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.
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!
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!
Product assembly. In China, this is a huge industry that results in doing business with countries around the world.
China is known to be a leader when it comes to manufacturing. Why is this?
Because over the last few years, they have accounted for 28% of global manufacturing output. To put that in perspective, the country in second place on that list (the United States) is more than 10 percentage points behind.
Since product assembly in China is such a global business, companies need to make sure that the process is smooth and that the products getting shipped remained undamaged.
How do they do that? What do you need to know about manufacturing before getting involved with this industry?
These are five practices that you need to know about China product assembly.
1. Ensuring Good Communication
The first thing that you need to do when it comes to quality control is to make sure that there is good communication. Having this locked down can do a lot of good for your company.
One benefit is that everyone is on the same page, and everyone should know what the overall goal is and what they have to do to achieve it. This gets everyone to work as a team rather than having individuals confused and frustrated about what is being done.
Do you want to know just how important good communication is? This study reveals that 86% of employees and executives note a lack of good communication as the cause of failures in the workplace.
What does this mean? It means that communication should be the number one priority when it comes to quality control. If you are the leader or know the leader of your company, you need to make sure that you or they are doing a good job of establishing clear communication.
2. Knowing Your Target Country’s Quality Standards
The next thing that you need to keep in mind with product assembly is knowing your target country’s standards. This is important because, let’s be honest; the quality standards in China may not be universal.
With that in mind, if you are going to primarily do business with one country or a specific group of countries, you better have a good idea of what their expectations are.
You can simply ask them what they expect from you, or you can do additional research on their rules and regulations. Then, see if their quality standards are doable for your company and how much more expensive it is going to be to meet those standards.
From there, you can decide if you want to do a large amount of business with that country.
3. Proper Product Inspection
Before you ship your products out from your factory, it is important to make sure that you properly inspect these products before you send them out to customers.
You never want to have a problem or a defect, but if you do, your in-house team should catch it rather than the customer. If the customer is the one that discovers it, you run the risk of losing that customer’s business.
With that in mind, you need to make sure that the proper inspections are put in place. This includes inspecting a product before it is packaged, checking the packages before and after loading them on their method of transportation and having a system to deal with defective products.
If you have all of that put in place, it should increase your success in quality control.
4. You Get What You Pay For
This old saying is very true when it comes to product assembly in China. The reason why is that the manufacturing in this country is still priced lower than the west.
As a result, some of the products are not made as well as by other manufacturers that follow the proper quality control codes. What this means is that you may be delivering a poorer product to the customer. Sometimes, this is so poor that it does not meet the standards pointed out above.
If you are dealing with countries or customers that require a higher standard, then you are going to have to shell out the money for higher quality manufacturing. It means putting more inspections in place and having better equipment to handle your products.
5. Choose the Right Product Assembly Service
Finally, you need to make sure that you have the right product assembly service by your side if you are not going to do it yourself. Reaching out to professionals can increase the chance of having higher quality products out there for your business and increase the chances of smooth operations.
So, how do you find the right service? Network around the industry and see if you can find out what companies similar businesses had success with.
You can also try to find reviews and testimonials of a company. This can give you insight into experiences that other customers had and see if it is right for you.
Start Your Product Assembly Operation
These are just a few of the things that you need to know about quality control practices when it comes to the product assembly industry. Now, you should have a better idea of what goes into making sure there is a high quality here.
You need the right service by your side, proper product inspections, good communication, knowing your target country, and having the right budget for this.
Are you ready to get started? Message us today and see how we can help you.
Supply chain management is the backbone of any company, big or small, that deals in physical goods with substantial production and distribution processes. When you’re starting out your business, supply chain management might seem like an afterthought; you’re more concerned with what goes on inside your company than the goods that come in and out of it. But when you’re ready to scale up, you’ll need a way to manage your goods from their point of origin all the way to where they’re being used—and that’s where supply chain management comes into play.
What Is A Supply Chain?
A supply chain is the network of all suppliers and producers, distributors, warehouses, and end customers involved in producing and delivering a product. Supply chains are found in a variety of industries including automobile manufacturing.
A consumer goods business’s supply chain can be broken down into four main categories: supplier development and management; distribution; operations management; and customer service. These four components work together to ensure that goods are delivered to customers on time while maintaining a high level quality.
Suppliers need to be monitored for quantity, delivery times, and any changes in price or availability. Distribution requires coordination with carriers and transportation services for getting products from point A to point B without any delays or damage. Operations must handle such things as plant floor layout, storage equipment design, assembly line design, production scheduling strategies and inventory levels. Customer service involves managing customer expectations with respect to pricing/costs, lead times and order fulfilment.
An effective supply chain is crucial because it ensures your company has continuous supplies which allows you to stay competitive by meeting your customers’ needs at a low cost while still ensuring profit margins remain healthy enough for long-term success.
Benefits Of Having A Good Supply Chain In Place
A good supply chain will ensure the availability of your products and services to buyers. Having a reliable supply chain in place means you can trust that what is promised is delivered, without worries about product shortages or delivery delays. It also means you can focus on other aspects of your business, such as marketing and customer service, knowing that your supply chain is running smoothly. Good inventory management also saves you money by reducing the amount of time spent managing inventories; it eliminates waste by reducing excess production; and it prevents overbuying or underbuying by estimating demand more accurately.
It also allows you to offer same-day shipping or delivery services, which can greatly improve your customer experience while enhancing your brand image in shoppers’ eyes. Finally, having control of every step of the process from production to distribution gives you peace of mind because you know where your products are at all times.
Problems With A Poorly Planned And Managed Supply Chain
A poorly planned and managed supply chain can lead to a variety of problems. For example, if your supplies are delivered late or in the wrong quantities, it will be difficult for you to keep up with demand and meet customer expectations. This could cause your customers to look elsewhere for products, meaning you’ll lose money. Similarly, if something goes wrong with a shipment – say you ordered 2,000 units but only received 1,500 – then you won’t have enough product on hand to fulfill orders and may have to cancel some orders altogether. This can damage your reputation as well as cause delays in production that hurt your bottom line.
In addition, a poorly planned and managed supply chain can lead to even financial problems. If your supplier ships you faulty products – say they accidentally send you 2,000 units that don’t work properly – then it may be difficult for you to get a refund or replacements. This could force you to halt production as your staff tries to identify and replace all of these faulty units and seek compensation for losses. Worse still, if there’s an issue with your suppliers’ products that leads to serious injuries or health complications for customers, then it may be difficult for you to find a lawyer who will take up your case due to consumer protections laws in many countries. And it’ll be detrimental to your cash flow.
How Can You Effectively Manage An Effective Supply Chain?
There are many factors to consider when it comes to supply chain management, but the most important is having a plan. You should start by writing down all the points that are essential to your business and then create a list of what you need for each point. You can also make use of a system that will help you manage your inventory and keep track of where things are in the process. When it comes to order fulfillment, be sure that you have enough space in your warehouse or storage area to account for the time it will take for customers’ orders to arrive. If you’re not sure how much space you’ll need, speak with a professional who deals with these matters on a daily basis.
Or you can hire a professional supply chain management company. They will work closely with you to establish goals for your organization’s future manufacturing plans as well as strategies that address potential problems like an increase in problems or changes in technology. They also provide recommendations and support for establishing a sustainable supply chain strategy. With their guidance, there’s no doubt about it: You’ll be able to continue running an effective supply chain without wasting money, resources, or time.
Shield Works Can Take Care of It All
Shield Works has over 17 years of experience in managing supply chain, all the way from manufacturing to delivery. We can help you achieve your goals and objectives while saving time and money. For a free consultation on how we can help your business, call today!
Although there are prototyping services in numerous countries around the world, China provides one-of-a-kind advantages to entrepreneurs and manufacturers alike. Let’s take a look at why China is the best place to prototype products before they launch globally.
Labor cost is lower
While labor costs in China are still cheaper than those of other high-tech economies like Japan and South Korea, they use more advanced machinery and better manufacturing processes to make products cheaper, faster, and higher in quality. Allowing these firms to set lower prices, such efficiency come from better use of technology (like robots) and closer monitoring of labor schedules to minimize downtime (i.e. breaks taken by workers). These different factors increased efficiency and lower wages, which mean that Chinese manufacturers are capable of supplying a higher quantity of products at a lower cost than anywhere else in the world.
They take care of it all
Some Chinese prototyping shops provide all the help you need to build a prototype. On-staff designers, 3D printers, and injection molders will give your ideas form and shape. if you purchase a package deal, they’ll do all of your work for you. Startup founders love this because it lets them focus on what they do best. Even better: specialized prototyping companies are popping up in increasing numbers, with faster-than-normal manufacturing processes, which work well for small startups aiming to get specific things accomplished.
For example, if you’re building a medical device, you might want to partner with a firm that specializes in the design and manufacture of medical devices. These firms know the details that the regulatory agencies such as FDA need to make sure that you’re following their protocols and as such you don’t need to concern yourselves with that information. Entrepreneurs who are launching hardware-based products should work closely with these experts from the earliest phases of the project.
Inexpensive prototyping and large-scale manufacturing allow product developers to innovate at an unprecedented pace. Chinese factories offer lower costs, shorter lead times, and larger production volumes than other countries. Companies like Apple have established relationships with Chinese manufacturers for over a decade. Today, a large percentage of Apple’s products are manufactured in China—including final assembly for some parts (e.g., cables and batteries). While there are many factors that come into play when deciding where to locate production, high speed of prototype delivery has become increasingly important as consumers demand better turnaround times on pre-orders.
Since they make 3D printers with helpful software to make them easier to use, Chinese manufacturers also preload their 3D engineers with more industry experience, because they typically hire skilled workers who are experienced with manufacturing similar products or work with experienced consultants. Due to its large population, the talent pool in China is nothing comparable to those in other countries. It’s been difficult to close this sizable gap.
While in the past China’s reputation has been that of a country that has stolen technologies and has relied on a copier culture, it’s now on the verge of becoming a leading economic power. Beijing’s top leaders are beginning to think that innovation, not imitation, can be the solution to some of the country’s problems and that it can create new industries and jobs, as well. They believe that innovation will lead to economic growth and more opportunities. nearly 700 universities in China have revamped their names to incorporate innovation, signifying an emphasis on teaching for research and development. Only a few years ago, these schools focused solely on providing the lowest common denominator of engineering training, churning out manufactured products for countries around the world.
Home-made tech forces
One of the reasons why Chinese startups can prototype at such an accelerated rate is that they take advantage of local tech hubs. These facilities allow startups to rent office space, equipment, and more–eliminating expensive overhead costs while also fostering a sense of community and support. For a tech startup’s success in prototyping its product, being closer to industry experts and resources as well as proximity to large financial markets might be just as important as proximity to Silicon Valley’s startups and innovation.
For instance, take Huaqiangbei in Shenzhen for prototyping needs. With processors, motors, sensors, and circuit boards, this massive market has all of the electronic components imaginable. This place would be like a godsend for an entrepreneur! Don’t worry, those needing a startup engineer or product designer needn’t walk the thin line of distributors or manufacturers – they can take to the equally harrowing but far shorter task of searching Huaqiangbei Street instead! Of course, they also gain an attractive other benefit, though access to information.
Shield Works’ in-house engineering team is well-seasoned and bilingual, and we have over 17 years of product prototyping experience in China. Contact us now for more!
Deciding whether to outsource your manufacturing to China can be an overwhelming process, but there are many reasons to choose China as your manufacturing hub. Here are five of the most important benefits you should consider before making a decision.
Lower Costs Than Western Counterparts
One of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
Besides having fewer overhead costs, Chinese facilities also have lower training costs. In order to cover these costs, domestic manufacturing facilities must set aside a significant amount of money.
Businesses of all types outsource instead, as wages in China are also lower than in the United States.
When you outsource, you can spend less per dollar, so you can reap the benefits that can come from using Chinese product assembly. Keep this in mind when you are considering moving forward.
Larger Production Volume
A business does not necessarily need to manufacture thousands of products in one order. However, in some cases, large organizations often have a hard time locating a domestic facility that can meet their bigger-than-normal needs.
This means that China has typically built facilities that are able to produce large volumes of goods for many different countries. Even an average Chinese factory can outperform the vast majority of western facilities.
When it comes to companies that require a massive supply of their product, there is no better alternative than outsourcing to China. In many cases, it is also the only way to meet your goals.
To long-term success, scaling your business may be needed.
This can happen in a variety of ways. For example, you might add a new product line to generate additional revenue.
One option would be to find growth opportunities in one of China’s developing markets. That way, you can use them to establish a niche in your business. Designing new products is one of the key ways in which they help.
Choosing a Chinese OEM plant, in some cases, might give you an edge over your competition.
Flexibility of Product Design
Domestic facilities usually cannot adjust their design at your behest because it could take them days or weeks to actually put them into practice.
You may have to change the way you do business to sell a more desirable product if you don’t have high enough sales numbers. Adding to this, delayed orders because of design changes also carry the risk of your customers turning to competitors.
It is our understanding that Chinese manufacturers are ready to implement any changes required of them. As for you, all you need to do is contact the representatives from your company and describe the alterations that you need.
The manufacturer will typically make revised products as soon as possible after you inform them of your change, which is an important consideration as it will affect your brand’s reputation.
Many people are unaware that many Chinese factories prioritize intellectual property protection.
This means they make sure you don’t end up in legal trouble by avoiding any form of infringement. To illustrate, suppose you sell a product that is extremely similar to that of your competitor.
As with any other manufacturing industry, there are shady facilities that engage in such tactics. A reputable factory in China will make sure that there is no copying or reverse engineering going on.
It is good news that you can research the reputation of your prospective factory before choosing to work with them. Otherwise, you may find yourself in a situation that is difficult to remedy.
China’s factories are capable of mass production, and it is a simple matter for them to do so with remarkable speed.
These new and efficient facilities can meet any production standard. This will allow smaller organizations to compete with larger ones.
Many small businesses can’t keep up with the production rates of large corporations. Without the help of the right manufacturers, these businesses will never be competitive.
Tips of Finding The Factory Right for You?
It can be difficult to find a reliable Chinese manufacturer for all sorts of reasons, like time zone challenges and language barriers. With the help of a professional, you will be able to get a firm grasp on which factory is best for your company.
You’ll find that they are a go-between who has contacts at the other party’s end. That way, they’ll be able to work out the finer points and make agreements without you even needing to intervene.
You can take a look at this resource to find out how you can use this to your advantage.
We Are You Go-To Option
With the above information in mind, you can be sure that you are deciding the right course of action for your company.
From here, you’ll be able to employ Chinese manufacturing for appropriate businesses. Want to learn more about Shield Works with 17 years of China manufacturing experience? Please get in touch with us today and see how we can help.
When you outsource your manufacturing, you’re trusting someone else to handle the job of turning your idea into a tangible product. While this usually works out well and can bring significant cost savings to your company, there are risks involved with outsourcing that you should keep in mind as you consider outsourcing as an option for your business or organization. Read on to learn about some of the most common risks of outsourcing manufacturing and how to avoid them so that you can maximize your benefits and minimize your costs.
Direct arrangements with suppliers from any industry come with risks. However, the risk is greater when buying from an international supplier. Prior to outsourcing, you must conduct a thorough investigation.
Then, you need to conduct a thorough risk assessment using the possible markets and suppliers. Identify any potential issues with the provider’s possible suppliers.
It must include the supplier’s operations, quality, leadership, and labor. Check to see if their track record lives up to their promises.
By doing so, you will avoid disruptions caused by your supplier failing to follow through. You can also ask other helpful businesses who have used your potential supplier. As soon as you make your decision, you’ll gain insight into working with them.
The lead time, as a result, for transporting products is longer compared to domestic sources, if product failure occurs from an international source, which can cost you suffer severe business disruptions.
If the problems get severe, it can take months to resolve them. To mitigate this risk, you need to prepare detailed product specifications for your sources. You’ll periodically perform independent quality control inspections.
You may lose your reputation if your product quality declines. Avoid this by observing the manufacturing process for a few weeks. It is cheaper and ensures quality, so it’s better than having to recall a product.
Intellectual Property Protection
Don’t share sensitive information with your outsourced manufacturers until you check their origin country and their intellectual property rights. Otherwise, your proprietary information might be leaked.
In cases like this, IP laws are more relaxed in the manufacturer’s country. Depending on the product, you may find it better not to outsource anything. If your product undergoes regular updates, however, this might not be an issue.
You might overlook patent protection if you think you can produce better items faster and with better quality. This can happen when you pump out new products faster than the market can handle.
Transportation and Delivery
Outsourcing to a foreign service is tricky if you don’t take it one step at a time. If you do it poorly, the delivery will be delayed.
A common timeline for ordering and receiving your product should be important to your outsourced manufacturer. Think about whether they can meet a timeline for production. In case the total is greater than it has been, you must work to make the customer’s expectations fit reality.
One may also look for a workaround to restore the time to its correct place. Otherwise, you may accidentally erase all your work. Given the importance of this issue to customers, we’ll need to keep it at the forefront of our priorities.
This type of conversation doesn’t happen as often, but when it does, it can hurt your brand. Make and fulfill your products with a manufacturer that follows humane standards.
It is especially important when it comes to labor laws and other relevant guidelines for employee safety that your manufacturer’s guidelines match your own country’s. It is your responsibility as well as your outsourced help to adhere to ILO guidelines if your country is a member.
Despite how it might seem, what your manufacturer does in relation to the weather can affect how it’s perceived. A rough bout of weather can lead to various delays. Doing so puts your brand in a negative spotlight because it has to be revealed what your labour force looks like.
How well your supply chain holds up to weather-related crises can affect your reputation, as well. Though they’re flawed, it’s not always best to steer clear of your brand name. As a result, you must put it before anything else.
Should You Outsource Manufacturing?
If your company is not ready for outsourcing, you should weigh the benefits of this decision. A number of benefits are available to you.
You will cut your spending as well as boost the productivity of your business by doing so. Popular demands are produced by many companies.
Additionally, you’ll avoid every aspect of manufacturing bureaucracy. It’s what slows businesses down, especially in countries with strict regulations.
Invest in Outsourced Manufacturing Today
While there are risks involved, partnering with an outsourcing manufacturing company can be helpful in boosting your business productivity. The first step is to find a reputable manufacturer. Use this advice to find the best provider.
Have you been considering manufacturing internationally? If so, please get in touch with Shield Works and we’ll talk about how our 17 years of outsourced manufacturing can help your business thrive!