Contract Manufacturing
Supply Chain Management: The Backbone of Your Business
Supply chain management is the backbone of any company, big or small, that deals in physical goods with substantial production and distribution processes. When you’re starting out your business, supply chain management might seem like an afterthought; you’re more concerned with what goes on inside your company than the goods that come in and out of it. But when you’re ready to scale up, you’ll need a way to manage your goods from their point of origin all the way to where they’re being used—and that’s where supply chain management comes into play.
What Is A Supply Chain?
A supply chain is the network of all suppliers and producers, distributors, warehouses, and end customers involved in producing and delivering a product. Supply chains are found in a variety of industries including automobile manufacturing.
A consumer goods business’s supply chain can be broken down into four main categories: supplier development and management; distribution; operations management; and customer service. These four components work together to ensure that goods are delivered to customers on time while maintaining a high level quality.
Suppliers need to be monitored for quantity, delivery times, and any changes in price or availability. Distribution requires coordination with carriers and transportation services for getting products from point A to point B without any delays or damage. Operations must handle such things as plant floor layout, storage equipment design, assembly line design, production scheduling strategies and inventory levels. Customer service involves managing customer expectations with respect to pricing/costs, lead times and order fulfilment.
An effective supply chain is crucial because it ensures your company has continuous supplies which allows you to stay competitive by meeting your customers’ needs at a low cost while still ensuring profit margins remain healthy enough for long-term success.
Benefits Of Having A Good Supply Chain In Place
A good supply chain will ensure the availability of your products and services to buyers. Having a reliable supply chain in place means you can trust that what is promised is delivered, without worries about product shortages or delivery delays. It also means you can focus on other aspects of your business, such as marketing and customer service, knowing that your supply chain is running smoothly. Good inventory management also saves you money by reducing the amount of time spent managing inventories; it eliminates waste by reducing excess production; and it prevents overbuying or underbuying by estimating demand more accurately.
It also allows you to offer same-day shipping or delivery services, which can greatly improve your customer experience while enhancing your brand image in shoppers’ eyes. Finally, having control of every step of the process from production to distribution gives you peace of mind because you know where your products are at all times.
Problems With A Poorly Planned And Managed Supply Chain
A poorly planned and managed supply chain can lead to a variety of problems. For example, if your supplies are delivered late or in the wrong quantities, it will be difficult for you to keep up with demand and meet customer expectations. This could cause your customers to look elsewhere for products, meaning you’ll lose money. Similarly, if something goes wrong with a shipment – say you ordered 2,000 units but only received 1,500 – then you won’t have enough product on hand to fulfill orders and may have to cancel some orders altogether. This can damage your reputation as well as cause delays in production that hurt your bottom line.
In addition, a poorly planned and managed supply chain can lead to even financial problems. If your supplier ships you faulty products – say they accidentally send you 2,000 units that don’t work properly – then it may be difficult for you to get a refund or replacements. This could force you to halt production as your staff tries to identify and replace all of these faulty units and seek compensation for losses. Worse still, if there’s an issue with your suppliers’ products that leads to serious injuries or health complications for customers, then it may be difficult for you to find a lawyer who will take up your case due to consumer protections laws in many countries. And it’ll be detrimental to your cash flow.
How Can You Effectively Manage An Effective Supply Chain?
There are many factors to consider when it comes to supply chain management, but the most important is having a plan. You should start by writing down all the points that are essential to your business and then create a list of what you need for each point. You can also make use of a system that will help you manage your inventory and keep track of where things are in the process. When it comes to order fulfillment, be sure that you have enough space in your warehouse or storage area to account for the time it will take for customers’ orders to arrive. If you’re not sure how much space you’ll need, speak with a professional who deals with these matters on a daily basis.
Or you can hire a professional supply chain management company. They will work closely with you to establish goals for your organization’s future manufacturing plans as well as strategies that address potential problems like an increase in problems or changes in technology. They also provide recommendations and support for establishing a sustainable supply chain strategy. With their guidance, there’s no doubt about it: You’ll be able to continue running an effective supply chain without wasting money, resources, or time.
Shield Works Can Take Care of It All
Shield Works has over 17 years of experience in managing supply chain, all the way from manufacturing to delivery. We can help you achieve your goals and objectives while saving time and money. For a free consultation on how we can help your business, call today!
What Are the Benefits of Contract Manufacturing in China?
Over $540 billion worth of goods were imported into the United States from China in 2021.
China has been and remains the manufacturing hub of the world for the last few decades. This growth allowed China to invest in infrastructure to further its dominance in the sector. These investments have made China the perfect one-stop shop for the world’s manufacturing needs.
Contract manufacturing in China offers a wide range of benefits to businesses of all sizes. Outsourcing production in this way can help lower your costs and set yourself up for expansion throughout Europe and the rest of the world.
Interested in moving your manufacturing needs overseas? Here are a few of the major benefits of contract manufacturing in China.
Lower Production Costs
China is home to over 1.4 billion people. These population numbers have created a labor market where wages have remained low compared to other markets in the world. The minimum wage varies in different regions, but the average is still below $3 an hour.
The lower cost of labor directly decreases the overall cost of production as companies can afford to hire more people with the same budget. The ability to hire more people makes the entire process more productive. This increase in productivity means that every unit produced ends up being cheaper.
Fewer Regulations
The manufacturing sector in the United States is heavily regulated. Red tape and production regulations can delay internal processes and even halt production. This can have a massive financial impact on the company.
This is why many outsource their manufacturing to China as there are far fewer regulations to navigate. While there are still strict health and safety regulations in place, everything is designed to be as efficient as possible. This allows businesses to instantly start production and distribution.
Excellent Logistics and Shipping Services
China has dominated the manufacturing industry for a seriously long time. This industry has grown to contribute around $4 trillion to the national GDP every year. However, these finances were invested to make the country the manufacturing hub of the world.
China has invested in strategic infrastructure to help make logistics as efficient as possible. They have done this by upgrading their shipping ports, airports, and national highways. China has also invested heavily in international highways to help deliver goods throughout Asia and some parts of Europe by road.
This, along with its geographical location, makes it the perfect place for contract manufacturers.
Central Location
China may not be as central as Europe, but it’s close enough to its largest trading partner, the United States. This allows American companies to sign contract manufacturing agreements with local companies online.
Modern technology has helped make this process as easy as possible. There are even online platforms designed to help businesses find local manufacturers. However, there are also experienced firms that offer guidance every step of the way.
Productive Business Culture
Contract manufacturing agreements are designed to be as efficient as possible. This is because outsourcing your manufacturing helps reduce the risk of production for your business. While there may be other options available, the Chinese market is by far the best choice.
This is because the manufacturing industry has world-class infrastructure, local support, and experience. The industry is designed around efficiency and comes with a productive business culture to match. This productivity can help you lower your overall production cost to boost your profits.
Saving you time, making you money.
Global Expansion
As mentioned above, China has the best logistics networks in the world. This allows the local supply chain to operate with accuracy locally and internationally. This is because China is already linked with almost every country in the world.
In this way, outsourcing your production to China gives you access to the country’s logistic network around the world. This makes it easy for you to produce goods in China and ship them directly from China to various countries. Shipping directly from the factory to the destination can save you money.
China has trade agreements and deep diplomatic relations with almost every country in the world. This means that you can leverage the country’s existing infrastructure to grow your business around the world.
Attractive Local Currency
The Chinese currency is one of the country’s most powerful tools. This currency is not exchanged like other currencies in the world as it’s completely under the control of the local government.
This means that the government has the ability to create a stable economic environment for investors. By controlling the currency, the government can use it as a tool to encourage investment whenever it’s needed.
The local currency is kept at an attractive rate for foreign investors. This helps keep local costs down for international companies. By making every dollar go further in China, it encourages businesses around the world to move their operations to the country.
Contract Manufacturing in China
China is the manufacturing hub of the world for a reason. While businesses around the world may have seen China as cheap labor in the past, the country has evolved. This has resulted in a productive business culture that can help serve businesses around the world.
Whether you’re a small business looking to cut down production costs or a company trying to expand, contract manufacturing is the way to go.
Interested in outsourcing your manufacturing with a contract manufacturer in China? Contact us for more information. Our experienced team is ready to help.
7 Benefits of Working with China Manufacturers You Must Know
Deciding whether to outsource your manufacturing to China can be an overwhelming process, but there are many reasons to choose China as your manufacturing hub. Here are five of the most important benefits you should consider before making a decision.
Lower Costs Than Western Counterparts
One of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
Besides having fewer overhead costs, Chinese facilities also have lower training costs. In order to cover these costs, domestic manufacturing facilities must set aside a significant amount of money.
Businesses of all types outsource instead, as wages in China are also lower than in the United States.
When you outsource, you can spend less per dollar, so you can reap the benefits that can come from using Chinese product assembly. Keep this in mind when you are considering moving forward.
Larger Production Volume
A business does not necessarily need to manufacture thousands of products in one order. However, in some cases, large organizations often have a hard time locating a domestic facility that can meet their bigger-than-normal needs.
This means that China has typically built facilities that are able to produce large volumes of goods for many different countries. Even an average Chinese factory can outperform the vast majority of western facilities.
When it comes to companies that require a massive supply of their product, there is no better alternative than outsourcing to China. In many cases, it is also the only way to meet your goals.
Diversified Production
To long-term success, scaling your business may be needed.
This can happen in a variety of ways. For example, you might add a new product line to generate additional revenue.
One option would be to find growth opportunities in one of China’s developing markets. That way, you can use them to establish a niche in your business. Designing new products is one of the key ways in which they help.
Choosing a Chinese OEM plant, in some cases, might give you an edge over your competition.
Flexibility of Product Design
Domestic facilities usually cannot adjust their design at your behest because it could take them days or weeks to actually put them into practice.
You may have to change the way you do business to sell a more desirable product if you don’t have high enough sales numbers. Adding to this, delayed orders because of design changes also carry the risk of your customers turning to competitors.
It is our understanding that Chinese manufacturers are ready to implement any changes required of them. As for you, all you need to do is contact the representatives from your company and describe the alterations that you need.
The manufacturer will typically make revised products as soon as possible after you inform them of your change, which is an important consideration as it will affect your brand’s reputation.
IP Protection
Many people are unaware that many Chinese factories prioritize intellectual property protection.
This means they make sure you don’t end up in legal trouble by avoiding any form of infringement. To illustrate, suppose you sell a product that is extremely similar to that of your competitor.
As with any other manufacturing industry, there are shady facilities that engage in such tactics. A reputable factory in China will make sure that there is no copying or reverse engineering going on.
It is good news that you can research the reputation of your prospective factory before choosing to work with them. Otherwise, you may find yourself in a situation that is difficult to remedy.
Efficiency
China’s factories are capable of mass production, and it is a simple matter for them to do so with remarkable speed.
These new and efficient facilities can meet any production standard. This will allow smaller organizations to compete with larger ones.
Many small businesses can’t keep up with the production rates of large corporations. Without the help of the right manufacturers, these businesses will never be competitive.
Tips of Finding The Factory Right for You?
It can be difficult to find a reliable Chinese manufacturer for all sorts of reasons, like time zone challenges and language barriers. With the help of a professional, you will be able to get a firm grasp on which factory is best for your company.
You’ll find that they are a go-between who has contacts at the other party’s end. That way, they’ll be able to work out the finer points and make agreements without you even needing to intervene.
You can take a look at this resource to find out how you can use this to your advantage.
We Are You Go-To Option
With the above information in mind, you can be sure that you are deciding the right course of action for your company.
From here, you’ll be able to employ Chinese manufacturing for appropriate businesses. Want to learn more about Shield Works with 17 years of China manufacturing experience? Please get in touch with us today and see how we can help.
Contract Manufacturing in China: Common Issues and Tips to Avoid Confusion
You’ve probably heard about contract manufacturing in China and have wondered if it’s the right choice for your business.
To help you make an informed decision, we’ve put together this guide on some common contract manufacturing mistakes in China, so you can avoid confusion and issues with your Chinese manufacturers and create a strong partnership that benefits both parties involved. Let’s jump right in!
1. Not Understanding the Contract Manufacturing Process
Outsourcing contract manufacturing to China provides many benefits, but it does come with some risks for those who don’t know what they’re doing. Several issues commonly arise when outsourcing to China so make sure you’re aware of them before taking on this task.
One of the major issues that will hurt your business is not knowing the production process from the beginning. You should know what exactly you will be getting in return before going ahead with your work.
Before working with a contract manufacturing company in China, you need to decide what will you want them to take care of for you, for example:
- What are your raw material needs?
- What type of technology will you utilize for this project?
- Are there any prototypes or product samples that require checking out before moving on to the next phase?
- Does your desired item require a custom design?
- Will you use quality control services and when will they be necessary?
- What defect rate can you accept?
From sourcing raw materials and product testing to mass production and final inspection, list all information you need to know before finalizing a particular manufacturing partner because they will help you develop clear expectations about timeframes and product quality.
2. Not Having a General Frame
A new manufacturing project is an exciting endeavor, and often everyone is eager to get started. Though it may seem like you’re jumping right into things, please take some time to discuss this with your suppliers at the beginning. They will appreciate the main information they’ll need to understand what exactly it is that you want them to do.
Try not to overwhelm your vendor with excessive information from the start. It’s best to give them just enough information for them to understand what you need, but also keep in mind that they may have a standard procedure for whatever it is you’re looking for. To make sure things stay consistent, mention your expectations, standards, and deadlines early on. To do this efficiently, don’t go overboard when first explaining your needs. Remember that there might be certain procedures involved with whatever is going to happen.
3. Not Maintaining Constant Communication
Many companies make the mistake of not maintaining constant communication with their Chinese production partner.
To avoid mixed messages or missed signals, it’s important that you stay in contact with your Chinese suppliers for updates. Even something as simple as learning about the production progression can keep things more transparent, which can help to get your product made successfully and correctly, especially when you can’t be physically in China now.
Furthermore, if there are any problems or changes in the timeline, then you need to have a line of communication with your supplier so that both sides can react quickly. The sooner you catch a problem, the easier it will be to fix.
4. Not Involving Enough People
Manufacturing processes abroad tend to be far more complicated than initially perceived when you are new to the field, so it is important that you stay proactive and create a checklist of people to work with.
Your project will go through many different steps before it is completed. From a project manager, engineer, product designer, and quality inspector, ensure that every person you will work with knows what their tasks entail, so no one falls behind or ends up unprepared for an upcoming step.
Do not allow yourself to fall into the trap of continuing to allow the production process to have only a single perspective. Instead, expand the perspectives and make the same communication group. When things go wrong, it would be easier to know who has which responsibilities and thus you know how to optimize it.
5. Not Having a Continuous Improvement Process
In a project-based manufacturing environment in China, the ever-changing needs of design and engineering, combined with the constant demand for customized products make it so hard to produce anything without proper planning. Without constant improvement plans, things can go south very quickly.
No two projects are the same, so sometimes you may need additional resources, or you will want to adjust your team or process during the project.
You should always have a plan for anything that might go wrong when working with manufacturers abroad. In this case, it’s better to have a flexible and clear improvement process, allowing you to spot trouble early on and address issues before they get out of hand.
Consider Working with an Experienced Contract Manufacturer
Even if you plan, it can still be easy to get confused when selecting the right contract manufacturing company in China. This decision should not be rushed as many things need to be considered carefully as many different factors need to be considered, like proximity of the factory, capacities, costs, payment terms, communications with your team on-site as well as an understanding of whether or not the supplier will perform duties such as product design for you.
An experienced and reliable manufacturing partner can help to prevent and solve problems correctly. In this case, look no further than Shield Works.
Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive contract manufacturing services. We focus on the provision of a tailor-made solution, and we communicate your requirements in your native language to avoid misunderstandings. Start your journey by reaching out today to discuss your product and learn how we can help.
Behind The Great Product: How Does Product Design Work and What Do You Need to Know
As you may notice that there’s more to every product than meets the eye.
Today, people are bombarded with thousands of choices each day, and it’s easy to overlook one mediocre product among so many great ones.
The appearance of a product can be as important as its functionality because people will judge the product by its look at the first glance. A good-looking product can be popular and dominate the market in a short time.
Here’s how product design services can help you with your next big project. Let’s get started!
What is Product Design?
Product design, as its name suggests, is all about designing products. It has several variants including industrial design, graphic design, and software design.
Product design is used to improve the appearance of products, making them more appealing to consumers. It can also be used to improve the function of a product, making it more user-friendly or efficient.
Product design is one of the main processes in new product development that aims to create successful products that solve customer problems. In order to do this, product designers must comprehend what both clients and users want as well as make sure they have an excellent experience with the item.
From smartphones and washing machines to furniture and cars, you’ll find many of the products that we can see, touch, and use in our homes, workplaces, or anywhere else in our daily routines are the result of this practice.
A good product can win over customers quickly while a bad one will end up costing your company thousands of dollars in return fees, wasted resources, and irreparable brand damage. That’s why you have to ensure that the design process is perfect before mass production or else things can go very wrong.
What is The Difference Between Product Design and Industrial Design?
The distinctions between industrial design and product design are often unclear, or even inconsistent depending on whom you ask.
What is Industrial Design?
Industrial designers are tasked with addressing both the aesthetics of an object as well as its functionality. It requires more work in transforming and customizing designs to make products ready for mass production.
What is Product Design?
Product design is a subset of industrial design. A product designer focuses more on the detailed appearance of the products following the client’s specifications and applicable standards.
Today, it’s common for many product development and manufacturing companies in China to use both terms interchangeably because an industrial designer and a product designer are both playing nearly identical roles professionally and share virtually the same goals of designing well-made products.
How Does Product Design Work?
Product design is one of the main processes of creating a new product, and it usually begins with research, followed by ideation, prototyping, testing, and finally production.
Stage 1: Ideation and Strategy
Before you pass your idea to the product designer, it is important to have a clear vision that determines the product type, the main features, and functionalities, and the problems the product will solve. Also, you need a strategy to define how to make it, and why it would succeed for it in this current market.
The product designer also needs to provide design specifications for the developers. Design specs provide in-depth information about the design of a product, including details of the interface such as colors, typefaces and fonts, and detailed measurements. They might also include usability information, such as animation and motion details, user flows, and product behavior.
Stage 2: Designing
The product designer needs to provide design specifications for the product engineers before creating a prototype.
These are detailed instructions that tell exactly how products will look, including colors, dimensions, weights, materials, and other technical details.
Stage 3: Prototype
After finalizing the product design, it’s time to build a prototype or series of prototypes to test your hypothesis.
Creating a prototype allows the designer to discover if they’re on the right track, and it often sparks different ideas that you wouldn’t have come up with otherwise to further streamline product development.
Using the physical prototype can help to test function and user experience although it will be expensive when compared with a digital design.
Stage 4: Testing & Modification
Product designers rely on usability testing to test and validate the product’s design with target users.
This allows you and your design team to see and learn about how people will interact with your products, which is a good way to gather qualitative data, identify user experience, and measure user satisfaction. After that, you and your designer can make changes accordingly and create a new prototype to keep testing until it’s ready for launch.
What Are Some Things to Consider Before Hiring a Product Designer?
A good product design can make your product more marketable and successful.
If you’re looking to design your product, but don’t have the in-house team and facility available, working with a product development company with a team of experienced product designers can be the perfect solution.
In this case, there are five main considerations you should keep in mind before moving forward:
- Think about what you want your product to look like. This will help you communicate your vision to the designer.
- Consider your budget. You can find some cheap product design services online, but a good product design can be expensive, so you’ll need to make sure you can afford it.
- Decide on the type of product design you need. There are many different types of product design, so you’ll need to choose the one that’s right for your product.
- Check out the designer’s portfolio to get an idea of their experience, style, and skills.
- Consider the timeline for when the project will be completed.
Ultimately, using product design services can help you create a better product that is more likely to succeed in the marketplace.
If you need any help, look no further than Shield Works. Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements.
We focus on the provision of a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.
Manufacturing Contracts: Everything You Need to Know
The global contract manufacturing market will be worth over $2.7 trillion by 2023. Contract manufacturing is a significant part of the economy and drives business growth.
And for a good reason. Contract manufacturing is beneficial to companies hiring a contractor. They can use the latest technology and machinery, resources, and expert knowledge.
With so much at stake, manufacturing contracts include more than an agreement to work together. Manufacturing contracts are incredibly specific and cover a vast range of terms.
Before signing on the dotted line, here’s everything you need to know about manufacturing contracts.
What Is A Manufacturing Contract?
Many businesses don’t have the facilities or funding to manufacture their own products. Instead, they work with a dedicated manufacturing company that can produce the product for the company to sell.
If a company cannot or doesn’t want to make its own product, it will sign a manufacturing contract. Manufacturing contracts cover everything, from construction to children’s toys and military equipment. Even some perishable goods like food fall under manufacturing contracts.
A manufacturing contract is an agreement between the company that makes the items and the company that sells them. The contract covers every aspect of the manufacturing process, including:
- Sourcing raw material
- Delivery dates
- Quality
- Quantity
- Price and payment
- Transportation
- Liabilities and legal responsibilities
- Ownership and Intellectual property rights
- Testing and Certification requirements
The manufacturing contracts let both parties know what is expected of them. Eventually, working with a production partner will come to an end.
A manufacturing should include information about how and when the contract will end. This may include information on breach of contract, insolvency, and conflict of interest.
Types of Manufacturing Contracts
In general, manufacturing contracts are relatively straightforward. There are several different types of manufacturing contracts. Each type makes allowances for specific partnerships and agreements.
These are the most common types of manufacturing contracts.
Private Label Manufacturing
Private label manufacturing is the most common type of manufacturing contract. This agreement involves a manufacturer making a product to particular specifications. The design, sales, and marketing are the responsibility of the business. The manufacturer does not make decisions.
This is the ideal contract for businesses with exact specifications that don’t want to deal with the effort of manufacturing.
End-To-End Manufacturing
Also known as full-scale production, this is similar to private label manufacturing. End-to-end manufacturing means the manufacturer provides has input into the design and materials. For example, a company might enter an end-to-end contract for a manufacturer to make a specific industrial machine. The manufacturer will then take responsibility for the exact design, process, and materials.
The benefit of this type of contract is that the manufacturer can save money by designing a cost-effective operation. For companies that want an affordable product without hassle, this contract is ideal.
Individual Component Manufacturing
Some manufacturing contracts are limited to certain parts or components. The contracted manufacturer handles making one part of a larger product. Manufacturers may work alongside other manufacturers. Alternatively, they may send parts to the final assembly line.
These contracts can become very complex. Often these contract are in agreement with third-party companies. If Company A hires Company B to make a part, Company B might want to hire Company C to make a small part of the final product. In this case, the agreement because companies B and C must be approved by Company A.
This type of contract is common in specialist industries. Manufacturers outsource components that need expert knowledge and labor.
Labor Or Service Subcontracting
This contract is similar to individual component manufacturing contracts. Labor and services contracts are common in specialist industries. If a manufacturer doesn’t offer a full service, they may outsource some elements to a third party.
Manufacturers hire third-party suppliers or extra subcontractors for tasks that need specialists. This could include particular industry standards or qualifications.
The Benefits of Using Manufacturing Contracts
The contract manufacturing market is still growing. More companies are appreciating the benefits of outsourcing manufacturing. Contracts benefits both sides by setting expectations and outlining exactly what needs to be done.
Here are a few of the main benefits of manufacturing contracts.
Cost Savings
A good manufacturing contract should save money for both sides. Outsourcing manufacturing means companies don’t need to invest in specialist equipment. There is no need to set up factories, hire more staff or source materials. Furthermore, depending on the cross-border conditions, there may be tax savings.
For the manufacturer, contracts can help manufacturers adjust for expected quality and deadlines. With more information, companies can plan resources to save energy and labor costs. Manufactures can also bulk-buy raw materials at a lower cost.
Improved Focus
Working with a manufacturer allows companies to focus on what they do best. There is no need to become experts in the manufacturing process. Companies can spend money and resources designing and marketing their product.
The manufacturing company doesn’t need to worry about finding customers and making sales. This makes each company more efficient and more successful in its own field.
Increased Quality
Outsourcing manufacturing to an expert manufacturer means benefitting from their experience and expertise. The manufacturing company will have processes to ensure quality. A professional company is less likely to make mistakes resulting in recalls. This allows most companies to benefit from a higher-quality product from the start.
For companies that don’t have experience in manufacturing, outsourcing guarantees quality.
A contract makes the acceptable standard clear for manufacturing companies. This allows them to work to the quality requirements. Manufacturing companies can clearly understand what is expected.
Legal Security
A proper manufacturing agreement provides security for both sides. It can also help to increase trust between partners. With a signed contract, both companies can relax knowing they are protected. Neither side will end up in trouble for the other’s mistakes.
Legally-binding contracts help protect intellectual property and patents. And ensure that health and safety are taken seriously. Failure to adhere to the agreed-upon standards can result in the contract being void.
With secure agreements in place, both companies can trust the other. The result of not meeting expectations could have severe consequences.
Things To Look Out For
Manufacturing contracts are usually drawn up by legal departments. They are designed to protect the interests of both parties. A contract should help everything run smoothly and ensures the process is simple.
However, some companies run into problems with poorly written contracts. A production contract can cause more trouble than expected if you’re not careful.
Copyright and Selling Ideas
For protected and patented ideas or designs, outsourcing means more people could leak the design. Even if you have airtight restrictions on a design, competitors can create similar designs.
For unprotected designs, unethical manufacturers can sell ideas to other companies. They may make a profit and help the competition by creating your product for others.
Cutting Corners
Unless a contract is very specific, some manufacturers may source from questionable locations. The contract should include testing capabilities and procedures. The contract should outline potential consequences for manufacturers that cut corners during production.
Damage to Reputation
Child labor and slavery are not uncommon in some parts of the world. Companies need to be sure they trust their manufacturer to make good decisions. The potential for reputation damage is significant. A product made using child labor could be a PR disaster, even if the company was unaware. Your manufacturer is an extension of your business. Your business values and ethics should align.
Other Priorities
Many manufacturers will work with several clients at a time. This can result in one contract taking priority over another. The result is that deadlines can be missed as the manufacturer focuses on another project. A contract should make deadlines clear. This also means that surges in demand may not be met by production. The manufacturer cannot necessarily stop working with another client to fulfill demand surges.
Cultural Differences
Contract manufacturing is a global industry. As a result, there are plenty of cultural differences. Contract manufacturing in China has different expectations from similar companies in the USA. Working across borders with Chinese contract manufacturing means double-checking language translations. There may also be country-specific regulations and cultural differences.
What To Know Before You Sign A Manufacturing Contract
If you’re thinking of outsourcing manufacturing, you want to be sure you’re signing the right contract. Before putting pen to paper, here are some things to ask your production partner.
Who Is The Point Of Contact?
Often overlooked, knowing your specific contact is incredibly important. It means that if you have a problem, you can get in touch with someone fast. Otherwise, you may be unsure who to contact when things go wrong or when you want to make changes to your product.
Do You Have Testimonials?
If you want to take advantage of someone’s experience and skill, they should be able to demonstrate it. Ask to see client testimonials or example products from their line. This will allow you to be a judge of their quality of work.
Can I See Your Factory/Workshop?
A manufacturer should be transparent and willing to show you around their facilities. If they are reluctant, they may have something to hide. In minor cases, this can include a few health and safety breaches or operational inefficiencies. In more extreme cases, this can consist of child labor.
How Are You Maximizing Efficiency And Keeping Costs Low?
This will give you a good idea of how the manufacturer balances cost savings while maintaining a high standard. You should be aware of internal quality assurance procedures. Asking this can also help you understand exactly what you are paying for. It can also give insight into what type of business the manufacturer is.
Will Raw Material Price Increases Be Passed On?
Raw material costs frequently fluctuate. This can become an unplanned hidden cost later on. Some manufacturers will bulk buy in advance and take price increases into account. However, some contractors will ask for a price increase later on as raw material costs change.
What Process Do You Have In Place When Things Go Wrong?
To have total trust in your manufacturing partner, you need to be confident they know what to do when things don’t go to plan. This can include fire to supply chain issues and quality control failure. This should include how and when they inform you of problems.
What Non-Compete Clauses Do You Have?
His might not be relevant for every situation. However, there are many cases where you don’t want your manufacturer working with your competitor. You should check how they deal with competition proposals before signing.
What Possibility Is There For Contract Flexibility?
Business changes fast. You may sign a contract for one thing and find a few months later that you need to make changes. This could be quantity, quality, design, or price. Before signing, check out how much of the contract is flexible. What are your options for changing it, and how long will it take for changes to be implemented? You should also check if changes will incur extra costs.
The Right Manufacturing Contract For Your Business
Not all manufacturing contracts are created equal. Getting the right contractor for your business takes time, effort, and knowledge. Before you sign a contract, you should get it checked by your legal department or an independent lawyer.
Working with a good manufacturing company can save you time, money, and hassle and help you achieve a higher quality product.
Get in touch today to start enjoying all the benefits of contract manufacturing.
Protect Your IP When Manufacturing in China: Don’t Let Your Ideas Fall Into the Wrong Hands
Information is becoming accessible due to the easy distribution methods available, which makes safeguarding your intellectual property when manufacturing in China a challenge.
No matter what stage of business you’re in, protecting yourself from those who would steal your ideas should be the top priority for any entrepreneur out there.
So, let’s take a closer look at this hot-button issue and how we can learn to cope with it.
1. US IP Law Does Not Guarantee IP Protection In China
The United States has some of the strongest intellectual property rights (IPR) laws in the world. However, these laws do not guarantee IP protection in China.
You might have your trademarks, patents, and copyrights registered in the US, but this would provide you with no protection in China if there are any IP issues happen.
So you have to be proactive about protecting yourself.
Try to address your IPR with your contract manufacturing partner in China at the very outset – for too many Western companies it wasn’t until they suffered consequences later that they realized their mistake.
2. Conduct Background Checks
The first step is to conduct a background check on the company and individuals you’re looking to partner with.
This will help you get a sense of their business practices and whether or not they’re reputable.
You can look it up online by yourself or ask for references from others who have used the contract manufacturing services in China.
There are many IP theft stories online that people share about their experiences working with Chinese manufacturers, which could serve as a warning to you.
It’s important to understand that IP protection can vary significantly depending on where the manufacturer is located and what type of industry they work in, so don’t rely solely on one method to safeguard your intellectual property (IP).
3. Create A Confidential File
Before finalizing a manufacturing supplier, you have to create a list of confidential files with product details like drawings, descriptions, production plans, and prototype update records.
When you need to discuss the manufacturing process with your chosen contract manufacturer in China, avoid sending your original product drawings or product descriptions.
This is one of the easiest ways for someone in the manufacturing company to steal your intellectual property (IPR).
If you absolutely must, send digital copies that can’t be easily reproduced. You can also consider watermarking them or sending them as password-protected files.
Also, make sure you have added dates wherever possible because the first date of use is critical in IP matters.
4. Create Confidentiality Agreements
The next best thing would be to have a written IPR agreement with your manufacturing factory and any other partner companies involved in the process so that all parties are aware of how you want it handled from start to finish.
You have to sign an NNN agreement with your supplier, which means Non-disclosure, Non-use, and Non-circumvention. It is a legally binding contract between two parties in which one party agrees to protect the IP rights in China.
By having your partner sign NNNs, you can help protect your company’s confidential information.
Furthermore, make sure to review and inspect any agreements made with local manufacturers before signing. If you do have a dispute, they may only address it in the Chinese version of the document which could give them an unfair advantage over you.
5. Engage with the Chinese IP Regime
There is no such thing as international protection for your intellectual property.
If you think highly of your IP, make sure to protect it thoroughly. You need to get it protected in China by filing your patents, trademarks, and copyrights with local authorities such as:
- China National Intellectual Property Administration (CNIPA)
- Trademark Office of China National Intellectual Property Administration
- National Copyright Administration of the People’s Republic of China (NCAC)
- Ministry of Commerce, People’s Republic of China
Remember to research the relevant IP regulations in China because they may differ significantly from your home country. Also, remember to have everything properly translated into Chinese because only these translated versions will be held as valid.
Are You Looking For A Contract Manufacturer In China You Can Trust?
Registering your intellectual property in China and the United States does not always guarantee its protection. One thing to remember is that enforcement of these laws can be unpredictable or time-consuming.
Ultimately, it all depends on who you’re working with and the kind of relationship you’ve established, which means careful consideration needs to go into choosing a Chinese contract manufacturer if they’ll work intimately with your company over an extended period.
Once you’ve selected one, it’s imperative that both parties set up clear processes for protecting your intellectual property at every stage of production or else risk losing it entirely.
Now, if you are looking for a reliable and professional contracting manufacturer in China, try to work with us Shield Works.
Over time, we have developed a list of IP protective methods at our custom manufacturing and precision assembly facility that has proven 100% effective at preventing IP infringements.
- We have state-of-the-art fingerprint access secure production zones to protect your interests and provide full IP protection at the source of manufacture.
- We have legally binding NDAs with every external body that we may work with during the process of your assembly line to ensure this is protected.
- We partner with Innopat, a leading Zhuhai-based IP industry expert to provide our clients with clear, no-nonsense advice and IP protection services.
Shield Works is a British-owned and managed contract manufacturing company in the South China Greater Bay Area, providing complete custom manufacturing and precision assembly services for western companies who are fed up with poor product quality, lack of transparency, and are worried about the reliability and delivery time from their Chinese suppliers.
We attribute our success to the dedication and expertise of our engineering team who is highly qualified and experienced. With over 15,000 projects completed, we’ll provide you with tailored advice, based on your situation. Tell us about your project and get a quote!
5 Reasons Why Manufacturers in China Can Help You Gain Your Customers’ Trust
Your customers are cautious when it comes to trusting your brand with their hard-earned money, especially if you’re new on the market. But offering them high-quality products that solve their problems and make their lives easier goes a long way toward building their trust in you and your brand. If you’re having trouble manufacturing products that meet this high standard, consider manufacturing them in China, where companies like ours can offer you extensive expertise in product development and production. Here are five reasons why doing so will help you earn your customers’ trust.
1) Manufacturing as a service
When you outsource your product development to a contract manufacturer in China, you’re getting more than just a manufacturing partner. You’re also getting access to a wealth of knowledge and experience that can help you create a product that meets and exceeds your customers’ expectations.
A good contract manufacturer will have a team of experienced engineers who can offer valuable insights into the design and manufacture of your product. They’ll also be up-to-date on the latest manufacturing technologies and trends, which can help you create a cutting-edge product.
Additionally, most contract manufacturers in China have established relationships with suppliers, which can give you access to high-quality components at competitive prices.
2) Always-on customer service
In today’s world, customers expect 24/7 access to customer service, no matter where they are or what time it is. By partnering with a manufacturer in China that offers always-on customer service, you can be sure that your customers will always be able to reach someone when they need help. This can help build trust and loyalty, both of which are essential for any business.
Also, manufacturers in China provide your customers with high quality products, which reduces the chance of filing a complaint to customer service to begin with. When manufacturers are focused on producing only high-quality products, the product development process becomes more streamlined and efficient because there’s less risk of defective products making it to the marketplace.
3) Transparency and flexibility
When it comes to manufacturing, Chinese manufacturers are known for their transparency and flexibility. This means that you can be sure that your products are being made to the highest standards possible, and you get to monitor the whole process.
Many of the production facilities in China are well equipped with a surveillance system that offers you access to the process anytime of the day. If anything goes wrong, you won’t need to worry about being shielded out. Your factory is just one Skype call away! Some of these factories also offer an on-site consulting service where they’ll give advice on how to increase efficiency and quality at your plant.
Another perk? They will often offer training courses at their facility so that employees at your company can learn new skills while they’re there.
4) Customization and Personalization
In today’s market, customers are looking for a personalized experience. They want products that are tailored to their specific needs and preferences. By working with manufacturers in China, you can create products that are truly unique to your brand. This will help you stand out from the competition and make a mark in consumers’ impression.
If your competitors are using generic items that have been sourced through a third-party company, they’re not going to be able to offer this kind of customization. Manufacturing in China allows you to cater specifically to these wants and desires so it gives you an edge over the competition.
It’s important to note that, with a Chinese manufacturer, you don’t have to invest heavily into personalization from day one. Start small and build your way up so you can expand as necessary. If a company is able to add some flare or customize a product without it affecting their bottom line, they will be more willing to do so over time. Just knowing you’re listening closely to consumer demands gives customers confidence that you’re paying attention and want them back for future purchases.
5) Testing before shipping
Any good manufacturer will test products before shipping to ensure they meet both the quality standards of the company and the customer’s expectations. In addition, manufacturers in China have a reputation for being able to quickly adapt to new designs and requirements, which can be extremely helpful when your product is still in development.
Furthermore, many Chinese manufacturers offer very competitive prices without compromising on quality, which can help you save on costs. Finally, by working with a Chinese manufacturer, you can be sure that your products will be made with the latest technology and equipment available.
If you insist in inspection all the way through, it’s very common in China to hire a 3rd-party inspection for quality control. There are some experienced inspectors who are well-known and trustworthy. Once production is completed, the factory may ask the inspector to come in and do final inspection according to your requirement such as checking if there are any broken parts or other defects. After approval from the inspector, they ship out goods immediately.
Earning trust is a lasting process. With a reputable Chinese manufacturer, you will rest assured every step of the way. Shield Works is one with a great reputation for its 17 years of experience with global retailers. Contact us for more!
How to Find the Right Chinese Manufacturer for Your Business
In the last few decades, the Chinese economy has grown incredibly fast. One of the big reasons for this is because Chinese companies manufacture a considerable amount of products for western companies.
If you want to reduce production costs and grow your business, it makes a lot of sense to work with a China manufacturer. Given that you’d be working with a foreign company, the process can feel overwhelming.
So what exactly do you need to look for to make sure you find the right company for the job? This article lists some of the things you need to consider before signing a contract with a Chinese company.
Do They Have Certifications?
When you work with Chinese manufacturers, you need to be sure they have the right certifications. This helps to make sure you can rely on the company. If the China assembly service doesn’t have certifications to show you, it could be a red flag.
Always make sure you get proof of the correct documentation. A good company should be more than happy to provide proof.
Are They Financially Stable?
It’s also important that you work with product assembly services in China that are financially stable. The reason for this is simple. If the company goes out of business during production, it causes you a lot of problems.
A good Chinese product production company will be financially stable enough that you can rely on them to consistently deliver the product. You can find out if a company is financially stable by asking them about its finances. You should also verify what they say by researching the company.
Do They Offer Any Additional Services?
When looking into product assembly in China, you should also look for companies that offer multiple services. Many manufacturing companies in China offer other additional benefits, such as graphic design or packaging design.
This means that the company could deliver your product fully packaged and ready to go. Working with a company that offers such additional services can save you a lot of time and money in the long run.
You should take the time to analyze exactly what your company needs. Then see if you can find a Chinese manufacturing company that can meet all of those needs. When you’re only dealing with one company for a variety of services, it can really streamline your production process.
How Big is the Company?
You should also pay attention to the size of the company. While you might be tempted to go for the biggest company possible, this isn’t always the best choice. If you’re a small business, it may make more sense to go with a small or medium-sized manufacturing company.
As a small company, you’d probably be a much lower priority for a large company. On the other hand, if you go with a smaller company, they’ll have much more time to focus on your manufacturing job.
Before signing a contract, make sure that the company you’re considering doesn’t work with many big clients.
What is the Minimum Order Quantity?
You’ll also need to figure out if there’s a minimum order quantity. Many Chinese manufacturing companies will only work with you if you want to produce a certain number of units.
For larger businesses, this isn’t usually a problem, but for a small company, it could be problematic. Always make sure you confirm the minimum order quantity before you start doing business. This makes sure you won’t face any nasty surprises in the future.
Also, beware that if you work with a larger manufacturing company, they may implement a minimum order quantity later on in the business relationship.
Do They Have Good Quality Control?
When working with a Chinese manufacturing company, quality control is key. If the company sends you products that are not up to standard, your profit margins will decrease.
While Chinese manufacturing companies had a bad reputation for poor quality control in the past, they’ve gotten much better in recent years. If you work with a reputable company, you should have no problems getting quality products delivered.
Manufacturing companies should also have policies in place to reimburse you if some of the products are not up to standard.
Can They Provide a Product Sample?
Working with a foreign manufacturing company is always a risk. That’s why you should ask for a product sample before you commit to a serious business relationship.
A good manufacturing company would be more than happy to provide you with sample products. They should also be receptive to your feedback. It’s not uncommon to go through a few prototype examples before you get something you’re happy with.
Beware of any companies that aren’t willing to provide samples as it suggests they might not be a company you can rely on.
Check Out Reviews and Get Recommendations
You should also make sure you check out reviews of a potential company. These days a huge range of businesses use Chinese manufacturing, so you should find no shortage of online reviews.
You should try to verify the legitimacy of these reviews to make sure they’re not fake. You might also consider talking to other business owners you have a relationship with. Recommendations from friends are worth a lot as you know they’re genuine.
A China Manufacturer Can Grow Your Company
If you’re looking for a way to take your company to the next level, a China manufacturer makes a lot of sense. If you want to make a reasonable profit, you’ll need to find a way to keep costs down. Chinese manufacturers allow you to do exactly that.
If you want to work with a company with a lot of experience in working with Chinese manufacturing, contact us today, and we can help you to grow your business.
How to Navigate Contract Manufacturing in China
For some western companies considering overseas production, they may want to open up a permanent factory in the country where they wish to operate. For others, there are many options for short-term factory operations without investing too much time or money into it. These factories can be found easily in China—a country that provides what is needed for this type of business.
Working with an overseas partner can be quite daunting, but there are ways to navigate these situations successfully.
To make this decision easier for you, we will explore the nuances of contracting work out to a Chinese manufacturing company and what you might expect from such an arrangement – whether it’s just for one new product or if you’re considering scaling up your production globally. Let’s dive in!
What is Contract Manufacturing?
Simply put, contracting manufacturing is when one company hires another to build components or parts on their behalf over a specific period and at an agreed-upon price.
This enables a company to start producing its products without having the huge amount of resources or the funds necessary to build and run a factory.
Different Kinds Of Contract Manufacturing In China
There are many different types of contracting agreements between companies that engage in contract manufacturing in China. These range from simple to complex and can be broken down into 3 main categories:
1. Private Label Manufacturing
Under a private label manufacturing agreement, the contract manufacturer delivers an item to the client’s inventory warehouse or directly to the store for them to sell under their brand.
In this way, the entire private label manufacturing process is outsourced. The client has full control over designing, marketing, and managing other aspects of their business.
2. Individual Component Manufacturing
Component manufacturing is known as a one-time service, which is generally used to refer to producing specific, individual components.
In individual component manufacturing, contract manufacturing is only responsible for producing one component that will eventually become part of a larger, more complicated final product.
For instance, basic components such as lifting bolts can be manufactured in bulk – this lowers costs for the manufacturer because they are produced to the same specifications.
3. End-to-End Manufacturing
End-to-end manufacturing is a process where products go through every stage of production under one roof.
Of course, that’s not to say there are no outside vendors. There are things like raw material sourcing and shipping handled by external companies.
End-to-end manufacturing is more about the process, rather than the materials. It leaves more control for the client company in regards to design, quality control, and other details.
Working With A Quality Contract Manufacturer In China
There are many benefits of working with a contract manufacturing company in China. Here are a few of the best.
1. Reduce Overall Costs
Across almost every industry, businesses cite this as their number one reason for outsourcing production to China.
Outsourcing allows access to existing facilities and trained professionals, saving time and money in the process. You only pay for the final product exactly what you need, which means you can stick to a smaller and more manageable budget.
2. Flexibility
Although having your factory is a good way to get exactly what you want, outsourcing to contract manufacturing can be a smart try if you are new to this field.
When it comes to contract manufacturing, flexibility is another important factor you should keep in mind when choosing a supplier.
With numerous factories and workers in the manufacturing industry, you can reach out to your manufacturing partner at any time if there are any changes you need to make.
3. Fast Production
When you partner with a reputable Chinese contract manufacturing supplier for your products, you’ll be able to save more time.
Working with an experienced manufacturer means that not only will your products get manufactured quicker, but they’ll also be done well – because the company has invested in its facility over the years to perfect its production process.
They’ll handle every aspect of product development and manufacturing, allowing you to bring them to the marketplace faster so you can generate revenue right away.
When to Choose a Contract Manufacturer
Manufacturing in China has been proven to be an effective and cost-effective way for many Western companies who can’t compete with wages in other countries and regions.
Though contract manufacturing is often a wise choice, it doesn’t necessarily make sense for all businesses. Here are some things to keep in mind before considering it an option for your company.
- Doing due diligence
- Checking qualifications
- Comparing manufacturing capabilities
- Dealing directly with the contract manufacturer rather than a middle-man
- Conduct product quality
Find A Reliable Contract Manufacturer In China
In recent years, as China’s economy has entered a new era, it has transformed from the low-end to the high-end of the manufacturing industry.
There has been such an increase in the number of production plants becoming less labor-intensive and even more quality driven.
Still, choosing a perfect manufacturing company in China may not be easy. So It’s better to work with an established and reputable company that specializes in manufacturing for years.
Now, if you are ready to start making your products in China, try to work with us Shield Works.
Shield Works is a British-owned and managed company in the South China Greater Bay Area. We specialize in product design, prototyping, manufacturing, and product assembly for clients from all over the world.
We attribute our success to the dedication and expertise of our engineering team who is highly qualified and experienced. With over 15,000 projects completed, there is no wonder why we’ve been able to achieve success. Contact us for a no-cost consultation!