Posts Tagged ‘Shield Works’
5 Questions to Ask Yourself When Selecting an OEM Manufacturing Company in China
Making products by outsourcing manufacturing to China can be an incredibly rewarding experience. Not only does it enable you to develop the item exactly how you want, but it also allows you to create high-quality products in much larger quantities than you would otherwise be able to make on your own. For these reasons, more and more entrepreneurs are choosing to manufacture their products in China by enlisting the help of an OEM manufacturing company.
However, with all the options currently available, selecting the right OEM company can seem like a daunting task.
Asking yourself the right questions before you begin production with a new partner can save you time and money in the long run, ensuring that you have an efficient manufacturing experience from start to finish. Let’s get started!
Question #1: What Are My Requirements & Standards?
The first question to ask yourself before approaching an OEM company is to develop an exhaustive understanding of your product. Not only should you have a general idea of the product, but also write down the product specifications in detail like:
- Colors
- Materials
- Dimensions
- Components
- Manufacturing techniques
- Manufacturing process
- Quality standards
- Packing requirements
- Import and export requirements
When you manufacture a product, the outcome can be drastically different based on what type of raw materials or techniques are used. It’s important to establish your criteria beforehand so that you know which company will create the best result for you.
Question #2: What Is My Budget Limit?
It’s important to define the upper limit of your budget when outsourcing your production to any supplier, because a more affordable company may not be able to provide you with the same quality and efficiency as a more expensive option. And you may not want to sacrifice the product quality just for saving a bit of money. That being said, while the price is certainly something you should consider when shopping for an OEM supplier, it shouldn’t be the only deciding factor.
However, it’s not a good idea to set an exact budget number right off the bat before all other factors are not considered.
In this case, you can estimate the price range for this manufacturing project based on what you think would work best for your company. Then you can also compare various service providers to have a better understanding of the perfect investment for your business.
Question #3: What Should I Do to Conduct Due Diligence?
After fully considering your needs, then you can conduct due diligence to know whether the manufacturing company is knowledgeable about your specific product type, or if it has worked with similar products before.
The best way to find this information out is by researching the company website to know their background, qualifications, service category, past work, etc.
You can also ask for references from a supplier you trust or reach out to other businesses that are manufacturing a similar product.
Doing detailed due diligence is not an easy task, check out our blog to know how to spot a real factory or a trading company in China.
Once you have all the relevant information, compare different manufacturers’ strengths and weaknesses against your needs and make a decision based on what will work best for your business.
Question #4: A One-Stop Shop Factory VS. Different Suppliers
Then you also need to think about do you want to use a one-stop shop factory that can fulfill all your needs or different suppliers who can specialize in different areas.
A one-stop shop factory is a model whereby one company manufactures, assembles, and distributes the product that they have been commissioned for. This factory can potentially increase efficiency and reduce production costs as a result of having all production processes under one roof. However, this could also limit your options for product customization if their manufacturing capabilities are limited.
If you need to make products with different materials or designs than what they produce, then you will need to find a different supplier. Furthermore, there may be certain materials or suppliers that are hard or expensive to acquire domestically in China so it may be necessary to find another supplier.
If time is not a concern and cost savings are your main priority, then finding one supplier might be the best option for you. However, if flexibility is more important for you, then working with multiple suppliers would be recommended.
Question #5: How to Guarantee My Product is Perfectly Working?
One way that a manufacturing factory can prove its commitment to quality assurance is by providing a sample of your product for inspection. In this case, requesting a product sample before placing your first order can be a good idea.
If there are any flaws, you have the opportunity to give feedback before mass production. In other words, if the manufacturer has nothing to hide, then there should be no problem with sending out a sample or a finished product for testing. This eliminates the risk of encountering problems and ensures your customers get what they pay for!
In addition, it’s imperative to look at whether your potential manufacturing supplier has an in-house quality inspection team or not. You want someone who will stand by you when things go wrong because inevitably something will go wrong at some point. If they assure you of having quality inspections available, ensure that the inspection report specifies what exactly is being inspected and which parts aren’t included.
Final Thoughts
Ultimately, your choice of manufacturer in China should be determined by what matters most to you and how much involvement you want with the production process.
Keep in mind that there is no perfect way of choosing a manufacturer but it’s worth taking some time to think about what’s important and how much you want to be involved in the process.
If you need any help, look no further than Shield Works. Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements.
We focus on the provision of a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.
How to Work Successfully with a Product Development Company in China
Whether you’re outsourcing manufacturing or just having product development done, working with a product development company in China may be the best thing you can do for your company. It’s not always easy to work with these companies and get what you want, but by following these tips, you can make sure you have the best experience possible when working with a product development company in China.
Researching if a Chinese company is right for you
Do your research to make sure the company is reputable and has a good track record. Request referrals from other clients, read reviews, and look for third-party verification on their website or social media pages.
If you’re still not sure, contact your potential manufacturer directly via email or phone to ask them questions about their manufacturing process, products they’ve made before, turnaround time, etc. Make sure you’re clear on what you want upfront so there are no surprises later. Make sure you have a clear idea of how much it will cost and how long it will take to get the product manufactured once all details have been finalized.
Finding the right supplier
There are many things to consider when looking for a supplier, such as cost, quality, turnaround time, and communication. Quality is always the most important consideration but you will have to weigh that against your budget and desired timeline. For example, if you’re going for high-quality but don’t want it delivered quickly, you’ll need to find someone who specializes in producing slow-moving items or can give you a discount on the price.
A product development company with a widespread network of suppliers in China can help you a lot as they provide a vast pool of options for you. This can save you time and money, as you’re likely to find several good suppliers from one firm.
Use an Online Translation Tool
If you’re looking to develop a product with a company based in China, it’s important to establish clear communication from the start. Using an online translation tool can help bridge the language barrier and ensure that both parties are on the same page. You should find a reliable translation software provider such as Google Translate or ICanLocalize before your project starts.
Always be sure to get in touch with your partner before starting work on your project. Communication is key to everything, and make sure you language is simple to understand. Do not assume that the partners will understand what 5×5 means when used in reference to size, or finish by Labor Day, as the Chinese Labor Day falls on May 1, when referencing deadlines. Be specific when discussing measurements and timelines so there is no confusion.
Use Templates as a Starting Point
When you are ready to start working with a product development company in China, it is important to have a clear idea of what you want your product to be. Templates can be a great starting point for this process. However, be sure to communicate your vision clearly to the company you are working with.
It may also be helpful to do some research about popular products on the market and create images or sketches based on these ideas. For example, if you want a toy that will help teach toddlers how to count and learn colors, you could use pictures of other toys that teach those skills as a template.
Ask For Samples
Always ask for samples of their previous work. This will give you an idea of their quality and craftsmanship. If possible, try to have someone visit their facilities, given the current travel restrictions, and meet with their team in person. This will help you get a better sense of who you’ll be working with and how they operate.
It’s important to find the right balance between trusting your instincts and choosing the company that checks all your boxes when it comes to your budget, timing, quality standards and expertise.
Document Everything
When working with a product development company in China, be sure to document everything. This includes contracts, communication, and any other important details. If god forbid, when it comes time for you to file a complaint or lawsuit against the manufacturer, you will have everything on hand for the process.
It is also important to remember that often times there are discrepancies between what was agreed upon and what was actually delivered. It is best to document as much as possible so that you can catch these discrepancies early before they escalate into an issue.
Deal With Design Changes at Scale
Changes are common in a design process. They may be minor, such as changing the color or size. Or they can be major, such as changing materials or components and all that entails. However, it is important to note that there are two types of changes: those that can easily be made at scale and those that cannot. The latter must always be done by hand.
When working with a product development company in China, make sure you specify which type of change you want done so the designer will know what to do! If your project requires many changes, have your Chinese manufacturer provide guidance on how to handle them.
Working with a product development company in China is not something to take lightly, but the rewards can be great if you do your research. That takes an experienced product development company for you to achieve, and Shield Works is one with 17 years of experience in this area. Reach out to us if you’d like to know more!
What to Know About Trademark Renewal in China
Doing business overseas is a massive accomplishment for businesses of all kinds. If you decide to go global and you want to enter markets such as China, you will want to make sure you have the proper paperwork in place for your trademark.
Even more so, you want to make sure that you keep up with your trademark renewal to ensure that you can continue to run your business under your preferred trademark name. If you currently do business in China or are in the process of doing so, you will want to learn more about keeping up with your trademark. Continue reading below to learn more about the trademark process and the trademark renewal process in China.
What Is the Trademark Law in China?
China only recognizes trademarks registered within its jurisdiction, and they are a “first-to-file country,” which means that the trademarks are typically given to the first business to file the trademark application. If you have an idea that you wish to trademark, it is recommended that you start the trademark process as soon as possible.
If you fail to trademark your business name, it leaves room for bad faith registration. It isn’t uncommon for businesses or individuals to knowingly file someone else’s trademark.
When to File Your Trademark Application
It is best to file your trademark application with the Chinese government within six months of submitting your trademark application in your home country. When you do it within six months, you can use your original priority date on your Chinese trademark.
Chinese Trademark Proceedings
The Chinese trademark registration process takes three to six months to complete. Depending on the volume of trademarks in the queue, it can take several months before your trademark application gets assigned to an examiner.
The Chinese Trademark Office, also known as the CTMO, tries to process their applications within six to nine months from start to finish, but don’t expect your application to be approved within that time frame. You should expect to receive approval within twelve to eighteen months.
What Happens if Someone Files My Trademark?
As mentioned earlier, it isn’t uncommon for someone to file a trademark in bad faith. If you feel that someone else filed your trademark in bad faith, you can file an Opposition.
The opposition process takes some time to complete, averaging from twelve to eighteen months. Most clients don’t have their opposition request reviewed until about eleven months after they send in the original request.
You can change your trademark to avoid infringement if you don’t want to go through the opposition process. Even if the original trademark were yours, it would be best to change your trademark since someone already claimed it.
You may be able to get away with minor changes in the trademark to receive an approval, but this depends on a case-by-case basis. The Chinese trademark office may deny your request if you need to make large scale changes. If you are unsure what to do, you may want to contact a trademark attorney for more information.
Filing a Trademark Renewal
You will need to meet renewal deadlines to ensure that your trademark does not expire. Once you have your trademark, you must renew it at least once every ten years. It typically takes about one month for you to receive your approval for the renewal.
Of course, as with any process, there are some potential delays. To ensure you receive your approval before your deadline, send your application for trademark renewal at least six to seven months before your tenth year.
Why Should You Register Your Trademark?
It is imperative that you register your trademark in China, even if you are a well-known company. As you now know, several different entities profit off making counterfeit items. For example, a well-known shoe company, New Balance, had to fight for its trademark rights in China for ten years before it won its trademark.
If you don’t register your name and someone else takes it, you must go through several legal proceedings to get your trademark back. This can cost you and your business thousands of dollars. To avoid this, it is best to register your name as soon as you can.
Chinese Definition of a Trademark
A trademark sign helps consumers distinguish the services or goods of different producers. This mark can either be a specific color combination, words, or numerals.
Additional marks used for trademarks:
- Devices
- Three-dimensional signs
The mark can also be a combination of all the above listed factors. In order to register your trademark in China, you must follow certain aspects.
The Mark Cannot Be Functional
China does not accept trademark applications that refer to the model of the service or the good itself. For example, if your business sells apples, you can’t just register an image of an apple or the word “Apple.” Any general imagery is free to use by any company, so registering an apple by itself hinders other companies.
The trademark must not sabotage competitors by using similar words or symbols related to other companies. For example, if you also sell technology devices but wish to label your company as Apple or something close to that name, you could face infringement from Apple.
The Trademark Must Be Legal
Your trademark cannot be similar to the name of an international organization or state’s flag. Your brand also cannot discriminate against anyone or any nationality. The Chinese trademark office will deny your request if your trademark indulges in exaggerated or fraudulent advertising.
The Trademark Must Be Available for Registration
Before submitting your application for your Chinese trademark, head over to the Chinese trademark office’s website. They have a database full of all the current trademarks registered in the country.
Make sure you look up your trademark name to ensure that it is available for you to register. The database contains preliminary approvals, trademark renewals, final approvals, and modifications of all trademarks.
The Trademark Must Be Distinctive
Similar to the trademark being a legal rule, your trademark must be distinctive. This means that you should be able to clearly distinguish your trademark from that of other services and goods.
Where to File a Trademark in China
If you wish to file your trademark in China, you will have to do so through the Trademark Office, China National Intellectual Property Administration. You can apply directly through this organization or through the World Intellectual Property Organization. It is essential that you reach out to a registered agent if you don’t have a place of business or residency in China.
Choose Your Product and Service Subclass
When filing your trademark, you have to file your application per class of goods or services. You will also need to submit a precise list of services or goods for which the protection needs. For example, footwear and boots fall under specific subclasses in China, so your trademark could be registered by different companies if the subclass is deemed different from yours.
When you file your trademark, it is imperative that you ensure your trademark covers all relevant services and products. Make sure it covers relevant goods and services in all applicable subclasses, or else you risk the chance of someone legally filing your trademark under a different subclass.
Register the Trademark in Chinese Characters
It is crucial to note that you must file your trademark in Chinese characters as well. If you don’t, you risk the chance of another company coming in and taking your brand in their native language.
If other firms use your trademark in their locally spoken language, there is a chance you could lose customers. It could also cause you to diminish your brand value. An example of this is with Mercedes-Benz.
When they entered the Chinese market, they had difficulty translating their name, as it directly translated to “rush to die.” Make sure you work with a reputable agent to ensure that your name gets correctly translated and not misconstrued by your potential new clients.
Benefits of Filing With the Chinese Trademark Office
As mentioned earlier, if you don’t have residency in China or a place of business in the country, you must file your trademark through a registered agent. When you file with a reputable registered agent, they can help you find the correct class and subclass to file under.
If you file through the World Intellectual Property Organization, the examiner will decide the subclass on your behalf. Although this sounds helpful, there is a chance they could miss a subclass.
How To Choose Your Chinese Trademark Name
To avoid infringement or any miscommunication, you must register the direct translation of or the Chinese version of your trademark. There are a few different strategies you can use to ensure that you choose the correct Chinese trademark name.
Phonetic Translation
Phonetic translations involve creating a Chinese character name that sounds like the original trademark. For example, Audi is known as Ao Di, and McDonald’s is known as Mai Dang Lao.
This strategy works best if the brand already has an established reputation amongst consumers in China. This can be a tricky strategy because of the several different dialects in China. Your trademark may directly translate as you want in one dialect, but it could mean something undesirable in another.
Literal Translation
Literal translations tend to work if your trademark has a distinctive meaning. For example, Apple trademarked its name as “Ping Guo,” which is a literal translation for apple. Another great example is the Palmolive brand.
They trademarked their name as Zong Lan, which is a direct translation of “palm” and “olive.” If your company chooses to go this route, be sure to invest time in building the association with your trademark name and the Chinese character trademark.
Combining Literal and Phonetic
Combining literal and phonetic translations is the most effective strategy if you are able to combine the two. This strategy takes the sound of your trademark name and combines it with a positive defining trait of your brand. You can also use a positive Chinese cultural reference.
For example, Coca-Cola goes by “Ke Kou Ke Le,” which translates to “taste and be happy.” This perfectly combines literal and phonetic translation.
To ensure that you have the right combination of the two, make sure you work with a registered agent to help you. Again, you don’t want to create a trademark name that could mean well in one dialect but could mean something not pleasant in another.
Why Is Trademark Renewal Important?
As mentioned earlier, you want to make sure you renew your trademark once every ten years. As a general rule of thumb, you should send in your renewal application at least six to seven months before your ten-year expiration date. It is crucial that you renew your trademark because if you don’t, you risk leaving a window open for another entity to come to take your trademark.
China Trademarks and Manufacturers
The trademark renewal process is just as important as the trademark application process because they both ensure that you retain the rights to your trademark. It is imperative that you make sure to renew your trademark once every ten years, or else you risk losing the trademark you worked so hard on.
If you wish to break into the Chinese market and you need a reputable manufacturer to help you, contact us. Our team is here to answer any questions or concerns you may have.
What Are the Benefits of an International Warehouse in China?
Did you know that China’s industrial output rose by over 9% last year? With low labor costs and great infrastructure, it remains the manufacturing hub of the world. So how can you benefit by conducting business in China?
If you are finding warehousing increasingly costly and hard to manage, then this country could have the answers. Read on as we discuss the benefits of an international warehouse in China.
Global E-commerce Is Competitive
If you want to access a global e-commerce audience, you have to be prepared to work for it. Whatever your product is, you will have numerous competitors, many of whom sell the same items. That means you need to take every advantage you can to get a competitive edge.
Having a new warehouse service in China lets you speed up your fulfillment process. You can reach audiences in the far east and Australia much quicker than you would do by posting from the US. You also get the chance to cut down on costs, which you can pass on to the consumer or absorb as profit.
Efficient Processes
There are numerous different challenges when it comes to warehousing. To deliver the most efficient service, you need to manage inventory, fulfillment, and transportation. Doing them properly requires organization, time, and the hiring of a large team.
By outsourcing to an international warehouse in China, you relinquish these jobs to a third party. You won’t have to manage a workforce or juggle your own team with those handling logistics. Instead, it will all be done for you.
All of this improves the efficiency of you and your team. You can redeploy workers to perform other tasks, and you can concentrate on what really matters: Getting leads and improving conversions.
Cost and Profits
While you save a lot of time, the financial advantages should not be underestimated either. In the US and Europe, warehousing can cost a lot of money. Once you start paying for the space, you also need to hire the staff to operate it for you.
With this model, you don’t have these incurred costs. Instead, you have to pay the third party for their service, which will work out much cheaper.
In China, the cost of labor is lower, meaning these operations can be performed at a reduced price. Added to this is the fact that a lot of the shipping costs are lower, making it competitive to send items across the world.
Access to Major Shipping Solutions
If you find shipping challenges to be a constant and recurring headache, then the right warehouse in China can help. By finding the correct one, you can have your products next door to one of the world’s major ports.
These will often have both land and air routes close by as well, so a whole range of shipping options is accessible quickly. With 24-hour customs clearance as standard at most major ports, your items can be on the way to buyers in an instant. All of this provides a huge advantage when it comes to international trade.
Easy to Scale Up
A time may come when you need to scale up. However, retail is a fickle business and what may be needed one year or season could drop the next. If you invest in space and staff, once in place, you are left with the ongoing costs.
It also takes time to put these things in place. If you want to do it fast and with minimum costs, a warehouse in China is a viable solution. The warehouse management will inform you of any leftover products lying in your inventory, so you are not paying for space housed with products that are not converting.
If you ever need to scale back the business, this works in the same way. You can reduce the space and stock you need without cost.
Human Resources
The last few years have seen what has come to be known as the great resignation. For businesses, this has made it hard to attract and retain employees in a wide range of industries. This process can be long, involving advertising, interviewing, and then the time of settling a new employee into the job.
China has human resources in abundance. There is a large population who are always looking for work, especially in the warehousing sector. Manpower is easy to hire and lets you scale up much more efficiently, without the long processes.
For specialist jobs, these people will already be on hand. You won’t have to train people or even put them through courses and certifications. Instead, the company will have what is needed at its disposal.
Networking and Experience
Once you have a warehousing company, you may need other contacts. It could be a manufacturer, or you may want access to other foreign trade zones. When you don’t speak the language and understand the culture, this can be extremely hard, and making the step is a huge financial risk.
The operators of warehouses will have numerous contacts. You will be able to ask their advice on who to use and, crucially, trust. As well as this, you can tap into their expertise and knowledge on everything from handling to shipping.
Finding an International Warehouse
Now you know the benefits of an international warehouse in China, you just need to find one. There are several companies online and middlemen who will help you navigate the cultural and language gaps.
If you need precision engineering, manufacturing, or warehousing in China, then Shield Works should be your first stop. We can provide a range of solutions, lowering your costs and improving efficiency. Contact us to discuss your needs and let our expert staff begin increasing your company’s efficiency.
Buying From Chinese Websites? 6 Benefits of Package Consolidation
It’s estimated that every split suborder adds a shipping cost of 1.9 dollars. Even though that number might seem small, the figures amount to a lot of wasted money.
Plus, the excess packaging leads to environmental waste, which is terrible for the environment. So, what’s the solution?
Package consolidation is a great way to reduce shipping costs while still receiving and sending high-quality products. If you’re not already using order consolidation methods, you will be after reading this article.
This article will briefly summarize package consolidation and how it can benefit you. That way, you can start implementing changes by consolidating packages.
What Is Package Consolidation?
As online shopping continues to rise, there are more and more packages being transported worldwide every day. From a business point of view, this is the dream scenario.
However, it can cause logistical problems in reality, resulting in higher costs and limited resources for other parts of your business. The idea behind package consolidation is that you group multiple items in one place.
This is an excellent solution if you work in clothes retail and have several t-shirts going to one household. You can safely transport goods without having to pack various boxes and packages.
Package consolidation is a low-cost alternative to sending packages internationally and could save you thousands of dollars in the long term because you can optimize the space in each container.
6 Benefits to Package Consolidation
Above all else, having an order arrive in one box with all the items is a guaranteed way to make your customers happy. When someone orders online, they want to receive everything at once.
1. Happy Customers
Customers keep a business thriving for years; without them, you wouldn’t be able to sell your beautiful products. So, it’s a top priority to make your customers satisfied.
When there’s so much competition online, you want to do everything you can to stand out and get noticed. The easiest way to build a better reputation is to send orders that arrive quickly and efficiently.
That means grouping items together into one package. The order is also less likely to experience damage in transport when it’s sent with other products, which will lead to fewer customer complaints.
2. Opportunity for Bundle Packages
Being in charge of manufacturing means you have control over the product assembly, so you can choose to group certain items in your store.
For instance, if you sell sports shorts, you can offer a deal for a pair of shorts, a t-shirt, and socks. You can get customers’ attention and encourage them to buy products together.
This marketing strategy makes it easier for you to transition to package consolidation and cut shipping costs while providing a great customer experience.
Package consolidation works for everyone!
3. Offer a Free Gift for the Extra Weight
In the shipping world, you’ve probably come across dimensional weight (DIM), which refers to the weight of a package and its dimensions.
Sometimes, you can be charged extra if the DIM exceeds the package’s weight. If you’re looking for a way to minimize these frustrating costs, you can use the free space with package consolidation.
For example, you can include a free cycling hat, notebook, or another item suitable for the order. Not only will your customer receive a freebie, but you’ll also reduce shipping costs and use the extra weight!
4. Package Consolidation Costs Less
On average, package consolidation costs less than sending items separately. Sometimes, you have to cover charges for deliveries to remote locations, delays, and other issues that arise during the shipping process.
Thankfully, when you merge orders into one package, you’re already reducing the overall cost of the order. Even though you might still encounter extra charges, it will be much less than if you shipped separately.
So, it won’t solve the problem entirely, but it will make your budget more flexible and allow you to maintain a high standard for your products without sacrificing the shipping time.
5. Better Safety for Workers
The employees in charge of your shipped orders have to handle hundreds of packages daily, which comes with many risks. There are often safety problems as the volume of packages is so high.
During the pandemic, logistic departments suffered from the absence of employees, which is why it’s essential to find practical solutions that take the pressure off these workers.
Package consolidation creates fewer packages for employees and reduces the health risk of transporting items from country to country.
6. A More Eco-friendly Approach
If fewer packages are making their way around the world, there is less waste being produced which pollutes the environment.
So, if you’re concerned about your impact on your planet, package consolidation is a great way to get involved with the movement to more eco-friendly practices.
You can also switch to eco-friendly packaging materials like recycled paper and cardboard that can be reused in other areas of life. It’s a great way to show you care about the environment and are actively managing resources.
But, first, you need to work with a manufacturing company that knows what they are doing. Otherwise, you could end up with broken items, damaged packages, and worthless investments.
Luckily, at Shield Works Precision Manufacturing, we have years of experience handling package consolidation in China. Our services include quality inspection and testing as well as order consolidation.
We can assist you with anything you need.
Choose the Right Option With Package Consolidation
As you can see, package consolidation is the best way to reduce shipping costs and make your customers happy with your products. There are also numerous other benefits like helping the planet and reducing safety risks.
You must work with a suitable manufacturer to ensure your high-quality products and the shipping from Chinese product sites runs smoothly.
Our team is ready to answer any questions you have about changing to package consolidation. So, you can start shipping goods and getting them to their new home as quickly as possible.
Get in contact to learn more about our services and what we can do for you at Shield Works Precision Manufacturing.
Manufacturing Contracts: Everything You Need to Know
The global contract manufacturing market will be worth over $2.7 trillion by 2023. Contract manufacturing is a significant part of the economy and drives business growth.
And for a good reason. Contract manufacturing is beneficial to companies hiring a contractor. They can use the latest technology and machinery, resources, and expert knowledge.
With so much at stake, manufacturing contracts include more than an agreement to work together. Manufacturing contracts are incredibly specific and cover a vast range of terms.
Before signing on the dotted line, here’s everything you need to know about manufacturing contracts.
What Is A Manufacturing Contract?
Many businesses don’t have the facilities or funding to manufacture their own products. Instead, they work with a dedicated manufacturing company that can produce the product for the company to sell.
If a company cannot or doesn’t want to make its own product, it will sign a manufacturing contract. Manufacturing contracts cover everything, from construction to children’s toys and military equipment. Even some perishable goods like food fall under manufacturing contracts.
A manufacturing contract is an agreement between the company that makes the items and the company that sells them. The contract covers every aspect of the manufacturing process, including:
- Sourcing raw material
- Delivery dates
- Quality
- Quantity
- Price and payment
- Transportation
- Liabilities and legal responsibilities
- Ownership and Intellectual property rights
- Testing and Certification requirements
The manufacturing contracts let both parties know what is expected of them. Eventually, working with a production partner will come to an end.
A manufacturing should include information about how and when the contract will end. This may include information on breach of contract, insolvency, and conflict of interest.
Types of Manufacturing Contracts
In general, manufacturing contracts are relatively straightforward. There are several different types of manufacturing contracts. Each type makes allowances for specific partnerships and agreements.
These are the most common types of manufacturing contracts.
Private Label Manufacturing
Private label manufacturing is the most common type of manufacturing contract. This agreement involves a manufacturer making a product to particular specifications. The design, sales, and marketing are the responsibility of the business. The manufacturer does not make decisions.
This is the ideal contract for businesses with exact specifications that don’t want to deal with the effort of manufacturing.
End-To-End Manufacturing
Also known as full-scale production, this is similar to private label manufacturing. End-to-end manufacturing means the manufacturer provides has input into the design and materials. For example, a company might enter an end-to-end contract for a manufacturer to make a specific industrial machine. The manufacturer will then take responsibility for the exact design, process, and materials.
The benefit of this type of contract is that the manufacturer can save money by designing a cost-effective operation. For companies that want an affordable product without hassle, this contract is ideal.
Individual Component Manufacturing
Some manufacturing contracts are limited to certain parts or components. The contracted manufacturer handles making one part of a larger product. Manufacturers may work alongside other manufacturers. Alternatively, they may send parts to the final assembly line.
These contracts can become very complex. Often these contract are in agreement with third-party companies. If Company A hires Company B to make a part, Company B might want to hire Company C to make a small part of the final product. In this case, the agreement because companies B and C must be approved by Company A.
This type of contract is common in specialist industries. Manufacturers outsource components that need expert knowledge and labor.
Labor Or Service Subcontracting
This contract is similar to individual component manufacturing contracts. Labor and services contracts are common in specialist industries. If a manufacturer doesn’t offer a full service, they may outsource some elements to a third party.
Manufacturers hire third-party suppliers or extra subcontractors for tasks that need specialists. This could include particular industry standards or qualifications.
The Benefits of Using Manufacturing Contracts
The contract manufacturing market is still growing. More companies are appreciating the benefits of outsourcing manufacturing. Contracts benefits both sides by setting expectations and outlining exactly what needs to be done.
Here are a few of the main benefits of manufacturing contracts.
Cost Savings
A good manufacturing contract should save money for both sides. Outsourcing manufacturing means companies don’t need to invest in specialist equipment. There is no need to set up factories, hire more staff or source materials. Furthermore, depending on the cross-border conditions, there may be tax savings.
For the manufacturer, contracts can help manufacturers adjust for expected quality and deadlines. With more information, companies can plan resources to save energy and labor costs. Manufactures can also bulk-buy raw materials at a lower cost.
Improved Focus
Working with a manufacturer allows companies to focus on what they do best. There is no need to become experts in the manufacturing process. Companies can spend money and resources designing and marketing their product.
The manufacturing company doesn’t need to worry about finding customers and making sales. This makes each company more efficient and more successful in its own field.
Increased Quality
Outsourcing manufacturing to an expert manufacturer means benefitting from their experience and expertise. The manufacturing company will have processes to ensure quality. A professional company is less likely to make mistakes resulting in recalls. This allows most companies to benefit from a higher-quality product from the start.
For companies that don’t have experience in manufacturing, outsourcing guarantees quality.
A contract makes the acceptable standard clear for manufacturing companies. This allows them to work to the quality requirements. Manufacturing companies can clearly understand what is expected.
Legal Security
A proper manufacturing agreement provides security for both sides. It can also help to increase trust between partners. With a signed contract, both companies can relax knowing they are protected. Neither side will end up in trouble for the other’s mistakes.
Legally-binding contracts help protect intellectual property and patents. And ensure that health and safety are taken seriously. Failure to adhere to the agreed-upon standards can result in the contract being void.
With secure agreements in place, both companies can trust the other. The result of not meeting expectations could have severe consequences.
Things To Look Out For
Manufacturing contracts are usually drawn up by legal departments. They are designed to protect the interests of both parties. A contract should help everything run smoothly and ensures the process is simple.
However, some companies run into problems with poorly written contracts. A production contract can cause more trouble than expected if you’re not careful.
Copyright and Selling Ideas
For protected and patented ideas or designs, outsourcing means more people could leak the design. Even if you have airtight restrictions on a design, competitors can create similar designs.
For unprotected designs, unethical manufacturers can sell ideas to other companies. They may make a profit and help the competition by creating your product for others.
Cutting Corners
Unless a contract is very specific, some manufacturers may source from questionable locations. The contract should include testing capabilities and procedures. The contract should outline potential consequences for manufacturers that cut corners during production.
Damage to Reputation
Child labor and slavery are not uncommon in some parts of the world. Companies need to be sure they trust their manufacturer to make good decisions. The potential for reputation damage is significant. A product made using child labor could be a PR disaster, even if the company was unaware. Your manufacturer is an extension of your business. Your business values and ethics should align.
Other Priorities
Many manufacturers will work with several clients at a time. This can result in one contract taking priority over another. The result is that deadlines can be missed as the manufacturer focuses on another project. A contract should make deadlines clear. This also means that surges in demand may not be met by production. The manufacturer cannot necessarily stop working with another client to fulfill demand surges.
Cultural Differences
Contract manufacturing is a global industry. As a result, there are plenty of cultural differences. Contract manufacturing in China has different expectations from similar companies in the USA. Working across borders with Chinese contract manufacturing means double-checking language translations. There may also be country-specific regulations and cultural differences.
What To Know Before You Sign A Manufacturing Contract
If you’re thinking of outsourcing manufacturing, you want to be sure you’re signing the right contract. Before putting pen to paper, here are some things to ask your production partner.
Who Is The Point Of Contact?
Often overlooked, knowing your specific contact is incredibly important. It means that if you have a problem, you can get in touch with someone fast. Otherwise, you may be unsure who to contact when things go wrong or when you want to make changes to your product.
Do You Have Testimonials?
If you want to take advantage of someone’s experience and skill, they should be able to demonstrate it. Ask to see client testimonials or example products from their line. This will allow you to be a judge of their quality of work.
Can I See Your Factory/Workshop?
A manufacturer should be transparent and willing to show you around their facilities. If they are reluctant, they may have something to hide. In minor cases, this can include a few health and safety breaches or operational inefficiencies. In more extreme cases, this can consist of child labor.
How Are You Maximizing Efficiency And Keeping Costs Low?
This will give you a good idea of how the manufacturer balances cost savings while maintaining a high standard. You should be aware of internal quality assurance procedures. Asking this can also help you understand exactly what you are paying for. It can also give insight into what type of business the manufacturer is.
Will Raw Material Price Increases Be Passed On?
Raw material costs frequently fluctuate. This can become an unplanned hidden cost later on. Some manufacturers will bulk buy in advance and take price increases into account. However, some contractors will ask for a price increase later on as raw material costs change.
What Process Do You Have In Place When Things Go Wrong?
To have total trust in your manufacturing partner, you need to be confident they know what to do when things don’t go to plan. This can include fire to supply chain issues and quality control failure. This should include how and when they inform you of problems.
What Non-Compete Clauses Do You Have?
His might not be relevant for every situation. However, there are many cases where you don’t want your manufacturer working with your competitor. You should check how they deal with competition proposals before signing.
What Possibility Is There For Contract Flexibility?
Business changes fast. You may sign a contract for one thing and find a few months later that you need to make changes. This could be quantity, quality, design, or price. Before signing, check out how much of the contract is flexible. What are your options for changing it, and how long will it take for changes to be implemented? You should also check if changes will incur extra costs.
The Right Manufacturing Contract For Your Business
Not all manufacturing contracts are created equal. Getting the right contractor for your business takes time, effort, and knowledge. Before you sign a contract, you should get it checked by your legal department or an independent lawyer.
Working with a good manufacturing company can save you time, money, and hassle and help you achieve a higher quality product.
Get in touch today to start enjoying all the benefits of contract manufacturing.
Can We Trust 3rd-Party Quality Control Services in China?
When you’re considering outsourcing your manufacturing to China, you may want to consider having an 3rd-party quality control (QC) agency check and test your products before they are shipped out of the country. But product quality Chinese suppliers provide can really vary sometimes. In order to combat this, manufacturers hire 3rd-party quality control services to inspect their product before they are shipped. But can we really trust them?
The importance of quality control in Chinese manufacturing
Generally speaking, quality control is essential for any manufacturing process, but it is especially important in China. If a company is not careful with its QA practices and starts producing poor-quality products, then the costs will skyrocket and profitability will fall dramatically.
For example, if a company produces one thousand defective units of product per day to be sold at $6 a piece and the cost to produce each unit was $2 then the total profit would be $4 per day ($4k per year). However, if 10% of the units are defective then the total profit would drop to $0 ($0k per year) because even though there are 1000 units produced they cannot all be sold at full price because some are defective. In other words, the more defects you have on your products, the lower your revenue will be.
That’s why it’s so important to have a good quality control system in place before production begins so that you don’t have these problems down the line. You are there for less headache but more cost-efficacy, not the other way around. Quality control is also important because consumers want assurance that the products they buy will work as advertised.
Doubt about Chinese 3rd-party quality control service providers
The quality of products made in China used to be questioned a lot. Companies often experienced difficulties with ensuring product quality and it was difficult for them to have peace of mind when they started manufacturing their products in China. It was not until the emergence of third-party inspection services that companies had some relief from this problem, but many companies still have doubts about whether or not these service providers are really independent.
It is because Chinese 3rd-party quality control service providers do not always act independently, and instead may act as agents for certain suppliers who are more powerful than others. Their goal is not only to improve product quality, but also the reputation of those suppliers who pay them well.
Can I trust them now?
The past can’t be denied. But thankfully, with the boom of advanced manufacturing in China and higher standard of quality required, 3rd-party quality control service there has become much more truly “independent”. They are equipped with a variety of professional skills for inspection and testing.
The most important thing is that these service providers are not dependent on individual factories but rather they offer their services to multiple factories as well as other buyers or clients.
You will also find that they often use various inspection methods to analyze products, including high-tech equipment such as X-ray machines, which are typically only available at highly specialized labs in the United States. All this means it’s easier than ever before for foreign buyers to purchase goods from reputable suppliers who employ such a service provider.
As for their job scope, these professionals will conduct inspections on all aspects of the product: shape and form, weight, color and appearance, size, packaging labels etc. If anything looks off (whether it’s an incorrect measurement), then your order might get rejected.
Moreover, because each factory may specialize in different types of items (such as electronics or food), hiring a QC service provider provides some assurance that any factory producing your product type is running according to modern standards. As long as you have faith in your own evaluation process and checklists from home office or another reputable company within your industry while visiting potential suppliers in person too—you’ll have nothing to worry about!
So yes, you can trust the 3rd-party QC providers now, just as how big names like Apple and Panasonic do!
How to choose an appropriate QC provider
It can be difficult to determine whether or not a 3rd-party quality control (QC) service provider in China is trustworthy. Here are a few tips to help you choose a reputable QC provider:
1. Do your research. Make sure to read online reviews and check out the company’s website about who they currently work with or have ever worked with, before making a decision.
2. Consider your needs. What type of products do you need to have inspected? What is your budget? Once you know what you’re looking for, you can start narrowing down your options.
3. Get in touch with the QC provider. Ask questions about their services and see if they would be a good fit for your business.
4. Request quotes from multiple providers and compare. The cost of a 3rd-party QC service is generally going to vary depending on your needs. For example, a full inspection for new products may cost more than a spot check for recently-produced goods. Some companies will even have an annual or semi-annual discount package that you can opt into. Once you have quotes from different providers, compare their prices and see if there are any special deals being offered by one company that you can take advantage of.
With the current travel restrictions, since they can’t be physically there to inspect, 3rd-party QC service in China has gradually become a popular option for many businesses with outsourced manufacturing there, which many of them have later found a pleasant surprise.
Shield Works is one with 17 years in this area as well as its own professional QC team and partnerships with certified labs. Contact us if you’d like to know more about our QC service!
A Complete Guide to Choosing a Production Assembler
Did you know that 8% of startups fail due to poor product production? If you’re like most entrepreneurs, you’ve poured your heart and soul into designing and creating a product that you hope will be a big hit.
But even the best-designed products need to be manufactured properly in order to bring them to market, which is why finding the right production assembler is so important.
You could also outsource to an offshore manufacturer, which is always a great idea, however, finding the right production assembler is a critical step in your product’s lifecycle that you’ll need to ensure you’re paying special attention to.
Keep reading for a comprehensive guide on choosing a production assembler so that you’re able to reduce and control operating costs while improving the focus on core your business competencies.
What Is Production Assembly?
Before choosing the right product assembly services, it’s important to know what you’re looking for. So, what is production assembly and how does it relate to your business?
Production assembly is a process that involves putting together products from individual components. This can be done by hand or using machinery, and it often requires the use of tools and other machines.
The assembly process can vary depending on the product being made, but it typically involves several steps, such as installing or attaching parts, testing the fit and function of the product, and packaging the finished product.
Production assembly is a critical step in the manufacturing process, and it is often one of the most labor-intensive steps as well. As a result, it is important to carefully plan and execute the assembly process to ensure that products are made correctly and efficiently.
Why Hire a Production Assembler
You might be wondering why you should hire a production assembler. Why not just do it yourself with a local business or even let a member of your team do it? After all, it can’t be that difficult, right? Not so fast there.
There are a number of reasons why you should hire a professional production assembler. First, they have the experience and knowledge to get the job done quickly and efficiently.
And more importantly, they have the right tools and equipment to get the job done safely and correctly. They can also provide you with a warranty on their workmanship. And, in today’s day and age, that’s worth more than its weight in gold.
Finally, they will save you time and money in the long run. After all, you wouldn’t outsource your marketing work to a software developer. So why not entrust an experienced production assembly professional to help you with that process?
How Does Production Assembly Work
In short, a production assembler is usually part of a package deal that includes in-house customized precision assembly activities. However, this simply means they take care of all the production assembly for your business. This means that they will be responsible for putting together products, components, or parts in the most efficient way possible.
This could include anything from adding bubble wrap to the boxes or testing circuits. It truly all depends on what you need.
When it comes down to it, production assemblers are an important part of any business that relies on them to get products out the door and to customers as quickly as possible.
In order to be successful, production assembly teams need to be able to work quickly and efficiently while still ensuring that the final product is up to the company’s standards.
The process in general typically works by the types of assembly needed. For example, at Shield Works Precision Manufacturing, we offer:
- Mechanical Assembly Capabilities: This includes hardware assembly such as any tapping and drilling that needs to occur to get your product out
- General Product Assembly: From wood and metal to plastic and cardboard packaging, this service is designed for pretty much any product
- Electrical Assembly Capabilities: This service is designed more for those whose production assembly requires things like circuit testing or lifecycle testing
- Packaging Services: From adding bubble wrap, binding, and stuffing to shrink wrapping anything that needs to be shrink wrapped, this is usually the final step before shipment
What we’re really trying to say is that there are a variety of different production assembly services out there and the process looks different for each one.
The Benefits of Outsourcing Production
The globalization of the business world has led to a new era of outsourcing, and production assembly is one area that has seen a lot of growth in recent years.
There are several reasons why businesses choose to outsource this type of work, including cost savings, access to skilled labor, and increased efficiency.
Cost savings is often the primary motivator for companies that outsource production assembly. By moving production to a country with lower wages, businesses can reduce their overall costs.
This can be especially beneficial for companies that have high-volume or complex production needs. In addition, outsourcing can help businesses minimize the impact of fluctuating currency values, which is particularly relevant in today’s markets.
Access to skilled labor is another key advantage of outsourcing production assembly. In many cases, businesses that outsource their assembly work benefit from being able to tap into a larger pool of workers.
This can be especially helpful for businesses that have specific skill requirements for their assembly needs.
Additionally, outsourcing allows businesses to take advantage of specialized assembly services that might not be available in their home country.
Increased efficiency is another common reason why businesses choose to outsource production assembly. By working with a company that specializes in this type of work, businesses can often get their products assembled more quickly and efficiently.
How to Choose the Right Production Assembler for Your Business
You need a production assembler to help you put your product together. But with all of the different options out there, how do you know which one is right for your business? Here are a few things to keep in mind when making your decision.
Consider the Size of Your Business
The size of your business is an important consideration when choosing a production assembler. If you have a small business, you may not need the same level of automation that a large business requires.
For example, a small business might be able to get by with a manual assembly line, while a large business would need to invest in an automated assembly line. Consider the scale of your operations and choose a production assembler that can meet your needs.
Look at Experience
When you’re looking for a production assembler for your business, it’s important to consider experience. Look for someone who has worked in a similar industry and who has the skills necessary to put your products together quickly and efficiently.
It’s also important to find someone who is familiar with the assembly process and who can work independently. Furthermore, you’ll want to choose someone who is reliable and who will show up on time for each shift.
Look for someone who has a strong work ethic and who is detail-oriented. With the right production assembler on your team, you’ll be able to increase efficiency and improve your bottom line.
Get a Sense of Customer Service
Choosing a production assembler is a long-term commitment. Therefore, you want to enjoy the relationship! How responsive are they when you have questions or problems? How easy is it to get in touch with someone when you need them?
The better their customer service, the easier it will be to work with them on an ongoing basis.
Things to Consider When Choosing a Manufacturer
Before you choose a manufacturer, there are a few things you should keep in mind outside of the three points mentioned above.
First, consider the type of product you’re looking to have manufactured. Some manufacturers specialize in certain types of products, so it’s important to find one that has experience with the type of product you’re looking for.
Additionally, take into account the number of products you need. Some manufacturers have minimum order requirements, so be sure to find one that can accommodate your needs.
And, don’t forget to factor in the cost! You’ll want to find a manufacturer that offers competitive pricing without sacrificing quality.
Prefer to see things listed out easily for you to scan when choosing a manufacturer? When it comes down to it, here are three easy ways to start looking at potential production assembly partners:
- Cost: Obviously, the cost is a major consideration when choosing a manufacturer. You’ll need to get quotes from several different companies and compare prices. It’s also important to consider other costs, such as shipping and taxes.
- Quality: Another important factor to consider is quality. You’ll want to make sure that the products you’re getting from the manufacturer are of the highest quality. Be sure to ask for samples before making a final decision.
- Delivery Time: This ties into the number of products you need as you’ll have to consider how long it will take for the products to be delivered. If you need them quickly, you’ll need to find a manufacturer that can meet your timeline.
These are just a few of the things to keep in mind when choosing a manufacturer. By taking the time to do your research, you can be sure that you’re making the best decision for your business.
Additional Tips for Choosing a Manufacturer
We hope we’ve helped you understand how important it is to do your research when you’re looking for a manufacturer. If you’re still having trouble then here are a few additional tips to keep in mind:
- Check out the facility. Is it clean and well-organized? This is a good sign that the manufacturer takes pride in their work.
- Ask about lead times. How long will it take for your order to be fulfilled? You don’t want to be left waiting months for your product.
- Get quotes from multiple manufacturers. This will give you a better idea of who is offering the best value for your money.
By following these tips, you’ll be able to find a manufacturer that meets your needs and expectations. However, be sure that they’re also helping you improve your bottom line.
Ultimately, we urge you to look for a company that is able to provide you with rapid, clear, and transparent communications throughout production along with full in-house quality control to internationally recognized standards.
If that’s what you’re looking for then we suggest you…
Consider Product Assembly Services With Shield Works
All in all, we’ve seen that the decision to outsource production assembly is often driven by the need to reduce costs. However, there are other benefits that can be achieved by outsourcing this activity.
From the ability to free up internal resources that can be better used elsewhere to accessing specialized expertise and equipment that would otherwise be unavailable, outsourcing production assembly is a great idea.
And, the benefits of choosing a production assembler in China are even more numerous, at least when you work with Shield Works Precision Manufacturing.
You’re able to enjoy the benefits of working with a 100% British team while still enjoying the ease and cost of being able to eliminate third-party QC man-day costs and strip away the layers from your supply chain.
Looking to launch a new product with assembly requirements or relocate your assembly from an existing China-based assembly house? Get in touch today!
Protect Your IP When Manufacturing in China: Don’t Let Your Ideas Fall Into the Wrong Hands
Information is becoming accessible due to the easy distribution methods available, which makes safeguarding your intellectual property when manufacturing in China a challenge.
No matter what stage of business you’re in, protecting yourself from those who would steal your ideas should be the top priority for any entrepreneur out there.
So, let’s take a closer look at this hot-button issue and how we can learn to cope with it.
1. US IP Law Does Not Guarantee IP Protection In China
The United States has some of the strongest intellectual property rights (IPR) laws in the world. However, these laws do not guarantee IP protection in China.
You might have your trademarks, patents, and copyrights registered in the US, but this would provide you with no protection in China if there are any IP issues happen.
So you have to be proactive about protecting yourself.
Try to address your IPR with your contract manufacturing partner in China at the very outset – for too many Western companies it wasn’t until they suffered consequences later that they realized their mistake.
2. Conduct Background Checks
The first step is to conduct a background check on the company and individuals you’re looking to partner with.
This will help you get a sense of their business practices and whether or not they’re reputable.
You can look it up online by yourself or ask for references from others who have used the contract manufacturing services in China.
There are many IP theft stories online that people share about their experiences working with Chinese manufacturers, which could serve as a warning to you.
It’s important to understand that IP protection can vary significantly depending on where the manufacturer is located and what type of industry they work in, so don’t rely solely on one method to safeguard your intellectual property (IP).
3. Create A Confidential File
Before finalizing a manufacturing supplier, you have to create a list of confidential files with product details like drawings, descriptions, production plans, and prototype update records.
When you need to discuss the manufacturing process with your chosen contract manufacturer in China, avoid sending your original product drawings or product descriptions.
This is one of the easiest ways for someone in the manufacturing company to steal your intellectual property (IPR).
If you absolutely must, send digital copies that can’t be easily reproduced. You can also consider watermarking them or sending them as password-protected files.
Also, make sure you have added dates wherever possible because the first date of use is critical in IP matters.
4. Create Confidentiality Agreements
The next best thing would be to have a written IPR agreement with your manufacturing factory and any other partner companies involved in the process so that all parties are aware of how you want it handled from start to finish.
You have to sign an NNN agreement with your supplier, which means Non-disclosure, Non-use, and Non-circumvention. It is a legally binding contract between two parties in which one party agrees to protect the IP rights in China.
By having your partner sign NNNs, you can help protect your company’s confidential information.
Furthermore, make sure to review and inspect any agreements made with local manufacturers before signing. If you do have a dispute, they may only address it in the Chinese version of the document which could give them an unfair advantage over you.
5. Engage with the Chinese IP Regime
There is no such thing as international protection for your intellectual property.
If you think highly of your IP, make sure to protect it thoroughly. You need to get it protected in China by filing your patents, trademarks, and copyrights with local authorities such as:
- China National Intellectual Property Administration (CNIPA)
- Trademark Office of China National Intellectual Property Administration
- National Copyright Administration of the People’s Republic of China (NCAC)
- Ministry of Commerce, People’s Republic of China
Remember to research the relevant IP regulations in China because they may differ significantly from your home country. Also, remember to have everything properly translated into Chinese because only these translated versions will be held as valid.
Are You Looking For A Contract Manufacturer In China You Can Trust?
Registering your intellectual property in China and the United States does not always guarantee its protection. One thing to remember is that enforcement of these laws can be unpredictable or time-consuming.
Ultimately, it all depends on who you’re working with and the kind of relationship you’ve established, which means careful consideration needs to go into choosing a Chinese contract manufacturer if they’ll work intimately with your company over an extended period.
Once you’ve selected one, it’s imperative that both parties set up clear processes for protecting your intellectual property at every stage of production or else risk losing it entirely.
Now, if you are looking for a reliable and professional contracting manufacturer in China, try to work with us Shield Works.
Over time, we have developed a list of IP protective methods at our custom manufacturing and precision assembly facility that has proven 100% effective at preventing IP infringements.
- We have state-of-the-art fingerprint access secure production zones to protect your interests and provide full IP protection at the source of manufacture.
- We have legally binding NDAs with every external body that we may work with during the process of your assembly line to ensure this is protected.
- We partner with Innopat, a leading Zhuhai-based IP industry expert to provide our clients with clear, no-nonsense advice and IP protection services.
Shield Works is a British-owned and managed contract manufacturing company in the South China Greater Bay Area, providing complete custom manufacturing and precision assembly services for western companies who are fed up with poor product quality, lack of transparency, and are worried about the reliability and delivery time from their Chinese suppliers.
We attribute our success to the dedication and expertise of our engineering team who is highly qualified and experienced. With over 15,000 projects completed, we’ll provide you with tailored advice, based on your situation. Tell us about your project and get a quote!
How to Find the Right Chinese Manufacturer for Your Business
In the last few decades, the Chinese economy has grown incredibly fast. One of the big reasons for this is because Chinese companies manufacture a considerable amount of products for western companies.
If you want to reduce production costs and grow your business, it makes a lot of sense to work with a China manufacturer. Given that you’d be working with a foreign company, the process can feel overwhelming.
So what exactly do you need to look for to make sure you find the right company for the job? This article lists some of the things you need to consider before signing a contract with a Chinese company.
Do They Have Certifications?
When you work with Chinese manufacturers, you need to be sure they have the right certifications. This helps to make sure you can rely on the company. If the China assembly service doesn’t have certifications to show you, it could be a red flag.
Always make sure you get proof of the correct documentation. A good company should be more than happy to provide proof.
Are They Financially Stable?
It’s also important that you work with product assembly services in China that are financially stable. The reason for this is simple. If the company goes out of business during production, it causes you a lot of problems.
A good Chinese product production company will be financially stable enough that you can rely on them to consistently deliver the product. You can find out if a company is financially stable by asking them about its finances. You should also verify what they say by researching the company.
Do They Offer Any Additional Services?
When looking into product assembly in China, you should also look for companies that offer multiple services. Many manufacturing companies in China offer other additional benefits, such as graphic design or packaging design.
This means that the company could deliver your product fully packaged and ready to go. Working with a company that offers such additional services can save you a lot of time and money in the long run.
You should take the time to analyze exactly what your company needs. Then see if you can find a Chinese manufacturing company that can meet all of those needs. When you’re only dealing with one company for a variety of services, it can really streamline your production process.
How Big is the Company?
You should also pay attention to the size of the company. While you might be tempted to go for the biggest company possible, this isn’t always the best choice. If you’re a small business, it may make more sense to go with a small or medium-sized manufacturing company.
As a small company, you’d probably be a much lower priority for a large company. On the other hand, if you go with a smaller company, they’ll have much more time to focus on your manufacturing job.
Before signing a contract, make sure that the company you’re considering doesn’t work with many big clients.
What is the Minimum Order Quantity?
You’ll also need to figure out if there’s a minimum order quantity. Many Chinese manufacturing companies will only work with you if you want to produce a certain number of units.
For larger businesses, this isn’t usually a problem, but for a small company, it could be problematic. Always make sure you confirm the minimum order quantity before you start doing business. This makes sure you won’t face any nasty surprises in the future.
Also, beware that if you work with a larger manufacturing company, they may implement a minimum order quantity later on in the business relationship.
Do They Have Good Quality Control?
When working with a Chinese manufacturing company, quality control is key. If the company sends you products that are not up to standard, your profit margins will decrease.
While Chinese manufacturing companies had a bad reputation for poor quality control in the past, they’ve gotten much better in recent years. If you work with a reputable company, you should have no problems getting quality products delivered.
Manufacturing companies should also have policies in place to reimburse you if some of the products are not up to standard.
Can They Provide a Product Sample?
Working with a foreign manufacturing company is always a risk. That’s why you should ask for a product sample before you commit to a serious business relationship.
A good manufacturing company would be more than happy to provide you with sample products. They should also be receptive to your feedback. It’s not uncommon to go through a few prototype examples before you get something you’re happy with.
Beware of any companies that aren’t willing to provide samples as it suggests they might not be a company you can rely on.
Check Out Reviews and Get Recommendations
You should also make sure you check out reviews of a potential company. These days a huge range of businesses use Chinese manufacturing, so you should find no shortage of online reviews.
You should try to verify the legitimacy of these reviews to make sure they’re not fake. You might also consider talking to other business owners you have a relationship with. Recommendations from friends are worth a lot as you know they’re genuine.
A China Manufacturer Can Grow Your Company
If you’re looking for a way to take your company to the next level, a China manufacturer makes a lot of sense. If you want to make a reasonable profit, you’ll need to find a way to keep costs down. Chinese manufacturers allow you to do exactly that.
If you want to work with a company with a lot of experience in working with Chinese manufacturing, contact us today, and we can help you to grow your business.