As early as October through January, this is the time of year when the majority of eCommerce brands experience a huge spike in sales. But if you’re unprepared for this sudden rise in sales and don’t plan accordingly then it will hurt your business because your customers are unable to order products or receive them quickly enough.
With peak season quickly approaching, you should prep for production and there are many points to consider when taking on the pressure of doing everything at once and all the additional cost involved with producing more goods during this time.
With so many headaches around you, it can be hard to concentrate and make the right decisions. However, don’t let this discourage you from starting. Welcome to our “Manufacturing in China: 10 Tips to Peak Season Preparation” series which list the most important and useful production tricks that will make it easier for you to get started in manufacturing without much fuss. Let’s dive into part one of this three-part series.
1. Know about the Peak Season
Most businesses experience fluctuating levels of customer traffic throughout the course of a year. The slowest time of the year is often referred to as the low season or off-season, while the busiest time of the year is typically called the high season or peak season.
Though many seasonal peaks might seem similar, they vary depending on factors that differ from industry to industry. Factors such as population density, weather patterns, and available modes of transportation can determine the amount of traffic in an industry. For example, a business that sells swimming wear has better traffic during the summer months while others work best when it’s wintertime. So, it’s important to set a timeline and schedule for the peak season that your business focuses on.
Therefore, if your team is unaware of the span and the length of peak seasons, then your company is likely rising to incur unnecessary expenses throughout the year. And if your peak season lasts much longer than expected, there may not be enough employees or products available to meet all the demand coming from potential customers during this time.
In light of this, your company should always analyze the number of major holiday promotions, such as Black Friday, Cyber Monday, thanksgiving weekend, and Christmas. It may still be difficult to pin down the span of peak season for all industries but taking precautions, like reading some recent sales data, can help you diminish the consequences.
2. Forecast Demand
With the exponential growth of eCommerce around the world, more and more people are willing to make a purchase online. If you have both physical locations and an eCommerce store, it becomes readily apparent that digital traffic has increased even more than before and will continue to grow in popularity.
Therefore, you can forecast production demand for your store before peak season based on the different traffic sources.
Demand forecasting is one of the most crucial tools for brands to use in determining the best possible supply rates and building up adequate resources. This way, they can minimize their risks and costs. Furthermore, it enables collaboration between the outbound and inbound processes of the company, such as procurement, production, sales, and marketing. By predicting future demand, you can optimize current inventory levels by monitoring which products sell faster than others and predict when certain stocks will need to be replenished.
To forecast your production needs before peak seasons, one of the best ways is by staying on top of fashion trends. Following some influencers in your niche on TikTok and Instagram and leveraging the right hashtags can help learn about what your target customers are interested in currently and also gives you an idea of who you could be competing with. Then, you will have a better sense of what’s going to sell and be able to plan accordingly. It also means that you can monitor your inventory levels, so you will know ahead of time if something gets discontinued. This way, you won’t run out of your most popular items when the peak season comes.
3. Adjust Inventory
Nothing is more frustrating than running out of the most popular item in your store and turning down a potential customer because you don’t have enough inventory throughout the peak season.
To make sure that everyone who enters your store has a positive shopping experience, one of the most important parts is to make sure that your store is fully stocked and that you have plenty of your bestsellers readily available so that there will never be a need for backorders.
Inventory management is an essential part of ensuring a business’s profitability. Some businesses have too little inventory, unable to meet customers’ expectations by supplying enough available products, which often drives customers away to another brand or alternative items. However, excess inventory not only ties up valuable cash flow, but also carries the risk of damage and costs more to store and track.
So, it becomes important to know when to replenish stocks in what quantities, and at what price. If this happens too often or too late, then your margins will suffer. It is recommended that you take note of what sells the best and make sure you will have enough of those items available during the peak seasons, otherwise you risk losing out on both profits and potential customer base.
Peak seasons will be much different in the near future because of recent international dealings. In order to stay competitive, you need to prepare for these sudden changes and disruptions all the time.
If you’re looking for a reliable and professional company that can help with your production project before peak seasons, look no further than Shield Works Precision Manufacturing in China. There is no such thing as a “one-size-fits-all” approach to meet everyone’s needs, we can offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here. Start your journey by reaching out today for more information.
Every year, about 30,000 new products appear in the market. Not all these new products succeed. Many of them fail because their manufacturing processes have flaws.
In this article, we will cover the dos and don’ts of product manufacturing. These tips can help you avoid common pitfalls and ensure that your product meets your specifications. Keep reading to get the details.
Do Confirm if Global Sourcing Is Right for You
Before choosing a manufacturing partner, learn how global sourcing works so you can make an informed decision.
The biggest pro of global sourcing is that it saves you time and money. Instead of having to build up your production facilities from scratch, you can use existing companies. They will already have all the necessary equipment for manufacturing your product.
There’s also a downside to global sourcing. You’ll have less control over the quality of your product.
Because foreign manufacturers are far away, you won’t be able to supervise the manufacturing process. This can lead to expensive mistakes.
Consider the benefits and disadvantages of global sourcing before you decide to go this route. If you’re still unsure, consider using a contract manufacturer instead.
Don’t Forget to Consult Your Team
Before you commit to a manufacturer, it’s important to speak with your team. This includes your designer and any other stakeholders. You should also speak with your business partner to make sure they’re on board with the decision as well.
If you’re working with a designer who has experience in global sourcing, they’ll be able to give you advice on which manufacturers are the best fit for your brand.
You should also consider bringing in a consultant to help you make this decision. A consultant will provide an objective opinion. They can advise you on the best course of action.
Do the Research on the Company You Plan to Work With
Before you start any work with your product partner, make sure they’re a good fit for you. Research the company, its past products, and any future developments they’re planning.
Check out their website, review their services, and look for any reviews on social media sites. Find out if the manufacturer has experience working with customers in your industry. This is especially important if you’re looking for a manufacturer of niche products.
If you can’t find anything that makes them stand out from their competition, consider working with someone else.
Do Have Someone Visit a Potential Partner
Visiting a potential partner is a great way to get a feel for their operation. You also get to scan their facilities. It’ll be easy to see if they have the equipment you need.
There’s also a chance for you to build a face-to-face relationship with the team you’ll be working with. A good rapport with your manufacturer will maximize your chances of receiving first-rate items.
Visiting also allows you to get a sense of their communication skills. Some countries, like China, still keep their travel restrictions. If you can’t visit them in person, call them on the phone, or have a 3rd-party to check out for you.
Do Have an Audit Process
You should have an audit process in place to ensure quality. You can do this by having a third-party audit your product, or you can do it yourself. Some manufacturers will also conduct audits on their own.
The audit should be standardized and repeatable. This will ensure consistency between audits and make it easier to identify issues.
Don’t Assume That You Know Everything About Manufacturing
It’s easy to become overconfident when you think you know everything about your product. The manufacturer has a better idea of what goes into making your product than you would.
They’ll know how many steps are involved, how long each step takes, and how much labor is required. You may think the finished product should look a certain way, but it might not be as simple as that.
The manufacturer will have an opinion on the best way to make your product. It’s important that you listen to them. If they suggest a change that improves quality or efficiency, consider implementing it.
Do Know Who Owns the Intellectual Property Rights
When manufacturing products overseas, it’s important that you own the intellectual property rights. You can prevent others from copying your design and selling it themselves.
Before manufacturing your product, register your IP with a patent office. This will give you legal protection against imitators who try to sell a copycat version of what you’re making.
Don’t Sign a Contract Without Reading It
You should always get a contract before working with a manufacturer. The contract will outline the responsibilities of both parties and specify important details, like payment terms, for example.
It’s important to read the contract carefully. Make sure it includes all of your specifications and requirements, as well as any disclaimers or exclusions.
Do Double Your Budget
If you’re working with manufacturers overseas, the cost of shipping your products can add up quickly. You’ll have to factor this into your budget.
The best way to lower shipping fees is by having everything manufactured, stored, and shipped from one place. Your manufacturer would have to provide warehousing services for this to be possible.
Don’t Base Your Decision on Price Alone
It’s easy to get caught up in the excitement of finding a manufacturer that will make your product at a cheaper rate than you expected. However, what’s more important is whether they can meet your quality requirements.
Price is always relative. If you find a manufacturer that charges more than your initial budget, think about whether their quality of work is worth the additional cost.
Do Factor in Delays
It’s important to remember that delays are inevitable when shipping products. Weather, holidays, and weekends can all contribute to the delay of your product delivery. You should factor these delays into your timeline so that you don’t miss any of your deadlines.
Don’t Forget to Have a Contingency Plan
No matter how thorough your research and planning are, there are always going to be bumps in the road when working with a manufacturing company. You need to prepare yourself for these potential scenarios:
- The quality of your product doesn’t meet your expectations
- Your manufacturer doesn’t deliver on time
- Prices increase
- Raw materials are low in supply
You will need to have a contingency plan in place so that you can mitigate these problems. For example, if your manufacturer is going to be late on delivery, find a carrier. This will ensure that your product gets to its destination on time.
Do Understand Quality Assurance Procedures
You’ll want to make sure that your manufacturer can provide reliable documentation on their quality control processes. There should be clear documentation of the process that your product goes through, including test results and inspection reports. You should also get a sample of your product from the manufacturer to make sure that they’re meeting your quality standards.
Do Get Your Product Tested
You should have your product tested and certified by a third party before it leaves the factory. This will ensure that your product meets international standards and is safe for use.
Also, test the product yourself before it goes on the market. You don’t want to find out later that your product is defective or dangerous. By testing it yourself, you can catch these issues before they become a problem for consumers.
Don’t Forget to Check the Manufacturer’s Experience
Always review the experience level of your manufacturer. If they have a new factory, they might not have the resources to meet your quality requirements. Consider their reputation and the size of their company before making a decision.
Do Choose a Country With Low Labor Costs
As you look at countries where your product will be manufactured, it’s important to choose one that offers low labor costs. This can save you a lot of money.
Choosing China for product development is often a good choice for small and large orders. They have some of the lowest labor costs in the world but also maintain high levels of quality control.
Don’t Pick a Manufacturer Who Doesn’t Speak Your Language
Communication is one of the most important components of a successful business. If you can’t communicate with your manufacturer, you’re going to have a hard time building and maintaining trust with them. You want your expectations to be received and understood in a way that works for both parties.
This doesn’t mean that the manufacturer has to be a native English speaker. They just need to communicate effectively in your language.
If you’re working with someone who doesn’t speak your native tongue, choose a manufacturer who works with translators and interpreters. These roles can help bridge the communications gap between you and your product partner.
Do Check Their Certifications
Make sure that the manufacturer you hire is certified in the manufacturing process. This includes credentials from organizations, such as ISO certifications. These organizations ensure that your product is manufactured safely and reliably.
This is important for your company’s reputation and your customers’ safety.
Don’t Ignore the Importance of Safety
You may want a price break, but don’t cut corners on safety. This means ensuring that your product partner has quality control systems in place for their employees. This includes making sure that their facilities are clean and free of contaminants.
You also want to make sure that their employees have the proper training for the equipment they’ll be using to make your products.
Do Calculate the Production Cost per Item
The cost per item will depend on the number of items produced. You can calculate it by dividing the total production cost by the number of items produced.
For example, suppose you manufacture 100 units for a production cost of $1,000. If you divide this $1,000 by 100, then you get a total cost per unit of $10.
You can then compare this number with the price you want to charge for your product. If it’s too high, then you may need to cut back on some of your production costs or look into finding a cheaper manufacturer.
Don’t Neglect to Get a Prototype Assembly
A prototype offers many benefits. It will help you get a better understanding of your product and identify any potential issues. Once you find these problems, you can correct them before they become too costly to fix later.
You should also order a prototype so you can test your product. The more time spent testing the product in advance, the fewer problems there are likely going to be when it comes time for mass production.
Do Get a Non-Disclosure Agreement
A non-disclosure agreement is a legal contract that prevents any parties involved in your project from disclosing certain information about the project. This can include anything from product plans to pricing and marketing strategies.
Non-disclosure agreements ensure confidentiality and safety. Team members can’t release sensitive information to others who might wish to use it against you.
Don’t Manufacture Several New Products at Once
When you’re manufacturing a new product, it can be tempting to think about creating other items and getting them on store shelves as well. This is a mistake. Manufacturing multiple products at once will only slow down your production schedule.
Focus on perfecting one product at a time until it’s ready for the market. That way, you can stick to your timeline and keep your costs down.
Partner With a Forward-Thinking Product Manufacturing Company
The process of product manufacturing can be quite complex, so it’s essential to partner with the right company. Use an experienced manufacturer that can help you with product design, prototyping and testing, as well as mass production.
Shipping and logistics are also important aspects of production. Work with a company that can handle all of your shipping needs.
Shield Works Precision Manufacturing Co. can help you bring your product to life. We’re a full-service contract manufacturer in China that also offers warehousing and shipping. Contact us today to learn more about our services.
To make an inquiry about what your custom manufacturing partner can do for you, you will need to know how to approach them and how much it’s going to cost you. As an international importer, you don’t want to pay any more than necessary, and that means asking the right questions and working with someone who can give you quality products at an affordable price.
To help, we’ve compiled some tips on starting that conversation with your manufacturing partner in China so that you can find what you’re looking for while avoiding costly mistakes.
What is a Professional Inquiry Like?
A professional inquiry is a request for information. When you need to learn about the supplier’s catalog, pricing, and payment terms or ask for product samples, you will need one. It enables your team to review your ideas and needs.
How to Make a Professional Inquiry?
Rather than a one-time contact, making an inquiry should be an ongoing process. By following these steps, you will be able to think more thoroughly and systematically about how best to inquire.
Step 1: Get in Touch with Potential Supplies
The first step to filtering some reliable suppliers is knowing their backgrounds to evaluate if they fit your needs. For example:
- Background and experience
- Production Capacity
- Product Catalog
- Main Market
It is necessary to determine what the supplier focuses on. A good way of assessing this is by checking whether they have related production lines. For example, if you need to make PCB products, you should find those who have PCB production lines in their facilities. Otherwise, be wary of suppliers who are pretending to be factories but are trading companies or there are risks involved.
Also, it may be beneficial for you to make a decision by contacting around 10 potential suppliers from the start for more information comparisons.
To successfully receive responses from suppliers, it’s also important to mention both who you are and what product/service you need for your business or project. If not, most of them will not respond.
Step 2: Request Quotations Clearing
People in business are under pressure, and so the quicker you can get to the point and more specific you can be, the more likely you are to receive a reply. In this case, before requesting quotes from potential suppliers, you need to prepare a production proposal. It doesn’t have to be the same as what will end up being produced or shipped, but it does provide an important reference point for evaluating rates.
Another reason for quoting based on your production plan is that almost every manufacturing company needs to know your general production plan, including units, materials, and deadlines so they can provide detailed pricing, and nothing will be confusing or misunderstood.
Keep in mind that using a cookie-cutter template taken from a website may not accurately convey the message you want. So, spend some time creating tailored business inquiries so you can get what you need in a short time. For example, if you need to know the total costs for completing your products, it’s important to specify which type of pricing. Instead of simply asking about the general prices, request quotations in FOB (free on board) price that is not a pure product price but includes shipping fees coming off the factory floor to the harbor and other related costs.
Step 3: Be in Touch with Them Briefly
Before moving on, you can remove some manufacturers from your list that don’t meet your standards and reply accordingly.
After receiving quotations, reach out to them directly over the phone (either online or by phone) to discuss how they can handle your project as well as share other pertinent details.
Sending an email is more traditional but calling will leave a lasting impression to show that you didn’t indiscriminately send out Requests for Quotations (RFQs) to all the suppliers on your list. This means they are likely to respond faster and think highly of your project. It’s also beneficial because it shows your sincerity and interest in partnering with them, which makes the process easier for both parties and can be a good way to establish friendly relations with your potential suppliers.
Moreover, don’t forget to ask them to send over some on-site pictures or videos since you are not available to pay a visit to their factories currently. If you have any questions, try to approach a factory audit service company once you have narrowed your search down to 1 or 2 candidates.
Step 4: Negotiate Based on Value, Not Cost
Cost is often one of the priorities that comes up when finalizing a project. It’s common for factories to ask overseas buyers for their budgets at the beginning of their negotiation process. However, many foreign buyers would prefer not to disclose their budget because they want the factory to understand that they are looking for value and quality, not just a cheap price.
If you are asked about your budget, it’s a good idea to be honest and emphasize that you are looking for long-term partnerships where quality and service are more of the priorities, which helps build trust and ensure that both parties are on the same page from the start.
When finalizing the supplier for your company, there are many different factors to take into account, such as whether or not they have the capacity to deliver quality products, outstanding communication skills, and exceptional customer service. In addition, it’s important to find suppliers that can protect your IP rights, so you don’t compromise any of your work-in-progress ideas and designs.
Don’t forget, the price and the quality are inexorably linked in China. Negotiating a low price with any supplier usually means they will just shrug it off and say ‘sure’ and then go out of their way to find ways to give you the cheapest possible products. A universal rule of life is that everything gets what it pays for. Keep in mind that you make this decision based on what will help your company succeed in the long run.
Step 5: Choose the Most Professional Supplier
In the last step, it’s time to give more information about your product and your quality requirements to the most interesting candidates. Don’t hesitate to give them your target price if it is very different from what they offer you. Ask them to justify their price level precisely.
As a buyer, it is imperative that you select the most professional supplier. This will allow for your orders to be processed with the utmost urgency and care. Luckily, there are many ways for you to determine who is the best choice for you. If you’re looking for a company that has all your needs covered, reach out today for more information and see how we will be able to make them worth every penny!
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!
China manufacturing. It is one of the most well-known industries in the country, and it has a strong global presence.
It is known as a leader in the manufacturing industry because China commands 28% of the global manufacturing industry. For perspective, the United States is second place on that list at just over 16%.
With the country having such a strong manufacturing presence, you may be tempted to do business over there. If you have this interest, you have to look into contract manufacturers.
What do you need to know about contract manufacturing? What do you need to get started?
This is your guide.
Remember Your Intellectual Property
You have to remember that when you are doing business in China, there are different intellectual property laws than in your home country. If you are coming from the United States, you need to be aware that there is much less protection for intellectual property in China than there is back home.
So, if you have a product where success relies on you being the exclusive provider of it, you need to do your homework about intellectual property laws in China before drawing up a contract. Make sure you go through all of the proper channels and have all of the paperwork to protect your intellectual property as much as possible there.
Set Quality Requirements
The next thing that you have to do is make sure you set up quality requirements in your contract. This can help protect you from a business that may not be known to operate with the highest standards.
Putting your standards and requirements in writing strengthens your position and gives you a higher chance of getting quality results. The reason for this is with having this in writing; you have something to fall back on if something goes wrong along the way.
Whereas if the lack of quality comes up unexpectedly, you may be stuck dealing with it if you signed the wrong type of contract with this company. Make sure you spell this out and figure out what quality requirements you want before agreeing to do business with a company.
Be Very Detailed
When it comes to contracts, in general, you want to have as many details listed as possible. Manufacturing in China is no different.
A contract helps make clear what your standards are, what your expectations are, and what you are expecting a manufacturer to provide. For example, if you have a quota for how many items need to be shipped every week for one product, you should put that in your contract.
What standards need to be put in place? How much money are you going to pay the manufacturer? How are you determining that price? What is the size and color of the product requirement?
These are things that you need to think about in terms of details in a contract. You may also want to consider how long you want this contract to last and if you want to be exclusive with this manufacturer.
If you do, then that can have an influence on what the contract terms are and how much you are going to agree to give a manufacturer.
Go Over Pricing
Along with the above, you need to go over the pricing and payment procedures with your manufacturer. It is a detail of the contract, but it is arguably the most important detail.
The reason is that having the pricing and payment structures laid out could be the difference as to whether your business survives or not. This is because if there is a misunderstanding, you may not have the funds to pay for litigation or even to pay what you owe.
Go over this carefully and make sure you understand exactly how much you have to pay and what exactly you are getting in return for this payment.
Prepare for Disputes
Going off of the above, the best way to put out a potential fire is to prepare for one that might come up. This includes disputes because it is likely that you may have at least a minor one with the manufacturer that you choose to do business with.
Try not to worry too much because this is a normal thing to go through. About 85% of people in business experience a conflict at one point or another.
The best way that you can handle this is to prepare for the worst and hope for the best. Essentially, be aware of any possible problems in the future and come up with plans to resolve them.
Find a Reliable Manufacturer
Finally, you are going to need to have a reliable manufacturer by your side. It is best to have someone that has a good reputation in the industry and someone that has taken good care of colleagues. If you do not know anybody like this, perhaps check reviews and testimonials.
Having a good manufacturer can save you time and money, along with any potential business headaches in the future.
Get Started With Contract Manufacturing
These are some of the key things that you need to know when it comes to contract manufacturing. Two of the most important things that you need to make clear are the pricing and payment of services, along with the quality you expect. In general, it is best to have all details covered with a reliable manufacturer.
Are you ready to get started? Message us today to take the leap.
For years, China has been the best go-to manufacturing location around the world. Countless overseas companies choose to outsource their production to China for different types of products with lower costs and higher quality. But do you know much about an original equipment manufacturer (OEM) or why they’re so important? If not, it’s time to learn more.
Whether your business is selling a product directly to consumers or through retailers that make their products, learning about OEMs will give you a better understanding of how business works and how you can improve your bottom line. So, sit back and read this article on OEMs and how they work, then you’ll have all the knowledge you need to become successful in your field.
What is an Original Equipment Manufacturer (OEM)?
An original equipment manufacturer (OEM) is a manufacturing company that creates component products for other retailers to build finished items like a computer, phone, or car.
The company that makes the initial component products is called an original equipment manufacturer (OEM) while the company that buys those component products from an OEM is called a value-added reseller (VAR) because they add value to the original item by combining multiple parts together to create final finished items with more features.
The term OEM is most used in the automobile and computer industries. In the case of automobiles, the company that creates car parts is OEM and then sells those original pieces to another company that assembles them into cars for retail sale.
What is the Difference Between OEM and ODM?
ODM, an abbreviation for Original Design Manufacturer, is also referred to as private labeling.
For both OEM and ODM companies, many similarities make them comparable. However, they also have some key differences when it comes to unique flexibility and customization options for overseas clients.
When an overseas business has an original idea for both product design and product functionality, it’s worth looking into the use of an OEM to produce these goods at a lower price point while maintaining high-quality standards. And best of all, they can change their products according to the latest trends and innovations to suit the needs of consumers because they have exclusive IP rights over the products. This way, they don’t have to build out their engineering team or manufacturing plant. Instead, they just need to find an experienced OEM with a team of experts to take care of their production while they focus on marketing and running other aspects of the company. OEM is an ideal option for foreign companies that own their intellectual property rights and are looking to lessen production costs by outsourcing overseas.
ODM is a cost-effective option for importers who want to take advantage of the pre-existing product designs in the manufacturer’s catalogs. Importers are only allowed to make minor changes with the help of an ODM designer when selecting the certain products they would like to import and resell under their brand name. These changes may include color, size, and certain tweaks of components or functionality – all within limits set by the ODM. In this case, an ODM makes it possible for any overseas company to get products to market without having a huge investment in in-house design and manufacturing. ODM is suitable for startups and small businesses that don’t want to maintain a significant amount of inventory for themselves. Also, established businesses use ODM to make some promotional products with their logos to attract new customers.
How To Choose an OEM in China?
Now, you may have a better understanding of OEM. If you want to learn how to choose a reliable OEM partner for your project, keep reading on.
1. Know Your Expectations and Needs
First and foremost, if you want to complete your production successfully, you should clearly know what you want from your OEM supplier.
- What’s your product type?
- What are your quality standards?
- Do you need your OEM to deal with design and prototype or just manufacturing?
All these questions should be taken into consideration before diving into the world of original equipment manufacturing.
2. The Tradeoffs of Costs and Quality
There are always tradeoffs when it comes to making a choice. Costs and quality are two of the important things that are traded off in OEM manufacturing. This means that there will always be an opportunity cost for each decision made.
You have to understand that the overall costs go up because you have to pay for better raw materials, techniques, and skilled labor. If you don’t have enough budget, the quality of your product might suffer too much.
Therefore, when working with an OEM to make your products, it’s important to consider the tradeoffs between the overall costs and product quality.
3. Ensure Your IP Rights Are Protected
Your IP rights are the most valuable aspect of your brand and business. Your IP rights are all of the work that you’ve created and they’re what set you apart from everyone else.
So, you can’t take any risks when picking out a Chinese OEM supplier. With so many manufacturers here in China nowadays, it’s always best to double-check whether or not your manufacturer of choice has had anything stolen from them in the past. It’s also wise to sign an NNN agreement before agreeing upon cooperation and make sure everything is legal if transferring your design or idea over to them.
Work With a British-Owned OEM Supplier in China
Any time you outsource manufacturing factory selection is very important. When you move your manufacturing to China, you may feel overwhelmed by the choices and worry about the legitimacy of the operation.
As your OEM manufacturing service provider in China, Shield Work Precision Manufacturing can meet your production needs. We offer a forward-thinking approach with the ability to fully customize work procedures, equipment and develop new specialist in-house manufacturing processes.
At Shield Works, we have a proactive approach to manufacturing and are always keen to explore new specialist processes. We are one of the leading original equipment manufacturers and have been providing our services since 2005. Contact us today to discuss your requirements.
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.
Developing an invention that could potentially make you millions can be exciting, but it’s also important to realize the legal responsibilities involved. If you don’t know how to protect your idea, you risk losing it altogether, or at least never realizing its full potential because of an infringement.
Curious about intellectual property rights? Don’t know what an IPR is, or why it matters? It’s time to get yourself up to speed on this essential aspect of business that affects all inventors and entrepreneurs.
In this article, you’ll learn about the basics of IP protection when manufacturing in China, what it can mean for your business, and some ways to protect your ideas in the long run.
What Is Intellectual Property?
Intellectual Property (IP) is an umbrella term describing the set of intangible assets that are legally protected by a company or person from unpermitted use.
Intellectual property consists of different forms of assets, including trademarks, patents, and copyrights.
A trademark can be a word, phrase, symbol, design, or a combination of these elements that distinguish a specific item from the rest.
For example, the Coca-Cola Company has registered its Coca-Cola® trademark in both standard character format and special form formats.
A patent is an exclusive right granted for an invention, which could be a design, process, improvement, or physical invention such as a new machine.
For example, the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple Inc.
Typically, there are three types of patents:
- Design patents
- Plant patents
- Utility patents
A copyright is a collection of rights that automatically vest to someone who creates an original work of authorship.
A copyright protects an author’s right to reproduce the work, prepare derivative works, distribute copies, and perform and display the work publicly.
The most common copyrights include:
- Literary works
- Musical works
- Dramatic works
- Pictorial, graphic, and sculptural works
- Architectural works
What is IP Infringement & Why Should it Be Avoided?
Intellectual property infringement refers to the act of violating works that are protected by IP laws. This can happen in a manufacturing environment where the manufacturer copies the idea or design without permission from the original owner.
Nowadays, many overseas companies spare no effort to identify and protect intellectual property due to its high value in their businesses.
IP is essential for making sure that your hard work and creativity are credited to you. Having the satisfaction of knowing others use what you create makes it all worthwhile.
Not only does developing high-quality intellectual property take a substantial investment of time and intellect, but also requires an organization or individual to put in hours of work. It would be unfair for another party to access this knowledge without the consent of those who invested so much energy into its creation.
IP infringement can come in many forms, including unauthorized use, copying, reproduction, or distribution of materials protected by Intellectual Property Rights and counterfeiting products intended to mislead consumers.
So, protecting IP and avoiding IP infringement are serious matters.
How to Avoid IP Infringement When Manicuring in China?
Manufacturing products overseas can be challenging. When it comes to working with a manufacturing company in China, you need to take precautions to avoid any type of IP infringement. There are a few tips you can take to protect your invention from legal troubles.
1. IP Registration
IP rights are territorial rights, which are only applicable in the country or region where they are filed and granted by the law of that country or region.
If you manufacture your product in China (or anywhere outside of your home territory), which mentions or reflects your brand, then you must register that trademark locally even if you don’t plan on selling it there.
Registering for trademark protection can save your business from being ripped off and taken away. It protects your intellectual property rights because if you don’t do this somebody else will take advantage of the opportunity and steal your idea or design and produce them under a different name in China.
2. Confidentiality Agreements
The next necessary step is to sign an IP-protected agreement with your manufacturing factory to safeguard your confidential information.
In China, the most used contract is an NNN agreement, which means Non-disclosure, Non-use, and Non-circumvention.
Make sure the contract includes a confidentiality clause that prohibits your supplier from disclosing information about the product and its design or production process.
3. Intellectual Property Insurance
If the defense mentioned above doesn’t work, or you still have a great concern about your IP, then you can carry intellectual property infringement insurance in China.
However, such insurance is not widely used in China and is rarely covered by a standard business insurance policy, so it is not as effective as you think.
4. Work With a Reliable Manufacturing Supplier in China
It is essential that you are diligent and strategic with your intellectual property right protection so that your invention won’t be stolen or copied by someone else, which would prevent you from making money off it.
For this reason, it’s important to establish a strong IPR protection strategy from the beginning. Working with a reliable manufacturing supplier in China can help you protect your product design, production process, and ideas for new improvements or modifications.
If you’re looking for a company that has all your security needs covered, look no further than Shield Works. We are a British-owned and managed company that specializes in the high-quality and competitive rate of contract manufacturing and product assembly services. We follow a rigorous process to safeguard your IP with our 70,000-square-foot facility. Start your journey by reaching out today for more information and see how we will be able to make them worth every penny!
If you work in manufacturing, you know that your products are only as good as every component. Getting the right part at a reasonable price translates to better products, happier clients, and financial success.
This is where OEM manufacturing comes in. There are many advantages to using OEM parts, but there are also some things you can do as a client to get the most out of your relationship with the production company.
This article covers the basics of OEM manufacturing, including the advantages of their products. It also gives you some tips for maximizing your relationship with the company. It will help you ensure you are getting quality parts that allow you to meet your production demands.
What Is OEM Manufacturing?
The definition of “OEM manufacturer” is complex. In general, an “original equipment manufacturer” is a company that makes specific components that are then used in the products of another company. They work with clients to create a design and settle on manufacturing processes.
OEM companies set supply chain goals to produce the right component for the job. They also may offer add-on services, such as assembly, logistics, or warehousing.
Electronics and auto manufacturing are two of the most common industries that regularly use OEM parts. However, there are lots of different industries that rely on OEM manufacturers.
Advantages of OEM Parts
The biggest advantage of OEM parts is that, by definition, they are produced with a specific function in mind. They are made to fit and perform based on the original design of the finished product. This is why you can expect OEM parts to be the highest quality and design.
This may not be the case with aftermarket parts. These too are produced by a third party but without the original design in mind. For this reason, aftermarket parts may be sub-par in quality and function.
Aftermarket parts sales are usually directed toward consumers. OEM companies are generally business-to-business focused. That is due to the nature of the products.
The goal of an OEM is to make a component for a product before its original sale to consumers. Aftermarket parts are often produced as a cheaper replacement for a part after it has been sold, or to serve a different function than the original component.
An OEM is also distinct from an “original design manufacturer” (ODM). While OEMs make components for another end product, ODMs design and produce their own components for sale under another company’s label.
A good example of ODMs is third-party phone chargers. These tend to have a very similar design to other products on the market but are sold by distinct companies.
Getting the Most Out of OEM Manufacturing
The most important thing you can do to get the most out of an OEM manufacturing agreement is to establish a good relationship with the company. Communication is key. Having a working agreement with a manufacturer that is willing to field challenges as they arise will ensure you get the components you need on time.
This includes every step of the production process. Below are some tips to consider as you move through each phase.
Creating a Prototype
Prototyping is standard practice in OEM manufacturing. It allows you to establish a relationship with the company and lay out clear expectations about the process and the product.
This includes discussions of production timelines. If the OEM manufacturer is warehousing products for you, this is a chance to go over inventory management practices and standards.
Finally, the prototyping phase is the time to cover documentation. This includes conversations about how you will handle the exchange of files, blueprints, invoices, and other important documents.
Be sure to sign a non-disclosure agreement. This will grant the manufacturer permission to receive the product design necessary to produce the prototype while ensuring protection and privacy.
If both parties are completely satisfied with the prototyping phase, they will continue with pre-production. This step involves honing production processes to make a component that is ready to go to market.
Pre-production is an opportunity to take what was learned during prototyping and apply it to the production processes. This will improve efficiencies and end product quality.
Production begins when the OEM has finalized all adjustments from pre-production. Before actual production begins, the OEM manufacturer may ask you to sign a “manufacturing services agreement” (MSA). This solidifies all the expectations from each party.
The MSA is an important step for the manufacturer. It allows them to move forward to supply chain arrangements and set up inventory management. It also allows them to budget and put a production schedule in place.
Be sure you are comfortable with everything laid out in the agreement. This includes any applicable warranty information and production details. It also should specify steps for making changes during certain phases of post-production.
Once production begins, it may feel that things are “on autopilot.” This may be the case, and regular communication may slow a bit, but the manufacturing relationship does not end.
During post-production, be sure to schedule regular meetings for updates and adjustments. Spelling out this schedule in the MSA is even better.
As with any type of sales business, production needs may change. A reputable OEM manufacturer will want to help you meet all your demands, even amidst unforeseen circumstances.
Being upfront about changing needs or production specifics is the best course of action. It will allow you and the manufacturer to iron a plan together that is beneficial to both companies.
Find OEM Manufacturing Services
Now that you understand the basics of the OEM manufacturing processes, you get the most out of your agreement. Remember that the most important thing is to establish clear communication with the company. This will ensure that everyone is on the same page throughout all planning and production phases.
Shield Works Precision Manufacturing provides customized OEM production, assembly, and warehousing solutions to an international client base. We pride ourselves on maintaining the highest standards of customer service and product management. Reach out to us today to learn more about services or to get a customized quote today.
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!