Contract Manufacturing

It’s no secret that outsourcing your manufacturing obligations can save you plenty of time and money. In fact, China is one of the most popular destinations to do so.

But, not every entrepreneur knows everything they should about contract manufacturing in China. So, we’ve put together a guide with all the details you should keep in mind.

Let’s get started.

1. You Need to Find a Reliable Supplier

As you might guess, you’ll need to find a reputable supplier before you can move forward with your manufacturing obligations. Although this responsibility can seem overwhelming at first, is not as difficult as you might anticipate.

In general, you’ll want to consider the following factors before you make your decision:

• The size of the factory
• The location
• Total production capacity
• Exclusivity

To elaborate on this last point, you should decide whether or not you want your supplier to exclusively manufacture for your business during the production process. Once you’ve figured out the necessary criteria, you can begin your search.

Keep in mind that either you or a dedicated professional must visit the actual facility before production begins. This is to ensure that the facility meets all your needs and that you aren’t being misled.

2. You Must Register Your IP

Unfortunately, many entrepreneurs are unaware of the fact that they need to register their intellectual property in China. This means that you should pursue any necessary patents, trademarks, or copyrights.

Foregoing this obligation can easily become a significant obstacle for your production process if another entity in China decides to register your IP under their name.

Not only will this prevent you from manufacturing a product, but you could also run into legal issues for infringing upon their copyright. Due to the murkiness of international law, it can be highly difficult to prove that you were the original creator and owner of a particular IP.

Even after you have registered your IP in China and found a reputable manufacturer, there is one extra step you need to take.

You must have your manufacturer sign a nondisclosure, non-use, non-circumvention (NNN) agreement in order to further protect your rights. Anyone who attempts to avoid this obligation is someone that you should never work with.

3. Prioritize Quality Control

Ideally, you would be able to provide your manufacturer with the necessary information and then receive a high-quality product. But, this isn’t always how things turn out.

It’s not uncommon for you to encounter quality issues while outsourcing your production overseas. Fortunately, though, this is often a result of misdirection that can be resolved through communication.

The best way to accomplish this is to have a third party regularly conduct QC checks during the production process. This will allow you to catch issues as quickly as possible and then take steps to remedy them.

Failure to do so could easily result in dissatisfied customers, delayed deadlines, etc. Put simply, brushing off your quality control obligation comes with a strong risk of hurting your brand’s image.

4. Preserve Approved Samples

It’s not abnormal for different batches of products to have inconsistencies between them. To elaborate, the first few rounds of Chinese contract manufacturing may meet your standards while subsequent batches may fall short.

To help keep everything on track, it’s essential that you preserve copies of approved samples. This will give your manufacturer a solid reference that they can strive to duplicate in the future.

Additionally, you can use an approved sample as an index of whether or not a current batch meets your standards. If it doesn’t, your manufacturer is obligated to make changes.

But, these can take a significant amount of time to complete. This also means your manufacturer may not be able to adhere to your time constraints.

So, it’s in your best interest to have multiple high-quality samples that your manufacturer can use in order to streamline the production process. In the event that your standards change, you should obtain new samples as quickly as possible.

5. Establish an Original Equipment Manufacturer (OEM) Agreement

For those who are unfamiliar with this type of document, this is an agreement between you and your manufacturer that aims to remove any form of ambiguity in your relationship.

This means that you need to elaborate upon any minute details that could cause complications in the future. In practice, you’ll find yourself having to clearly define the color you want your product to be, the projected timeline, etc.

In fact, colors are defined by Pantone number as opposed to terms like ‘red’ or ‘blue.’

Other factors to consider include:

• Ownership of tooling
• Dispute resolution
• Payment terms
• Quality requirements
• Certification

The same can be said about product weights and dimensions. In addition to all of this, you’ll need to ensure that this agreement is enforceable in China and not just the United States.

This often means working with a Chinese legal professional to help you navigate the nuances of Chinese law. Additionally, it’s required that you write the document in Chinese.

Otherwise, your manufacturer could break all of your guidelines and suffer no consequences.

Contract Manufacturing In China Can Be Game-Changing

So, it’s essential that you keep the above information in mind. From here, you’ll understand everything you should about contract manufacturing and can then make the most of this opportunity.

Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.

Are your manufacturing costs running your business into the ground? Are you looking for a better way to have your goods produced? If so, you should consider turning to Chinese manufacturing. 

There are several benefits of choosing a foreign manufacturer. To help you determine whether it’s the right decision for you, we’re going to discuss those benefits below. 

Lower Costs

The most obvious benefit of Chinese manufacturing is lower costs. Costs are lower in China for a variety of reasons. 

For one, there are fewer regulations on Chinese businesses. As such, they have much lower overhead costs. This enables them to produce an item at a lower price, thus allowing them to pass a lower price on to the customer. 

There’s also the fact that labor costs in China are substantially lower than in the United States. Workers don’t need to be paid as much, thus lowering the overall cost of manufacturing. Again, these savings are passed on to the consumer. 

If you want high-quality products at a very reasonable price, having your products made in China is the ideal option. You’ll save tons of money, allowing you to get your business out of the red as soon as possible. 

More Products

Not only do Chinese manufacturers work cheaply, but efficiently as well. As such, they can produce a substantial number of products in just a short amount of time. 

This could bode well for your business, especially if you’re struggling to keep up with demand. The rapid manufacturing pace of Chinese factories will maintain a steady stream of products into your warehouses. You’ll never have to worry about whether you have enough supply on hand. 

What makes Chinese manufacturing so efficient? 1. Less regulation, and 2. Practice! These companies have fine-tuned their operational processes, allowing them to be extraordinarily consistent in their manufacturing efforts. 

Easy Scalability

Odds are, your business won’t stay the same size forever. At some point, you’re probably going to want it to grow. After all, it’s growth that increases revenue, and increasing revenue is one of the primary goals of running a business, right? 

The key is for you to have a manufacturer who can keep up with demand when the time comes. Chinese manufacturers are more than suited to do so. 

As was noted above, Chinese manufacturers can produce unbelievable amounts of products in just a short amount of time. So, if you ever need to scale up your business, a Chinese manufacturer will be able to accommodate you. Just make the call and your wish will be granted. 

Knowledge of the Product

It doesn’t matter what your product is. Odds are, there is a Chinese manufacturer that has manufactured it at length. This is a good thing, as it means that your product can be made to perfection. 

This wouldn’t necessarily be true of other types of manufacturers. After all, if they’ve never manufactured your product before, they’re likely not going to do it perfectly the first time. In fact, it could take months or even years before they’re able to adequately manufacture your product. 

Utilizing Chinese manufacturing allows you to take advantage of a tried and true knowledge base. These manufacturers have manufactured your type of product many times before and will have no problem doing it again for your business. 

An Enhanced Ability to Try New Products

You’ve been selling a single product for a while now, and have seen some good success along the way. But, at this point, you’ve reached about as high as you can reach with it. For this reason, you’re considering selling new products in addition to your original product. 

The issue, of course, is that it costs money to sell new products. But with Chinese manufacturing, you can greatly reduce your cost obligation, thus making it easier (and less risky) to facilitate the change. 

Were you to use an American manufacturer, you would have to pay a substantial amount of money just to get the new product made. This would be fine if you knew that the product would sell as intended, but you can’t make that guarantee. In other words, it’s tremendously risky. 

So, if you’re interested in expanding to new products, there’s really only one option: you have to use a Chinese manufacturer. 

Good Quality

When you think of Chinese manufacturing, you might think of poor quality. Yes, in some cases, that is certainly true. After all, not all manufacturers are created equal. 

But that’s the case in the United States as well, just as anywhere else. In the end, it’s all about the manufacturer you choose. Some will do a good job, some will do a decent job, and some will do a fantastic job. 

Just be sure to vet your manufacturer before signing any contracts. Ask to see examples of their past work and make sure that you’re totally satisfied with the quality. 

Remember: Chinese manufacturers have devoted substantial amounts of time working on these products. As such, many of them have perfected the processes, and know exactly how to create the product in question. 

Interested in Utilizing Chinese Manufacturing?

What do you say? Are you interested in utilizing Chinese manufacturing? If so, we here at Shield Works are the people to see. 

We manufacture a wide variety of goods and do so at a low rate. If you’re at all interested in manufacturing in China, we have you covered. 

Contact us today to discuss your needs! 

Are you tired of the expensive cost of contract manufacturing in your home country? You really should consider contract manufacturing in China to help lower your spending!

Knowing how to find a contract manufacturer in China may feel like an intense task. However, it is not as difficult as you might think. All it takes is following a step-by-step process. 

To learn how to find the best OEM manufacturers in China, keep reading. 

What Is Contract Manufacturing?

If you aren’t familiar with contract manufacturing, let’s cover the basics. 

Contract manufacturing means that your company is looking for another company to take responsibility for part of the production process for your products. This can be a great way to collaborate and split duties with another company to complete your production more effectively. 

So, how do you find a contract manufacturer in China? 

What to Do Before Finding a Manufacturer in China

You’re still searching for a contract manufacturer, but there are still some important tasks you need to complete before you solidify one. 

File Your Intellectual Property Rights

This is a very important step. You will need to register your intellectual property rights (or IP rights) in China. 

Your product’s IP includes any watermarks, trademarks, and other copyrights associated with it. If you are not the first company to do this, then some other company may step in. 

That’s right: the first company that registers IP rights in China is the one who gets them. Even if your company is the only one of its kind, your IP rights could be at risk if you don’t register them in China. 

How to Find a Contract Manufacturer in China

Finding the right contract manufacturing in China is essential. You want to make sure you and your contract manufacturer are on the same page when it comes to producing your products. 

Here are some things to consider when beginning your search for OEM manufacturers in China. 

1. Do Your Research First

The most important thing to do in the beginning stages is to do proper research on product development as well as contract manufacturing in China. 

You need to develop your product idea to the fullest. This helps you know how much money and time it will take to create your product in bulk. 

It can also give you some idea of what customers want and will expect from your product as well. 

2. Know the Kinds of Factories in China

There are three kinds of factories in China, and all of them vary. 

A raw materials factory is what it sounds like: it makes everything you will need to make your product to begin with. Once these materials are made, they are then sent to a component factory. 

Unlike a raw materials factory, a component factory makes part of your end product but not all of it. That’s a job for the assembly factory. 

Again, the assembly factory sounds like what it is. Your product is assembled in full here. 

One thing to keep in mind is that not all factories will do all three types of manufacturing work. You will need to double-check with the factory itself to see what they can offer and do for your product. 

3. Find the Right Contract Manufacturing in China

Finding OEM manufacturers in China can feel like a dubious task. The good news is that you have several places you can look for options. 

One easy way to research potential manufacturers is to look online. Alibaba, MadeInChina, and many other places can lead you in the right direction, but you may have some delays due to the COVID-19 pandemic. There are also trade shows and other opportunities to find contract manufacturing too. 

You still need to do your research for the one that fits best with you. You can learn more about Shield Works’ manufacturing services here. As a British-owned manufacturer in China, we know how to overcome cultural barriers to get you the products you need. 

Avoid using a sourcing agent: we’re here to help!

What to Do Once You Have a Manufacturer

Once you have a manufacturer picked out, you still need to do a couple of things. Let’s break it down step by step. 

1. Draw Up an NNN Agreement in Chinese

An NNN agreement is a “non-disclosure, non-use, non-circumventing” agreement. This means that your IP rights will be protected even further. 

It must be written in Chinese so that it is seen as genuine in the eyes of a Chinese court. 

2. Create an OEM Agreement 

An OEM agreement stands for Original Equipment Manufacturer agreement. This is where you write all of the details of your product. Be as specific as possible. 

Like the NNN agreement, this one must be written in Chinese as well. In a Chinese court, the terms of the contract will only be enforceable if written in Chinese. 

3. Quality Control

Quality control assurance throughout the production process will save you a headache later. This means making sure you keep certified product samples onhand too. 

A good way to do this is to have a third party perform quality control procedures on your manufacturer. Though the factory may have its own quality control team, it is always best to have an outside perspective too. 

Contract Manufacturing in China

Finding the right contract manufacturing in China takes time, like anything. When you find the right contract manufacturer, your product’s production process will run smoothly. 

Traversing a different culture and language for contract manufacturing is stressful. Lucky for you, Shield Works is here! 

Let us be your chosen manufacturer in China. Contact us today so we can get started!