Contract Manufacturing
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!
The Benefits of Using a Contract Manufacturer
Manufacturing continues to grow throughout the years and has become incredibly profitable. Did you know that manufacturers contribute about $2.71 trillion each year?
If you’re thinking about using a contract manufacturer, you might wonder if it’s worth it. There are several benefits to using one, and some might surprise you! Read this guide on the various benefits of using a contract manufacturer today.
Keep Costs Low
Contract manufacturing is a great way to reduce the cost of your services and products. This is because there’s a lower chance of errors. You can also benefit from bulk purchasing and skilled labor.
All of this can lead to satisfied customers since you can lower the cost of goods. Manufacturing businesses specialize in high-volume production lines and cutting costs.
This means that you can focus on running your business instead of worrying about production or making errors. Many companies are experts in their field and what they sell, but they struggle with the production process. That’s where a contract manufacturer comes in.
Save Money
Did you know that manufacturing accounts for 12% of the U.S. economy? You’ll be able to save money since you won’t have to worry about buying equipment for production. Skilled laborers will already have the equipment that you need.
If a product is high in demand, a manufacturer can focus on decreasing the time that it’ll take.
Test Products
You can test products before they’re in the hands of your customers. This is a great way to save money by not producing a defective design.
Determine what the needs of your business are since each manufacturing company could offer different services. They can also make changes to the product as necessary.
They can improve the products, increase the production rate, and give you great profit margins.
Professionalism
Product manufacturing companies will provide you with products without errors. This will help the reputation of your company.
Some companies will try to do production on their own and then make a grave error. Let a manufacturer perform production and watch your production rates increase.
They can also bring fresh, new ideas to your products. Manufacturers are experts in design and can help your product shine.
Improved Efficiency
Many manufacturers learn how to reduce waste. They can perform various tasks such as painting, machining, difficult assembly, welding, etc. This can help reduce the manufacturing costs for your company.
Manufacturing companies can also provide you with more flexibility. Whether you’re looking to scale production, develop products at the same time, etc.
You can start and schedule projects when it makes the most sense for your business. You’ll also know that they’re using the top-of-the-line equipment in the company to provide you with high-quality products.
Save Resources
Since they’re knowledgeable about reducing waste, you can lessen your carbon footprint. This also means fewer costs for you.
Your staff will have more time to work on business tasks. You can focus on your business, marketing, etc.
If you wanted to do production yourself, you’d need to hire a large staff. This could include operators, engineers, managers, etc.
Whereas contract manufacturers already have their staff in place. You’ll have a large team working on your products without having to worry about shifts, payroll, or hiring workers.
Sell Your Products Sooner
Since managers can create your products fast, you can get your products out there to the consumers quicker. There are different methods such as CNC machining and Rapid prototyping that can help speed up the process.
You might be able to get your products out there in a few weeks!
Various Options
They can handle various aspects of the manufacturing process. These can include material purchases, product design for manufacturing, assembly, packaging, etc.
Since everything is happening under one roof, it reduces costs for you. They’ll handle the difficult parts of the manufacturing process so you as a business owner can have less stress.
Deadlines and Estimates
You’ll know in advance how much to budget for the process. They’ll provide you with a detailed estimate before they begin.
This will make it less likely that you’ll experience delays or unexpected costs. They’ll also be able to tell you how long it should take.
Improved Communication
If you try to have the product manufacturing process internally, you’ll need to contact multiple vendors at all times. Through contract manufacturing, you’ll be able to stay in communication with them. You won’t have to worry about a response.
Who Can Benefit From Manufacturing Contract Companies?
Most businesses can benefit from contract manufacturers. You might decide to use product assembly services in China since it’ll save your business money. Keep in mind that how skilled a manufacturer is will vary.
Some ways they can help include:
- Packaging products
- Manufacturing products manually
- Product assembly
- Creating computer models of products
- And more
When you’re first starting out with a production company, it’s a good idea to test out a contract manufacturer. See how their production process is and if it slows you down. You might find that you’ll have more time to focus on your business and productivity will increase overall.
Understanding the Benefits of a Contract Manufacturer
After exploring this guide, you should have a better idea of the benefits of a contract manufacturer. Take your time deciding if it’s right for your business.
Are you ready to speed up the process of manufacturing in your business?
Contact us today! We offer customized manufacturing, including developing new processes, using top-notch equipment, and customizing work procedures.
Manufacturing In China: How To Protect Your Intellectual Property?
It is not surprising that China has developed to become a major manufacturing superpower and more and more overseas companies have moved their production to China. However, some of them are having issues with IP protection while manufacturing in China.
If you are planning to manufacture your products in China, make sure you do everything possible to protect your intellectual property rights. Read on to learn more about the strategies you can use to avoid patent infringement issues in the Chinese market.
What Is IP?
Before you outsource your production to China, it is important to understand what happens to your intellectual property rights (IPR) once you outsource to a Chinese manufacturer.
Intellectual property is a broad term that can include anything from a new fashion trend to a specific software algorithm to an entirely new product design.
The World Intellectual Property Organization (WIPO) makes a definition of IP as “creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.”
No matter what type of intellectual property you have, there are some things you should know before starting manufacturing in China to ensure your intellectual property rights are protected.
Each Country Has Its IP Laws
Whether you are a small business or a large corporation, you have to consider how you’ll protect your intellectual property.
The first thing you should do is have a basic understanding of Chinese IP laws.
For example, patents for inventions can be protected for up to 20 years in China. Also, China protects utility models (for up to 10 years) and design patents (for up to 15 years). Utility models are sometimes called “mini-patents” and require a lower level of inventiveness. Design patents protect the look of products.
All patent rights in China are subject to the payment of annual fees after they’ve been granted.
The National IPR Organizations You Should Know In China
In China, the government plays a substantial role in promoting and protecting intellectual property rights (IPRs).
Several governmental departments are responsible for IPRs matters. Keep in mind the differences and functions of these organizations.
China National Intellectual Property Administration (CNIPA)
China National Intellectual Property Administration (CNIPA) was formerly known as the State Intellectual Property Office (SIPO). It was renamed in 1980.
The department is responsible for the patent work and comprehensively coordinating the foreign-related affairs in the field of intellectual property throughout the country.
If you want your patent registered in China, make sure you check these common questions that you will need to know:
Trademark Office of China National Intellectual Property Administration
When it comes to handling matters of trademark disputes, you should reach the Trademark Office of the China National Intellectual Property Administration.
It’s responsible for the registration and administration of trademarks throughout the country.
However, the website does not provide an English option, so it would be hard for foreigners to research and apply for a trademark online. Therefore, you can click on the CNIPA website to search for trademark-related information. Or you may go to the local trademark office to make an enquiry in person.
National Copyright Administration of the People’s Republic of China (NCAC)
If you want any copyright information, the National Copyright Administration of the People’s Republic of China website is a good option for you.
It accepts and examines copyrights applications in accordance with the law.
Keep in mind to check the copyright regulations and laws in China before you register your copyright.
IP Protection Agreement
When partnering with a manufacturing company, make sure you have a well-drafted and properly executed manufacturing agreement that will help you protect your IP, and provide you with relief if the manufacturer breaches the agreement.
The IP agreement should list all relevant details, including IP ownership, confidentiality, non-competition and non-circumvention and more.
Let Shield Works Be Your IP Protective Manufacturing Partner
With our British ownership background, we know how to help our overseas clients to protect their IPs without excessive costs and time.
Shield Works partners with Innopat a leading Zhuhai based IP industry expert to provide you with clear no-nonsense advice and IP protection services.
Our IP protective system safeguards your production line in our innovative facility.
We are ready to accommodate your needs. Contact us today.
3 Tips For Finding The Right Custom Manufacturing Partner In China
When you need to source custom manufacturing services, it can be hard to know where to start.
Finding the right custom manufacturing partner can be challenging.
There are many companies out there with the capabilities to manufacture your product, but finding the right one can be difficult and time-consuming without some guidance.
Thankfully, you don’t have to go at it alone. Here are three tips that will help make finding the right partner much easier.
Tip #1 – Know What You Want
Start by listing your needs and expectations before choosing a custom manufacturer in China.
- What’s your budget?
- Do you have a strict deadline?
- Are your product materials hard to obtain?
- Will you need samples before production begins?
All of these details can help narrow down your list of potential partners.
Finding a company that already has experience with similar projects can make sure that production goes as smoothly as possible since they’ll be familiar with what it takes to meet all your needs and deadlines.
Tip #2 – Understand Your Suppliers
Another thing to take into consideration when you’re looking for a custom manufacturer is to do your research.
Find people who have successfully worked with a company that provides custom manufacturing services.
If someone has had a good experience, you can use them as a reference to find other companies that provide similar services in case their recommendation didn’t work out so well.
Also, you can compile a comparison list of potential options.
After you list all the key factors you need to know beforehand, you’ll be ready to begin contacting them directly.
Tip #3 – Choose A Custom Manufacturer That Fits Into Your Supply Chain
Choosing a custom manufacturer requires an understanding of how they fit into your supply chain.
If you are looking to get started with rapid prototyping, then your supplier must have access to both traditional and 3D printing equipment.
This will allow them to offer you a full range of services including design iteration and custom parts made from advanced materials.
If, on the other hand, you are looking for custom injection molding services, you need a manufacturer that can handle creating tooling and assembling large quantities of products efficiently.
Remember: your final product will only be as good as your supplier’s capabilities!
Let Shield Works Be Your Custom Manufacturing Partner
If you need to customize your product, Shield Works can be your best partner in China.
We are a British owned and managed company providing customized OEM manufacturing and assembly activities.
Your product will be manufactured in one of our state-of-the-art facilities. We are prepared to accommodate your needs; from bulk production through final product finishing. Contact us today.
Why Outsourcing Medical Device Manufacturing to China Benefits You
You’ve come up with an innovative new medical device or equipment, and now you want to get it into the hands of doctors and hospitals across the country. You could just hire someone in your area to build it all by hand, but that would take much longer than you’d like, and you wouldn’t be able to produce as many units as are necessary to meet your demand and get it out there quickly. By outsourcing medical equipment manufacturing to China, you can save both time and money, while ensuring quality production that meets your exact specifications. Check out these tips of outsourcing medical equipment manufacturing to China!
Selecting a Contract Manufacturer in China for Your Medical Device Product
Choosing a contract manufacturer in China for your medical equipment product can be an overwhelming task. Before you begin, it’s important to have a clear idea of what you need and what steps you will take during your search. Once you have a plan, it’s time to find a reputable company with staff that speaks English. Next, arrange meetings and build relationships with potential manufacturers. The next step is choosing which company will produce your medical equipment product.
You might as well as yourself the following questions:
- What type of medical devices do you have experience in?
- What is their track record?
- Do they use raw materials from other companies or do they purchase them themselves?
- Does each manufacturer offer fast turnarounds and great prices?
- How many years has each one been in business?
- Is there consistency among all of their products?
- Are there any customer reviews online about them?
- Can they produce products in compliance with FDA or health and safety regulations in other targeted countries?
If you are going to export to the US, do some digging on the FDA database to identify the certified manufacturing and filter out the bad seeds with track record of practice or products violating regulations. At times like this, this step should be addressed with extra importance as the regulations are always subject to change. Finally, once you’ve chosen a contract manufacturer in China for your medical equipment product, make sure to sign contracts before beginning production.
It’s also important to make sure everything is written down clearly so there are no misunderstandings later on, including the specs required by the health department. If possible, try to get samples made by both companies before making a final decision. This way you can compare quality and price side-by-side before deciding who gets the job. You want to work with someone who not only meets your needs but also exceeds expectations at every level!
Benefits of Manufacturing Your Medical Device Product in China
When you outsource your medical device manufacturing, you gain access to the following elements of production.
Quality control
When you contract with a Chinese manufacturer for your medical equipment, they will send engineers and representatives to oversee production. This means that when it comes time for delivery, your items will be free of defects and exactly as specified in your contract. It also means that any errors made during production will be caught early on so they can be corrected before being shipped out. Having someone overseeing production ensures that nothing slips through the cracks and helps prevent mistakes from occurring later down the line. Also, as we have stressed the importance of adhering to the health and regulations issued by the countries you export to, experienced teams in China should know these rules like the back of their hand and strictly perform compliance checks for you.
Cost savings
When compared to American companies specializing in contract manufacturing, Chinese companies often offer lower prices due to their lower labor costs. By outsourcing your medical device manufacturing, you’ll have more money available to invest in marketing or research and development. Also, when it comes to manufacturing medical products, sometimes it’s tricky to strike a balance between maintaining required specs and budget control. China’s experience can be of great help in this regard.
Better Time Management
This also allows you to focus on creating your unique product, while allowing a 3rd-party manufacturer develop and produce it for you and help you better manage time, resources and costs; furthermore, because they’re focused on manufacturing one or several products for multiple companies, they’re able to handle much larger volumes than most startup companies can handle. This means that when you partner with them, you won’t have bottlenecks or downtime that could lead to delays in production or delivery.
Flexibility
A lot of contract manufacturers overseas are willing to negotiate terms based on how much work they have at any given time. If there is no work coming up, then they may agree to do a small project for less money than usual. This gives you an opportunity to get additional products made without having to pay full price—something many businesses find useful since cash flow is always tight when starting up new ventures.
Working with overseas manufacturers has its own set of challenges; however, if you approach them carefully and build relationships with them over time, it’s possible that outsourcing could help make your business more successful.
Examples of Medical Device Products That Can Be Manufactured in China
A lot of medical device products are produced in China, including ventilators, cardiac monitors, blood pressure monitors and infusion devices. Sometimes manufacturers can create a better product than your competitors by using specialized suppliers or materials they have on hand. Contracting with a company that specializes in manufacturing medical equipment makes sense since outsourcing allows them to control quality and make sure everything is done within your timeline. You may have not considered outsourcing your medical equipment manufacturing because you don’t think it would be possible; but it is, and you may want to.
To learn more about how to take advantage from the highest quality of medical device products from Chinese manufacturing companies who know all the western industry standards or to speak with experts with this regard, feel free to reach out and get in touch with us here at any time!