Protecting Your Intellectual Property: What Your Chinese Manufacturer Can Do
Your intellectual property, your product design and the manufacturing process you’ve created are often what sets you apart from the competition. That’s why you want to ensure that your intellectual property rights are protected and that nobody can steal your idea and market it as their own. The best way to do this is to partner with a Chinese manufacturer who understands the importance of intellectual property protection, and who knows how to protect it even when they manufacture your product in China.
Work with an experienced IP lawyer
Before you decide to work with a Chinese manufacturer, it’s important to know if the company has solid partnership with any professional and experienced IP legal service. They can help you understand the risks involved and develop a strategy for protecting your IP. Here are seven ways your lawyer can help:
1. Review your contracts.
2. Train your employees on IP best practices.
3. Develop an IP management plan.
4. Register your copyrights and trademarks in China.
5. Monitor the market for infringements.
6. Take action against infringers
For example, Shield Works has long-term partnership with a local law firm specializing in IP laws, Innopat. Innopat is a professional patent and trademark agency authorized by the National Intellectual Property Administration of the People’s Republic of China. Since 2002, Innopat has been dedicated to the specialized practice of intellectual property law including patent, trademark and copyright law.
Register your intellectual property in China
Before you can take any legal action against an infringer, you need to ensure your intellectual property is registered in China. The first step is to file a trademark application with the China Trademark Office. If you have a patent, you’ll need to file a patent application with the China National Intellectual Property Administration. Once your intellectual property is registered, you can begin taking steps to defend your rights in court should there be any infringement. There are two options for registering IP in China.
As we mentioned above, you can either work with a lawyer to register it yourself or hire a company that specializes in this process (known as IP service providers). That can save a lot of headache.
Consider patent filing overseas
Filing for a patent is a costly and complicated process, but it’s often worth it to protect your intellectual property. If you’re manufacturing products in China, you should consider filing for a patent in China as well as in other countries where you plan to sell your products. Your Chinese manufacturer can help you with the paperwork and logistics of filing for a patent overseas. They can also help you monitor your product to make sure that no one is infringing on your intellectual property. By working with your Chinese manufacturer, you can help protect your invention and ensure that you get the credit (and profits) you deserve.
Companies with a western background, such as Shield Works, compared with local Chinese companies, have more experience in this regard, as they know better about the western legal system.
Make sure contracts are signed
The legal protection in China is weaker than that of the US, which means someone could copy your product and sell it before you ever receive permission from the US Patent Office.
You need to ensure that all future developments are owned by the factory and not just those covered by patents. The factory can make an exclusive license agreement with its employees who create these new inventions.
The contract should require employees to assign all their intellectual property rights in any invention they create during their employment to the company for a set time period (usually 10 years). It is also important that everyone involved understands what types of inventions are covered by this agreement, for example new formulations of products and processes for manufacturing goods.
Know When To Transfer Technology
When working with a Chinese manufacturer, it’s important to know when to transfer technology. If you’re working on a new product or process, you’ll want to keep the intellectual property (IP) in-house. But once the product is finalized and ready for mass production, it’s time to transfer the technology to your manufacturer. This will help protect your IP and prevent knock-offs. Here are a few things to keep in mind when deciding when to transfer technology:
1. The product should be finalized and ready for mass production.
2. You’ll want to keep the intellectual property in-house until this point.
3. Once the product is ready for mass production, it’s time to transfer the technology to your manufacturer.
There’s no need to stress how important it is to be aware of the risks of intellectual property theft and take steps to protect your products and designs, when working with a Chinese manufacturer. By taking these precautions aforementioned, you can help ensure that your intellectual property is safe from theft. Shield Works is a manufacturer that does everything it takes to protect customers’ IP and ensures a infringement-free manufacturing process in China with our exclusive security system. Interested in knowing more? Don’t hesitate to contact us!
How to Find the Right Facility for Your Precision Assembly Projects
Outsourcing has stayed popular through the upheaval of the pandemic, with roughly 300,000 jobs outsourced from the US every year. It’s a way for businesses to access global expertise and resources, all while cutting costs at home. And in an industry where cutting-edge technology is necessary to do the job right, it could change the game for your business.
With precision assembly, you need assembly services you can trust. Your standards need to be high, which can make finding the right services a real challenge.
If you’re struggling to find the right assembly service provider, have you considered outsourcing?
Keep reading, and we’ll tell you exactly what to look for when outsourcing your assembly work.
Why Outsource?
If outsourcing makes you nervous, don’t let it! There are plenty of great reasons to consider assembly outsourcing. Here are a few of the best.
Cut Costs
Across almost every industry, businesses cite this as their number one reason for outsourcing. When you outsource, you don’t have to pay full-time wages to employees at home. You only pay for exactly what you need, which means you can stick to a smaller and more manageable budget.
When outsourcing assembly work, you can also save money on the equipment and facilities you would otherwise need. Setting up a precision assembly facility can be difficult, expensive, and slow. But when you outsource, you gain access to existing facilities, along with workers who know exactly how to operate them.
Cutting-Edge Resources
Staying on top of new developments in technology can become expensive when you own your own assembly facility. But when you outsource, you don’t have to take responsibility for upgrading your equipment to the latest standards. Your new outsourcing partner will do that for you.
It’s in their interest to make sure their equipment and resources are up to the highest standards. Your business won’t be the only one they work with, so by making sure their facility is up to the minute, they’re ensuring that all the businesses they work for receive the best possible work. It’s also a great benefit to their reputation as they look to secure new outsourcing contracts.
Do What You Do Best
Outsourcing means that your business can focus on its core competencies, whatever that means for you. You can leave assembly in the hands of experienced professionals, while you dedicate your attention to sales, development, and marketing at home.
By freeing yourself up to do what you do best, you can ensure that your business delivers the best possible service. Meanwhile, you can trust that skilled experts in the industry will handle assembly. Some outsourcing partners may even take care of logistics, too.
What to Look For in Precision Assembly Services
If you think outsourcing might be right for you, it’s important to know what to look for as you search for the right service. Here are a few things to keep an eye on when weighing up potential new facilities.
Latest Technology
The techniques used in precision assembly are always evolving, and your facility needs to match its pace. Finding a facility that keeps its technology and equipment up to date can save you both time and money. It will prevent any delays caused by the need to upgrade equipment, meaning you can fulfill your orders on time.
Look for a facility that has proven expertise in the industry, but don’t stop there. You also need to make sure they have the means and the willingness to innovate. If your facility of choice knows of a more efficient way to get the job done, they should be prepared to tell you and apply it to your manufacturing process.
Design Skill
Does the facility you’re considering actually understand what you’re making? Can staff make adjustments to your designs as needed? If the answer to those questions is yes, you may have found a service you can trust.
This level of insight into your production shows real experience in machining and assembly, and it’s a good sign for your ongoing partnership. That expertise can also act as a great failsafe, increasing the likelihood that workers will catch any errors in the product designs before it’s too late.
Assembly Capacity
Can the facility really do what you’re asking it to do? Does it have enough staff, resources, and equipment to meet your production deadlines? And if you want to scale up in the future, will the facility be able to accommodate you?
Even at these early stages, it’s important to know the answers to these questions. Make sure you show facility managers your plans and timescales early, so they can be forthright with you about their capabilities. An overstretched facility can lead to delays, errors, and lost profit, so you could end up regretting it later if you don’t check now.
Willingness to Communicate
When you outsource, you’re trusting another company to carry out essential work on your behalf. Communication is a huge part of that trust, and so you need to be confident that you can reach facility experts and decision-makers whenever necessary.
With clear lines of communication in place, you’ll be able to communicate your needs from the very beginning of your project. That way, you can make sure the facility gets your project right on the first try.
Precision Assembly Outsourcing Made Easy
At Shield Works, we combine Western standards with Eastern innovation. We have 16 years of manufacturing and assembly experience in China, and we bring that long history of expertise to a wide range of projects – including precision assembly.
We’re committed to transparency, and we offer unprecedented insight into the day-to-day work of assembly. Our quality control is carried out to internationally recognized standards. Whatever your project needs, we’re prepared to go the extra mile to work with you.
Contact us today, and let’s talk about what we can bring to your precision assembly projects.
Manufacturing In China: 4 Tips To Spot A Real Factory Vs. Trading Company In China In 2022
If you’re considering outsourcing production to China, there are certain things to know before embarking on the task like
- How to start?
- Who you can reach?
- What to do before placing an order?
- How much will it cost?
However, the most important thing is to make sure you are going to work with an actual factory rather than a trading company.
Why? Because when you work directly with the actual factory:
- Your spending will be less to get the same items, which increases your profit margin and reduces lead time.
- You can make changes to the product easier and quicker.
- Your product quality will be higher because you can check with your supplier now and then.
So, as you can imagine, it can be difficult to find out whether a supplier is a factory or just someone pretending to be one. Here are four tips you can use to figure this out.
1. Check The Business License
First and foremost, it’s a good idea to request a copy of your manufacturer’s business license which is called “营业执照” in Chinese.
Every legitimate company in China has a business license issued by a local branch of the Administration of Industry and Commerce (AIC). It is an official certificate, proving that the company has been registered with the authorities and operates legally.
If your potential supplier doesn’t have a business license, that’s a huge red flag. it’s best not to do any kind of business with them until they get everything sorted out on their end. No matter what they say, don’t risk your time and money.
If your supplier claims that they have a business license, it’s better to request a physical copy. It can be used as proof that your supplier is an actual manufacturer. In addition, if there is ever any dispute with your supplier, having a physical copy of their business license on file could be helpful.
Once you receive the business license, make sure you review it carefully. Keep in mind to check the business scope which should include words like “manufacture or produce” (生产，加工，制造)
if you don’t know Chinese, it’s ok.
Here is a simple way:
You can use your phone to scan the business license, extract words, and copy-paste to the Google translator. The business scope is the combination of some simple words so don’t worry about the correctness.
Verifying the business license is the first step when doing due diligence on a Chinese company. It allows you to verify that the company is legit and not a scam.
2. Check the Sample Address
Many Chinese manufacturing companies are willing to send out samples when you have a detailed plan for working with them.
One way that you can use this method is to verify if your chosen manufacturing supplier understands your requirements and quality standards.
Moreover, we advise checking the address of the sample package before disposing of it. Make sure it matches up with what is included on the business license that you requested beforehand.
If they are the same addresses, then this manufacturing supplier may well be a real factory rather than just someone acting as a middleman.
However, this isn’t always reliable.
The reason being is that some companies set up offices downtown whilst their factories are located outside of town due to cheaper rates for renting land.
In this case, even though the sample address might not be an office at that location, it still could be possible that they’re a real factory.
You have to check with your supplier to request both business licenses for the office and the factory.
3. Check the Facility Visuals
Now, many Chinese factories have the abilities and technologies to introduce themselves to the world through visualization.
Take Shield Works for example, we have invested heavily in digital presence such as
- Uploading our facility video online: enhance transparency across our manufacturing plant thoroughly.
- Creating a virtual facility tour on our homepage: show an immersive tour of our whole production environment.
- Posting images of the facility or factory tour on social platforms: keep our followers updated about our new visitors.
The reason for checking the facility visuals is that most foreign business owners can not come to China in person to make a physical facility tour to confirm the production environments, capabilities, and quality.
If a supplier tells you that they own a huge and state-of-the-art manufacturing plant, but cannot provide any proof yet, then it might be worth walking away from them until they can back up what they say with hard evidence.
By checking their facilities, you will have more confidence to build trust and reduce business risk.
4. Check The ISO Certifications
Typically, not every trading company has ISO certifications but the majority of manufacturing factories do.
This is because a factory needs some specific ISO certifications to keep operating.
However, some trading companies also have ISO certifications to deal exclusively in one product category and maintain a strong relationship with their manufacturers.
Working with such a trading company is the same as working with a real manufacturing company with a factory when it comes to price.
Meet Shield Works
When selecting a manufacturing company in China, you have taken into consideration many factors.
It’s important to list your needs and criteria before starting the process of narrowing down candidates or you risk being too hasty in making a decision without taking all necessary factors into account.
Working with a professional manufacturing company in China like Shield Works will save you time and reduce risks.
With our British ownership and management background, we take great pride in our over 17 years of international project experience and excellent team. Contact us for a no-cost consultation!
Your Guide to OEM Products: What They Are and Their Benefits
Projections show that the global automotive OEM market will reach a value of $39.503 billion by 2028.
When it comes to aftermarket car parts, the general belief is that they may be lower in quality than factory originals. Your old air conditioner, for example, finally gives out after all of these years. The next day, you head into the dealership and purchase a factory replacement for optimal performance.
Auto parts aren’t the only thing produced by OEMs – in fact, they can create all kinds of components for various industries. So how do you decide between the two? Well, first you need to know about OEM products.
In this guide, we’ll go through what they are, why you should use them, and anything else you need to know.
OEM Products Defined
An OEM (original equipment manufacturer) is a company that makes parts that are considered to be as good as the components of products from another manufacturer. For example, a manufacturer that makes smartphone screens that are as good as the ones that come as standard in iPhones would be classed as an OEM.
OEMs generally work closely with VARs (value-added resellers) to add value to an original item, which the VAR then sells. An OEM may make custom designs based on the needs and specifications of a VAR.
How OEMs Work
An OEM typically makes sub-assembly parts, but will sometimes produce completed items (although this is rare). An OEM as above, that makes smartphone screens, may also make a range of other electrical components. They might then sell these on to a company like Samsung or Apple, which assemble these parts into TVs, smartphones, computer monitors, etc.
Many parts made by an OEM are quite insignificant on their own. Most final products are assembled from many individual parts before the VAR sells them under its own brand name.
As OEM product manufacturing consists of parts and components, they focus mainly on B2B (business-to-business) sales, whereas VARs sell primarily to end-users. With that being said, the number of OEMs selling directly to customers has increased in recent years.
This is mainly with certain types of products. OEMs that make computer components, for example, often sell directly to customers who build their own computers. Car part manufacturers often do the same as many people carry out car repairs and upgrades themselves.
Despite this, the auto industry contains one of the most basic OEM examples there is. OEMs manufacture parts like brake cylinders and exhaust systems, which they sell to auto manufacturers. These manufacturers then assemble these parts into cars, which they market to auto dealers, who sell them on to customers.
Newer OEMs
In recent years a new definition for OEMs has arisen, and it’s most commonly associated with the computer industry. It refers to a company that buys products, then rebrands them or incorporates them into new products under their own name.
Microsoft, for example, creates Windows software which it then sells to HP. HP incorporates this into its devices and sells them to customers under the HP brand.
In this situation, Microsoft would traditionally be the OEM, and HP would be the VAR. In most cases, however, the product guide from HP would refer to themselves as the OEM.
You do have the option, however, to go for aftermarket parts instead of OEM products. This is true for almost any component, and whenever you need to replace or upgrade anything, you need to choose which you think is best.
OEM vs Aftermarket
People often get OEM and aftermarket confused, but they’re almost opposites in some ways. OEM parts are made for specific products. Aftermarket parts are made by another company, and customers can use these as a replacement for the original parts.
There’s a lot of competition here in many industries. Among the most common is the auto parts industry.
If a consumer has a Ford Taurus, for example, and the thermostat breaks. They can replace it with an OEM part made by ABC Thermostats, which would be identical to the original one. Alternatively, various other companies make other parts that would serve well as a replacement – these are aftermarket parts.
In many situations, a consumer would go for an aftermarket part because it’s cheaper and/or easier to obtain. Sometimes it may be the only option. If the consumer is replacing a part from an older product, the manufacturer may no longer support it, meaning the OEM might not make the parts needed anymore.
Sometimes certain aftermarket product manufacturers become well known for the quality of the parts they produce. In these cases, consumers may specifically look for parts made by such an aftermarket manufacturer.
This is something else that is commonly seen in the auto parts industry. Hurst Performance, for example, is an aftermarket gear shifter manufacturer. They’re also an OEM manufacturer of some parts for various muscle car automakers.
Their products are generally seen as being superior to the parts that most cars come with as standard. Because of this, people will often choose them for replacement parts instead of going with OEM parts. People will sometimes upgrade to Hurst Performance gear shifters before their original even needs replacing.
The Benefits of OEM Products From Shield Works
When buying parts, you may need to decide what type of manufacturer to go with. Several advantages come with using an OEM.
Response
You’re likely to get a faster response from an OEM than other manufacturers. This is because they can identify and produce the part quicker as they have access to the technical drawings. At Shield Works we aim to always keep turnaround time to a minimum, ensuring we get your parts manufactured and out to you in good time.
Quality
With OEM parts, quality is key. We work to make sure our parts are identical to the original component, if not better. We test all parts we create to make sure they meet the specifications of the original, ensuring high quality and reliability.
Any parts you receive from us will be fully compatible with the product and perform just as the original part did. At Shield Works, we go by ISO standard work practices to ensure we maintain a high product standard. All of our processes and record-keeping also meet ISO standards, maintaining high-quality practices across all areas of our business.
Shield Works is a Wholly Foreign-Owned Enterprise (WFOE). As such we adhere to all PRC laws and regulations in terms of product manufacturing, assembly, distribution, and exportation.
Support
All OEM support engineers should have access to the engineering team that designed the original products. This means they’ll also have access to any information or details needed to ensure the part is up to standard. With a high level of technical knowledge and support, we can ensure that we make all of our parts correctly, with minimal room for error.
Value
OEM parts should always be as good as the original part. Because of this, you would expect them to have the same longevity. If a part serves the same function but fails much quicker, it may not be as worthwhile to replace it.
Any parts you get from an OEM manufacturer like Shield Works should last just as long under the same conditions as the parts they’re replacing. The performance will be just as good, and it will degrade at the same rate or slower.
One of the downsides of aftermarket parts is that they often don’t match up here. While they may work well enough for the same purpose, they’ll often fail much quicker. This is because they tend to be made with lower quality materials, and with worse manufacturing processes.
ROI
In most cases, an OEM manufacturer produces parts in a very cost-efficient manner. While aftermarket parts can also be very cheap, the lower level of quality means that they’ll need replacing more often, and they’re more likely to have defects from the start.
OEM parts are specifically designed to exact specifications to match your equipment. In the long run, this will keep the need for maintenance down, helping save on costs. It also means you’ll experience less downtime, further increasing the ROI (return on investment).
Costs
Shield Works is based in Guangdong, China. The cost of product manufacturing varies depending on the country in question. In China, manufacturing costs are often much lower than in many other locations.
By saving costs on manufacturing, we can offer our OEM parts at a lower price than many competitors, without compromising the quality.
While all manufacturing takes place in China, Shield Works is 100% British owned and managed. This means that we maintain western standards for communication, service, and business ethics at all levels of our organization.
Transparency
People may have concerns about products being manufactured so far away from a business’ main center of operations. To ensure all standards are held we maintain 24/7 video streams from our warehouse in Guangdong. Using this you can observe your manufacturing area at any time to ensure proper practices are being adhered to.
Security
One of the best ways of ensuring standards are maintained is to only allow authorized personnel into manufacturing zones. To do this, we use fingerprint access which helps provide full IP (intellectual property) protection at the manufacturing location.
Access
While a 24/7 video feed is useful for monitoring a manufacturing zone, it doesn’t give a good look at the parts themselves, so you may want a better idea of how everything is being handled. We’ll give you full access to production monitoring in real-time. This way you can get details from your assembly line whenever you need them.
You can look at information such as communication lines and statistical reporting to ensure things are on track. This also means you can communicate directly with your production team in China if need be.
Flexibility
You can contact us at any time if there are any changes you need to make. Within our OEM manufacturing processes, we can make any adjustments to ensure your orders meet your needs. If you have any product adjustments you need to make or project requirements that we’re not aware of, just let us know and we’ll make the necessary changes.
Experience
Shield Works, with already over 17 years under its belt now, was launched the core values of transparency and integrity. We still carry these principles on today, and they’ve been a key component of our success in the manufacturing industry.
Since being founded we’ve completed over 15,000 projects. Our team is skilled in a variety of processes and sectors.
Capabilities
Over the years our team has tackled all kinds of projects. We can produce a range of hard goods, soft goods, and electronics such as:
- Furniture
- Tools and hardware products
- Automotive parts
- Safety equipment
- Jewelry
- Footwear
- Bags and accessories
- Home and garden appliances
- Lighting
- More
Whatever OEM parts you need, we can manufacture them professionally and in good time.
Getting Your OEM Products
OEM products are ideal if you want high-quality parts for your goods. The products we manufacture at Shield Works will always meet or exceed expectations, making them ideal for any situation.
We pride ourselves on transparency, so you’ll be able to see what’s happening with your parts at any stage of the process. We have a wide range of capabilities and can meet whatever needs and specifications you have. OEM parts provide quality, reliability, and longevity.
The team at Shield Works Precision Manufacturing is ready to take on any project you have. If you want to know more about our services, or if have any other questions for us, contact us today.
Manufacturing in China: 5 Facts You Should Know
Though it seems like a lot of overseas companies outsource their production to China, there are plenty of misconceptions about Chinese manufacturing that can come back to haunt you.
Before you set out to reach a manufacturing partner in China, there are some facts you should know so you can prepare yourself for success instead of falling into the pitfalls. Let’s dive in.
1. Manufacturer VS. Supplier
If you’re looking to get your product made in China, you’ve probably already heard the terms “manufacturer” and “supplier” thrown around a lot.
They seem to be the same thing, right?
Yes, but also no!
Though the two words are closely related, they are not always meaning the same person in the manufacturing industry.
Generally speaking, a manufacturer would be considered more of an in-house entity that operates as your micro-factory with all the machinery and workers required to create your product from start to finish.
Suppliers are those who supply goods or services; but they can sometimes also act as manufacturers, wholesalers, or distributors who purchase existing brands and products (usually from somewhere else).
It’s imperative to make sure that you understand the difference between “manufacturer” and “supplier” and figure out what kind of services they can provide for your business.
If you’re a newcomer to the market, make sure to work with someone who doesn’t take advantage of inexperienced clients.
Before signing any contract or making any upfront payment, it is important to know if your manufacturing partner is qualified for what they produce and has an official business license to run a company in China.
2. Manufacturing Costs Vary Across Different Cities
Though you may think that manufacturing costs in China are lower than that of western countries, the prices in manufacturing among Chinese cities differ significantly.
One of the reasons for this is that China has undergone enormous changes and development in recent decades. This explains why the average monthly salary differs between cities or regions.
In this case, you may find out that some cities display relatively stable manufacturing cost patterns while some raise their manufacturing service fee due to the increment in labor costs and land prices.
The other main reason is that China is paying great attention to improving its high-end manufacturing capabilities. Now, more and more high-tech manufacturing factories are well-established to pursue productivity and lower costs.
3. Finding the Right Manufacturer in Your Area
Locating for a manufacturing company that produces what you need is easy unless you confirm everything you need beforehand.
The main thing you should know is that many manufacturers usually stick to one specific type of product.
For example, it may be hard to find someone who can make “home appliances“ but it’s easier to reach a blender manufacturer who specializes in this field for years.
See the difference?
So when reaching a potential manufacturer in China, keep in mind to find someone who has experience and expertise in your product area. Otherwise, it will end up costing you even more than if you do the job yourself.
4. Don’t Skip Quality Control
Product quality is a major factor for western businesses because defective products can lead to financial losses as well as angry customers who will complain about your company sending them an unsatisfied product.
When outsourcing your production to China, it isn’t enough just to send your idea or design to a factory and expect them to produce the item correctly – even though you deeply trust them.
Make sure you’re thoroughly involved in each step of production and conduct quality control so that you can be confident that the manufacturer is capable to deliver products that meet your expectations and the quality standards.
5. Delivery Delays Can Be Normal
Manufacturers often negotiate with multiple foreign companies at once, so there’s no guarantee they will give you their full attention or work quickly enough to meet your deadlines.
Make sure your manufacturer gives you a detailed production plan so you have an idea of how long it will take to produce your items.
Another factor worth considering is how long it will take for the items to arrive once they are shipped.
The delivery time can vary depending on where the factory is located, where you want to receive the product, and even if there are any Covid cases in the region
So you have to remain realistic about the lead time and deadline. Keep communicating with your manufacturing partner so you can receive an update on your production process.
The Solution For Your Manufacturing Project
If you haven’t yet worked with a manufacturer in China, you have to list your needs and expectations before making a final decision.
Also, never choose the one who offers the lowest price, work with those who have long-term experience and know how to help your business.
Shield Works can be your best manufacturing partner. With our British ownership and management background, we take pride in our over 17 years of international project experience and excellent team. Contact us for a no-cost consultation!
5 Reasons Why Product Assembly in China is Key to Business Success
You may have heard the term product assembly in China before, but you might not be entirely sure what that means or how it will affect your business. Many companies decide to outsource this process to help them keep costs down and get their products in front of more customers. In order to decide whether or not product assembly in China could play a key role in your business success, you need to learn more about what it entails and how it works.
1) Suppliers are available around the clock
In China, suppliers are available around the clock, which means that you can get your products assembled and shipped out much faster than if you were doing it on your own. This can be a major advantage for businesses that need to move product quickly.
You have more control over the quality of the product. When you have your products assembled in China, you have more control over the quality of the product. This is because it is also much more affordable there to hire 3rd-party QC service to inspect the products before they are shipped out, and you can also choose to have them assembled by a reputable company that usually comes with an excellent QC team.
If you have your products assembled in China, you can save money big-time on shipping costs, given all the transportation access China offers.
2) The ability to experiment with new ideas
When it comes to business, the ability to experiment with new ideas is key to success. And what better place to do that than in China, where there are endless opportunities for product assembly? You’ll be amazed at the expansive network of suppliers and manufacturers you can choose from.
In addition to a wide variety of options, you’ll also have access to manufacturing facilities at an affordable price. If you are just starting out, it’ll be very cost-effect for you in terms of trying out new ideas and finetuning your product. There’s no need to worry about breaking the bank before your product has even been released into the market!
3) Variety of product expertise
Decades into being the “World’s Factory”, Chinese manufacturers have developed strong versatility for types of products they can assemble. The wide range of industries that use product assembly services makes it possible for companies to outsource many aspects of their production process to China and still maintain control over every step, from design and development, through manufacturing, quality assurance, distribution and after-sales service.
Spanning from textile to advanced electronics, you will have no problem finding a supplier for any part of your product locally. Your company does not need to dedicate all its resources towards producing one specific type of product as it can easily find suppliers who are experts in different parts of the production process. These specialists work hand-in-hand with other local factories so that you do not need to allocate staff or space at your office solely for these processes.
4) Utilization of the latest technology
In order to stay competitive, businesses need to utilize the latest technology. This is especially true when it comes to product assembly. By using state-of-the-art machines and equipment, businesses can ensure that their products are of the highest quality. Additionally, by keeping up with the latest technology, businesses can save money on production costs.
China is definitely you to-go option regarding technology, especially If you’re looking for top-of-the-line machinery. Due to encouragement from the government and decades of industrialization, China has managed to stay on top of the game as far as new innovations go. It’s not uncommon for a company in China to have access to many different types of cutting-edge technology which they can use at an affordable price. The accessibility of these technologies gives Chinese manufacturers a competitive edge over others because they are able to produce higher quality goods more quickly than ever before.
5) Speed of production
In today’s business world, time is money. And when it comes to product assembly, China has the speed advantage. With a well-oiled assembly line and a large workforce, China can get your products assembled and shipped out faster than most other countries. That means you can get your products to market quicker and start generating revenue sooner. It also leaves room for contingencies if there are delays in shipping or if another one of your suppliers cannot deliver on time.
Also, your company will grow because your company was able to do what others couldn’t. Your company is flexible: You may need more help assembling at certain times but not at others. For example, during western holidays or long weekends where many companies would like extra help with their orders. If you were already doing some assembly in China, this would allow your assembly team in China to be ready for those busy periods without having to find new hires and train them up from scratch – something which takes up both time and money before they’re productive again.
Meanwhile, your time saved on product assembly can be well spent on marketing. Multi-tasking is very much viable for your business!
By working with a reputable assembly partner in China, you can ensure that your products are of the highest quality and meet all applicable safety and quality standards. Shield Works has over 17 years of experience under the belt to help you achieve all of that. It’s never too late to take action. Contact us now!
Contract Manufacturing Services in China: A Guide on What to Consider
Let’s say you’re a small business owner and have just received an order for 500,000 watches. What do you do?
Well, first off, you’re probably feeling pretty overwhelmed! It’s a big deal to get that kind of business, and you want to keep them coming back for more. All you need is the resources to fulfill their order.
You’ve heard about contract manufacturing services in China, but you don’t know where to start. You can’t afford to make a mistake, so you need to be sure that whoever you choose understands your needs and offers quality products at competitive prices without compromising on safety or environmental standards.
Instead of trying to choose the best candidate on your own, read on for everything you need to know to make the right choice.
Quality Control and Inspection
You need to be sure that the products your company sells meet or exceed quality standards. Ask manufacturers about their quality certifications. You should also consider whether they have industry-specific certifications, such as FDA certification.
Ask about the steps a manufacturer takes to ensure quality, including inspection techniques and certifications. You also need to consider whether they use third-party testing. If they do, ask which organizations they use and what types of tests they do most frequently.
Cost
With so many variables involved in your product’s production and delivery, it’s not always easy to determine how much something will cost. The price of your final product will depend on several factors. So, it’s best to work with a contract manufacturer who can provide you with a comprehensive quote. This will help you understand all the costs involved in production and shipping so there are no surprises down the line.
Capabilities
When you’re looking to manufacture a product, you need to consider the capabilities of your supplier. You should ask:
- What type of products they can produce
- How many units per month they can produce
- At what price it will be possible to get them manufactured
For example, if you want to produce 500 units per month and require a high-quality material for your product, then finding a supplier who can do this would be ideal. However, if you only need 100 units per month with no specific requirements for the materials used, you have a wide range of options. Assuming you’re looking for the lowest price per unit, then your best bet is to find a supplier with no minimum order size.
Longevity
If your supply chain is disrupted in any way, it could wreck your bottom line and your business. You should carefully evaluate a potential manufacturing partner’s financial stability and performance record before choosing them for your product.
Communication
Contract manufacturers in China have low-cost labor, which can be a benefit if your goal is to reduce manufacturing costs. However, this also means that you may face communication difficulties because of language barriers. To circumvent this issue, consider working with a contract manufacturer that has experience communicating with Western businesses.
If you have limited opportunity to communicate with the production facility on an ongoing basis, then you should consider whether another manufacturer might be better suited for your needs.
Production Flexibility
It helps to choose a manufacturing company that’s willing to add to their production tools when necessary. For instance, some manufacturers only produce with injection molding equipment. If your project requires casting or machining equipment, then you’ll need to find a different company.
But if you can find a company that’s constantly updating its machinery and processes, then you should have the flexibility to make any changes that might be necessary.
Experience
A manufacturing company will only be able to produce your product if they understand the design specs and goals. If you’re working with a facility that doesn’t fully grasp your project, then it may not come out as expected. To avoid this problem, try to choose a manufacturer with experience in your industry or with similar products.
For instance, when choosing a manufacturing company for plastic injection molding projects, you should look for companies that have produced high-quality plastic components in the past.
Certifications
The quality of your products hinges on the quality of your manufacturing partner. It’s important that they have the right certifications and follow best practices. Manufacturers who don’t have certifications should be avoided at all costs, as they represent a risk for both you and your customers.
There are many certifications that manufacturers can earn, like ISO 9001, ISO 14001, and ISO45001. However, there is no law requiring a contract manufacturing service to have any particular certification. Each organization has its own standards for what is required for membership or accreditation.
Some industries also require specific certifications from their suppliers to sell their products to specific markets. For example, food packaging or medical devices require FDA approval before being sold in the United States’ market. If you’re planning on selling internationally, then make sure that any contract manufacturer you work with can meet those requirements as well!
Choose Reliable Contract Manufacturing Services
Getting the help of contract manufacturing services can help bring your ideas to life. At Shield Works, we have a wide range of capabilities and services to help you design, prototype, and manufacture your products. If you’re looking for engineering support to help you create the right product, we can do that too!
Get in touch with our team and tell us about your amazing idea. You’ll hear from us in 24 hours!
The Many Benefits of Custom Manufacturing
A few decades ago, a company only really had two options if they wanted to make their own products. They could produce their stock on site, which is expensive, or they could outsource to a third party.
Outsourcing back then was tricky, and a business would have to have a close relationship with its manufacturer to make sure any production problems could be swiftly resolved. With custom manufacturing, a lot of these headaches disappear.
But what exactly is custom manufacturing and why is it so good? Are modern processes truly that innovative?
Find out this and more today. Keep reading to find out where some of the world’s best custom manufacturing happens.
What Is Custom Manufacturing?
Though there were initial issues with manufacturing when the first big industrial boom happened, many companies all over the world have found a good balance between producing their products internally and contracting their work to external businesses. This is especially helpful if you need custom-made parts or made-to-order products.
Ultimately, that’s what custom manufacturing is. It’s engineering, designing, and building products based on a set of unique specifications, which include:
- Built-to-order parts
- One-off runs
- Short production runs
- Mass customization
The people doing this are referred to as OEM companies or original equipment manufacturers. They’re most closely associated with the automotive and IT industries, but the true scope of OEM manufacturing is limitless.
Mass Production vs. Custom Manufacturing
While the concept of manufacturing typically summons images of massive factories, churning out the same parts over and over again, this is not what custom manufacturing is all about. This is mass production.
This involves using a lot of raw material to make a lot of items as quickly as possible. Custom manufacturing is more streamlined and is a far more effective method for producing fewer quantities of goods in a shorter amount of time. Custom manufacturing is distinguished not only by the number of raw materials used but also by the variety and uniqueness of these goods.
Mass production involves more time, materials, labor, and space, all of which exist on a bigger scale than custom manufacture.
The final distinction lies in the production line, which is a key component of mass production. In these situations, you can produce large quantities of items with little to no direct interaction from factory workers. This translates to an assembly line, where people can construct things without having to hold up the entire process if waiting for supplies or other components.
Custom manufacturing can certainly work similarly, but it employs fewer people and fewer machines and equipment. This is because the goal is to help clients build and create their goods in specifically tailored ways. Yes, the production is smaller, but it’s often more efficient.
Prototype and Production
Prototype and production are the two main divisions of custom manufacturing and they’re both important. Prototyping or “mock-up manufacturing” is an invaluable part of the process.
Prototyping is the act of testing, evaluating, or changing a part or component before using it in a final project. It could mean making a mock-up, or it could involve creating a simple model or sample. Custom manufacturing supports the use of prototypes in a big way since it can save both you and your company a lot of time and money.
For example, with items that have large or unusual designs, like aircraft wings, a custom mock-up can nip any potential issues in the bud.
The Production Process
Production or “serial production” manufacturing is the second type of bespoke manufacturing. This involves a business making a product in big quantities, typically for commercial use. They can still be custom-made, and often are, but the scale at which they’re made is bigger.
For example, car companies may use custom manufacturing to produce small quantities of parts for older vehicles, as opposed to the mass production line they would use at the start of a new car run.
The Best Benefits of Custom Manufacturing
Although mass production, and even in-house manufacturing, has its advantages, the benefits of custom manufacturing far exceed the capabilities of the other two methods. TAs a service, it’s exceptionally useful for accommodating material variations, changing design requirements, and unique finishing options.
For things that can’t be mass-produced, custom product manufacturing is the perfect answer. Here’s why.
Custom-Made Products
When you’re commissioning bespoke products, there’s greater scope for customization. This also means that as a client, you’ll get your exact specifications fulfilled, which is great for you and your consumers. Plus, bespoke manufacturing raises the quality of an item.
This means you get exactly what you need without having to settle for the next closest thing on a mass-produced line-up.
Increased Productivity
Because an OEM manufacturer must produce precise and high-quality products, there is less wastage and fewer production failures. In this way, you’re not losing time in having to return or rework a design, which means greater productivity for your business. When you use prefabricated parts, there’s always the risk that they won’t fit or work.
Custom manufacturing breaks this cycle by fulfilling the requirements right off the bat. This is only helped through the use of prototyping, which can eliminate potential areas at the start of a project.
Greater Accuracy
Custom manufacturing solutions are inherently more accurate than most conventional production processes. This is because there’s no waste, and each product is made identical to its companions, whether it be size, shape, or material.
You also get to work with a team of experts who know exactly what they’re doing and can deliver state-of-the-art products through exceptionally high-quality machining.
Lower Overall Unit Costs
Depending on the demands of your organization, custom manufacturing may actually be more cost-effective than mass production. When compared to items of a similar style and form, custom-made items are often between 50-75% cheaper. Though it may initially seem more expensive, because there is less waste, there is less expense.
Lower Lead Times
Because there are fewer processes required in creating a custom product, the design process is quicker and simpler. You won’t have to wait for any pre-made pieces or parts to arrive, which means shorter lead times and better manufacturing. There’s no more need to sit idly by while you wait for some part or another.
It all arrives at once because it’s all made at once, which is good for you, your business, and your clients.
Improved Quality Control
During the entire process, you’ll have the power to check in and monitor the progression of your work. This not only makes it super easy to identify any problems, but you’ll have the chance to rectify any defects or issues before they become significant flaws.
This is helpful if you’re manufacturing a high-end product that must adhere to a set of strict quality standards.
Better Design
While there are limitations to mass production, custom manufacturing has more freedom. Unlike other forms of production, there are no restrictions on material or technology the manufacturer can use, as long as they have the knowledge and expertise to deliver.
This makes it possible to develop a greater variety of items, whether completely new or new and improved. This can significantly help in the development of “the next big thing” in the market.
More Sales
When you give customers a chance to personalize or customize their goods, you’ll likely see a higher rate of retention, as well as a spike in sales. Why? Because where there is customization, there is more commitment.
People like feeling like they had a hand in the product they’re purchasing, which is why bespoke services often do so well, even if they’re sometimes more expensive.
Scalability
Have you recently launched a new product or are you just starting your business? You can start small with custom manufacturing and rise through the ranks. We know it’s challenging to get started when you don’t have a massive lump sum to work with, which can make stocking and keeping inventory an issue.
With custom manufacturing, you get to choose the quantity of your order, and you’ll never be pushed to buy more than you need, as you may be with mass production. This means you have what you need when you need it, but you don’t need to worry about storing it all.
Plus, when you’re ready to expand, you’ll find custom manufacturing particularly advantageous. OEM manufacturers can handle larger orders than your regular in-house business. So if you’re getting new customers and growing, you don’t need to worry about searching for a new supplier.
Finding a Custom Manufacturer
It’s not always easy to identify a manufacturer who is fully equipped to meet all the needs of your project. And, chances are, you want to work with a firm that you can develop a long-standing relationship with. This means they need to deliver their products on time and according to your specifications, but there’s more to it than that.
You want to look at a few key points when choosing a manufacturer:
- How long have they been in business?
- Do they have testimonials?
- Is there website efficient and clear?
- Are they easy to communicate with?
- What does their logistical support look like?
When you work with a custom manufacturer, make sure you’re both setting and agreeing on clearly stated goals, so that everyone stays on course. This means asking for a detailed scope of the project, including success and failure factors.
Ask yourself whether your manufacturing partner offers the flexibility you need. This could apply to ongoing adjustments or changes at the start of the process. In customization, things tend to evolve and change more often than not.
This means your manufacturer needs to pivot and respond as needed! Have a conversation early on to make sure you’re both on the same page about what this looks like. However, in the spirit of partnership, it’s important to understand that they know what they’re talking about.
While it’s invaluable to have clear communication and vocalize your concerns, trust in their expertise.
What to Look For in a Quality Manufacturer
Typically, OEM manufacturing can be quite broad, and not all companies will suit your needs. Services can include anything from laser cutting to industrial stitching, so it’s important to ask yourself a few questions. When looking for a manufacturer, ask:
- What materials do they most commonly use?
- Are they transparent about their processes?
- Can they give an insight into their product development?
- How do they handle improvements and prototypes?
- Can they customize their processes?
- Do they work with you from start to finish?
When you can answer these, you’ll have a much clearer grasp of what the manufacturer can do, and in turn, what they can do for you.
The ideal partner should spend time with you to ensure that all the right quality control parts are in place, not just for standardization and safety, but to make sure what you’re getting is what you asked for.
That’s why it’s important to work with someone reputable and trustworthy.
Finding Your Competitive Edge
With the freedom of choice may come uncertainty and fear, but with the right custom manufacturing partner, these should be a thing of the past. Not only is it a breeze to outsource to us, but we’ll handle all the nitty-gritty details of your project.
The benefits of custom manufacturing can’t be ignored, and maybe it’s time for your business to make the switch from mass-production to bespoke, tailored goods. If that’s the case, get in touch with us today, and let’s see what we can make together.
How Partnering with a China Manufacturing Company Can Benefit Your Product Design And Development
Are you an entrepreneur who’s looking to partner with a China manufacturing company in order to bring your product design and development process to the next level? If so, there are several reasons why partnering with China’s manufacturing industry can be extremely beneficial to your goals as an entrepreneur. Read on to learn how it can benefit you, as well as some tips on how to go about it if you’re interested in pursuing this option.
Shorten time-to-market
One of the main benefits to outsourcing product design and development to China is that you’ll be able to shave time off your schedule. There are many facets of every project that can be outsourced, including: design, prototyping and 3D modelling, etc.
Designing and developing products takes time, but if you choose to partner with a manufacturer in China, you’ll be able to reduce that time significantly. There are many aspects of your product that can be outsourced, including: design work, prototyping, 3D modelling and more. Working with outsourcing partners means not only being able to work faster (by hiring those who have experience), but also saving money by splitting up the workload between parties. If you choose to go through an entire project (or any part) on your own though, don’t expect costs to stay low. After all, time is money.
Keep up with demand
With Chinese manufacturers, you’ll get instant access to an enormous, world-class supply chain. Instead of producing small batches of products for an uncertain audience, you can create a minimum order quantity (MOQ) large enough to keep up with demand at any given time. A foreign production partner that handles warehousing, shipping and logistics means you won’t have to worry about overseas shipping and import/export documentation; it all gets taken care of automatically by these suppliers.
With so many Chinese manufacturers online today, finding one that meets all of your specific needs is easier than ever before. All you need to do is type in what you want into a search engine or go through Alibaba’s list of vendors. From there, you can select potential partners based on their location, reputation and other factors(Shield Work will be your ideal option!). Once you’ve found a few options that seem like good fits, contact them directly to learn more about their capabilities and ask questions. The key here is to be proactive: don’t wait until after your first shipment arrives—or even worse—after your first customer complaint!
Improve Quality Control
Letting manufacturers in China handle all aspects of production frees up resources to concentrate on quality control. With Chinese manufacturers, you have instant access to hundreds or thousands of factory workers. This means you can scale production quickly as needed. It also helps ensure that every unit produced is identical; from batch to batch, every piece is exactly how it’s supposed to be. When you produce small batches by hand in-house, inconsistencies are inevitable and quality control becomes very difficult. And there’s no way around it—anyone who produces products for resale has to control quality when producing on such a large scale.
With a wide selection of factories at your disposal, it’s simple to move orders between suppliers if one is having issues or just wants to temporarily take on less work. If there are problems with quality control, you have options. And if you don’t have a problem but another factory does, you can easily switch things up without wasting too much time or money. As long as you have good relationships in place, production companies will be willing to accommodate your needs. This saves time and ensures that every unit produced meets your standards—and gets shipped out quickly so that customers receive their products as soon as possible.
Cut Costs
Product design and development costs in China are notoriously low compared to Western countries. There’s plenty of reason for that, including a large talent pool at competitive prices, very inexpensive electronics components, taxes that aren’t levied on imported goods, and no trade tariffs on exported products. Moreover, there’s an enormous variety of suppliers to choose from — more than any other region in the world due to their full-fledged supply chains — so you have more control over specific aspects of your product. For example, assembling devices could be done at one facility while circuits are designed elsewhere. Finally, when it comes to producing prototypes or small runs before going into full production—or even if you just want to validate ideas quickly—prototyping is generally faster in China than anywhere else.
Use New Technology
One of the biggest things that distinguishes Chinese manufacturing is its tech boom over the past decade. This has greatly equipped its manufacturing ecosystem, particularly in areas like product design, where technology has become an integral part of the final product. As such, when it comes to product design and development in China, many foreign businesses have begun to take advantage of new technologies—3D printing being one prime example—to speed up their processes. With these new technologies, foreign companies are able to make prototypes faster than ever before and create higher-quality products than they could otherwise.
Another big difference between Western manufacturers and those in China is how modern factories use data to improve productivity. In China, every aspect of production is tracked digitally, which means workers know exactly what’s happening at any given time during production. This means there are fewer errors—and more importantly, faster turnarounds—than you would find in other countries.
The list of benefits of using China manufacturing to design and develop your next product can go on forever. If you haven’t yet manufactured in China, you need to weigh out all options before making a final decision. It isn’t as cheap as it used to be, but with manufacturers’ experience and current technology, it’s definitely very cost-effective and saves you from a bunch of headaches. Shield Works is one that can take care of all you need for your product with over 17 years of experience and excellent in-house team. Contact us if you’d like to know more!
Everything You Need to Know About 3PL Warehousing in China
So, you’ve decided that your supply chain needs a little help. Maybe you’ve got too much work for your in-house team to handle, or maybe you’re just looking for someone with more skill than you have.
There are a lot of reasons you might find yourself in this situation, but the solution is always pretty clear: hire an expert. 3PLs (third-party logistics providers) specialize in warehousing and distribution. They have the infrastructure and knowledge to get your products where they need to go – on time and on budget.
For a look at 3PL warehousing and how hiring one can help improve your supply chain, read on.
What Is 3PL Warehousing?
A 3PL can provide warehousing services for your wholesale products, manage all aspects of your inventory system, and even help you develop the processes necessary to ship orders from your store on time.
This means that when someone places an order through your eCommerce website, the 3PL will receive the order and store it in one of their warehouses until it’s ready to be shipped out.
3PL Services vs. Drop Shipping
Drop shipping is a product-based business model that allows merchants to sell their goods without having to store or ship the products themselves. When you drop ship, you place an order with a supplier, who then ships to your customer on your behalf.
3PL services offer more flexibility than drop shipping because they allow you to outsource all aspects of logistics, including warehousing and shipping. Unlike drop-shippers who have limited control over the process, 3PLs provide the additional benefit of greater oversight over storage conditions and quality control during storage and transit.
Why Choose 3PL Warehousing?
3PL warehousing offers several benefits to businesses that want to outsource their storage and fulfillment needs. These include:
Save Time and Money
One of the most important benefits of 3PL warehousing is that it can save you money by reducing your overhead. You’ll no longer have to worry about rent, maintenance costs, and equipment purchases for your warehouse. A 3PL provider can also help you reduce your staffing costs and avoid payroll taxes.
Improve Your Customer Service
With a 3PL partner, you’ll be able to offer more shipping options, shorter lead times, and faster delivery at lower prices than you could if handling shipping on your own. You’ll also be able to offer better customer service by responding more quickly and effectively to customer queries, as well as tracking orders. Your customers will appreciate having access to accurate information about the status of their orders.
Get the Right Products to the Right Customers
With a 3PL partner, you’ll be able to take advantage of their years of experience and relationships with freight forwarders, customs brokers, airlines, trucking companies, and others in the supply chain.
You can also get a leg up on your competitors by taking advantage of their global footprint and selling products in markets that are otherwise inaccessible. Your 3PL might even help you find new products for specific regions and give you the ability to test your ideas before making an enormous investment.
Expertise in Logistics Management
Third parties generally have more experience handling inventory than many small businesses do; therefore offering valuable industry-specific knowledge. They’ll know how to move your product in the most efficient and effective manner possible, whether by rail, air, or sea.
How Does It Benefit Your Business To Use A 3PL Warehousing Company?
You might think to yourself, do I really need to outsource my warehousing and logistics operations? The answer is maybe. It depends on many factors unique to your business, including size, product mix, growth plans, and more.
However, there are some general benefits that usually make working with a third-party logistics provider in China the right choice for most businesses.
Reduce Risk
By outsourcing some of your operations to third-party logistics companies, you’ll be able to reduce the amount of risk involved in doing business overseas without sacrificing any of the benefits associated with having a Chinese presence(accessibility, increased market share, etc.). This is because these providers have the experience, infrastructure, and local knowledge needed to help you navigate China’s unique business environment.
Improved Efficiency
When a single company handles all logistical processes for error. This allows your business to run more smoothly, freeing up time and resources that can be better spent elsewhere. And with most third-party logistics companies, you’ll also have access to state-of-the-art equipment, which will allow them to handle all of the heavy lifting so you don’t have to.
Increased Productivity
When outsourcing logistics services, companies can focus on what they do best while leaving order fulfillment to another team. This means that your company will be able to get more done with fewer people – which increases overall productivity for everyone involved.
How 3PLs Handle Order Fulfillment
Once the order is received and processed by your 3PL, they will then assign it to a warehouse closest to your customer. From here, a picking team will gather the items from their respective racks and put them into totes or carts for the next step: packing.
Afterward, another team will ensure that everything was picked correctly before boxing it up for shipping. At this stage of fulfillment, your provider will add any extra packaging materials, like bubble wrap or peanuts, to guarantee safe transport. After being packed up, all orders are ready for delivery!
In some cases, orders may need to be returned before they can be shipped out again. This is usually because of damage caused during transit. Your provider will inspect the package first before sending it back.
When Do You Need a 3PL Warehouse in China?
If your company ships at least 100 orders overseas each month, it’s probably time to consider working with a third-party logistics provider in China. But 100 is not the hard and fast rule, as many factors can affect this number.
There is no magic number at which time a company should start working with a 3PL. When you find your business growing so much that the volume of orders being placed has become too high for your small team to manage in-house, then it’s time to hire a 3PL.
There are some other signs that can help you determine whether you need a 3PL. If any of the following apply to your business, it’s time to look for a 3PL warehouse in China:
You’ve Run Out of Storage Space
Perhaps you started your business in a small office space with enough room to store inventory on-site. But as orders start rolling in, that space quickly becomes crammed. If you can’t store products, how can you possibly fulfill orders?
Working with a 3PL will give you access to more storage space so you can keep meeting customer demand.
You’re Spending Too Much Time Shipping Orders
If it’s taking up too much of your time and energy managing shipments, then it might be time for some help. A quality 3PL will have the resources and technology needed to get products out the door in a few hours.
Your Employees are Stretched Thin
As your business grows, chances are good that your team is being pulled in different directions, trying to handle everything at once. This can lead to mistakes, frustration, and even burnout. Adding a 3PL to your team can take some of the pressure off by lightening the workload.
10 Tips to Find the Best 3PL Services Company for Your Ecommerce Business
Just like with any other decision, you want to make sure that the 3PL provider you choose will help optimize your business and not hinder it. However, this is easier said than done.
With so many 3PL service providers out there, how can you ensure that the one you choose will be right for your business? Here are some tips:
1. Start with Reliability and Speed
As an e-commerce company, it’s important to make sure that your products go to consumers fast and get delivered without any kind of damage. Ask your potential provider about their average shipping times and any procedures they have in place to prevent or address damages during transit.
A provider with same-day shipping can be especially useful if you offer expedited shipping services.
2. Consider Their Ability to Handle Returns
Ecommerce businesses typically have a higher return rate than brick-and-mortar stores, so it’s important that your 3PL provider can handle returns efficiently. Find out what kind of system they have in place for managing returns and ask about how they communicate with customers regarding status updates on refunds or replacements.
3. Pricing Matters, But Don’t Sacrifice Quality
Of course, you want to save money wherever possible, but with your 3PL services provider, quality should be more important than price. Make sure you compare apples to apples when getting quotes.
4. Experience Working In Your Industry
Ensure they have the right equipment and technology to handle your products. But more importantly, they should have experience working in your industry so they understand the unique challenges that come with it.
For example, if you’re in the fashion industry, you’ll need a 3PL that can handle delicate and high-end items. If you’re in the food industry, they should have processes in place to prevent cross-contamination.
5. Client Support
Ideally, your 3PL is easy to reach when you need them and quick to respond. Good communication is key in any relationship, so make sure the lines of communication are open between you and your fulfillment partner. Of course, China’s time zone difference can present some challenges, but a good 3PL will have someone available during your business hours.
6. Flexible Pricing Options
While price is always a concern, you don’t want to be locked into a per-unit charge that doesn’t reflect your monthly storage and processing needs. Look for a 3PL that offers options like minimum commitment pricing or value-based pricing, rather than charging you by the unit.
Some providers charge per square meter of warehouse space used; others offer discounts based on the number of units shipped per month. Whatever the case, make sure you understand your 3PL’s pricing structure before signing a contract.
7. Technology Integration Capabilities
Perhaps the most important criterion on this list is integration capability. Do their systems seamlessly connect with yours? Can they automatically track and update inventory levels in real-time so that you always know exactly what’s in stock and where it is?
If not, keep looking. The best providers offer comprehensive tracking capabilities and a simple customer portal.
8. Order Consolidation
When your customers are ordering products that come from several vendors, a 3PL that can merge those orders into a single shipment can be a huge time—and money—saver. When evaluating providers, inquire about their order consolidation capabilities.
9. Customization
Some of your customers may have specific requests; they need a custom-sized box or a gift-wrapped item, for example. If you can find a provider that can customize orders to meet the needs of your unique clients, you’ll be able to streamline and improve customer experiences.
Also, it helps if your provider can offer custom branding on the shipping boxes. This is a small but powerful way to reinforce your brand and keep it fresh in your customers’ minds.
10. Reputation
Last but not least, don’t forget to ask for customer references. Talk to others who have used the 3PL you’re considering and get their honest opinion.
Expand Your Business Reach
3PL warehousing can help you expand your business reach by allowing you to enter new markets and create new distribution channels. Not only will you be able to offer faster delivery at lower shipping costs, but you can also take advantage of their experience in international shipping.
Whether you are looking for short- or long-term storage warehousing solutions, Shield Works has the experience and expertise to provide you with cost-effective storage and shipping solutions. Reach out to us for warehousing processes that help you succeed.