Contract Manufacturing
Manufacturing In China: 4 Tips To Spot A Real Factory Vs. Trading Company In China In 2022
If you’re considering outsourcing production to China, there are certain things to know before embarking on the task like
- How to start?
- Who you can reach?
- What to do before placing an order?
- How much will it cost?
However, the most important thing is to make sure you are going to work with an actual factory rather than a trading company.
Why? Because when you work directly with the actual factory:
- Your spending will be less to get the same items, which increases your profit margin and reduces lead time.
- You can make changes to the product easier and quicker.
- Your product quality will be higher because you can check with your supplier now and then.
So, as you can imagine, it can be difficult to find out whether a supplier is a factory or just someone pretending to be one. Here are four tips you can use to figure this out.
1. Check The Business License
First and foremost, it’s a good idea to request a copy of your manufacturer’s business license which is called “营业执照” in Chinese.
Every legitimate company in China has a business license issued by a local branch of the Administration of Industry and Commerce (AIC). It is an official certificate, proving that the company has been registered with the authorities and operates legally.
If your potential supplier doesn’t have a business license, that’s a huge red flag. it’s best not to do any kind of business with them until they get everything sorted out on their end. No matter what they say, don’t risk your time and money.
If your supplier claims that they have a business license, it’s better to request a physical copy. It can be used as proof that your supplier is an actual manufacturer. In addition, if there is ever any dispute with your supplier, having a physical copy of their business license on file could be helpful.
Once you receive the business license, make sure you review it carefully. Keep in mind to check the business scope which should include words like “manufacture or produce” (生产,加工,制造)
if you don’t know Chinese, it’s ok.
Here is a simple way:
You can use your phone to scan the business license, extract words, and copy-paste to the Google translator. The business scope is the combination of some simple words so don’t worry about the correctness.
Verifying the business license is the first step when doing due diligence on a Chinese company. It allows you to verify that the company is legit and not a scam.
2. Check the Sample Address
Many Chinese manufacturing companies are willing to send out samples when you have a detailed plan for working with them.
One way that you can use this method is to verify if your chosen manufacturing supplier understands your requirements and quality standards.
Moreover, we advise checking the address of the sample package before disposing of it. Make sure it matches up with what is included on the business license that you requested beforehand.
If they are the same addresses, then this manufacturing supplier may well be a real factory rather than just someone acting as a middleman.
However, this isn’t always reliable.
The reason being is that some companies set up offices downtown whilst their factories are located outside of town due to cheaper rates for renting land.
In this case, even though the sample address might not be an office at that location, it still could be possible that they’re a real factory.
You have to check with your supplier to request both business licenses for the office and the factory.
3. Check the Facility Visuals
Now, many Chinese factories have the abilities and technologies to introduce themselves to the world through visualization.
Take Shield Works for example, we have invested heavily in digital presence such as
- Uploading our facility video online: enhance transparency across our manufacturing plant thoroughly.
- Creating a virtual facility tour on our homepage: show an immersive tour of our whole production environment.
- Posting images of the facility or factory tour on social platforms: keep our followers updated about our new visitors.
The reason for checking the facility visuals is that most foreign business owners can not come to China in person to make a physical facility tour to confirm the production environments, capabilities, and quality.
If a supplier tells you that they own a huge and state-of-the-art manufacturing plant, but cannot provide any proof yet, then it might be worth walking away from them until they can back up what they say with hard evidence.
By checking their facilities, you will have more confidence to build trust and reduce business risk.
4. Check The ISO Certifications
Typically, not every trading company has ISO certifications but the majority of manufacturing factories do.
This is because a factory needs some specific ISO certifications to keep operating.
However, some trading companies also have ISO certifications to deal exclusively in one product category and maintain a strong relationship with their manufacturers.
Working with such a trading company is the same as working with a real manufacturing company with a factory when it comes to price.
Meet Shield Works
When selecting a manufacturing company in China, you have taken into consideration many factors.
It’s important to list your needs and criteria before starting the process of narrowing down candidates or you risk being too hasty in making a decision without taking all necessary factors into account.
Working with a professional manufacturing company in China like Shield Works will save you time and reduce risks.
With our British ownership and management background, we take great pride in our over 17 years of international project experience and excellent team. Contact us for a no-cost consultation!
Contract Manufacturing Services in China: A Guide on What to Consider
Let’s say you’re a small business owner and have just received an order for 500,000 watches. What do you do?
Well, first off, you’re probably feeling pretty overwhelmed! It’s a big deal to get that kind of business, and you want to keep them coming back for more. All you need is the resources to fulfill their order.
You’ve heard about contract manufacturing services in China, but you don’t know where to start. You can’t afford to make a mistake, so you need to be sure that whoever you choose understands your needs and offers quality products at competitive prices without compromising on safety or environmental standards.
Instead of trying to choose the best candidate on your own, read on for everything you need to know to make the right choice.
Quality Control and Inspection
You need to be sure that the products your company sells meet or exceed quality standards. Ask manufacturers about their quality certifications. You should also consider whether they have industry-specific certifications, such as FDA certification.
Ask about the steps a manufacturer takes to ensure quality, including inspection techniques and certifications. You also need to consider whether they use third-party testing. If they do, ask which organizations they use and what types of tests they do most frequently.
Cost
With so many variables involved in your product’s production and delivery, it’s not always easy to determine how much something will cost. The price of your final product will depend on several factors. So, it’s best to work with a contract manufacturer who can provide you with a comprehensive quote. This will help you understand all the costs involved in production and shipping so there are no surprises down the line.
Capabilities
When you’re looking to manufacture a product, you need to consider the capabilities of your supplier. You should ask:
- What type of products they can produce
- How many units per month they can produce
- At what price it will be possible to get them manufactured
For example, if you want to produce 500 units per month and require a high-quality material for your product, then finding a supplier who can do this would be ideal. However, if you only need 100 units per month with no specific requirements for the materials used, you have a wide range of options. Assuming you’re looking for the lowest price per unit, then your best bet is to find a supplier with no minimum order size.
Longevity
If your supply chain is disrupted in any way, it could wreck your bottom line and your business. You should carefully evaluate a potential manufacturing partner’s financial stability and performance record before choosing them for your product.
Communication
Contract manufacturers in China have low-cost labor, which can be a benefit if your goal is to reduce manufacturing costs. However, this also means that you may face communication difficulties because of language barriers. To circumvent this issue, consider working with a contract manufacturer that has experience communicating with Western businesses.
If you have limited opportunity to communicate with the production facility on an ongoing basis, then you should consider whether another manufacturer might be better suited for your needs.
Production Flexibility
It helps to choose a manufacturing company that’s willing to add to their production tools when necessary. For instance, some manufacturers only produce with injection molding equipment. If your project requires casting or machining equipment, then you’ll need to find a different company.
But if you can find a company that’s constantly updating its machinery and processes, then you should have the flexibility to make any changes that might be necessary.
Experience
A manufacturing company will only be able to produce your product if they understand the design specs and goals. If you’re working with a facility that doesn’t fully grasp your project, then it may not come out as expected. To avoid this problem, try to choose a manufacturer with experience in your industry or with similar products.
For instance, when choosing a manufacturing company for plastic injection molding projects, you should look for companies that have produced high-quality plastic components in the past.
Certifications
The quality of your products hinges on the quality of your manufacturing partner. It’s important that they have the right certifications and follow best practices. Manufacturers who don’t have certifications should be avoided at all costs, as they represent a risk for both you and your customers.
There are many certifications that manufacturers can earn, like ISO 9001, ISO 14001, and ISO45001. However, there is no law requiring a contract manufacturing service to have any particular certification. Each organization has its own standards for what is required for membership or accreditation.
Some industries also require specific certifications from their suppliers to sell their products to specific markets. For example, food packaging or medical devices require FDA approval before being sold in the United States’ market. If you’re planning on selling internationally, then make sure that any contract manufacturer you work with can meet those requirements as well!
Choose Reliable Contract Manufacturing Services
Getting the help of contract manufacturing services can help bring your ideas to life. At Shield Works, we have a wide range of capabilities and services to help you design, prototype, and manufacture your products. If you’re looking for engineering support to help you create the right product, we can do that too!
Get in touch with our team and tell us about your amazing idea. You’ll hear from us in 24 hours!
The Many Benefits of Custom Manufacturing
A few decades ago, a company only really had two options if they wanted to make their own products. They could produce their stock on site, which is expensive, or they could outsource to a third party.
Outsourcing back then was tricky, and a business would have to have a close relationship with its manufacturer to make sure any production problems could be swiftly resolved. With custom manufacturing, a lot of these headaches disappear.
But what exactly is custom manufacturing and why is it so good? Are modern processes truly that innovative?
Find out this and more today. Keep reading to find out where some of the world’s best custom manufacturing happens.
What Is Custom Manufacturing?
Though there were initial issues with manufacturing when the first big industrial boom happened, many companies all over the world have found a good balance between producing their products internally and contracting their work to external businesses. This is especially helpful if you need custom-made parts or made-to-order products.
Ultimately, that’s what custom manufacturing is. It’s engineering, designing, and building products based on a set of unique specifications, which include:
- Built-to-order parts
- One-off runs
- Short production runs
- Mass customization
The people doing this are referred to as OEM companies or original equipment manufacturers. They’re most closely associated with the automotive and IT industries, but the true scope of OEM manufacturing is limitless.
Mass Production vs. Custom Manufacturing
While the concept of manufacturing typically summons images of massive factories, churning out the same parts over and over again, this is not what custom manufacturing is all about. This is mass production.
This involves using a lot of raw material to make a lot of items as quickly as possible. Custom manufacturing is more streamlined and is a far more effective method for producing fewer quantities of goods in a shorter amount of time. Custom manufacturing is distinguished not only by the number of raw materials used but also by the variety and uniqueness of these goods.
Mass production involves more time, materials, labor, and space, all of which exist on a bigger scale than custom manufacture.
The final distinction lies in the production line, which is a key component of mass production. In these situations, you can produce large quantities of items with little to no direct interaction from factory workers. This translates to an assembly line, where people can construct things without having to hold up the entire process if waiting for supplies or other components.
Custom manufacturing can certainly work similarly, but it employs fewer people and fewer machines and equipment. This is because the goal is to help clients build and create their goods in specifically tailored ways. Yes, the production is smaller, but it’s often more efficient.
Prototype and Production
Prototype and production are the two main divisions of custom manufacturing and they’re both important. Prototyping or “mock-up manufacturing” is an invaluable part of the process.
Prototyping is the act of testing, evaluating, or changing a part or component before using it in a final project. It could mean making a mock-up, or it could involve creating a simple model or sample. Custom manufacturing supports the use of prototypes in a big way since it can save both you and your company a lot of time and money.
For example, with items that have large or unusual designs, like aircraft wings, a custom mock-up can nip any potential issues in the bud.
The Production Process
Production or “serial production” manufacturing is the second type of bespoke manufacturing. This involves a business making a product in big quantities, typically for commercial use. They can still be custom-made, and often are, but the scale at which they’re made is bigger.
For example, car companies may use custom manufacturing to produce small quantities of parts for older vehicles, as opposed to the mass production line they would use at the start of a new car run.
The Best Benefits of Custom Manufacturing
Although mass production, and even in-house manufacturing, has its advantages, the benefits of custom manufacturing far exceed the capabilities of the other two methods. TAs a service, it’s exceptionally useful for accommodating material variations, changing design requirements, and unique finishing options.
For things that can’t be mass-produced, custom product manufacturing is the perfect answer. Here’s why.
Custom-Made Products
When you’re commissioning bespoke products, there’s greater scope for customization. This also means that as a client, you’ll get your exact specifications fulfilled, which is great for you and your consumers. Plus, bespoke manufacturing raises the quality of an item.
This means you get exactly what you need without having to settle for the next closest thing on a mass-produced line-up.
Increased Productivity
Because an OEM manufacturer must produce precise and high-quality products, there is less wastage and fewer production failures. In this way, you’re not losing time in having to return or rework a design, which means greater productivity for your business. When you use prefabricated parts, there’s always the risk that they won’t fit or work.
Custom manufacturing breaks this cycle by fulfilling the requirements right off the bat. This is only helped through the use of prototyping, which can eliminate potential areas at the start of a project.
Greater Accuracy
Custom manufacturing solutions are inherently more accurate than most conventional production processes. This is because there’s no waste, and each product is made identical to its companions, whether it be size, shape, or material.
You also get to work with a team of experts who know exactly what they’re doing and can deliver state-of-the-art products through exceptionally high-quality machining.
Lower Overall Unit Costs
Depending on the demands of your organization, custom manufacturing may actually be more cost-effective than mass production. When compared to items of a similar style and form, custom-made items are often between 50-75% cheaper. Though it may initially seem more expensive, because there is less waste, there is less expense.
Lower Lead Times
Because there are fewer processes required in creating a custom product, the design process is quicker and simpler. You won’t have to wait for any pre-made pieces or parts to arrive, which means shorter lead times and better manufacturing. There’s no more need to sit idly by while you wait for some part or another.
It all arrives at once because it’s all made at once, which is good for you, your business, and your clients.
Improved Quality Control
During the entire process, you’ll have the power to check in and monitor the progression of your work. This not only makes it super easy to identify any problems, but you’ll have the chance to rectify any defects or issues before they become significant flaws.
This is helpful if you’re manufacturing a high-end product that must adhere to a set of strict quality standards.
Better Design
While there are limitations to mass production, custom manufacturing has more freedom. Unlike other forms of production, there are no restrictions on material or technology the manufacturer can use, as long as they have the knowledge and expertise to deliver.
This makes it possible to develop a greater variety of items, whether completely new or new and improved. This can significantly help in the development of “the next big thing” in the market.
More Sales
When you give customers a chance to personalize or customize their goods, you’ll likely see a higher rate of retention, as well as a spike in sales. Why? Because where there is customization, there is more commitment.
People like feeling like they had a hand in the product they’re purchasing, which is why bespoke services often do so well, even if they’re sometimes more expensive.
Scalability
Have you recently launched a new product or are you just starting your business? You can start small with custom manufacturing and rise through the ranks. We know it’s challenging to get started when you don’t have a massive lump sum to work with, which can make stocking and keeping inventory an issue.
With custom manufacturing, you get to choose the quantity of your order, and you’ll never be pushed to buy more than you need, as you may be with mass production. This means you have what you need when you need it, but you don’t need to worry about storing it all.
Plus, when you’re ready to expand, you’ll find custom manufacturing particularly advantageous. OEM manufacturers can handle larger orders than your regular in-house business. So if you’re getting new customers and growing, you don’t need to worry about searching for a new supplier.
Finding a Custom Manufacturer
It’s not always easy to identify a manufacturer who is fully equipped to meet all the needs of your project. And, chances are, you want to work with a firm that you can develop a long-standing relationship with. This means they need to deliver their products on time and according to your specifications, but there’s more to it than that.
You want to look at a few key points when choosing a manufacturer:
- How long have they been in business?
- Do they have testimonials?
- Is there website efficient and clear?
- Are they easy to communicate with?
- What does their logistical support look like?
When you work with a custom manufacturer, make sure you’re both setting and agreeing on clearly stated goals, so that everyone stays on course. This means asking for a detailed scope of the project, including success and failure factors.
Ask yourself whether your manufacturing partner offers the flexibility you need. This could apply to ongoing adjustments or changes at the start of the process. In customization, things tend to evolve and change more often than not.
This means your manufacturer needs to pivot and respond as needed! Have a conversation early on to make sure you’re both on the same page about what this looks like. However, in the spirit of partnership, it’s important to understand that they know what they’re talking about.
While it’s invaluable to have clear communication and vocalize your concerns, trust in their expertise.
What to Look For in a Quality Manufacturer
Typically, OEM manufacturing can be quite broad, and not all companies will suit your needs. Services can include anything from laser cutting to industrial stitching, so it’s important to ask yourself a few questions. When looking for a manufacturer, ask:
- What materials do they most commonly use?
- Are they transparent about their processes?
- Can they give an insight into their product development?
- How do they handle improvements and prototypes?
- Can they customize their processes?
- Do they work with you from start to finish?
When you can answer these, you’ll have a much clearer grasp of what the manufacturer can do, and in turn, what they can do for you.
The ideal partner should spend time with you to ensure that all the right quality control parts are in place, not just for standardization and safety, but to make sure what you’re getting is what you asked for.
That’s why it’s important to work with someone reputable and trustworthy.
Finding Your Competitive Edge
With the freedom of choice may come uncertainty and fear, but with the right custom manufacturing partner, these should be a thing of the past. Not only is it a breeze to outsource to us, but we’ll handle all the nitty-gritty details of your project.
The benefits of custom manufacturing can’t be ignored, and maybe it’s time for your business to make the switch from mass-production to bespoke, tailored goods. If that’s the case, get in touch with us today, and let’s see what we can make together.
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!
Electronic Contract Manufacturers In China: What To Know
Electronic contract manufacturing services play an important role in the electronics industry.
However, choosing a reliable electronic contract manufacturer in China can be daunting; with over 30,000 manufacturers listed on Alibaba alone, it’s hard to know which one is truly capable of handling your project.
If you are looking to build an electronics business from the ground up, knowing what to look for in an EMS manufacturer can save you time and money in the long run. Here are some tips to help you choose the right electronic contract manufacturer for your business.
What is Electronic Contract Manufacturing?
Electronic contract manufacturing (ECM), also known as EMS (electronic manufacturing service), refers to a variety of manufacturing services that mainly focus on the electronic industry.
The services include engineering design, PCB fabrication, subassembly manufacturing, turnkey or box builds, functional testing, distribution and order fulfilment.
It allows you to outsource the production of your electrical products to EMS providers instead of setting up your internal assembly line, allowing you to focus on designing and marketing your product.
Electronic contract manufacturing may be utilized as either a supplement to or as a replacement for company-owned manufacturing operations. However, choosing an EMS can be tricky. So you must make sure they have an adequate amount of experience with your particular industry and type of product.
What Should You Consider?
There are lots of players offering EMS and electronics manufacturing services today. That’s why you need to compare them to get what is right for your business.
When choosing an EMS manufacturer, your primary considerations should be quality and cost.
Quality is always important. It’s especially critical when dealing with electronics because any mistake made in production could end up making your product unusable or even dangerous.
If you have a consumer-focused product and are planning on selling tens of thousands of units, quality is likely more important than price.
It’s also important that your EMS partner is capable of keeping up with production demands and able to handle customization requests to meet their lead time and standard requirements. An experienced EMS provider will be able to assist you in developing these capabilities throughout their supply chain.
What Do They Offer?
Find out if the electronic contract manufacturing company in China has a wide variety of experience in your product category and find out what certifications they have.
Not only will it help them be an expert on your product, but it will also reassure you that they’re capable of doing what you need to. This is especially important if your business involves developing products or if you’re working with new technology.
Additionally, an electronic manufacturing service company likely provides several levels of service. However, for each level of service, there are some ways in which they can vary in providing it.
Different EMS providers may have different capabilities. A key factor in determining how well an EMS provider will meet your needs is understanding what they do and what they don’t do. Generally speaking, EMS providers will offer at least one of three basic levels of manufacturing services: design service, fabrication service or a combination thereof.
Benefits of Electronic Contract Manufacturers In China
There are several reasons why you should use electronic contract manufacturers in China, instead of manufacturing your products.
First and foremost, it will save you money. PCB assembly can cost anywhere from $0.50 – $1.00 per unit in China while it costs more than 10 times that amount in North America or Europe. Offshore manufacturers also allow businesses to save money by providing bulk orders that could be too costly otherwise.
Second, it’s a good way to speed up your time to market by using their long-term experience. A well-established EMS manufacturer can help design and produce a finished product from scratch within months. In this case, you don’t have to build your in-house engineering and design team to create whatever you want.
In addition, outsourcing your electronics production enables you to focus on core competencies that make your business profitable; no need to invest in expensive equipment or struggle with issues such as sourcing parts overseas.
Last but not least, some ECM companies in China offer more services than others—from design to production and shipment—which means that you don’t have to hire additional staff members or pay extra fees.
How To Choose An Electronic Contract Manufacturer?
Working with a Chinese EMS can save you money, but it’s important to remember that Chinese EMSs are not all created equal. Do your research and ensure that any suppliers you choose are legitimate and reliable.
You should choose a manufacturer with top-notch capabilities, great communication skills and a good reputation to guarantee your product will be a success.
When you want to partner with an electronic contract manufacturing company in China, come to Shield Works. Our experienced team helps to keep your project moving smoothly and efficiently. With our British management background and long-term manufacturing experience, we firmly believe in our proven process and expertise. We take the responsibility of protecting you from all manufacturing defects. Contact us to discuss your project today!
Contract Manufacturing in China: 5 Ways To Mitigate Costs
For the past decades, manufacturing in China was a rather inexpensive process. Many overseas companies have outsourced their production to China.
But now, China has hiked up their production costs because of major and minor changes in its policies and regulations.
Overseas businesses should keep costs low to remain competitive in the market. That’s why we’ve collected this list of five ways for you to reduce your costs by using contract manufacturing in China. Let’s get started!
Costs Are Rising, But…
Despite these headwinds of rising costs, China’s manufacturing future remains bright and you shouldn’t miss out on the benefits.
While the country is losing its edge in some labor-intensive sectors, it is gaining strength by building more modern infrastructures and hiring more talents at home and abroad.
A quick look around Shenzhen tells you this is a different type of China. It’s a place that doesn’t need to be cheaper than anywhere else because it’s better than anywhere else. In this factory city, no one is thinking about cutting corners and doing things cheaply to compete with other countries. Instead, everyone is thinking about how to innovate and be more productive than any other country in the world.
Manufacturing costs may be higher, but you can get better quality products and customized services and support. In this regard, you can save your company a lot of money, time, and hassle.
Conduct A Manufacturing Cost Estimation
There are many things that you should be aware of before outsourcing manufacturing operations in China, conducting A manufacturing cost estimation is the main one.
As you know, overspending and underspending can lead to confusion, lower confidence, and many other negative outcomes. The right manufacturing cost estimation is essential to optimizing the manufacturing process and building value-driven product, which is capable of competing in the global market.
So it’s particularly important to figure out manufacturing costs associated with raw materials, product units, quality control inspection and shipment.
Use Design From The Contract Manufacturer
When it comes to industrial design, you will probably have a hard time.
As you may not be a design expert and you have no idea how to use CAD and build a prototype, and more importantly, you can’t start learning design from the scratch. You know your product design needs to be done by someone who has the skill set required for this task. So, you may want to hire an in-house designer to achieve a better appearance result. However, it may not be economically viable for small-business owners.
To cut costs, many businessmen would look for freelancers to help with their product design. But the problem is how to guarantee the result when your project is complex. You will end up in endless chats and files without getting things done.
You can count on your contract company which has a team of engineers and industrial designers working together for a certain project. They will work closely with you to create a well-designed prototype that can be used as a final product or can be modified to suit other requirements.
And the cost of product design is negligible comparing the production costs, estimated at around 5% of total expenses in your project.
Substitute Raw Materials
Don’t make the mistake of relying on the same raw materials for your products throughout the business’ life cycle.
That’s because raw materials are influenced by many factors that change over time, which can significantly impact your total costs and production deadline.
As a business grows, you need to consider producing the same or similar product with alternative raw materials, which are more economically sustainable for your business.
For instance, consider ways you may be able to recycle materials into new products or use less expensive substitute materials. These small changes can drastically help you reduce manufacturing costs.
However, this could be risky if you don’t plan and make the appropriate changes. So, make sure you know what materials are best suited for your product so that your goods are always meeting industry standards and customer expectations.
Conduct Quality Inspection
Maybe you’ve read a few stories about how an overseas business has reduced its costs by cutting down on quality inspection.
However, it’s not a good idea especially when you are running a big business and want to hold the company in long term. Using quality control offers you peace of mind.
That’s because when customers receive your product which is of low quality and defective, they will complain online and never come back to you again. You will lose your reputation and profits.
If you want to reduce costs but still need to check if your product meets your expectations, you can work with a third-party quality inspection company.
By hiring an experienced quality inspector to conduct regular checks throughout production, you can be sure that your products are safe for consumption.
Get Started with Contract Manufacturing Today
Using contract manufacturing in China is a smart move for your company, which helps to save costs and time. So you can focus on expanding your business.
When your company needs contract manufacturing services, come to Shield Works. Our experienced team helps to keep your project moving smoothly and efficiently. With our British management background and long-term manufacturing experience, we are so sure of our proven process and expertise we take the responsibility of protecting you from all manufacturing defects. Contact us to diss your project today!
The Power of Contract Manufacturing: How It Can Drive Down Costs and Increase Flexibility
The contract manufacturing industry is thriving globally due to its ability to drive the immense reduction in the cost of manufacturing goods and to grant companies increased flexibility faster than traditional methods.
In this article, we’ll take you through the primary reasons why contract manufacturing can deliver improved cost performance and production flexibility.
Reduce Labor Costs
Labor cost is a key element in the manufacturing industry. Typically, the labor is more expensive when you are from the developed world. So it makes more sense to outsource your production to China.
Depending on how far along you are in manufacturing your product, you may be paying upwards of 50-70% for labor costs.
When shifting to contract manufacturing, it’s typical to see those costs reduce by 30-50%. While lower costs aren’t guaranteed, there’s plenty of room for negotiation based on your volume requirements.
In some cases, companies have been able to negotiate down as much as 80% of their original labor costs. This is a massive saving that can help you create a more profitable business model from day one.
Reduced Capital Requirements
If you’re not ready to invest in building an in-house engineering team and buying expensive equipment, contract manufacturing is the best option to help you get a product to market with minimal risk.
You simply pay for services as needed rather than extra investment, otherwise, that will be a waste of having a facility with equipment that sits idle most of the time.
Some manufacturers may even let you use their machinery at fairly lower prices if you hold an order of larger quantities or have a good relationship with them.
Typically, a professional contract manufacturing company focuses more on improving efficiency. They have a pool of in-house specialized engineers because a company’s production efficiency obviously cannot be improved overnight.
Increase Inventory Flexibility
Since you are not tied to a specific factory, you can switch manufacturing plants at any time without having to change production plans. This gives you increased flexibility for where and when you buy raw materials as well as components needed for your product. In this case, you will never be stuck with too much or too little inventory if you have contract manufacturing.
Meanwhile, when you work with contract manufacturers, they handle all aspects of manufacturing including procurement and logistics.
The cost savings associated with using a third-party supplier is passed on to you in terms of lower prices. In addition, because these companies specialize in one aspect of manufacturing (such as PCB assembly), they do it better than anyone else in their field which means they can offer better quality products at competitive prices.
Increase Manufacturing Experience
If you choose a professional contract manufacturer who is specialized in what they do, you will be worry-free in many situations.
The most important one is that they usually have a customized plan for you to meet your needs in production, quality standards and lead time. It will be easier and more effective to get your project done.
The other excellent experience for you if you have a professional contract manufacturing firm is that they have one-stop supply chain services to deal with from sourcing, quality control, warehousing and shipping. With these services, you can save your time and money in finding other third-party companies for your business.
Manufacturing In China With Confidence
Contract manufacturing is only becoming more prevalent as time goes on. When your company needs contract manufacturing services, come to Shield Works. We take care of every aspect for you, so you can focus on innovation and launching products as quickly as possible.
With our well-established facility based in Zhuhai, Guangdong Province, we offer a range of services to accommodate your needs, from a one-time contract manufacturing and precision assembly to warehousing and fulfilment, without ever worrying about inventory or quality control. Our production process is streamlined, efficient, and optimized – so no matter what phase your business is in, we can take care of you.
We pride ourselves on excellent customer service and British background management experience. Contact us to find out how we can help with your project!
5 Qualities to Look for in a China Manufacturing Partner
Finding the right manufacturing partner can be tricky, especially if you’re new to China manufacturing or just starting out with your business.
There are plenty of quality manufacturers out there, but it’s important to make sure that they have these 5 qualities before you enter into an agreement with them.
Only then will you know you can trust them and put your business in their hands without having to worry about things getting messed up along the way.
1) Knowledge
When you partner with a manufacturer, they’ll act as your vendor or factory.
This can be intimidating when you’re not sure what questions to ask or how much to spend.
A good China manufacturing partner will have knowledge of both manufacturing and international business and can help determine which factory or vendor is right for your product.
It’s important that your manufacturing partner understands what your product is, where it comes from and how it’s made—otherwise, how can he/she help you?
Skilled manufacturing partners are invaluable when it comes to navigating things like quality assurance, intellectual property protection and shipping logistics; manufacturers with specific knowledge will know exactly what questions you should be asking.
2) Transparency
If you have questions, or something goes wrong with your order, it’s nice to know that your manufacturer is open and honest about what happened.
It’s no good if you don’t get your calls returned or emails responded to quickly and thoroughly.
If you need a manufacturer who will constantly track and ensure they are producing quality products, make sure you ask around and do research before settling on one.
Chinese business culture can be complex and difficult for outsiders to navigate.
If you plan on doing business in Asia at some point, it’s a good idea to find someone who knows their way around and won’t hide how they do business from you.
3) Language
Communication is key with your new manufacturer.
Be sure you speak the same language.
If there’s a language barrier, it will make working together much more difficult and might lead to frustrations on both sides.
Make sure you clearly understand what your manufacturer will do—and won’t do—for you before signing any contracts or paying any fees.
You should be able to get an idea of their working style just by talking on Skype or even emailing back and forth for several weeks. (If they get upset easily when dealing with customers, it might not be worth continuing.)
If communication doesn’t go well at first, consider ending your relationship early rather than suffering through something that could eventually lead to problems down the road.
If you need much more timely response, you can also use WeChat, an IM chat app most Chinese use.
4) Dependability
Many manufacturers offer low-cost goods and services.
Although it might be tempting to use one of these companies, it’s important that you remember that you are paying for more than just products.
Quality customer service can be lacking from low-cost companies; you’ll want to work with an manufacturer who makes you feel comfortable and is always willing to answer questions.
This can help build a relationship of trust between your company and your manufacturer, which will be beneficial throughout your business venture.
On top of that, having direct access to someone at your manufacturer’s facility will make communication easier as you enter into negotiations
5) Personal Relationship
You might think that saving some money is good enough of a reason to choose a manufacturer solely based on price, but keep in mind that it’s much easier and more enjoyable to work with someone you already know.
You’ll get more out of your partnership if you feel like there’s trust and camaraderie on both sides.
Plus, buying in bulk will allow you to negotiate better prices than if you were working alone.
Your personal relationship should be one that allows communication channels open at all times.
This can also be a reflection of his/her relationship with suppliers.
In China, especially when it comes to dealing with factories, maintaining guanxi(relationship) is extra important.
It can make direct impact on how your order will be made.
Shield Works has over 16 years of manufacturing experience in China. Feel free to let us know if interested!