Product Assembly In China: 5 Common Mistakes And How To Avoid
Today, overseas businesses of all sizes are outsourcing product assembly to Chinese companies as part of their overall outsourcing strategy.
There are many benefits to this approach, including reducing costs and improving efficiency. However, business owners should be prepared to work with Chinese suppliers who have different perspectives on product standards and quality control than what you may use before.
However, dealing with Chinese product assembly suppliers requires skills and experience. To reduce the number of assembly mistakes in your products, here are seven ways you can start reducing errors during the product assembly process.
Not Verifying The Supplier
Your customer satisfaction has a direct correlation with product quality. Yet, a lot of times companies don’t see mistakes or quality issues until it’s too late.
The biggest cause of product assembly errors is skipping over a supplier’s due diligence.
There are certain protocols every entrepreneur should follow when it comes to verifying suppliers, but one major aspect involves verifying their capabilities by checking their certifications and audit reports. Entrepreneurs should be sure they go through all available measures before accepting a quote from a prototyping manufacturer—doing so could save them from headaches down the road.
Only in this way can you confirm if your supplier owns their facilities or is a middleman.
Not Communicating Clearly
The assembly line is a huge component of manufacturing, and it’s where most errors occur.
It’s no surprise that misunderstandings often happen between Westerners and Chinese people. When you and your assembly partner aren’t on the same page, problems will undoubtedly arise.
In this case, it’s important to clarify expectations beforehand, anticipate problems before they arise, and encourage an open flow of communication so anything problematic can be taken care of sooner rather than later.
To avoid confusion, when communicating with your Chinese partner, you must be clear and concise in everything you say. You should try using brief words so that it will take less time for them to understand what you’re trying to convey.
Not Eliminate Unnecessary Processes
Although eliminating all manufacturing errors may not be a realistic option, you can eliminate non-essential processes during product assembly to reduce costs and timeframes.
This step is an easy one for some manufacturers—but for others, it’s something that must be worked toward over time.
A great way to start is by being honest with yourself about what processes are essential and which ones are not. You may be surprised by how much you can cut back without hurting quality.
Not Setting Up Sample Tests
On a product-assembly line, setting up sample tests can be run throughout each shift.
These tests can be used to test workers and catch problems before they result in big mistakes. Include enough checks and balances on each test that they’re impossible to fail without making an error.
For example, if assembly involves inserting a screw into an electrical component, include wire connectors on your sample piece so workers know what is correct for installation. If a worker tries to install it incorrectly, he or she will have to remove it and start over.
If you don’t include these extra components, there will be no way of knowing whether or not your worker did something wrong until after he or she has completed his or her work.
With sample tests, any errors will become apparent right away and can be corrected immediately—or prevented from happening at all—before they snowball into bigger issues later in production.
Not Conducting Product Inspection
As you may know, it’s impossible that there is zero defect in making and assembling the product.
And you may need to know what type of defect is in your product and how can it affect your product functionality.
By recognizing and fixing errors during assembly, you’ll maintain high product quality and reduce financial losses. The more you know, the more you can do to improve your product.
In this case, it’s a good idea to conduct an inspection to check the product quality for you. If you don’t, you’ll be accepting a level of risk that may not be necessary.
An experienced inspector can find the major defect in the product and write a detailed report, so you have no reason to worry about the customers complaining about the product quality.
The Solution For Your Assembly Project
Sometimes, finishing a product assembly project can seem like an insurmountable challenge.
If you are considering outsourcing your assembly and are unsure where to start, Shield Work is here to help you make this process easier.
We own an IP protection flagship facility to conduct activities from manufacturing, and product assembly to quality inspection and warehousing.
With our British ownership and management background, we take pride in our international experience and we know what works and what doesn’t! Contact us for a no-cost consultation!
Top 5 Tips of Ensuring Smooth Communication with Your Chinese Manufacturer
It’s easier than ever to get your products manufactured in China, with resources such as Alibaba, Quora, and Google Translate at your disposal. But having a reliable Chinese manufacturer isn’t just about knowing how to communicate with them; it’s also about understanding how the whole process works and what your role is in it. Here are the top five tips for ensuring smooth communication with your Chinese manufacturer to help you get started.
1) Have a clear idea of what you want
Before you go contacting manufacturers in China, spend some time to really figure out what it is that you want. Don’t just say I want a cheap product made in China. Get specific. Look at different products that are similar to yours and decide exactly how your product will differ. And if there are aspects of your product that can be improved upon, do it! It’s always a good idea to outdo your competition. The more detail you put into your product from start to finish, the better off you’ll be when it comes time to communicate with your manufacturer.
Find a model or sample if you can for reference. A picture is worth a thousand words, and seeing exactly what you want will help your manufacturer understand exactly what it is that you’re looking for. They may even be able to point out design flaws in your product that you hadn’t considered before! It may seem like an extra step, but it could save time and money in the long run.
If your product requires any specialized parts, make sure to get those details sorted out early on as well. If there are specific types of wood that need to be used or special kinds of metal, make sure to clarify that from day one so there aren’t any problems later on down the line when it comes time to actually produce your product.
2) Be clear on expectation and deadlines
If you’re planning to work with a Chinese manufacturer, make sure your requests are as clear and specific as possible. Make deadlines clear and enforceable, otherwise there is no incentive for your team to stick to them. If a situation arises that requires changes or exceptions, have a separate process in place (such as checklists) to make sure everyone on both sides knows what’s going on. Good communication saves time and money—two things every business wants more of.
That’s why it’s advisable to find a manufacturer with their own production facility, preferably in the same city or anywhere within three-hour drive. This way you can easily check on your products and make sure everything is going according to plan. It also means that you don’t have to worry about shipping costs and delays from faraway locations. Finally, if something goes wrong, you’ll be able to respond quickly—and save face by fixing things before they get out of hand.
3) Know how the factory and its QC operates
We can’t emphasize enough how important it is to build an in-depth understanding of how your factory runs and what your QC protocols are. A deep understanding will help prevent issues, save you time and money, as well as help you work more effectively throughout your manufacturing process. There’re so many independent vetting services in China you can turn to. You’ll find them on Alibaba or by Googling independent QA checker or independent quality control checker. You’ll also want to make sure you understand exactly who your QC inspector is and that they have a good track record of working with other western companies. If you don’t know who they are, ask! Ask to speak directly with them or their supervisor if possible. It’s better to be safe than sorry when it comes to communication breakdowns between yourself and your manufacturer!
Although there’re many independent QC services with a history of working with western firms, if you insist on one that shares a similar cultural background with you, Shield Works has its root in the UK with years of QC experience in the industry that you can fully rely on.
4) Get someone local in China that you can talk to
Even if you don’t speak Mandarin, there are still ways to ensure you get your message across. If you’re traveling to China yourself, a translator is a must-have. But given the current travel restrictions, it is not an option to physically be there. So what do you do? You can hire someone local in China that can act as a liaison between you and your manufacturer. They should have experience working with Westerners and can translate information from both sides of communication (i.e., from English to Mandarin and vice versa). They will help bridge any language barriers that may exist and make sure everyone is on the same page regarding deadlines, expectations, etc. This will help reduce confusion and miscommunication that could lead to delays or other issues down the road.
But most manufacturers there now have bilingual team members that have no problem communicating with you in your language. if you manage to find one with a western background like Shield Works, that’ll save you a lot of efforts!
5) Keep your language plain and simple
This may seem obvious, but be sure to speak clearly and concisely. If there’s anything you don’t understand about what you need to accomplish or convey, don’t guess or fill in gaps with assumptions. If a word confuses you, go back and get clarification. Try to avoid using big words as it can make it harder to understand for non-native speaks. Keep your language simple
Remember that your goal is communication—not simply understanding what someone is saying to you. Successful communication requires that both parties feel confident they have a full understanding of one another’s intentions before moving forward on any project or task. Otherwise, confusion will quickly ensue; misunderstandings can lead to delays and even make-or-break moments down the road. The more time you spend ensuring that everyone understands each other, the less time it takes to complete tasks. A little upfront work now can save a lot of headaches later.
By following these five tips, you’ll be on your way to having a smooth process of communication with your manufacturer and start working together to create a great product. Shield Works is one that comes with their own manufacturing facility located exactly where the headquarter is, and bilingual team members as long as 17 years of manufacturing in China under their belt. Contact us today!
Choosing the Right Product Manufacturer in China: Contract Manufacturing vs OEM Manufacturing
Contract manufacturing, original equipment manufacturing, and ODM manufacturing, oh my! There are so many different types of manufacturing companies that you can use to fulfill the needs of your business.
When you need to manufacture your product, you will want to pick the one that best protects your intellectual property while upholding the best labor practices possible.
If you are looking for more information about these product manufacturers and how to choose the right one, you came to the right place. This brief product manufacturing guide will cover all you need to know about the common manufacturers and who you can reach out to for more guidance.
What Is Contract Manufacturing?
Contract manufacturing is when you outsource part of your product’s manufacturing process to a third-party company. A large majority of companies use this method, so they don’t have to handle the bulk of their production process. Instead, a contract manufacturer manufacturers products for the OEM, producing items based on a set formula or design.
Advantages of Contract Manufacturing
A significant advantage of using a contract manufacturer is that they can help you create your products without investing in machinery or equipment. This also allows you and your business to minimize labor costs, free up capital, and commit additional resources toward research and development. Contract manufacturers also accept a certain amount of manufacturing-related liability.
Disadvantages of Contract Manufacturing
A major disadvantage of working with a contract manufacturing company is that there is more research and development work. The time to market your product is also a disadvantage.
Because it takes a bit longer to get the product, you will have to wait. Be sure to have a testing and validation plan from the beginning so you and the manufacturer can adjust it over time.
Types of Contract Manufacturing
There is a wide range of contract manufacturing services available. Standard contract manufacturing services include molding, assembly, machining, packaging, and sterilization. It is imperative that you partner with a contract manufacturer that provides the right services needed to support your product.
ODM Manufacturing
ODM manufacturing, also known as Original Design Manufacturer, is a business that creates products designed by you, but they are based on existing products. When you work with these types of companies, you purchase items that the factory already produces; you can just customize the items and add your logo.
You don’t always have to change the logo or design unless you want to. China is currently the leading ODM manufacturer, and most manufacturers outside of China are contract manufacturers.
Advantages of ODM Manufacturing
When you work with an ODM manufacturer, you don’t have to wait too long to market your product. There is also a much lower introduction price since you don’t have to go through the research and development process. ODM manufacturers also have strong expertise in technologies and in the market space.
Possible Issues with ODM Manufacturing
ODM manufacturers have the ability to send out your products quickly because they already have the item on hand or the specifics of the item on hand. A significant issue that comes with working with an ODM is intellectual property and who owns the design of the product even after you add customizations.
For the most part, the manufacturer created most if not all of the design, so they technically own the product’s intellectual property. This means that you own the copyright to the branding.
If you decide to work with an ODM manufacturer, make sure that you check the product you wish to customize. If the product looks similar to another name brand company, they can sue you for using their intellectual property.
OEM Manufacturing
OEM, also known as Original Equipment Manufacturer, is a company that creates a product based on the blueprint you send in. When you create a partnership with an OEM manufacturer, they expect you to provide them with a product specification sheet and a product design document so they can make your product properly.
There are several different varying degrees of original equipment manufacturing companies. Some of them already have a product on site that they can use to make changes to, or you can start from scratch and create a brand new product.
If you plan on creating a brand new product, you may want to reach out to a contract manufacturer for more assistance. With most original equipment manufacturing projects, the client must create custom molds or some other tooling to create the item.
If the OEM does not already have what you need, they will need time before production to get that all prepared. This is a cost most clients have to bear upfront, but there are other manufacturers who purchase molds and just charge you after the fact.
Intellectual Property with an OEM
Since you’re the product designer and you created the product specification sheet, you most likely own the intellectual property of your product. Since you’re also paying for the parts of production (tooling and molds) and you have contracts that prevent the manufacturer from using the specification of your product, the intellectual property is yours. Just to be safe, make sure that you protect your intellectual property with the appropriate documents.
Advantages of OEM Manufacturer
The time to market with an OEM manufacturer is typically relatively short. This is because the original equipment manufacturer already makes products similar to yours, and they can use their current suppliers. Working with an OEM manufacturer comes with lower research and development costs.
Disadvantages of OEM Manufacturer
Although working with an OEM manufacturer comes with several beautiful advantages, a few significant disadvantages can affect your project. For example, if you have to change suppliers, you can’t just make a quick switch.
You will have to change up your entire supply chain. This means you will need a new component supplier as your OEM won’t disclose their component supplier to you.
Because these sub-suppliers are not disclosed to you, there is a chance the OEM could switch out sub-suppliers without you knowing. This could significantly affect the quality of your product.
How to Find a Product Manufacturer
Before you can look for the right product manufacturer for your needs, you must decide if you want a factory overseas or here in the United States. The best solution for your business needs depends on your personal goals and priorities.
Advantages and Disadvantages of U.S. Manufacturing
Using a factory in the United States does come with a few benefits. For example, when you use a manufacturer in the United States, you have more direct control over overproduction. You have the opportunity to visit the site more regularly, and you avoid dealing with international shipping logistics and tariffs.
Unlike overseas factories, manufacturers in the states allow you to order smaller batches of products. Overseas, they have minimum order requirements that you must meet before they fulfill your order. If you don’t meet the minimum, they may add an additional fee.
One of the most significant disadvantages of working with a supplier in the United States is the fact that they cost more. Sure, you may have access to the supplier, but they typically charge more since they are closer.
Advantages and Disadvantages of Overseas Manufacturing
A factory overseas is almost always cheaper than using one in the United States. When you look for a product manufacturer overseas, you will notice that you have more options than you do in the United States.
This means you will have a large pool of applicants to choose from who have experience creating products similar to yours. The biggest challenge that comes with outsourcing is the longer shipping times and handling of import/export regulations.
There is also an issue of a possible language barrier. Thankfully, there are several different companies that have a dedicated representative that can communicate your needs in your language.
Look for a Product Manufacturing Plant
You can attend several networking events for more information on other Chinese manufacturing plants. International trade shows in the United States are another great resource to use when looking for the proper manufacturer.
When looking for the right company, make sure they make products similar to yours. A manufacturer may be eager to let you know that they can make it, even if they have no experience doing so.
Although this may work in some factories, that does not work with all of them. If they offer to create the product but have no experience, the product may lack quality.
United States Exports
Lastly, it would be best if you looked into a manufacturer that regularly exports products to the United States. These manufacturers already have experience complying with product safety standards, quality standards, and packaging requirements.
Look for a company that is a Wholly Foreign-Owned Enterprise. Wholly Foreign-Owned Enterprise, also known as a WFOA, is a company that has production facilities in China. Still, the ownership and management of the company are run by non-Chinese teams. Depending on who owns the facility, you can expect the same quality and service that you would receive from a western company.
Protect Your Intellectual Property
As mentioned earlier, regardless of who you use to manufacture your products, you will want to protect your intellectual property at all costs. Without that protection, you risk having the manufacturer sell your product to another client.
You can use trademarks, copyrights, and patents to protect your intellectual property. Make sure that the protection you use is also designed for international situations.
If you would like to, you can use an NDA. An NDA, or a non-disclosure agreement, is a legally binding contract prevents other companies from copying your product. It would be best if you made potential manufacturers sign an NDA before you get any quotes.
Questions to Ask the Manufacturer
Before you partner with a manufacturer, you must ask a few questions to ensure they are the right fit for you. For example, make sure to ask the company about their labor practices.
The last thing you want is to work with a company that uses unfair labor practices. Not only is that inhumane, but it can also damage the reputation of your business.
Ask to see their business license and any documentation that proves they have a solid quality control system. It would also be best if you asked about their proof of inspections or their third-party audits. If a company refuses to give you that information, they may be hiding something.
Additional probing questions to ask your potential manufacturer:
- What is the price for production?
- What are your company’s payment terms?
- Do you have a minimum order quantity?
- How long does it take to get the product exported
- Who are some of your clients?
- What experience do you have making products similar to mine?
- Do you charge for samples?
- Is all of your work in-house?
- Do you use sub-contractors?
Asking these types of questions can help you determine which manufacturer is best for you and your needs. Don’t be afraid to ask clarifying questions. You’re hiring them to do a service for you at the end of the day.
Partner with the Best Product Manufacturer
Picking out the right manufacturer does not need to be a complex process, but it can be challenging if you aren’t sure what you’re exactly looking for. Once you figure out which type of product manufacturer you want to use, check out their reviews and business licensing.
You want to make sure you partner with a reputable manufacturer that can make your product just the way it is intended to be made. Contact us now if you are ready to learn more about your manufacturing options. We also offer warehousing and logistics if needed.
Contract Manufacturing in China: 5 Top Questions You Should Ask When Choosing The Best Manufacturer
Doing business in China can be very rewarding, but before you dive in you need to know what pitfalls to avoid.
If you don’t do your homework, finding a reliable manufacturer to develop your products can be costly and time-consuming.
One of the most important things to remember when working with a contract manufacturer in China is that you want to work with someone who has been vetted and who has a good reputation.
To do this, it’s best to ask these five questions before signing any agreements or making any deposits. Let’s keep reading.
1. What Services Do They Provide?
Since you have no prior experience with manufacturing overseas, you may be limited when it comes to understanding the services your manufacturing partner might offer.
So the first question you have to ask your prospective contract manufacturers in China is: what services do they provide?
As you may know, not every manufacturing company is built in the same way.
Some companies offer a one-stop solution while others may be an expert in a certain part of the industry with high-quality assurance.
Therefore, knowing what each manufacturer specializes in will help you choose the best one that provides you with all of your requirements for success.
2. How Much Experience Do They Have?
If you have an idea of what exactly your product should be, like size, functions, and main materials, you need to find someone who can make your product with relative experience.
Experience is what matters the most when selecting a dependable manufacturer in China.
There are hundreds of thousands of manufacturing suppliers on Alibaba, however, it can be difficult to verify them online.
Everyone seems to say that they know how to solve your problems.
But you have no way of knowing whether or not they are managing a proper facility for producing your desired goods.
Therefore, based on their work experience, they can prove themselves as capable of working effectively with others who share the same needs.
3. How Big Is The Facility?
Knowing the size of their facilities will provide you insight into if they have enough capacity to handle your project.
Sometimes, you may consider using a smaller factory in hopes that they would be easier to deal with and they would pay more attention to your products.
This can be a wrong decision for you to make.
Because if the factory is too small, you may find yourself waiting for one of their existing customers to finish production so you can get started.
Avoid a new or small factory. More often than not, these factories have only been around for a short period of time and they lack the equipment and skilled employees a more established factory should have.
It’s also helpful to ask about the number of employees and departments available.
Keep in mind that if a company has many employees, then it means their facility is larger (thus with more space) and they’ve been around longer, which means they’ve had time to learn from past mistakes and refine techniques – putting them ahead of newer competitors in terms of experience.
4. What Is Their Production Capacity?
It is essential that you find out what their production capacity is.
That’s because production capacity is an integral part of your future success.
You may have been working with a specific manufacturer for years but now you decide to switch over to someone new or you’re just getting started working with this manufacturing company, but it doesn’t matter.
Because either way, you’re looking forward to introducing your product to the marketplace.
You do not want to wait weeks or even months for your product because your suppliers have too many other clients on the way.
It would be best if you find out how fast their production process goes because this will give you an estimate of when you can expect to receive what you ordered.
5. What Quality Assurance Steps Do They Take?
Quality assurance is just as important as choosing a qualified manufacturer.
Several factories in China seem to believe in their quality control process.
However, bad things happen all the time.
If you don’t want to end up with shoddy products or a nonresponsive vendor, check out what other customers have said about them online.
A reliable manufacturer should have a list of case studies or testimonials shown on their homepages. Pay attention to the details of this information. You may later find yourself avoiding a lot of trouble by doing so.
In addition, keep in mind that the more quality assurance steps the manufacturer will take, the lower the risk of defective products and components you will receive.
Typically, there are three quality control services in the industry:
- Pre-Production Inspections
- In-Process QC Inspections
- Container Loading Inspections
In this case, make sure you understand the differences between each product inspection and how your manufacturer conducts the QC process.
Need Professional Help With Your Manufacturing Project?
Don’t be afraid to ask questions. Doing the proper research before making a decision can help you avoid trouble.
If you’re looking for a professional contract manufacturer in China to work with, come to Shield Works.
Our expert team will do everything they can to make sure your project moves smoothly and efficiently. We are well-trained and have been working in this industry for many years – so no matter what you need to be done, we’ll figure it out for you.
With our British ownership and management background combined with manufacturing know-how, we take pride in keeping quality at the forefront of every job – so there won’t be any need to worry about defective products. Contact us to discuss your project today!
Why Product Design and Development in China is Worth A Second Look
Chinese manufacturing has long been infamous as the place where you can get cheap, but low-quality, goods. But times are changing, and China can now claim to be the home of some of the highest quality products available in the world. Product design and development in China has been improving significantly over the past several years, and many companies are looking towards China to get great products manufactured at affordable prices. Here’s why product design and development in China may be right for your business as well.
The rise of Made-in-China
If you’ve spent any time shopping for consumer goods, there’s no doubt that Made-in-China products are everywhere. While some manufacturers simply relocate to take advantage of low labor costs, others—including those with a luxury brand—choose to make high-end goods on Chinese soil to keep an eye on quality control. Meanwhile, more Chinese companies are starting to build their own brands by marketing their home-grown products as superior (whether they actually are or not). An interesting phenomenon of modern consumerism; plus, it’s hard to argue with cheap prices.
Products made in mainland China, with their high production quality and low prices, are starting to become popular, even not just in China. Its strong presence in international markets, especially in the area of electronics and new energy vehicles, has proved the point. Chinese products have gradually formed an image that is both attractive and reliable. The country’s brand awareness among global consumers will continue to rise along with its economic growth, making it more important than ever for foreign companies to consider how they approach manufacturing there, especially in terms of designing and developing their product there, as China is very capable now in this regard and China-made products are less and less associated with negative stereotypes.
Technology Innovation
China never shies away from its ambition in technology innovation. Take Shenzhen for example, a Chinese city adjacent to Hong Kong, which has risen quickly as one of Asia’s fastest-growing tech hubs. And it’s only going to get bigger: Shenzhen will invest more than 700 billion RMB($104.05 Billion) in hi-tech research and development as its 14th five-year plan. In addition to software startups, electronics manufacturing plays a large role in its economic growth; there are over 100 companies within Shenzhen dedicated to producing electronic products for other companies.
It’s no wonder that Silicon Valley giants like Intel have turned their attention (and investments) toward Shenzhen—the global market for smartphones alone will reach nearly $792.51 billion by 2029. By comparison, total U.S. retail sales were $6.6 trillion in 2021. The future looks bright for Shenzhen, and even Apple has started to outsource more and more assignments to Chinese engineering and design teams. Its technology capabilities of developing a product has made working with manufacturers in China an excellent way to get your products designed and produced quickly and creatively, and some of their technologies even have redefined the whole industry.
It may not be dirt cheap anymore, but still cheaper than your native market
China may not beat Southeast Asia regarding price, but it definitely only costs a fraction of what will cost if designing and developing your product in a western country. Moreover, Chinese companies are generally more willing to work with you to help you come up with an idea that can be produced at an affordable price than those in other countries. This means that you could end up saving money by going through them as they might suggest ways for you to lower production costs without sacrificing quality. It’s also worth noting that because Chinese workers are paid more moderately – so don’t be afraid to ask for multiple revisions on your prototype until it’s just right!
You’ll also have access to a huge pool of affordable talents. The sheer number of universities (both public and private) located throughout the country mean that there are thousands upon thousands of people who have already graduated with degrees related to these fields. In fact, many would argue that China has some of best colleges around – many even rank among top universities worldwide – which means there’s no shortage when it comes to getting qualified candidates for your project! Most importantly, that’ll cost a lot less than the west.
Full-fledged Supply Chains
If you want to start an actual business, not just launch an idea or a project, then you need to make sure that your idea can become reality. That involves making sure that all aspects of production are accounted for and worked out so there aren’t any nasty surprises down the road. This is called having a full-fledged supply chain, and China has it. China allows companies to take advantage of its large manufacturing base without sacrificing quality control, and every aspect of a manufacturing process is concentrate around one place, which will afford you better control.
It also makes it easier for small businesses to get started since they don’t have to worry about building up a massive infrastructure from scratch. Getting started with product design and development in China means taking advantage of these benefits—and potentially saving yourself time and money along the way.
In short, there are many benefits to getting your new product design and developed in China. If you have a clear idea of what you want from your manufacturing partner, it doesn’t take long to find one that suits your needs perfectly. Shield Works is your perfect choice with 17 years of product design and development helping so many startups. Let us know if you’re interested!
Common Mistakes Companies Make With Outsourced Product Development
Did you know that 66% of companies with more than 50 employees outsource at least one of their business functions?
If you want to bring in a third party to perform a service for you, you might be interested in outsourcing product development.
Outsourcing this function can be a great way to get your products to market quickly. But it’s important to ensure you do it correctly. Mishandling the process can lead to costly disasters, including business stoppages.
Understanding the common mistakes with outsourced product development will be a good place to start. So read on to learn about some of the most common pitfalls you should avoid when outsourcing product development.
Not Defining the Project Scope Upfront
When outsourcing product development, it’s important to develop a clear and concise scope of work.
The last thing you want is ambiguity around what your outsourcing partner needs to deliver. Ambiguity can lead to frustration on both sides and could even result in abandoning the project altogether.
Make sure you have a solid understanding of what you need the partner to deliver and that you communicate it to the outsourcing partner upfront.
Clarity will ensure that both parties are on the same page from the outset and will avoid any misunderstandings further down the line.
Not Conducting Due Diligence
You’ll be making a mistake if you choose an outsourcing partner without knowing about their capabilities. Start by researching the company and its track record. Ensure the partner has the experience and expertise necessary to deliver on your project.
For example, if you’re outsourcing to China, you’ll want to check that the company has experience with China’s product development. Your China manufacturing partner should also be transparent and dependable so you can get answers whenever you need them.
Failing to do this due diligence can lead you to choose a partner that doesn’t have the necessary skills and experience. You’ll experience significant delays, and cost overruns as the inexperienced partners try to get up to speed on the project.
It’s also important to visit their facilities and meet with their team to better understand their processes and culture.
Not Having a Backup Plan
You might make the mistake of thinking that you’re safe working with a single outsourcing partner. After all, it can be tempting to put all your eggs in one basket. Relying on a single vendor can be risky.
Your outsourcing partner can go out of business or experience other difficulties. In such cases, you may find yourself without a product and a way to get your project back on track. That’s why it’s vital to have a backup plan in place.
This might mean working with multiple vendors or keeping some internal staff on hand to pick up the slack if needed. The goal is to ensure that someone can step in and take charge if your outsourced product development team is not meeting expectations.
A contingency plan will ensure you’re meeting your customers’ expectations even during unexpected difficulties.
Not Protecting Your Intellectual Property
It’s likely to ignore protecting your IP rights when outsourcing product development. Without adequate protection, someone might steal or copy your intellectual property. Such actions will prevent you from reaping the benefits of your investment.
You might be unaware of the risks until it’s too late. You can avoid this mistake by having strong contracts that clearly define who owns the intellectual property. The contract should also state the protections that exist.
You should also consider using nondisclosure agreements to protect your trade secrets. Such agreements will ensure that any IP created as part of the project remains your property and is not transferred to the outsourcing partner. You’ll protect your IP if you terminate the outsourcing relationship.
Not Being Prepared for Culture Clashes
Outsourcing product development to another country can lead to cultural clashes. There can be a difference in working styles, communication styles, and even values.
For instance, suppose you’re a western company outsourcing development to China. There will be a significant difference in how both cultures conduct business.
Chinese culture may place a higher emphasis on relationships. Your western culture is likely to be more results-oriented.
It’s important to be aware of such differences and make allowances for them. If possible, try to have someone on your team familiar with the outsourcing country’s culture.
You should also have clear communication channels and establish agreed-upon working hours. This will help to minimize misunderstandings and enable you to work more effectively. An understanding of cultures will also prevent disruptions to the project.
Failing to Manage the Relationship
Outsourcing product development is not a “set it and forget it” proposition. Once you’ve chosen a vendor, you need to manage the relationship. You should set clear expectations, communicate often, and monitor progress.
Many companies make the mistake of outsourcing and then forgetting about the project. This can lead to big problems down the road. You’re more likely to end up with a subpar product if you don’t invest in a good relationship with your partner.
You should be proactive and involved in the project. You should set clear milestones and expectations at the outset. It’s also vital to maintain regular communication with the outsourcing partner.
Stay on Top of Common Pitfalls with Outsourced Product Development
Outsourcing product development can be a great way to save time and money. But it’s important to avoid these common mistakes if you want to ensure a successful outcome. By being aware of common mistakes with outsourced product development, you can set your project up for success.
If you’re considering outsourcing development to China, consider having Shield Works as your outsourcing partner. We have 17 years of experience in product development in China, which makes us confident that we can guarantee you 100% satisfaction.
Contact us today to discuss your project.
NNN Agreement: How To Protect Your Intellectual Property In China?
There are a lot of things you can do to proactively protect your intellectual property (IP) when you are outsourcing production into China.
The Chinese NNN agreement may be one of the most important parts of the overall picture.
If you want to hear about NNN agreements, you are in the right place.
In this article, you will learn what’s involved in an NNN agreement, why you need it, and how it can help your business succeed in China.
What is an NNN Agreement?
So, first thing first. You may want to know the definition of an NNN agreement especially if you are new to Chinese manufacturing.
NNN stands for non-disclosure, non-use, and non-circumvention. The three Ns include:
- Non-Disclosure: Don’t tell anyone
It means that the counterparty can’t disclose any confidential information you provide.
- Non-Use: Don’t use the information
This means that the counterparty can’t use your IP for any purposes other than for your benefit under the contract.
- Non-Circumvention: Don’t go around your back
It means your manufacturing contractor can’t circumvent you and sell to your customers directly, usually at a lower price.
An NNN Agreement is a type of confidentiality agreement used in business dealings with Chinese companies, particularly Chinese manufacturers.
An effective NNN agreement can be used to protect your confidentiality such as product details, drawings, marketing strategies, etc. when working with manufacturers directly in China.
It’s a Chinese equivalent to the western world’s Non-Disclosure Agreement (NDA).
The Difference between An NDA Agreement and An NNN Agreement
A Non-Disclosure Agreement (NDA) focuses on protecting trade secrets in the US. while an NNN can be used to safeguard IP in China.
To be considered protectable property, a trade secret must stay a secret. As such, NDAs are typically aimed at preventing the disclosure of trade secrets to members of the public.
Therefore, an NDA agreement focuses narrowly on confidential information from being revealed to the public.
Typically, an NDA agreement is written in English, subject to U.S. law, and exclusively enforceable in a U.S. city and state.
The Advantages of a Chinese NNN Agreement
Whether you work with an existing Chinese manufacturer or looking for a new one, building and signing a legitimate contract will guarantee the safety of your company’s confidential information.
Here are some good reasons why you should sign up for an NNN agreement.
1. Protect Sensitive Information
The primary advantage of an NNN is that sensitive information about your company remains secure.
This could involve anything like proprietary data, patents, finances, negotiation terms—anything confidential.
Signing an NNN agreement is a method to protect private details from coming out publicly or being used by the manufacturer and their staff members.
2. Build Trust
Having confidentiality when writing and signing agreements between your company and your chosen manufacturing supplier lends trust to these types of negotiations, thereby deterring the possible theft of intellectual property.
You can also use this agreement to detail your expectations for the Chinese manufacturing process, including specifications for quality control and product safety.
3. Avoid Unapproved Subcontracting
Some overseas companies that outsource production to China discover that their manufacturing suppliers rely in turn on layers of subcontractors, without the buyer’s knowledge or approval.
With this contract in place, you can reduce or even eliminate the problems caused by unethical manufacturing suppliers who could steal your IP and pass it to their subcontractors.
A Step-By-Step Guide To Protect Your Intellectual Property in China
Keep a Close Eye on Your Manufacturer
Before working with a manufacturing company in China, it’s always a good idea to do due diligence. You should understand the tier of different suppliers and the transparency of every production stage.
When working with a reputable supplier, you still need to keep a close eye on their company updates by continuous monitoring.
Filing your IP Rights In China
Though you have your IPR registered in your country, you may not be protected by any foreign law or foreign judgments in China. Instead, the Chinese law and the Chinese court protect your right.
For overseas businesses engaging in import-export, they are suggested to file their IP information and register for trademark protection with relative authorities in China.
Sing An NNN Agreement
When partnering with a manufacturing company, make sure you have a well-drafted and properly executed NNN agreement that will help you protect your IP, and provide you with relief if the manufacturer breaches the agreement.
Choose A Reliable Manufacturing Partner
Finding a reliable manufacturer in China can be daunting and time-consuming. Shield Works can be your local manufacturing partner to safeguard your IP and meet your production expectations.
As a British-owned and managed company, Shield Works is committed to protecting every aspect of your IP without excessive costs and time.
Shield Works partners with Innopat, a leading Zhuhai-based IP industry expert, to provide you with clear IP protective manufacturing services in China. In addition, Innopat is a professional patent and trademark agency authorized by the National Intellectual Property Administration of the People’s Republic of China.
We also have our IP Protection flagship facility to conduct activities from manufacturing, and product assembly to quality inspection and warehousing.
In this case, you no longer have to worry about the risk of copy-cat manufacturing. Contact us to diss your project today!
5 Tips For Reducing Costs On Quality Control In China
Whenever you’re sourcing products in China, it’s always a good idea to have quality control measures in place. These will ensure that your products are as strong and durable as they need to be, so that customers continue to buy them and recommend them to their friends and family members. However, it can often be difficult to save money on quality control when working with Chinese suppliers. Here are five tips for reducing costs on quality control in China.
1) Use 3rd-Party Inspection Services
Third-party inspection services will typically charge a fee for their services but will also help streamline communication between your factory and yourself. They’ll also help prevent any language barriers from interfering with communication. A third-party inspector will typically visit your production facility once per month during production runs, which means you’ll still need to conduct regular inspections via Skype or other methods yourself throughout each month. But by using third-party inspectors regularly throughout production cycles, you can ensure that problems don’t go unnoticed until after goods have been shipped off to customers. When it comes to quality control in China, a little bit of extra effort now could save you thousands of dollars later on.
2) Build Relationships With Suppliers
Your China manufacturing operation is only as good as your supplier relationships. That’s a fact. When suppliers deliver on time, meet quality requirements and are flexible when you need them to be, then you can feel confident in putting your product in front of consumers. But if a supplier flubs an order (or multiple orders), doesn’t pay attention to details or otherwise cuts corners that affects quality, it will be reflected in customer perception of your brand—and eventually sales results. Unfortunately, there’s no simple solution here because every situation is different, but there are ways to help minimize risk of problems with suppliers and still find high-quality products at a price point that makes sense for your business. Having a solid relationship with your China manufacturer will help ensure all goes well from start to finish so as to save for quality control later.
3) Find Suppliers You Can Talk To
As we just mentioned, it’s crucial to build a good relationship with your suppliers. If you have a supplier that will work closely with you, you will have peace of mind knowing that your products are being built as per your specifications and on time. This can save you thousands of dollars in unnecessary costs on quality control inspection and rework if your supplier is lax about following instructions. Since many China manufacturers don’t speak English well, try to find someone who can understand what you need or use an agency or translator who specializes in working with Chinese manufacturers. Also make sure to check references before doing business with any new supplier.
4) Get Critical Feedback While Your Product Is Being Manufactured
One of the biggest mistakes entrepreneurs make when manufacturing a product is assuming that everyone is as invested in its success as they are. But often you’ll be working with multiple vendors, each responsible for a different component of your finished product. Without directly collaborating with all vendors, it can be hard to spot inconsistencies—like inferior fabric or mismatched parts—until too late in production. The easiest way to catch these and other problems early on is by getting critical feedback from suppliers and manufacturers while your product is being made. While it’s impossible to ensure perfection, taking advantage of communication can help limit any mishaps during production so they don’t cost you time or money later down the line.
5) Get Involved in the Production Process
When you’re manufacturing overseas, quality control is a crucial issue. If there are quality issues with your product or manufacturing process, that means you will lose time, money and a lot of reputation. The best way to overcome quality problems is to get involved in QC yourself. A first step would be to try testing out parts of your production process at each stage before you send it off for mass production. This will make sure that whatever defects happen are caught early on and can be corrected as early as possible, with minimal cost and effort. With current travel restrictions, most likely you won’t be physically there in China. Make sure to find one that can livestream the whole process or any trusted 3rd-party inspection services to test it out for you.
Overall, quality control is one of those things that may seem small in terms of overall costs and time, but it can make a significant difference to your bottom line in both ways. It’s never too early or too late to start improving your QC. Shield Works has over 17 years of QC experience with our own professional team, contact us if you are in need of QC service in China!
Reasons the China Manufacturing Boom Is Actually Good
China produces over 28% of the world’s manufacturing. Because of the China manufacturing boom, it’s not surprising that China’s gotten the nickname “the world’s factory.”
But why is there an increase in China manufacturing? How can it benefit your business? And how has the COVID-19 pandemic affected global relations?
Read this guide to find out everything you want to know about the China manufacturing market and why it’s actually good for your business.
What’s Driving the China Manufacturing Boom?
There are several factors that contribute to the boom in China manufacturing.
For most people, the lower cost of labor is probably the first factor they’d consider. There are lower wages in China. This makes manufacturing much cheaper.
China is the most populous country in the world. This means there are more workers than jobs. That keeps the cost of labor relatively low.
However, certain provinces have begun enacting more laws to protect workers. This includes installing minimum wages throughout the country.
Manufacturing is still cheaper when outsourced to Chinese factories. But, the cost of production isn’t the only consideration you should take into account.
The Chinese-U.S. Business Ecosystem
Manufacturing isn’t the only part of industrial production one must consider. In fact, there is a large network to consider that includes:
- Suppliers
- Distributors
- Government agencies
- Customers
American companies such as Apple utilize China’s efficient supply chain. This efficiency helps them to keep costs down and margins high.
Most U.S. companies operating in China find it unrealistic economically to complete productions on U.S. soil.
Additionally, business relations remain strong between the U.S. and China. Though political tensions may be high, many businesses feel confident in their Chinese manufacturing relationships.
In fact, this is the most confidence many businesses have felt since the beginning of the COVID-19 pandemic.
Lower Compliance Standards
Product assembly in China does not have to meet certain guidelines American businesses must follow. For example, China is much more relaxed about the following standards:
- Involuntary and child labor
- Health and Safety Guidelines
- Wage laws
- Environmental protection laws
Though labor laws are changing in China, they are still far less strict than in the United States. This helps to save on labor costs.
Chinese factories also save on waste management. This is because environmental protection laws are not strictly enforced.
Savings on Taxes and Duties
In 1985, China enacted the export tax rebate policy. This policy abolished double taxation on exported goods. This was responsible for making Chinese manufacturing much more attractive to potential investors.
Exported goods in China are subject to 0% value-added tax (VAT). That means these products are exempt from VATs.
Chinese products are also exempt from import taxes. This keeps production costs low, which attracts more investors.
International Expansion
China is a massive pillar in the Asian market. The Asian market in general is growing at an extremely rapid rate.
Doing business in China helps to expand your reach to these valuable Asian markets.
These expansions can multiply your company’s business opportunities exponentially. You also streamline your ability to introduce products into markets across Asia, especially Chinese markets.
How Did COVID-19 Affect Chinese Manufacturing?
It’s no surprise that the COVID-19 pandemic affected the boom of Chinese manufacturing. China was, after all, the first country to experience the effects of the pandemic.
It is common practice for Chinese businesses to take a week off for Lunar New Year celebrations. In 2020, this break was extended. This was China’s attempt to stop the spread of COVID.
Unfortunately, like many American businesses, Chinese businesses experienced delays in production. Many workers became sick, slowing down manufacturing.
Additionally, issues in the global supply chain created fear around reliance on outsourced manufacturing. This included Chinese manufacturing.
Chinese Recovery in a Post-COVID Economy
However, Chinese factories continued on. Many of them capitalized on mask production to keep them operating throughout COVID.
Now, it appears that China’s manufacturing is on the come-up. However, since the roughest days of the pandemic, it would appear China has made a full recovery.
How Did the US-China Trade War Affect Chinese Manufacturing?
While in office, US President Donald Trump attempted to decouple the Chinese and US economies. This created a trade war that affected, and still affects, the manufacturing industry.
However, an annual member survey by the American Chamber of Commerce in Shanghai revealed that 92.1% of its members had no plans to leave China.
Even with Trump’s push, leaving Chinese manufacturing was not an attractive prospect to many companies. Most of these companies have revenues above $500 million USD.
How Is China Upgrading Its Manufacturing Industry?
The Chinese government’s goal is to have 30% of its gross domestic product (GDP) come from new industries. So what are they doing to meet this goal?
By 2025, China plans to have strong innovation in its manufacturing industry. They expect to use these innovations to drive high-quality growth.
Some manufacturing innovations China is currently working on include:
- Sharing production facilities
- Sharing tools and equipment amongst facilities
- Making intellectual resources such as designs and development practices public use
Their goal is to use this plan to boost resource allocation. This will help to improve efficiency and drive higher ROIs for business manufacturing in China.
Take Advantage of the Chinese Manufacturing Boom
So, you can see how Chinese manufacturing is a valuable market for American businesses.
The factors driving the China manufacturing boom can help to lower costs and boost your ROIs so that your business sees significant returns. Plus, you can streamline your business for introduction into the up-and-coming Asian markets.
Contact our team if you’re ready to begin manufacturing in China. With Shield Works, you can rest easy knowing you’re making the right choice for your business’s manufacturing needs.
3PL Service Can Help Boost Your Amazon Business
3PL service can be a valuable tool to help your Amazon business grow and get where you want it to be. But why use 3PL service? What are the benefits of working with 3PLs? How can they help with your Amazon business? Those are all excellent questions, so let’s take some time to go over them in detail.
What is a 3PL Service?
You may be familiar with 3PL services already. A third-party logistics (3PL) company is a business or other entity that handles storage, transportation, sorting and delivery of goods on behalf of a retailer. The U.S. has more than 6,000 3PLs, according to American Association of Port Authorities (AAPA). Amazon itself is often cited as one example of a company that uses 3PL service for its ecommerce sales via Fulfillment by Amazon (FBA). In fact, many online retailers use 3PL services because they’re so convenient: They can offload some or all shipping responsibilities from their own staffs to experienced professionals who have access to resources like trucks, warehouses and sophisticated software. That leaves your small business free to focus on what it does best—selling products—while you outsource what you don’t need in order to grow faster.
With more and more businesses outsourcing their manufacturing overseas, 3PL service in other countries are also in high demand, especially in China. These companies can help your business save money by providing a single point of contact for all your global logistics needs. Many of these firms have experience dealing with multiple languages and cultures, so they can communicate directly with suppliers in foreign countries to ensure that your products arrive on time and as expected. This is particularly helpful if you’re new to importing or exporting goods from overseas: You can leave most of the work to them while you focus on growing your company’s sales revenue.
Why Do I Need it as an Amazon Seller?
More importantly, what are your options for managing third-party fulfillment? One option is to do it all in-house, but that can be difficult if you’re trying to run a business. In addition, it might make more sense from a brand management perspective to use outside vendors with established reputations. For example, Shield Works offers 3PL (third-party logistics) services that allow Amazon sellers to leverage its warehousing infrastructure and expertise on their behalf. This allows Amazon sellers like you to focus on brand development instead of worrying about operational details.
What’s more, it provides peace of mind by helping ensure inventory doesn’t sit idle or get lost. There are many ways to approach your online sales efforts—and no one way is better than another—but shipping and fulfillment may be one area where working with an expert makes sense.
What Should You Look For In A 3PL Service Provider?
The following are some things you should consider when evaluating a 3PL service:
Global reach
Choose a provider with locations around the world so you can reach customers in multiple time zones. Comprehensive set of transportation options. You’ll want access to air, ocean, trucking and rail services so you can choose whichever mode is most cost-effective for each shipment.
Transparent rates and fees
Look for providers that charge per package or weight based on total volume rather than as a percentage of total value. This will allow you to price your products competitively without surprises at checkout from additional fees. Recurring transport scheduling/management capabilities.
Real-Time Tracking
Want to know where your shipments are at all times? 3PLs that offer real-time tracking can help ensure you’re meeting customer service standards. Check out the system they use and do some research on how it works and it’ll give you an idea how your goods will be handled.
Automated import/export services
For example, if you need assistance calculating how much duty you will owe on a shipment to Europe, a provider with an automated system can save you valuable time and eliminate errors.
Customized shipping solutions
A provider that offers these services will help you ship products directly from China or other overseas locations to your customers in North America and Europe at competitive rates. This is particularly helpful when importing large volumes of goods from China as it allows you to take advantage of bulk discounts on shipping charges by consolidating multiple packages into one larger shipment that arrives at its destination faster than individual shipments would have arrived.
Multiple package-shipping options (e.g., small, medium or large boxes).
A 3PL service provider should offer multiple box sizes so that you can choose which size best fits your product’s needs and reduce packaging costs accordingly.
Questions to Ask Before Hiring A 3PL Logistics Company
Choosing a 3PL service to transport your inventory can seem daunting. The Amazon marketplace is full of shipping companies claiming to offer inexpensive, efficient and reliable shipping services for sellers. As with any decision you make regarding your business, it’s important to take time before selecting a company that will handle your shipments. If you’re thinking about hiring a 3PL logistics company, ask yourself these questions first:
- How do they communicate?
- Is their response time reasonable?
- Does anyone actually pick up their phone when you call?
- What is their process for handling shipments?
- How can I access information about my shipment?
- How are customs forms handled?
- What happens if my shipment gets seized by customs or delayed by weather or other factors outside of my shipper’s control?
As we wrap up, there are two things you should remember: first, 3PL’s can be a great asset to your Amazon business. By working with a reliable and trustworthy service provider, you can save time and resources on everything from picking and packaging to shipping and order fulfillment. The second thing is just as important: choose a provider that meets all of your specific needs. The best 3PL will have industry expertise (especially in terms of handling products), but will also make it easy for you to monitor shipments and control inventory without missing out on profit potential. Whether you’re just starting out or expanding an existing operation, pay attention to each of these tips when selecting a new supplier partner!
Shield Works is one of your ideal options with our western background and 17-year industry experience. We have helped so many launch their Amazon business with our logistics service in both the US and China. Reach out to us and learn more about how we can help!