality inspection should be done with special attention to prevent the inclusion of defective or non-conforming goods in shipments. Of course, getting product quality right from the start and ensuring it meets your expectations and standards will save time, money, and frustrations later.
5. Wrong Product Development Supplier for your project
Suppliers of product development services will vary in terms of costs, scales, qualities, expertise, and capabilities. It is important to determine these factors when selecting a China-based supplier for product development needs.
If you are in search of an experienced manufacturer for electronic goods when your supplier only specializes in the manufacture of home appliances, then it would be wise not to work with them due to a lack of capacity which will ultimately lead to delay or cost overruns.
Many factors contribute to product development failure in China, some of which can be controlled and some that are completely out of your control. You need to understand these factors so you can better manage them and hopefully prevent them from happening again in the future.
If you’re seeking a company to fill all your new product development needs, look no further than Shield Works. We are a British-owned and managed company specializing in providing dependable product development and precision manufacturing services. We take pride in creating quality products with consistent processes to guarantee both quality and consistency every time, so you never have to worry about anything going wrong during this process. Start your journey by reaching out today for more information and see how we can make sure that the process goes smoothly.
If you’re looking for ways to save time and money, outsourcing your product assembly could be one way to do that without compromising your overall quality. Here are some things you can’t afford to miss if you’re considering this option. These tips apply whether you’re looking at outsourcing on a small or large scale; the only difference will be in the amount of detail each section of your post needs. With that in mind, here are the five things you can’t afford to miss if you’re planning to outsource product assembly.
First off, What Is Outsourced Product Assembly?
What is outsourced product assembly? How does it differ from in-house assembly?
When a business outsources assembly, it hires a third-party company to make the items it uses or sells in part or in full, depending on the relationship established between the two parties.
Whenever you consider outsourcing your product construction, think about the items that you would like to have made, then find businesses that can build them, and then talk to them about forming a relationship.
It’s important to know exactly what you want a third party to do for you before you begin outsourcing.
It Lowers Your Costs
Doesn’t it make more sense for companies to produce everything themselves rather than outsource it?
The cost of running a business increases when a company creates its own products. It can especially hurt small companies, since they may lack the funds to hire many workers.
Your production costs can be reduced by partnering with another company. When you do this, the other company will provide and employ the workers for you. Thus, you do not need to pay salaries or hire new employees.
Other companies are usually based overseas, such as in China. China’s manufacturing costs are cheaper than in other developed nations, so you will not have to spend as much on your final product. As a result, you are able to cultivate productive and positive business relationships with professionals abroad!
You Can’t Just Work with Any Product Assembly Company
Just as with any business partnership, you want to make sure you find the right manufacturing company for your specific requirements.
Make a list of all the materials and items your product requires. Does the company have them?
Also, ask them if they have worked with any companies similar to yours in the past.
Furthermore, you should pay attention to how friendly and professional the company’s workers are. In order to be productive for as long as possible, you should look for a company with great client service.
If their customer service is not up to par, then it will be difficult for them to get things done efficiently.
In addition, you need to know what type of warranty is offered by the manufacturer so that when problems arise, it can quickly be resolved without too much stress on your end.
Furthermore, price is also important when choosing a product assembly company.
Timeline Is Important
When you first talk to a company, ask them how long it takes them to produce and ship items. This will affect how quickly you can deliver materials to your clients. Therefore, you should find a company that makes high-quality items quickly.
You should discuss what happens when unforeseen circumstances occur. Natural disasters, for example, might cause the company’s ability to deliver your product to you to be interrupted. In times of emergency, you should know what measures the company takes to keep its production running smoothly.
If an urgent situation arises, ask who you should contact. This will give you a person to go to, instead of wasting time looking up who to contact.
The last thing you want is to miss deadlines because of miscommunication. Lastly, make sure that both parties have contingency plans in place in case any problems arise.
Make Sure They Have Everything It Needs to Protect Your IP
Copyright is different depending on which country you are in, so a company should do what it can to ensure that its intellectual property is safeguarded.
That’s why you should research the intellectual property laws of the country in which your products will be made. If they do not protect the rights of other companies, consider making your products elsewhere.
As a bonus, you might also be able to use this to assess the company’s technological competency in keeping your data safe. Do they use leading-edge, state-of-the-art software? Is it comparable to the security you take at your place of business? Do they make regular security checks and upgrades?
A leak of your intellectual property can result in serious, business-damaging losses such as intellectual property piracy and lost data. If you’re trying to keep your company safe, think about the level of security that others have.
When you find a potential supplier that meets these standards, take things a step further. Ask them how they will keep your data and IP safe. Do they have a physical security system? Will they test regularly to make sure everything is working as it should be? If so, then you can work with them more confidently.
Also, you can take precautions on your end. Always have NDAs prepared for your supplier to sign before giving out any sensitive information; register trademarks and patents to prevent copycats and protect your brand; if you source parts or components from multiple suppliers, assemble them at one secure location;
Ready to Outsource Your Product Manufacturing?
In light of this, have you given thought to outsource assembly process?
Outsourcing production may help a company get their goods faster and more cheaply than trying to produce everything on-site. Further, they are freed to focus on innovation and growth of their company.
Here at Shield Works, we manufacture goods. Located in China and British-owned and managed, our goal is to provide clients with high-quality items at affordable prices. If you would like to know more about what we can offer, please get in contact with us!