Posts by Jesse Liu
4 Things You Must Know about IP Protection in China
There are many things that businesses need to know before they start operating in China, and IP protection is one of them. It’s particularly important to be aware of these things if you’re doing business in the Chinese market—or any emerging market, really. Here are four things you need to know about IP protection in China that could help save your business down the road.
1) Don’t forget you are a foreigner
Protecting your intellectual property rights (IPR) can be a tricky process in any country. It’s even more complex when dealing with a foreign jurisdiction like China, which has its own set of laws and customs that are different from what you may be used to. While no one likes to think they might ever need to use IP protection methods, these can be an important asset if you do start to experience problems. However, before seeking legal help or going after someone for infringing on your IPR, remember that many IP cases fail because companies make basic mistakes; it pays to know some of them before taking action. For example: Don’t forget you are a foreigner – While Chinese laws should protect you against infringement, don’t assume that they will.
Remember that there is always a chance that local law enforcement will not support you, so it’s important to have backup plans in place. Remember who owns what – In China, registered trademarks are owned by their registrant rather than being assigned based on where products are sold. This is opposite of most countries and means you could end up losing ownership over your trademark simply by not registering it properly. Use multiple forms of IP protection – Just as businesses in China often use multiple locations for manufacturing facilities and offices, they also tend to rely on multiple forms of IP protection such as patents, trademarks and copyrights.
2) The first step – register your trademark in China
To fully protect your intellectual property (IP) rights, you need to register for trademark protection in China. There are three ways to do so: through a representative, through an agent, or directly at a Chinese national or regional trademark office. Registering directly at a Chinese national or regional trademark office is fastest and cheapest. However, if you don’t speak fluent Mandarin, you will likely want to use an agent instead. The best agents have years of experience with trademarks in China and can help guide you through all of the paperwork necessary to file your application successfully.
Once you have registered your trademark, be sure to maintain it by filing periodic renewal applications before expiration. Failing to renew could mean losing all legal protections afforded by registration—and that includes preventing others from registering a similar mark. If someone else does register a similar mark after yours has expired, they can legally block any attempt by you or anyone else to register it again in future. This process is called trademark squatting and it happens more often than many people realize.
The most common type of copyright protection is through registration with CIPA (China Intellectual Property Office). This will ensure your work enjoys legal protection.
A trademark can be registered with SAIC (State Administration for Industry & Commerce) or SIPO (State Intellectual Property Office) after you have completed examination and approval procedures. In addition to providing exclusive rights for your trademark, it also provides you with rights over its use in court if necessary. The most important thing when registering a trademark is making sure it has not been registered by another party first; otherwise you may face difficulties if you want to register it later on.
3) How do I protect my brand?
In your work, you are likely to produce some inventions and creations. If you have not registered them through copyright registration or patent registration with competent departments, you cannot enjoy their legal protection. So when creating something new, make sure it is intellectual property before releasing it to other parties for commercialization. This will enable you to set up a solid foundation for protecting your rights and interests.
Try to incorporate an effective copyright notice on all original works: Copyright is defined as a form of personal ownership that protects original works of authorship including literary, architectural and artistic works from being used by others without permission or compensation.
4) What to do if IP disputes arise?
After registering (or not), you should definitely keep your records – business contracts and anything else that may be needed later on when trying to prove your rights. Do not destroy anything! Business contracts between you and your distributor can be some of these important documents. Check with a local attorney before entering into such agreements as there are standard clauses that often appear in them. These clauses can have negative impacts on protecting your Intellectual Property Rights (IPR) in China.
If a dispute does arise, there are various ways to resolve it. One is through your local courts or trade organizations and those abroad if necessary. There are lots of examples, such as fair hearing before all members of Beijing Arbitration Commission and seek help from other departments (e.g., State Intellectual Property Office (SIPO) and National Copyright Administration). As an alternative, many foreign companies can solve their problems by going to local technology offices for consultation at any time. If you still have no solution after consultations with them, you may sue an infringer directly by yourself or apply for administrative assistance from SIPO. The most important thing is to make every effort when protecting your IPRs in China as once lost there is often no chance of recovering them again.
It’s always better to take precautions before it’s too late, such as finding a reliable production facility with their own IP protection zone. Shield Works is one of them. The facility also provides different types of IP protection services via the partnership with a leading IP industry expert in China. Feel free to contact us if interested in more!
Why China Is A Popular Option for 3rd-Party Quality Control Service
If you’re outsourcing your quality control service, there are certain things to consider before making a decision on where to have the work done. For example, if you have a technical product that needs very precise assembly or you need custom packaging, then having it done locally in your country may be the best option. However, if the only thing that matters to you is cost and you don’t mind shipping your product across the world, then China could be an excellent option for your 3rd-party quality control service since it has been making technological advances and offers competitive prices compared to other countries.
Flexibility to Fit All Project Types
One of China’s most appealing features as a third-party quality control provider is its flexibility. Clients can hire QC inspectors in China and conduct quality checks on site or they can choose one of several remote services including email, video conferencing, etc. The ability to select the services that fit each project’s needs and budget allows foreign clients to easily choose an affordable and efficient QC solution in China. Companies can also customize their China QC program according to their specific needs and requirements by partnering with China Quality Control Services. This makes it easy for companies from all industries to outsource inspection projects quickly without worrying about making complex adjustments throughout their program.
State-of-the-Art Testing
When you hire a third party to do quality control, you’re going to get it done state-of-the-art testing in a way that not many other countries can offer. You’ll get multiple quality checks, making sure your product matches every specification possible. This is important because when you use 3rd party suppliers, your products might be produced by different factories – there’s nothing stopping each of those from using different production and testing methods. When you outsource quality control services to an outside firm, you can rest assured all your products have been tested against all specifications across all factories that made them. Only after they’ve passed those tests can they ship out to customers and only if they pass inspection will they move forward in shipping. In short: Quality is guaranteed!
Experienced Staff
Quality control workers in China are well-educated and experienced, with many having years of quality control experience. It’s important to choose a good partner who has in-depth knowledge of quality standards so you can make sure your product meets them. They will also ensure that your products are safe for consumers before they ever arrive at your doorstep. Good Chinese QC staff will make sure any issues with quality or safety are detected and corrected during production, ensuring that every product that leaves their facility passes international standards. You’ll also want to check references carefully; ask other businesses that have worked with your potential partners what their experience was like.
Low Cost
This can be very important in low price markets. If you’re looking at introducing your product into China or any other low-price market, it’s likely that you need to be able to offer a cost competitive solution. By outsourcing your QC testing to 3rd party providers, you can concentrate on value added services such as technical support and distribution, thus reducing overall costs and still providing an acceptable level of confidence in your products quality. This makes Chinese companies a particularly good option if you are planning to go after emerging markets where cost is king!
Globally Recognized Accreditation
The 3rd-party QC services in China are frequently accredited by some of the most globally recognized bodies and all facilities they accredit must conform to some incredibly strict standards that provide unparalleled safety and protection. This can go a long way toward putting your mind at ease. As an example, ISO/IEC 17025:2005 was created by International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC). It is considered the global benchmark standard for assessing calibration laboratories and provides guidelines on how such labs should be set up. Moreover, it outlines specific testing procedures that labs must adhere to in order to maintain their ISO accreditation. In other words, if you’re looking for accuracy and reliability, look no further than a 3rd-party QC provider located in China.
First-Class Customer Service
It’s no secret that first-class customer service is key to success. With manufacturing jobs moving overseas in droves, it’s becoming harder and harder to ensure consistent quality. Even if you have a team of dedicated quality control workers at your disposal, their language and cultural barriers can prevent them from doing an effective job at ensuring high standards are met. A 3rd party English speaking team can do wonders for your business – after all, who understands what makes customers happy better than someone who actually is a customer? In China, this isn’t hard to come by. You will find many people who speak fluent English and other languages as well. This makes it easy to communicate with them about any issues or concerns they may have with your product. Many companies choose China because they want a company that will be there every step of the way during production, and not just when something goes wrong. You need someone who will help make sure things go right from start to finish. They will work closely with you on design decisions and offer suggestions on how to improve things like packaging or shipping methods so that everything goes smoothly once production begins.
Shield Works, founded and managed by British and based in China, is one of them with years of experience in the industry and an in-house team of bilingual engineers well versed in quality control standards and procedures. If interested, please feel free to contact us.
9 Things You Should Know Before Outsourcing Product Assembly to China
Outsourcing product assembly to China may seem like the easiest and most cost-effective solution to getting your product out on the market, but there are plenty of things you should consider before taking this route. If you’re not careful, you could end up spending more money on additional time and resources to get your products back than if you had stayed within your home country. To help you save yourself from these potential pitfalls, here are 9 things you should know before outsourcing product assembly to China.
1. Confirm The Basics
When you’re outsourcing anything, it’s important to make sure you have as many details worked out in advance as possible. That’s what makes product assembly different from most business processes: there’s no room for last-minute changes or rework. When dealing with international outsourcers like those in China, things can be even more complex; for example, if a supplier misreads your email and ships 100 units instead of 10, it could cost you thousands of dollars (and waste even more time). It is critical that you confirm every detail—length and width of each piece, exact location of holes or slots—before starting work. If any instructions are unclear or seem incomplete, ask your supplier to confirm them before proceeding.
2. What Are Your Shipping Requirements?
One of your primary concerns should be where your products will ship from. If a made in China label is part of your business plan, then it’s important to understand what your options are for product assembly and shipping. What kind of shipping timeline do you need? Talk to multiple suppliers and share your expected lead time, incoterm and final delivery details? One big perk of manufacturing in China is flexibility. Your candidates can go great lengths to win your order. Figure out what your priorities are and don’t easily settle on one option too soon. Depending on what’s most important—quality or price—you might have some better options than others.
3. What Is Your Communication Style?
One of the most important steps in product assembly outsourcing is making sure you’re communicating with your supplier effectively. Choose a communication style that works for you and stick with it: whether it’s email, phone calls/video conferences, instant messaging, find out what your preferred method of communication is and don’t waiver from it. If email is what you like best, make sure that your emails are on time and detailed; if you prefer conference calls, try to speak over each other as little as possible; if video conferencing is easier for you, get into a routine where both parties participate instead of just watching. The IM application, WeChat, is widely used in China. If you prefer instance responses, this might be the way to go. Regardless of how formal or informal you think your communications should be—stick with one style that works best for both parties.
4. Do You Need To Check on Quality?
If your product is new or complex, then you should definitely have someone on-site check on quality control. If it’s a well-established and simple design, some entrepreneurs may choose to trust their suppliers more and forgo regular visits. Either way, keeping in contact with your supplier can go a long way toward preventing mistakes before they happen. With the pandemic going on, it’ll be nearly impossible to travel to China physically. You might as well make good use of technology, like video recording! Use it to record yourself demonstrating how your product works so that you can send it over if questions arise during production (for tips on how best to do these types of videos). WeChat is great since it can work in any countries.
5. How Important Is Price?
One of your most common concerns is likely price. Oftentimes, people are under time constraints and are forced to choose what they think is a lower-cost option. But often, you end up spending much more when poor quality or communication causes delays in production and parts get lost in transit. The best way to ensure that price isn’t a deal breaker for your product assembly is by finding reliable manufacturers who adhere to agreed-upon pricing structures. Finding a manufacturer that doesn’t sacrifice quality or support for low costs will keep your project on schedule and under budget—not just at launch but moving forward as well. By establishing clear ground rules with your manufacturers from day one, you can reduce problems that lead to overruns later on down the line.
6. Do You Need Drawings/Sketches?
Sending drawings/sketches is ideal if you have a firm idea of what you want your product assembled, but no prototype. If you’re still in process with your design, it’s a good idea to wait until it’s finished before sharing. That way, whoever you hire can work off something concrete and visual. Many outsourcers use CAD technology for products with multiple parts or components; because foreign workers don’t always speak English fluently, drawings are a must for these types of projects.
7. Do You Have a Timeline?
Give yourself a deadline for when you want your product assembled and shipped. When outsourcing overseas, it can be difficult to gauge how long things will take, which can cause stress as you try to juggle multiple deadlines. Having a set timeline will allow you to manage your schedule more accurately. Many companies that work with foreign manufacturers are also able to provide assistance with logistics and shipping should you need help getting your products delivered on time.
8. Set Up Quality Control Throughout Manufacturing Process
When you’re outsourcing product assembly to China, it’s important that every stage of manufacturing undergoes quality control. Inspecting your products at each step ensures that a simple mistake or oversight at one point in production doesn’t snowball into a mass shipment of defective products—which can mean expensive returns, dissatisfied customers and even lawsuits. It can also help identify exactly where problems arise—and thus where additional quality-control measures should be implemented. Quality control is particularly important when outsourcing manufacturing because a hasty approach may skip important steps. For example, some manufacturers will cut corners by putting too much glue on an item or not applying enough pressure during gluing—both of which could render it unusable or prone to breakage.
9. Find the Right Supplier and Start Communicating with Them
It’s important that you find a company that specializes in product assembly. Some companies are not able to assemble products, and will send your components to another supplier who can complete assembly. Finding a reliable, competent partner will help make outsourcing a positive experience for both parties. Once you’ve found someone you want to work with, communicate clearly and directly in order to make sure each party understands what’s expected from them. Transparency is especially important when it comes to communication, as that way you’ll avoid misunderstandings or confusion which could delay your project schedule.
Shield Works is always ready to be your trusted partner for product assembly with our in-house and bilingual engineers. If you have questions regarding our contract assembly service, please don’t hesitate to contact us!
Why Outsourcing Medical Device Manufacturing to China Benefits You
You’ve come up with an innovative new medical device or equipment, and now you want to get it into the hands of doctors and hospitals across the country. You could just hire someone in your area to build it all by hand, but that would take much longer than you’d like, and you wouldn’t be able to produce as many units as are necessary to meet your demand and get it out there quickly. By outsourcing medical equipment manufacturing to China, you can save both time and money, while ensuring quality production that meets your exact specifications. Check out these tips of outsourcing medical equipment manufacturing to China!
Selecting a Contract Manufacturer in China for Your Medical Device Product
Choosing a contract manufacturer in China for your medical equipment product can be an overwhelming task. Before you begin, it’s important to have a clear idea of what you need and what steps you will take during your search. Once you have a plan, it’s time to find a reputable company with staff that speaks English. Next, arrange meetings and build relationships with potential manufacturers. The next step is choosing which company will produce your medical equipment product.
You might as well as yourself the following questions:
- What type of medical devices do you have experience in?
- What is their track record?
- Do they use raw materials from other companies or do they purchase them themselves?
- Does each manufacturer offer fast turnarounds and great prices?
- How many years has each one been in business?
- Is there consistency among all of their products?
- Are there any customer reviews online about them?
- Can they produce products in compliance with FDA or health and safety regulations in other targeted countries?
If you are going to export to the US, do some digging on the FDA database to identify the certified manufacturing and filter out the bad seeds with track record of practice or products violating regulations. At times like this, this step should be addressed with extra importance as the regulations are always subject to change. Finally, once you’ve chosen a contract manufacturer in China for your medical equipment product, make sure to sign contracts before beginning production.
It’s also important to make sure everything is written down clearly so there are no misunderstandings later on, including the specs required by the health department. If possible, try to get samples made by both companies before making a final decision. This way you can compare quality and price side-by-side before deciding who gets the job. You want to work with someone who not only meets your needs but also exceeds expectations at every level!
Benefits of Manufacturing Your Medical Device Product in China
When you outsource your medical device manufacturing, you gain access to the following elements of production.
Quality control
When you contract with a Chinese manufacturer for your medical equipment, they will send engineers and representatives to oversee production. This means that when it comes time for delivery, your items will be free of defects and exactly as specified in your contract. It also means that any errors made during production will be caught early on so they can be corrected before being shipped out. Having someone overseeing production ensures that nothing slips through the cracks and helps prevent mistakes from occurring later down the line. Also, as we have stressed the importance of adhering to the health and regulations issued by the countries you export to, experienced teams in China should know these rules like the back of their hand and strictly perform compliance checks for you.
Cost savings
When compared to American companies specializing in contract manufacturing, Chinese companies often offer lower prices due to their lower labor costs. By outsourcing your medical device manufacturing, you’ll have more money available to invest in marketing or research and development. Also, when it comes to manufacturing medical products, sometimes it’s tricky to strike a balance between maintaining required specs and budget control. China’s experience can be of great help in this regard.
Better Time Management
This also allows you to focus on creating your unique product, while allowing a 3rd-party manufacturer develop and produce it for you and help you better manage time, resources and costs; furthermore, because they’re focused on manufacturing one or several products for multiple companies, they’re able to handle much larger volumes than most startup companies can handle. This means that when you partner with them, you won’t have bottlenecks or downtime that could lead to delays in production or delivery.
Flexibility
A lot of contract manufacturers overseas are willing to negotiate terms based on how much work they have at any given time. If there is no work coming up, then they may agree to do a small project for less money than usual. This gives you an opportunity to get additional products made without having to pay full price—something many businesses find useful since cash flow is always tight when starting up new ventures.
Working with overseas manufacturers has its own set of challenges; however, if you approach them carefully and build relationships with them over time, it’s possible that outsourcing could help make your business more successful.
Examples of Medical Device Products That Can Be Manufactured in China
A lot of medical device products are produced in China, including ventilators, cardiac monitors, blood pressure monitors and infusion devices. Sometimes manufacturers can create a better product than your competitors by using specialized suppliers or materials they have on hand. Contracting with a company that specializes in manufacturing medical equipment makes sense since outsourcing allows them to control quality and make sure everything is done within your timeline. You may have not considered outsourcing your medical equipment manufacturing because you don’t think it would be possible; but it is, and you may want to.
To learn more about how to take advantage from the highest quality of medical device products from Chinese manufacturing companies who know all the western industry standards or to speak with experts with this regard, feel free to reach out and get in touch with us here at any time!
How Outsourcing Product Assembly to China Benefits Your Electronic Manufacturing
If you’re planning to manufacture and assemble electronics overseas, you might be wondering how outsourcing your product assembly to China can benefit your business. There are many benefits that come with manufacturing in China including lower costs, shorter lead times, and higher quality of products. These are just some of the perks of outsourcing product assembly to China that you should know about when deciding where to base your manufacturing operations or e-commerce distribution center. You can find out more about these advantages below.
Reducing Costs
According to a study from 2005, China has one of the highest costs of labor in Asia. However, other studies suggest that shipping products across oceans makes China an attractive location for manufacturing in terms of overall costs. Either way, saving money on product assembly will help your bottom line immensely. Manufacturers outsourcing their assembly process are typically able to cut between 20% and 50% off their product cost; without outsourcing, you could probably make a very similar product at a cost-per-unit profit comparable to or even greater than that of your competitors. It’s no wonder why so many manufacturers have chosen to outsource product assembly: The benefits are clear.
Improving Time to Market
It’s no secret that time-to-market is a major factor in determining success for new products. Starting with a lean manufacturing strategy can really improve your company’s ability to quickly get products onto store shelves and out into homes. Before you start building your product, consider if it makes sense to outsource product assembly or even electronics manufacturing. If done correctly, outsourcing certain parts of production can make prototyping faster, reduce costs and improve overall efficiency in product assembly and time-to-market. In addition, outsourcing electronics manufacturing overseas may allow you access to better talent at lower costs than you’d find domestically.
Improving Quality Control
One of the most important aspects of electronic manufacturing is your company’s quality control. All products, regardless of complexity, have at least one critical element that keeps them working properly: a single connector or set of wires, an integrated circuit or a battery. You must take special care when making these elements because any mistake can mean disaster for your customers. That’s why hiring outsourced workers to manufacture your product assembly allows you to retain more control over production than you would in-house manufacturing: When someone is actually constructing a product on your behalf in another country, they know they only have one shot at creating something that works perfectly every time—or it’s not going back on an airplane with them.
Increasing Customer Satisfaction
When it comes to outsourcing, customer satisfaction is just as important as cost. The most common mistake of new electronics manufacturers is trying to save money by selecting a vendor that cuts corners. This can lead to a lot of headaches further down the line, including returns and re-work. Start off right by finding an experienced partner with a proven track record in product assembly and electronic manufacturing services. You’ll have greater peace of mind knowing that you’re on your way to growing a successful business—not just doing business in China. Also, its time-saving benefit can also contribute to better customer satisfaction by keeping your design team focused on what they do best – designing new products! There’s nothing worse than spending hours making minor tweaks to an existing product when there are millions of dollars worth of opportunities out there just waiting for a new idea. Product design is where you’ll see huge improvements by hiring experienced engineers and designers with experience working with complex electronics like yours.
Helping Understand the Chinese Electronics Manufacturing Ecosystem
In China, product assembly work can be done through a large number of vendors. As a result, you have many different firms that are capable of handling specific tasks in your manufacturing process. To benefit from these resources, it is important to understand how they fit into the Chinese electronics ecosystem and what services they can provide. But to grasp each type of organization involved in electronics manufacturing in China can be very challenging for someone new to the country. It will be much easier for you to find an outsourced partner that can complete a specific stage of your production line and bridge all the gaps together with other departments for the output of quality products.
Shield Works is one of your best choices with a self-owned IP protected, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, including product assembly. Please feel free to contact us if you are interested.
Why 3rd-party Quality Inspection Service in China Can Ensure Product Safety
In the past two decades, the importance of ensuring product quality has become increasingly vital to manufacturers of all sizes in China and abroad. Unfortunately, there are still many companies that don’t take proper precautions to guarantee the safety of their products, sometimes even taking advantage of consumers by selling them low-quality goods. Fortunately, some 3rd-party service providers in China have created more effective measures to ensure product safety and help educate manufacturers about different ways to improve quality control on their end. Here are some reasons why you should consider using one of these services to ensure the quality of your products before sending them out into the world.
Why choose a 3rd party QI Service in China?
Choosing a 3rd party QI company (or individual) can be an effective way to ensure that your product arrives at its destination without any flaws or defects. It also shows potential consumers that you are interested in quality and safe products. When considering whether or not a 3rd party QI company is right for you, it’s important to remember that a 3rd party inspection does not change your product safety requirements. Instead, you will have an expert ensuring that all of your requirements are met before your product is shipped out of China. Without doing so, there is a greater chance of a mistake being made somewhere along its route toward distribution, leading to loss of money and valuable time on your end.
How do you pick the right one?
You’ll want to look for a company that has a team of experienced, 3rd-party quality inspection professionals. Keep an eye out for terms like 3rd party, certified, and ISO 9001. All of these describe professionals who have undergone training and are specially trained for audits, inspections, and analysis. While you should definitely make sure your inspector is certified by a 3rd party (anybody can label themselves as an expert), what really matters is their level of experience. As you shop around for companies that offer inspection services, ask about their methodology and whether they have any internal quality control processes. Does your inspector use random sampling or statistical models?
What do they look for?
Inspectors examine many aspects of a product and its packaging during quality inspection, including how it is constructed, what materials were used, how it is packaged and labeled, whether it complies with safety regulations and so on. If a product is intended for children or if it is inherently unsafe (such as chemicals), inspectors will look for warning labels or other ways to make sure consumers understand potential dangers. Inspectors also check for durability. Items such as stuffed animals may be inspected to ensure they’re safe enough that a child won’t choke on one of its parts. Electrical devices are often tested by connecting them to outlets and looking for sparks or open wires that could cause injury.
Why is this important?
When it comes to manufacturing, quality control is of utmost importance. While most entrepreneurs and buyers understand that quality control is crucial for any product, a lot of people overlook how important 3rd party quality inspection services in China can be when it comes to ensuring product safety. If you want your products and customers protected, get quality inspection services from a qualified 3rd party like C2W. You don’t have to worry about getting faulty goods anymore as all your products will be inspected before they go out of production. So if you want quality products every time, invest in trusted 3rd party quality inspection service providers today!
What should you expect from a good 3rd party QC company in China?
There are a lot of 3rd party QC companies in China that offer QC service. But how do you know which one is good? The first thing is they must be qualified. There are many provincial or national standard certifications related to quality control that a 3rd party quality inspection company should have. Don’t just trust them by their words, you can confirm by yourself. Don’t hesitate to ask them for their references! The second thing is that your supplier should work with them as well. This will ensure communication between both ends during every step of production and transportation, so there won’t be any errors due to miscommunication.
The Takeaway
Your manufacturer in China may have told you it is unnecessary to hire a QC service because their products are promised to have high quality with quality warranties. When things go wrong and there’s a problem with your order, however, that warranty is worthless. To protect yourself against faulty manufacturing or defective products—and therefore ensure safe delivery of your goods—3rdquality inspection services are worth your time and money. Not all 3rd-party inspectors are created equal, so consider how often they’ve worked with your specific product and choose one you’re comfortable working with.
To learn more about quality control services for Chinese goods or to speak with experts in the quality control industry, feel free to reach out and get in touch with us here at any time!
6 Tips for Outsourcing Electronic Manufacturing to China
Do you have an electronic product or system design that’s perfect, but don’t have the budget to manufacture it? Would you like to get your product on the market faster than would be possible by in-house manufacturing? If so, consider outsourcing some or all of your manufacturing to China. If you choose to do this, it’s important to plan ahead and ensure that everything will run smoothly. Here are six tips for outsourcing electronic manufacturing to China
Start Small
If you have no experience with manufacturing, then begin by outsourcing one small job. This will give you valuable insight into how your product is made and how much it will cost. If everything works out, then you can consider larger production runs later on. It’s important to remember that outsourced electronic manufacturing is generally a process-driven industry, which means costs vary greatly based on scale. In addition, don’t forget that different suppliers specialize in different areas of electronic manufacturing, so choose wisely and select a company that specializes in your specific product!
Choose a Reputable Supplier
While there are numerous suppliers located in China, it’s important to choose one that is reliable, bilingual and experienced with western culture. The process of outsourcing electronic manufacturing to Chinese factories is a detailed one, and requires a bilingual manufacturer with experience in your product industry. Asking around at trade shows or on websites such as Alibaba can help you find just that. Once you’ve found a factory you like, make sure to check out their work (website photos are not always representative of actual products), and write up an agreement that outlines both parties’ responsibilities before any manufacturing begins. Once you have a contract signed by both parties, it is time to start gathering documentation required by customs officials.
Understand Costs
Before you outsource, it’s important to understand your costs. You need a good sense of what you’re going to have to spend in order to get your electronic product made in Asia. If you are outsourcing electronic manufacturing in Shenzhen, China, take some time and learn about all of your options before making a final decision. Costs can vary depending on if you are looking at domestic Chinese companies or manufacturers that are located outside of Shenzhen but still within Mainland China. Some companies will quote higher prices due to their experience working with larger manufacturers and being able to offer high-quality parts faster than smaller shops who may not be as experienced with large OEM orders.
Get Samples
Before you invest in getting a bunch of units manufactured, it’s always good to try a sample run first. This way, you can test whether there are any flaws with your design and get a sense of how many revisions your manufacturer will ask for before they produce quality products. There are also some up-front costs associated with getting samples, but it’s still much cheaper than going through a full production run only to find out that something is wrong. And once you’ve got samples in hand, you can even use them as leverage to negotiate better prices from your factory.
Save Money with Fewer Prototypes
When developing a new circuit, it’s important to test each new iteration by building a prototype. Unfortunately, prototyping is expensive, especially when you factor in labor costs. The more prototypes you need to create and test, the higher your bill will grow. One way to save money on manufacturing is outsourcing your prototyping work overseas. You can get a board made quickly and affordably at Chinese manufacturing houses like Seeed Studio and Canavas.
Make Your Specs Simple
To reduce costs, you should make your specifications as clear and simple as possible. This is especially true in regards to materials selection. For example, if you need 100 circuit boards made and one of them requires a rare-earth element found only in one mine in Russia, be sure that’s stated up front. On top of reducing costs, clear specs also improve communication between you and your manufacturer.
Shield Works is one of your best choices with a self-owned IP protection zone, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, especially in electronic manufacturing. Please feel free to contact us if you are interested.
Why Outsourcing Manufacturing to China Is More Financially Reasonable
As your business grows, it’s likely that you’ll begin looking at outsourcing some of your manufacturing processes to other countries with cheaper labor costs, such as China. The problem with this practice in the past was the amount of time and money it took to hire workers overseas, monitor their progress, and then ship product back to your warehouse once they were finished. Today, contract manufacturing in China make all of these things easier, making the financial benefits that much more attractive.
Shipping Costs
Depending on where you source your goods, costs for shipping can be prohibitive. Before deciding to manufacture abroad, make sure you fully understand all shipping costs and regulations. In some cases, it’s cheaper to have a freight forwarder who specializes in international shipping do all of your importing from a single location, instead of importing from multiple countries with multiple carriers. On top of import duties, make sure you factor insurance into your cost breakdowns as well. If you’re not handling all shipping related tasks yourself, make sure you find someone who is qualified to handle these duties; if done improperly, shipping companies could lose or damage inventory which could lead to costly product recalls down the road. China’s labor forces are less expensive than other regions while its developed infrastructures mean that delivery times will be shorter because products will spend less time getting through customs. Many large retailers use Chinese manufacturers due to their central locations and short delivery times — many major ports in China are only a few hours away by ship — compared to other manufacturing locations like Mexico or Brazil, which could take up to two weeks for products to reach their destinations by sea.
Currency Conversion
One of the most common concerns about investing in Chinese manufacturing is currency risk. But RMB is very stable given the current climate. It has appreciated a mere 1.3% against the USD over the past year. And, looking back to 2005, when China joined the WTO and opened its borders to western-style investment and trade, RMB has only depreciated roughly 4%. There’s no reason not to be bullish on RMB for years to come. The currency is well-managed by the Chinese government (albeit with some nefarious strings attached), making it a very safe bet for dollar denominated transactions.
Freight Forwarder Costs
Freight Forwarders cost less in China, both in price and percentage of gross profit. Generally speaking, freight forwarders keep anywhere from 5% to 7% of a company’s gross profit as their service fee, but in China they can often cut that to 3%. For example, take a 4 million dollar shipment: A Freight Forwarder might only charge $80,000 instead of $200,000.
Quality Control Costs
There are many reasons why quality control services in China are cheaper but better than many other countries. Quality control services in China have been developed for years, and it has become mature enough. The cost of quality control services in China has been reduced a lot, and it’s much cheaper than other places like Hong Kong and Taiwan. Factories pay less attention on their manpower costs, they tend to hire more workers with less experience and skills, which makes the production lines much slower than before. Factories produce their goods with lower requirement of quality than international standard levels because they hope to sell them in domestic market easily, not paying too much attention on products defects caused by human errors.
Labor Costs in China
Labor costs are still lower than other countries despite rising and labors there are more skilled. While the rise may seem like it’s not worth taking a risk on an overseas location, consider that other manufacturing countries such as South Korea and India have labor costs that are double or even triple what workers make in urban areas of China. Furthermore, according to management consultant The Boston Consulting Group (BCG), labor productivity actually increased in 2013 by 18%, which means that wages have been increasing steadily while work conditions remain favorable for employers. Owing to its high-quality workforce, innovative industry and strong infrastructure network, China has built up global supply chains over time. Most companies choose to locate their factories there due to its strategic location connecting major Western markets. Despite being 3 times farther away from Europe than Mexico and almost 4 times farther away than Bangladesh, more products go through Chinese ports into Europe because Chinese coastal cities are closer.
How Does This Relate To My Product Idea?
You can focus more on renovating and marketing your product by outsourcing manufacturing to China. Since it costs less to manufacture abroad, you can put that money back into your product and save a bundle on quality control in China. If it doesn’t work out, you can switch factories easily without losing much of your initial investment. However, outsourcing isn’t right for every type of business and manufacturing abroad takes time to figure out—but if you’re willing to take a risk and have faith in your company’s vision, getting started with China production could be a smart choice for your bottom line.
With the British background and China base of Shield Works as well as our international bilingual team members and 3PL services worldwide, it is a great option to enjoy quality of China manufacturing and hassle-free process. Leave all your manufacturing troubles to us. If interested, please feel free to contact us.
5 Tips for Original Equipment Manufacturing
Original Equipment Manufacturing (OEM) refers to the production of equipment made to the specifications of another company or manufacturer. This business model has been applied by companies around the world and is very common in China’s manufacturing industry, due to its extremely competitive market and high-quality products at reasonable prices. However, there are several key factors that are unique to the OEM model that you must be aware of before beginning your venture into China’s Original Equipment Manufacturing market.
Original Equipment Manufacturer (OEM)
If you are new to importing and plan to start your own business, then Original Equipment Manufacturer (OEM) is a good place to start. OEM refers to products produced by other companies that are rebranded or sold under another company’s name. For example, if you own a clothing line, you could consider approaching different apparel companies and getting their apparels made with your branding on them and then sell them yourself. When looking at starting an OEM business it’s important that all parties understand what is expected of each other and how everything will work together in order to make sure it ends up as a positive experience for everyone involved.
Finding a Good Supplier
Finding a good supplier is probably one of your biggest challenges. There are literally thousands of manufacturers and suppliers out there, each with its own website, reputation, capabilities and pricing. The problem is that you can’t get to know every single one, even if you try. So what do you do? Find an original equipment manufacturer (OEM) with whom you can work long-term. This way, once your first orders start rolling in, they’ll be able to follow up on it without ever bothering you. Just make sure they’re easy to contact by email or the chat app everyone uses there, WeChat, to be specific—you’ll need them to be responsive because customer satisfaction is key when things go wrong or when there’s something that needs fixing or changing on the spot.
Factories vs. OEMs
While it’s important to understand how both factories and OEMs operate, each has its own purpose. Factories will typically manufacture products to order based on a minimum order quantity (MOQ). That is, they will produce your product based on however many pieces you purchase; with that said, there is no guarantee of quality. OEMs (Original Equipment Manufacturers) are different because they have a brand or intellectual property that gives them more autonomy over their manufacturing decisions; as such, OEMS will have stringent processes in place for ensuring quality control. With that said, choosing between factories and OEMs can come down to where your manufacturing budget aligns best with your business goals.
Outsourcing is never simple
Researching, scouting, and getting to know potential manufacturers and vendors is time-consuming. And when it comes time to find someone you can trust, it’s difficult to know where to start. At last year’s CES technology trade show in Las Vegas, there was a firm presented as a go-to manufacturer of devices that look like iPads but cost far less. But when we investigated further, we found that almost everything about them was false—they weren’t made by Apple; they didn’t even look like real iPads. The products were unlicensed knockoffs sold through some big retail chains in the US—which said nothing about them being fake or inexpensive.
Dealing with hiccups
A manufacturing hiccup can be anything from an underperforming supplier to a supply chain delay, but it can severely disrupt your production schedule. What do you do if there’s some kind of snag? Your first step is to identify what exactly has gone wrong. If you need help, ask questions and get as much information as possible so that you can resolve it quickly. Ask yourself: What is your problem really? Is there just one issue or several issues adding up? Is it something that you can solve on your own or is it something that needs additional resources and support? Next, figure out how important solving this problem right now really is—and decide what resources are required to get things back on track.
It’s a common misconception that manufacturing in China is expensive. In fact, it’s quite affordable, especially when you compare it to labor and material costs in other developed countries. But we understand your concerns regarding culture, communication and IP protection, as we, C2W, are a one-stop manufacturing solution provider founded and managed by British and based in China, with our own production facility and in-house bilingual engineers. If you are interested in getting to know more about how we can be of help with your product manufacturing while protecting your IP, please feel free to contact us.
9 Reasons to Outsource Product Assembly to China
As the name implies, product assembly refers to custom assembly that is so delicate it requires the use of precision tools and processes. The reason why you would outsource this type of assembly to China is because the precision tools and processes used in China are unmatched by anyone else in the world when it comes to cost-effectiveness and value. If you’re thinking about outsourcing your next product assembly project, here are 10 reasons why you should choose China over anywhere else in the world.
Affordable Prices
The main benefit of outsourcing product assembly to China is that it’s cheaper than having your product assembled in western countries. These days, you can get a variety of products, from T-shirts and baseball caps to umbrellas and pot holders, for a fraction of what it would cost if they were produced domestically. The comparatively low cost of living in China allows your company access to hundreds of skilled laborers who are willing and able to assemble products at a very affordable price. In fact, as much as it has grown over the years, labor costs in China are still much lower than they are in the west. Those savings can be used for higher-quality components or marketing and promotion so you end up with both an inexpensive final product and plenty left over for other aspects of your business.
Fast Delivery Time
When it comes to outsourcing, speed is critical. If a project isn’t finished on time, there’s a good chance you won’t receive any money from your client, and you could lose future business as well. That is why you want to be sure that when outsourcing product assembly in China, you are going with someone who can deliver quickly. Many Chinese factories with some of the best product assembly capabilities in all of Asia can get your parts out in less than 10 days when they are needed urgently, but they also have other faster shipping options as well. Assembling parts in China doesn’t have to take forever, but you do need to make sure that things are being done correctly by going with reliable manufacturers.
Quick Response Time
With China’s vast manufacturing and assembly experience, a proven system has been developed for shortening response times. You will get quicker quotations and better turnaround time on product samples and bulk orders. Most of the customers from the west comment that the quotes in China are extremely fast; many receiving them within 12 hours of first contact. It also depends on what needs to be made: if you need a simple design, then a quote can be given within 1 hour. If it’s more complicated, then it might take us 2-3 days. If everything is clear in your order details (material, dimension, quantity), your Chinese partner can send you a quotation immediately upon receipt of your order information or drawings.
Process-oriented Quality Control
Process-oriented quality control is very commonly seen in China now, where workers are given a certain amount of time (often just one minute) to assemble an item. If it takes longer than that minute, there’s something wrong with either their training or their tools and materials. Chinese firms have become experts at using very simple, easy-to-use products that can be built quickly and accurately. This type of approach could easily be used in other assembly lines nationwide in China—if you want your product built quickly and correctly, start by building a tool that makes it easy to do so.
No Surprises with Lead Times
You know exactly how long it takes for products to get from China. Since your goods are being produced offshore, you won’t have any unpleasant surprises about delivery dates either. You can choose from a variety of shipping options and will be provided with an estimated arrival date. And as long as you get things on time, no one will complain!
Diverse Product Lines
Diversifying your product lines is a good way to weather any economic storm. The U.S. auto industry’s reliance on trucks and SUVs is what brought them down in 2008; GM and Chrysler were making cars that no one wanted—not even Americans! Don’t make that mistake: Diversify your offerings, and you’ll be able to weather any storm that comes your way. China, with over 30 years of experience in manufacturing for the whole world, is a very ideal place for that with such variety to offer. Even when it comes to product assembly only, you can still be presented with countless options of industries.
Full-time Staff for 24/7 Support
Offshore outsourcing companies in China have full-time staff that are always available to provide assistance on your manufacturing project. There is no outsourcing night shift. You will be able to call them at any time and they will provide assistance with anything that you need. This is much better than waiting days for a reply from someone working at an office in another time zone, who may or may not understand what you want or be aware of specific details about your project.
More than 30 Years of Experience in Manufacturing Products for The World
People in China have been making things for a long time. And for good reason: it’s what they do best. You can count on China’s manufacturing capabilities, processes and workers, which has helped make them an integral part of supply chains and contributed to their high-value reputation. That makes outsourcing product assembly a very attractive proposition indeed.
A Wide Range of products Including Electronics, Medical Devices, Plastic Parts, etc…
Chinese manufacturers offer a wide range of products including electronics, plastic parts, medical devices, and much more. There’s a good chance that there’s a manufacturer in China capable of producing your product at competitive prices while focusing on higher quality products. This means that raw materials are relatively cheap and easy to acquire from nearby suppliers or imported from various countries around the world. No matter what type of product you need manufactured, there is likely an experienced factory in China ready to help you get it done.
Shield Works is one of your best choices with a self-owned IP protected, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, including product assembly. Please feel free to contact us if you are interested.