Contract Manufacturing
Manufacturing in China: 10 Tips to Peak Season Preparation (Part 3)
Even the most fruitful production and distribution chains can sometimes find themselves running out of capacity due to a shortage of trucks or freight, let alone when they are dealing with the large demand during peak shipping seasons.
Online stores and brick-and-mortar brands must keep up with the demand of orders coming in, and make sure that each package is delivered smoothly. During this surge, you must make a detailed strategy for your distribution.
To help to make it through without too many hiccups, in the last part of the peak season preparation, we will provide more tips about logistics to help you navigate the tough season. Let’s dive in.
Click here for the previous parts of the peak season preparation tips:
7. Review Packaging
As eCommerce made it possible for anyone to buy anything with a quick click, shopping experiences are becoming more important than ever before. It often involves getting all kinds of items in the same store and items will be delivered to a customer’s house with a beautiful package safe and sound.
When it comes to packaging, everyone loves getting a beautiful package waiting at their doorsteps. This sense of excitement is one of the best parts of the customer experience. To avoid any potential damage, it is important for your packaging not to be damaged in any way. For example, if you are shipping something fragile then it must be packed and shipped inside an enclosed six-sided box to prevent exposure during transit.
Also, you need to take your package design into account. Now, young generations tend to share their worthy unboxing moments on their social platforms such as Instagram, YouTube, Pinterest, and TikTok, which has a dramatic effect on potential buyers who research reviews prior to making a purchase. In fact, product unboxing videos have become an integral part of the online buying experience. Admittedly, the product packaging gives the first impression to a new customer. We all know that people don’t always buy something because it’s cheap – they buy it because they feel connected with the brand.
In addition, try to make your package easy to open. No one wants to tear the package with a long-awaited item in heavy plastic that’s almost impossible to open. If people have the frustration of opening a package, they probably won’t turn to shop again.
8. Manage Shipping
You make sure to do everything right before the peak season arrives. You approve the manufacturing process, follow up on inspections and review website design and product copywriting time after time; all in an effort to leave your customers satisfied. Now – you are just one step away from shipping out this merchandise.
However, during the festive period, the demand for freight capacity is at a high during peak season. Global supply chain efficiencies can get disrupted as all the online direct-to-consumer (DTC) brands are struggling to deliver their products on time as late deliveries can negatively impact the customer’s perception of the brand, leading to lost sales in the future.
Therefore, one way to manage your shipping properly is by collaborating with multiple logistics companies to increase visibility and take advantage of all available shipping capacity will increase profitability and ensure prompt delivery of your products.
Besides, you need to think outside the box. For example, airfreight can be effective by providing rapid service, while LCL (“Less-than-Container-Load”) shipments can be your alternative that is cheaper and just a bit slower. The point is that now is the perfect time to explore more shipping options so that you can get your package delivered faster without feeling like you need to break the bank while doing so.
9. Secure Sufficient Capital
Regardless of your company’s size or industry sector, working capital is an important metric to achieve success during the holiday season. This is because you may need more funds readily available to increase inventory, hire some part-time staff, set up holiday displays, and invest in advertising.
Consider whether you have the positive working capital needed to ensure that your business operations are running smoothly. Because there will likely be a spike in extra expense during the peak season. For instance, an increase in shipping rates for couriers coming from the production facility to your warehouse and then being sent to customers’ doorsteps. Make sure you take this into account when calculating how much you will pay for deliveries with your distributors.
Human capital is an important aspect of planning for peak season. With new rules and regulations surrounding the COVID-19 pandemic, many businesses have had to reduce the number of staff present on the shop floor to comply with new physical distancing rules. However, as peak season approaches, your warehouse needs to find a way to increase productivity while keeping your workers safe. This can mean adding more shifts on weekends or evenings to increase capacity.
Keep in mind to recruit and train enough staff to handle logistics and other work. If you don’t do this, then orders might not get fulfilled on time or customers will be left waiting. Also, try to have a standard process that everyone on your team can follow correctly. Make sure that all packages will be verified, all staff that receives stock does it the same way, and that all boxes are verified, received, and unpacked together, accurately counted, and checked for accuracy.
10. Stay Organized
A great way to excel in the peak season is to be well-prepared for anything from manufacturing to distribution to shipping. The more prepared you are for the upcoming peak season beforehand, the better you can stay efficient and proactive and avoid any issues that may arise.
Shield Works Precision Manufacturing is a company that has experience and knowledge in navigating the struggles of the peak shipping season. We provide visibility into your supply chain and will help you through the process without risks. We can help you during the craziness that comes with busy production and shipping! Contact us today if you want to know how our one-stop-shop solution is for success even during the most challenging peak season.
Top Reasons to Use Contract Manufacturing for Start-ups
Contract manufacturing is a great solution for start-ups who need to manufacture a product but don’t have the resources to do it themselves. Contract manufacturing allows start-ups to outsource their manufacturing needs to a reliable, experienced third-party provider, which can save them both time and money in the long run. In this blog post, we’ll discuss the top reasons why contract manufacturing is such a great choice for start-ups.
Cost-Effective
When it comes to starting a business, cost can be a major factor in success. Thankfully, contract manufacturing can be an effective way to reduce costs while maintaining high quality production.
Contract manufacturing allows start-ups to outsource their production to a third party at a lower cost than if they were to produce the items themselves. This is beneficial for start-ups because it allows them to save money on expensive equipment and labor costs, allowing them to focus their efforts and resources on other areas of the business.
Additionally, contract manufacturers often have access to state-of-the-art equipment and technology that start-ups may not have access to, which can help ensure that products are of the highest quality. Overall, using contract manufacturing is an excellent way for start-ups to cut costs while still maintaining a high-quality product.
Scalable
As a startup, it can be difficult to find the resources and capacity needed to scale up production of your product. Contract manufacturing offers start-ups the scalability they need to quickly adjust their production rate to meet customer demands.
Because contract manufacturing is based on a project basis, you’re able to easily scale up or down depending on your production needs. This can make it easy to manage your costs while still producing a high-quality product.
With the right contract manufacturer, startups can easily scale up production without having to invest in extra machinery or staff. This allows them to concentrate on other aspects of their business while leaving the production side of things to an experienced team.
Additionally, contract manufacturers are often well-connected in the industry, and can provide access to suppliers and other resources that can be hard to find on your own. With their help, you can easily find the parts and materials you need for your product at the best price available, allowing you to maximize your profits.
Quick Turnaround Times
One of the biggest advantages of contract manufacturing for start-ups is the quick turnaround times. Compared to an in-house manufacturing setup, contract manufacturing offers significant savings in terms of time and cost. When you outsource manufacturing, you’re able to produce your product in a fraction of the time compared to traditional production methods. This can be especially beneficial for start-ups who are looking to get their products to market as quickly as possible.
By utilizing contract manufacturing, you’ll have access to high-quality production equipment and expert technicians who are trained in advanced manufacturing processes. This allows you to produce your product in a shorter amount of time, which can lead to quicker market entry and faster returns.
Contract manufacturing also eliminates much of the overhead associated with in-house production, which can free up more resources for marketing and sales efforts.
Increased Flexibility
Contract manufacturing is an excellent option for start-ups that are looking to grow quickly and efficiently. One of the biggest benefits of contract manufacturing is increased flexibility, which can make the process of launching a product much easier.
With contract manufacturing, you don’t have to invest in costly equipment or facilities to produce your product. Instead, you partner with a contract manufacturer who will handle the production process for you. This means that you can focus on other aspects of your business, such as developing marketing strategies or building your customer base.
You also don’t have to worry about meeting large minimum order quantities when working with a contract manufacturer. This allows you to test the market before investing in a large inventory. And because you’re not tied down to one particular manufacturer, you can easily switch to another if you’re not happy with the quality or prices you’re receiving from the first.
Contract manufacturers can also provide additional services such as product design, packaging, assembly, and testing. This can reduce the amount of time it takes to launch a product as well as ensure quality control throughout the entire production process.
By partnering with a contract manufacturer, start-ups can gain access to more advanced technologies and experienced personnel, without having to invest in their own production facilities. This can help startups stay competitive in the market and bring their products to market faster.
Improved Quality Control
One of the main advantages of using contract manufacturing for start-ups is improved quality control. Contract manufacturing allows businesses to focus on quality, rather than quantity.
Because contract manufacturers specialize in their field and have years of experience, they can often produce a higher quality product than a start-up could achieve with the same amount of resources.
Contract manufacturers also typically use the latest technology and have the most up-to-date production processes in place, ensuring that products are produced consistently and with minimal defects. Additionally, contract manufacturers can provide access to advanced testing and quality assurance services to ensure that products meet required standards. This can help to reduce product returns and improve customer satisfaction.
Finally, by using contract manufacturing, start-ups can benefit from the expertise of experienced professionals who know what it takes to produce high-quality products. They will be able to guide your business through the entire production process, from design and prototype testing to final assembly. With their knowledge and experience, contract manufacturers, like Shield Works, with 17 years in the industry, can help you create products that are not only cost-effective but also reliable and of the highest quality. Contact us today!
Exploring Different Contract Manufacturing Solutions for Your Business
Did you know that the global output of manufacturing increased by over 20% from 2020 to 2021? This is a significant number, and it highlights the importance of contract manufacturing services in today’s economy.
Contract Manufacturing Solutions enable businesses to outsource specific tasks or projects that would be too expensive and time-consuming to complete in-house.
When selecting a contract manufacturing service, there are several factors to consider.
In this blog post, we will explore the different types of contract manufacturing services available. We will also discuss the benefits and drawbacks of each one.
What Is Contract Manufacturing: An Overview
Contract manufacturing is an outsourcing service that provides specialized production and assembly services to other companies. This process involves transferring all or part of the manufacturing process to an external contract manufacturer.
In contract manufacturing, the contract manufacturer may be responsible for:
- Designing
- Producing
- Testing
All according to the specifications provided by their client. The contract manufacturer also assumes responsibility for:
- Raw materials
- Components sourcing
- Supply chain management
Contract manufacturing allows companies to focus on their core competencies through efficient resource use and cost reduction. This can be especially beneficial for startups who don’t yet have access to large-scale manufacturing capabilities of their own.
Contract Manufacturing Services: What’s Available
Contract manufacturing services can provide a cost-effective way for businesses to get their products manufactured according to their exact specifications. This type of service is typically provided by specialized organizations with specific capabilities and expertise in production.
Contract designing and product engineering may also be part of the services offered, as well as:
- Purchasing
- Assembly
- Packaging
- Delivery
- And other related services
Companies benefit from a streamlined production process since all services are outsourced to one provider that can handle the entire job at once. For any business that is looking to streamline its supply chain while maintaining quality control and efficiency, contract manufacturing is worth exploring.
Let’s take a look at some popular services provided by the top custom manufacturers.
Precision Assembly
Precision assembly is a contract manufacturing service designed to provide customers with highly accurate and repeatable parts assembly processes. Production of complex assemble components requires specific skills, from understanding design requirements to assembling several intricate parts.
Precision assembly services save manufacturers time and money by allowing experienced contract manufacturers with the necessary industry knowledge and qualifications to professionally assemble a wide variety of components in high precision. Industries rely on contract manufacturers like precision assembly for reliable parts manufacture and assembly, especially when complex components must be built quickly and accurately in a cost-effective manner.
Custom Manufacturing
Custom manufacturing involves contract manufacturers producing made-to-order parts according to the customer’s specifications. Companies of all sizes in almost any industry may need custom manufacturers to help bring products to life.
They offer more flexibility than traditional contract manufacturers, who often have lower minimum order quantities and are more open to changes in design and materials.
Custom manufacturers are established to meet the needs of companies wishing to produce unique or multiple products that may not fit into a contract manufacturer’s production system. These services come in especially handy when it comes to small batch production runs that might otherwise be too:
- Costly
- Time-consuming
- Complex
Warehousing and Fulfillment
Warehousing and fulfillment services provide businesses with a range of solutions related to:
- Contract manufacturing
- Product storage
- Transport of goods
These services are beneficial for businesses when they need more control over the quality standards of contract manufacturing and want to reduce infrastructure costs.
Furthermore, warehousing and fulfillment services allow businesses to consolidate multiple shipments into one service. This helps with managing inventory levels effectively, as it ensures that goods are promptly shipped out for delivery with no delays. Ultimately, these services can help streamline business operations by providing comprehensive coverage from contract manufacturing to shipping goods out.
Order Consolidation
Order consolidation is a vital service that many contract manufacturers provide. When integrated into a contract manufacturing process, it streamlines the supply chain and helps businesses to save money.
Essentially, order consolidation involves taking orders from multiple vendors and combining them into one place so that they can be shipped from one location. This allows contract manufacturers to avoid multiple shipping charges and reduce the cost of handling large numbers of single-line orders.
Order consolidation also helps contract manufacturers to save time when dealing with multiple vendors by helping to accelerate the flow of goods and materials between suppliers. By opting for order consolidation services, businesses can increase their efficiency while cutting costs at the same time.
Quality Control
Quality control is an essential part of contract manufacturing services– from ensuring regulatory and product requirements are met, to testing raw materials and confirming final product specs.
Quality control engagements may include:
- Initial supplier set-up audits to assess any potential risks
- Continual monitoring of processes in place
- Verifying records’ accuracy
- Evaluating factory conditions
- Reviewing available resources
- And more
This provides contract manufacturers with a better insight into the entire product’s lifecycle and safeguards their ability to produce a high-quality end product. Quality control services are necessary when contract manufacturers commit to meeting certain standards set by their customers and industry regulations.
Supplier ID and Management
A Supplier ID and Management System is a process that can help businesses to contract out the manufacturing of their products to outside sources. This type of service is especially advantageous when companies need to contract out production instead of making their product themselves.
With this system in place, businesses can quickly and efficiently identify new suppliers and easily obtain price comparisons. They will also be able to track and manage supplier performance to ensure that contract manufacturers comply with the specifications listed in the contract.
Supplier ID and Management services allow companies a streamlined approach to finding contract manufacturers and maintaining important supplier records.
Contract Manufacturer: What Is the Right Choice for You?
While looking for a contract manufacturer, there are several factors to consider to make the right choice for your business. Some of the key points include:
- Cost
- Quality control
- Delivery times
- Inventory management
Businesses should also evaluate the contract manufacturer’s capabilities in terms of:
- Production capacity
- Technological advancements
- Scope of services
Finally, businesses need to ensure that they are selecting a contract manufacturer who understands their particular industry and has the expertise to help them achieve their goals. By doing your research and considering all of the available options, you can find the perfect contract manufacturing solution for your business.
As long as it meets all of your needs, it will help ensure that your products are built with quality and delivered on time. With the right contract manufacturer, your business will be able to grow and succeed.
Let’s take a look at some questions you should ask your potential manufacturer before going into business with them.
Where Are They Located?
It is important to find out the exact location of your contract manufacturer. You want to make sure that they are in a suitable environment, with the necessary infrastructure to support your production. It is also important to find out the type of transportation services available for shipping and receiving goods.
However, it is also crucial to make sure that their standards are aligned with your mission statement and values.
What Certifications Do They Have?
It is important to ensure that your contract manufacturer has the necessary certifications and accreditations to produce your goods. This will ensure that you are producing a product that meets industry standards and is up to par with the quality of other products on the market. Additionally, certifications show that the contract manufacturer is reliable and reputable.
How Is Their Quality Control?
Quality control is a critical element of the contract manufacturing process. You need to find out what processes the contract manufacturer has in place to ensure that the quality of their products meets the standards listed in your contract.
It is also important to ensure that they are using updated technologies and processes that meet the industry requirements.
Take a Look At Their Experience
Experience is key when it comes to contract manufacturing. Make sure that your potential contract manufacturer has the necessary experience to meet all of your needs. You should also ask for references and check into their past projects to get an idea of the quality of their work.
What Is Their Process?
The ideal process of a contract manufacturer should include:
- Access to global resources
- Monitoring and oversight of the production process
- Transparency in communication and operations
- Global integration
Access to global sources is paramount for businesses looking for contract manufacturing solutions as this allows them to source the best materials at competitive prices for their product.
In addition, having an open line of communication with their contract manufacturer allows businesses to have a better understanding of the production process and oversee the quality control measures that are put in place.
Transparency in communication is also important for companies as this fosters trust between them and their contract manufacturer. Transparency ensures that companies are made aware of any changes that may affect the production process or timeline so they can ensure that everything is running according to plan.
Finally, having a contract manufacturer with a strong global presence increases efficiency in terms of delivery times and access to more resources. This type of global integration also helps businesses expand into new markets without having to worry about finding local manufacturing solutions.
All these factors should be taken into consideration when searching for a reliable contract manufacturer who can provide solutions tailored specifically to your business needs.
What About Security?
Before signing any contract with a manufacturer, make sure that their data protection policies and processes are in line with industry standards. Make sure that all information shared between your company and the manufacturer is securely encrypted and stored. Additionally, you should also ask about the measures taken by the contract manufacturer to protect your intellectual property rights so that your products remain safe from misuse or theft.
By asking these questions when looking for contract manufacturing solutions, you can ensure that your business finds a reliable partner who can help it grow and succeed in the long run. You will be able to find a contract manufacturer who meets all of your needs while still maintaining competitive prices and quality control measures.
Upcoming and Current Trends in Contract Manufacturing: What to Know
For those looking for contract manufacturing services, it is important to stay up to date on the latest trends in the field. This ensures that projects are completed effectively and efficiently while avoiding any costly over-complication of processes.
Currently, many experts in the manufacturing industry are recommending that companies use product lifecycle management (PLM) software to streamline certain product assembly processes. In addition, there is a recent trend towards more hybrid models of advanced automation and traditional manual labor. This blended approach capitalizes on both manpower technology and automated solutions to maximize speed and accuracy across the entire workflow.
For those looking to contract high-quality product assembly services, it is invaluable knowledge to stay aware of these upcoming trends to efficiently get their products ready for market.
Get Started with Shield Works Today
If you’re looking for a contract manufacturer that can provide quality solutions tailored specifically to your business needs, Shield Works is here to help. We have over two decades of experience in the industry and are experts in providing high-quality product assembly services.
Contact us today to get started on contract manufacturing!
10 Boxes to Check Before Choosing a Product Supplier in China
If you’re serious about your business, you want to work with the best product supplier in China. A high-quality product made in China is crucial to your success, because if it isn’t up to par, then you won’t be able to compete with other businesses in your field. However, finding the right product supplier isn’t always easy – here are 10 boxes to check before choosing one to do business with.
1) Does the supplier have a good reputation?
Reputation is key when choosing a good supplier. Ask for references and read reviews from people who have used their products. If the feedback is positive, it’s likely that the supplier has a good reputation. Don’t hesitate to ask questions about their experience with the company and production quality. You want to make sure that you’re not just trusting someone based on what they say, but what they do as well.
2) How long has the supplier been in business?
A company’s longevity can be an indication of its success, so you should make sure that the supplier has been in business for at least three years. Once you’ve found a supplier with a good track record, it will be easier for you to establish trust with them and build your relationship.
Moreover, how long has the supplier been in business is often indicative of their product quality. Manufacturers that have been around for decades can afford higher-quality materials than start-ups because they’ve had time to establish themselves and develop relationships with suppliers. Therefore, when you’re choosing between two suppliers that are roughly equal on other factors, it’s generally safe to go with the one that has more experience behind them.
3) Is the supplier certified?
It’s also important that the supplier you choose is certified. You want someone who has gone through all the certification process necessary for importing and exporting goods from China, so you know they’re going to be legally compliant and up-to-date with all requirements.
Here’s a list of certificates or documentations you can check for.
1) Are there business licenses (including both Chinese and your country of import)?
2) Is there proof of customs clearance (including: export license, import license, customs declaration form)?
3) Do they have manufacturing certifications? There are three certifications that we like our manufacturers to have – ISO9001, ISO14001 and OHSAS 18000.
4) What kind of insurance do they have in place?
4) What is the minimum order quantity?
The minimum order quantity (MOQ) is the number of units that you have to buy from the supplier. It’s important because it will affect your profitability.
There’s no hard and fast rule for how large your minimum order quantity should be, but it all depends on how much it will cost you to buy those items. Take into account any shipping costs that are applicable, as well as possible tariffs and taxes.
For example, if you’re ordering small quantities of product samples from an overseas supplier that’s relatively close by, they may offer you free shipping. If they don’t offer free international shipping, however, that could make your products prohibitively expensive.
5) What are the payment terms?
Ideally, you want an invoice that is settled within 30 days of the shipment of goods. If they don’t offer terms then it is important to find out how often they require payment and what their payment terms are.
Your payment terms should also specify how late payments are accepted. If they accept payments late (for more than 30 days), it may not be ideal. If they do not accept late payments, find out how long it takes for them to send you a reminder before sending your account to collections or blacklisting you from future business.
6) How much experience does the supplier have?
Experience is important because it reflects the supplier’s ability to produce quality products. To figure out how experienced the supplier is, you’ll need to ask about their experience. If they’ve been around for more than five years, they’re more likely to be a reliable option.
But don’t stop there. After you verify the supplier’s experience, make sure that they can handle your volume and product needs by asking if they have any examples of past projects and inquiring about the size of their team and production capacity.
Also, the type of products they have experience is crucial. One way to know this is to check what industry awards they may have won. Awards are often indicative of an organization’s professionalism and dedication to excellence, which is always a good sign when looking for suppliers.
7) What is the lead time?
The lead time is the amount of time it will take for you to receive your order. This can vary greatly depending on what type of product you are ordering. For something as simple as pens, the lead time can be as little as two weeks. But for something more complicated like electronics, you will need much more than that and might need up to 20 weeks, if including product design and development, before your order arrives.
8) Can the supplier provide samples?
If you can’t see and touch the product, it’s hard to know how well the supplier will be able to make it. You want samples of any products you’re interested in for your own reference, but also so that you can show them off and gauge interest from potential clients.
Even if your product is unique, any buyer will expect to be able to touch and feel it for themselves. It’s important that you can get actual samples of your product before placing an order with your supplier. It may not be free, but this will give you time to check quality, so you can make changes or correct any issues with your design before you place a mass order. Make sure your contract allows for multiple revisions on prototypes so that more expensive mistakes are minimized as much as possible.
9) What is the quality control process?
A quality control process is an important step for any company. It helps identify and manage risks that may affect your product quality. The goal of the process is to ensure that your products are safe and meet certain standards.
If you’re not sure what kind of processes to expect, then you should ask your supplier about their quality control procedures. You should also check with the manufacturer about their procedures as well.
They will be able to provide specific details on how they produce their goods. For example, if you want to know more about how they make textile items, they’ll likely tell you exactly what type of fabrics they use or what chemicals they dye their fabric with.
You can also ask for a sample of their checklist so that you have a better understanding of their system.
10) What is the warranty?
You should also ask about the warranty on the product. Is it one year or two years? If it’s one year, what is the cost for an extended warranty? A supplier may have different warranties for different types of products.
For example, if you are buying a refrigerator and there is an issue with its compressor after six months, but not with its ice maker, then the compressor would likely be covered under warranty while the ice maker would not be.
If you are buying light fixtures from your supplier that have bulbs included and you find out that the bulbs only last for three hundred hours before they burn out, ask about how many replacements will be included during your time of purchase.
Shield Works has been around for over 17 years already with industry-spanning experience. Contact us today to see how we can help!
The Benefits of Outsourcing OEM Manufacturing Services
Did you know that China has accounted for 28% of worldwide manufacturing output?
It can be hard to keep up with the latest manufacturing trends and processes, especially when it comes to outsourcing.
Outsourcing your OEM manufacturing can seem like a daunting task. You’re worried about quality, delivery time, and price points. You don’t want to sacrifice your bottom line or product quality.
When you work with an experienced and reputable outsourced OEM manufacturer, you’ll get the best of all worlds. Quality products, on-time delivery, and competitive prices are all possible when you partner with the right company.
But that’s not all. Keep reading to learn all about the amazing benefits of outsourcing OEM manufacturing services!
What Is OEM Manufacturing?
OEM manufacturing is the process of designing and manufacturing products or components that will be sold by another company under its brand name. Many businesses choose to outsource OEM manufacturing services to stay competitive and meet consumer demand.
The Benefits of Outsourcing OEM manufacturing
There are several benefits to outsourcing OEM manufacturing. They include:
Staying Competitive
Outsourcing OEM manufacturing can help you stay competitive in today’s market. By working with a reliable and experienced manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to keep up with the competition and meet the needs of your customers.
Meeting Consumer Demand
Outsourcing OEM manufacturing can also help you meet consumer demand. By working with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and keep up with the competition.
Cost-Effective
Outsourcing OEM manufacturing can also be cost-effective. By working with a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to save money on production costs and stay within your budget.
Flexible Production Schedules
When you outsource OEM manufacturing, you’ll have the flexibility to choose when and how your products are produced. This will allow you to meet the demands of your customers and keep up with the competition.
Access to Expertise
When entrusting your product to an original equipment manufacturer (OEM), you want to be sure that it is in good hands. This is why it is important to consider the experience and expertise of the company you are outsourcing to.
A company with a long history in the industry is likely to have a wealth of knowledge and skills that can be put to use in manufacturing your product. In addition, look for a company that employs certified professionals.
This will give you peace of mind knowing that your product is being handled by experts. When you have access to experienced and skilled professionals, you can be confident that you will get the best possible quality for your products.
Improved Quality
Outsourcing OEM manufacturing can also lead to improved quality. By working with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and improve the quality of your products.
Enhanced Customer Service
When you outsource OEM manufacturing, you’ll have access to enhanced customer service. With a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers, avoid conflict and provide them with the best possible service. In today’s competitive marketplace, it’s essential to offer outstanding customer service.
By partnering with a reputable manufacturer, you can be sure that your products will meet the highest standards. This will give your customers confidence in your brand and help to build loyalty. In turn, this will lead to more sales and continued success for your business.
Increased Sales
Increased sales are one of the main advantages of outsourcing OEM manufacturing. When you partner with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers and increase your sales. In addition, outsourcing gives you the flexibility to scale up or down as needed, which can help you respond quickly to changes in demand.
As a result, outsourcing can be a highly effective way to grow your business and improve your bottom line.
Improved Delivery Times
When you outsource OEM manufacturing, you’ll have access to improved delivery times. By working with a reliable manufacturer, you’ll be able to get your products to market quickly and efficiently.
This will allow you to meet the needs of your customers and improve your delivery times. In today’s highly competitive marketplace, being able to deliver products quickly is essential.
With improved delivery times, you’ll be able to stay ahead of your competition and keep your customers happy. When you work with a reputable manufacturer, you can count on getting your products delivered on time and in perfect condition.
This will help you build a loyal customer base and keep your business growing. If you’re looking for a way to improve your delivery times, outsourcing OEM manufacturing is the answer.
Greater Efficiency
When it comes to manufacturing, efficiency is key. The faster you can get your products to market, the better. That’s why outsourcing to electrical OEM manufacturers can be such a boon for businesses.
By partnering with a reputable manufacturer, you’ll be able to get your products to market quickly and efficiently. This will allow you to meet the needs of your customers and improve your efficiency.
In today’s competitive marketplace, that can make all the difference. So if you’re looking to streamline your manufacturing process, outsourcing OEM manufacturing is worth considering.
Ready to Outsource OEM Manufacturing?
When it comes to your business, you always want what’s best for production. Efficiency and quality are important, which is why working with an OEM manufacturer can be extremely beneficial.
They have the experience and understanding of your product to help improve manufacturing. Not only will they provide high-quality parts, but they can also save you time and money in the long run.
If you want to ensure a high level of quality control, contact us now to see how we can help with your OEM manufacturing
6 Ways to Streamline Your Custom Manufacturing Process
Several industries rely on original equipment manufacturing (OEM). It plays a critical role in the business world, with Data Bridge reporting that it’s valued at $39,503.36 million.
Your custom manufacturing processes can set you apart from your competitors. Enhancing your systems can help you become more efficient. The question is, how can you improve your processes?
There are several tips for improving your customer manufacturing processes. These tips can help you with several types of processes, including control, primary, and support processes.
We’ll outline six of these steps in this guide. So, keep reading to learn more about the best improvements for your manufacturing process!
1. Discover Places Where Waste Occurs
First, look for places in your manufacturing company that waste time or resources. It may take some work to notice it, but many manufacturing companies have redundant processing stages or tasks.
There are several examples of such tasks. Many custom manufacturing services repeat one necessary task several times. However, the task only needs completion once.
How can you tell what processes cause waste? First, examine every stage of your manufacturing process. Does each step add value to your product or your custom manufacturing services?
If not, consider revising the process. Remove those unnecessary steps, so each phase of the process improves your product.
Then, move on from your processes to examining your machinery. The manufacturing industry relies on top-notch machinery to produce the best products.
So, consider whether your machinery is up-to-date. If your machinery seems outdated, consider investing in a new machine. New equipment can speed up your processes and improve your product quality.
2. Improve Your Custom Manufacturing Service Quality
It’s crucial to make improvements throughout your process. These improvements can greatly enhance your final product and cost less money in the long run. So, how can you begin improving your quality?
First, start by discerning the best raw materials for your equipment. The department that receives these materials should have a checklist that includes every necessary resource.
Then, create a checklist for your quality control staff. This checklist should include some of the following criteria:
- Ensure every order is correct
- Ensure the quantity is accurate
- Check for potential defects
During the manufacturing process, inspect your stages once again. If any problems occur during the manufacturing process, halt the process.
This pause can give you time to address the issue and ensure it doesn’t happen again. Preventing errors can save time and money in the future.
3. Improve Team Communications Within Your Company
Another way to improve your custom manufacturing is to bolster internal communications between your teams. Your communication can make or break your manufacturing processes.
Fortunately, there are several ways to improve your team’s communications. One of the most common approaches is to use communication software and technology.
First, consider using communication software. For example, moving your internal documents to an online cloud server can make communication between teams more efficient. This way, your teams can access any essential files from a single source.
Another way to improve communication is to use radio systems. Radio devices can help people communicate over long distances on the company premises. This technology provides a convenient way to inform other workers of necessities and problems that arise on-site.
Some communication technology is simpler to use, as well as cheaper. For example, many companies use the smartphone app Slack to communicate with each other. Since people generally keep their phones on them, this can be a quick and effective way to boost communication.
4. Stick to Deadlines to Improve Custom Manufacturing
Increased communication can provide several permeable benefits. One example of this is the ability to communicate better about deadlines and other information.
Weak communication leads to confusion about several things, such as deadlines, task instructions, and company roles. When this confusion rises, it bottlenecks your operation.
This bottleneck makes the company less efficient when it affects your deadlines. So, follow these strategies to ensure you have clear deadlines:
- provide clarity for co-workers, suppliers, and customers about when their deadlines are due
- provide shared goals for everyone to hit
- motivate your employees to hit higher performance levels
Another critical factor is to set deadlines that your employees can reasonably meet. Clear deadlines do no good for your company if workers can’t feasibly meet them.
5. Go Paperless In Your Job
Another way to streamline your work processes is to get rid of paper documents. It’s much easier to lose paper files than to organize them. Paper documents also take up more space, allowing for a higher likelihood of workplace clutter.
In contrast, digital documents are much easier to track and locate. You won’t have to sift through dozens of boxes to find the necessary documents. Instead, you can discover the required files quickly because they’re in a single place.
6. Introduce On-The-Job Training
Another way to streamline your custom manufacturing is by introducing on-the-job training. Lifelong learning is an incredible way to improve your employee’s motivation and efficiency.
The primary aim of this training is to help employees make as much progress as possible. Ideally, this training should also take the shortest possible timeframe.
This training provides several advantages:
- explore the job’s daily tasks and details
- receive immediate feedback to correct any mistakes
- take less time to train and boost productivity
The best part about on-the-job training is that it gives an excellent way to evaluate your employees’ results. This feature allows you to determine which parts of your training program work and what needs revisions.
Find a Custom Manufacturing Service
Custom manufacturing companies can streamline their processes by using these tips. However, it’s challenging to find a company that incorporates these strategies into its operation.
That’s where our company comes in. We are a British-owned company that supplies custom manufacturing needs for many businesses. Contact us today if you need custom manufacturing services!
Manufacturing in China: 10 Tips to Peak Season Preparation (Part 2)
With the COVID-19 pandemic still affecting internationally in both production supply, business model, and customer shopping experience, there is no denying that holiday shopping seasons will be vastly different than what they once were.
Don’t be overwhelming. Luckily, we’ve got you back. Welcome to Part 2/3 of the “Manufacturing in China 10 Tips to Peak Season Preparation” series where we list the most important and useful tricks in production plans when it comes to peak seasons. If you want to review some of the previous tips, click here to see what they covered.
Today, we will show you more tips. Let’s dive into part two.
Click here for the previous parts of the peak season preparation tips:
4. Prepare for Warehouse Strategy
You may be aware that your warehouse will experience an influx of work thanks to the increased demand for your products during the upcoming peak holiday seasons. However, what you may overlook is that your warehouse will remain busy even afterward because it needs to deal with return volumes after promotions end.
In this case, you need to have a detailed warehousing strategy to operate your warehouse more efficiently during the peak season, including using a better system to keep track of each item and having more warehouse space and extra staff to handle the sales and returns. This is because poor strategies focus on maintaining the status quo and relying on outdated and simple inventory systems that may negatively affect your sales performance if they cannot share data between other supply chain platforms.
When it comes to predicting how much warehouse space you need for all your products throughout the peak season, be sure to account for more than just enough room by calculating inventory based on the previous number of orders or other relevant data.
Don’t risk leaving too little warehouse space for your inventory because it will be difficult to rent another warehouse during peak season – either the location is too distant or the lease prices are not affordable, and most importantly, you don’t have time to deal with it. But it’s also important not to overstock and be left with unsold inventory once the season is over, which can hurt your cash flow.
It’s not only essential to know your product units so that you can prepare internally for where they lie ahead, but you also need to keep your manufacturing partner in the loop so that they can allocate those same resources effectively. If you don’t, the resources might get promised to your competitor.
5. Diversify Production
In the past, many foreign buyers used to have a sense of building a strong, solid relationship with one manufacturer when outsourcing production to China. But this way of thinking has been thrown out in recent years.
From the threat of a global shutdown due to the pandemic to the Suez Canal blockage putting the transfer of goods at a standstill, it’s never been more important than ever before to make sure that your business is prepared for all potential eventualities.
To avoid supply chain disruption, it seems that more buyers are opting for diversifying production to lower the risk of delays and raise profit margins. In other words, rather than relying on only one supplier in manufacturing, they are securing deals with a few different factories or service suppliers. Not only can this option avoid single points of failure, but also creates a much more reliable and predictable supply chain, which is of paramount importance for your peak season preparation.
You can keep production costs lower through higher quantities when working with a single supplier in China, but when choosing multiple production partners, you can seize the opportunity for cost reductions through continued negotiation and reordering. Additionally, during peak seasons it is useful to work with different producers for an unlimited supply of goods when you have multiple SKUs.
6. Understand Lead Time
When it comes to production, you need to understand the lead time of your production project when you make an order before the peak season.
Typically, lead time is the amount of time between an order starting and finishing. To put it simply in your manufacturing situation, lead time is when you can measure the period from signing a production contract with your supplier up until the completion of production and its readiness to ship out.
Once you understand what the lead time means, take time to review potential problems which can affect your desired amount of lead time – for example, any foreseeable issues regarding raw materials being unavailable or too expensive. Discuss these with your supplier and see if they can do anything about it before finalizing a purchase order.
Of course, sometimes delays and disruptions can’t always be avoided. To prevent any potential issues, you need to act quickly and communicate effectively with your suppliers.
Keep in mind that the holiday season will be so busy that many manufacturing service providers may stop taking new orders a few weeks before. Thus, it’s crucial to make an order ahead of time with an accurate order volume to avoid getting behind on orders. Don’t forget to confirm what the exact time frame is from when an order is placed until when it’s shipped and arrives at your warehouse.
Also, stay up to date with your manufacturing partner to ensure that the production of your project will remain at its usual high standard within the time frame given. It will be a good idea for you to leave enough time not only just for production but also for the final inspection to ensure your product quality.
Key Takeaways
To be successful during the peak season, there are several things you need to think about beforehand and one of the most important parts is choosing a reliable and professional manufacturing partner to get your products made in high quality.
This is because working with a knowledgeable expert can help you handle the whole production without risks and avoid many potential problems, so you can focus on making a business strategy.
At Shield Works Precision Manufacturing, we provide a wide range of custom manufacturing solutions to suit any type of business – large or small. From prototyping through production and assembly, we’re able to take care of everything. Contact us today to discuss your project with our experts to achieve peak season success.
The Do’s and Don’ts of Product Manufacturing
Every year, about 30,000 new products appear in the market. Not all these new products succeed. Many of them fail because their manufacturing processes have flaws.
In this article, we will cover the dos and don’ts of product manufacturing. These tips can help you avoid common pitfalls and ensure that your product meets your specifications. Keep reading to get the details.
Do Confirm if Global Sourcing Is Right for You
Before choosing a manufacturing partner, learn how global sourcing works so you can make an informed decision.
The biggest pro of global sourcing is that it saves you time and money. Instead of having to build up your production facilities from scratch, you can use existing companies. They will already have all the necessary equipment for manufacturing your product.
There’s also a downside to global sourcing. You’ll have less control over the quality of your product.
Because foreign manufacturers are far away, you won’t be able to supervise the manufacturing process. This can lead to expensive mistakes.
Consider the benefits and disadvantages of global sourcing before you decide to go this route. If you’re still unsure, consider using a contract manufacturer instead.
Don’t Forget to Consult Your Team
Before you commit to a manufacturer, it’s important to speak with your team. This includes your designer and any other stakeholders. You should also speak with your business partner to make sure they’re on board with the decision as well.
If you’re working with a designer who has experience in global sourcing, they’ll be able to give you advice on which manufacturers are the best fit for your brand.
You should also consider bringing in a consultant to help you make this decision. A consultant will provide an objective opinion. They can advise you on the best course of action.
Do the Research on the Company You Plan to Work With
Before you start any work with your product partner, make sure they’re a good fit for you. Research the company, its past products, and any future developments they’re planning.
Check out their website, review their services, and look for any reviews on social media sites. Find out if the manufacturer has experience working with customers in your industry. This is especially important if you’re looking for a manufacturer of niche products.
If you can’t find anything that makes them stand out from their competition, consider working with someone else.
Do Have Someone Visit a Potential Partner
Visiting a potential partner is a great way to get a feel for their operation. You also get to scan their facilities. It’ll be easy to see if they have the equipment you need.
There’s also a chance for you to build a face-to-face relationship with the team you’ll be working with. A good rapport with your manufacturer will maximize your chances of receiving first-rate items.
Visiting also allows you to get a sense of their communication skills. Some countries, like China, still keep their travel restrictions. If you can’t visit them in person, call them on the phone, or have a 3rd-party to check out for you.
Do Have an Audit Process
You should have an audit process in place to ensure quality. You can do this by having a third-party audit your product, or you can do it yourself. Some manufacturers will also conduct audits on their own.
The audit should be standardized and repeatable. This will ensure consistency between audits and make it easier to identify issues.
Don’t Assume That You Know Everything About Manufacturing
It’s easy to become overconfident when you think you know everything about your product. The manufacturer has a better idea of what goes into making your product than you would.
They’ll know how many steps are involved, how long each step takes, and how much labor is required. You may think the finished product should look a certain way, but it might not be as simple as that.
The manufacturer will have an opinion on the best way to make your product. It’s important that you listen to them. If they suggest a change that improves quality or efficiency, consider implementing it.
Do Know Who Owns the Intellectual Property Rights
When manufacturing products overseas, it’s important that you own the intellectual property rights. You can prevent others from copying your design and selling it themselves.
Before manufacturing your product, register your IP with a patent office. This will give you legal protection against imitators who try to sell a copycat version of what you’re making.
Don’t Sign a Contract Without Reading It
You should always get a contract before working with a manufacturer. The contract will outline the responsibilities of both parties and specify important details, like payment terms, for example.
It’s important to read the contract carefully. Make sure it includes all of your specifications and requirements, as well as any disclaimers or exclusions.
Do Double Your Budget
If you’re working with manufacturers overseas, the cost of shipping your products can add up quickly. You’ll have to factor this into your budget.
The best way to lower shipping fees is by having everything manufactured, stored, and shipped from one place. Your manufacturer would have to provide warehousing services for this to be possible.
Don’t Base Your Decision on Price Alone
It’s easy to get caught up in the excitement of finding a manufacturer that will make your product at a cheaper rate than you expected. However, what’s more important is whether they can meet your quality requirements.
Price is always relative. If you find a manufacturer that charges more than your initial budget, think about whether their quality of work is worth the additional cost.
Do Factor in Delays
It’s important to remember that delays are inevitable when shipping products. Weather, holidays, and weekends can all contribute to the delay of your product delivery. You should factor these delays into your timeline so that you don’t miss any of your deadlines.
Don’t Forget to Have a Contingency Plan
No matter how thorough your research and planning are, there are always going to be bumps in the road when working with a manufacturing company. You need to prepare yourself for these potential scenarios:
- The quality of your product doesn’t meet your expectations
- Your manufacturer doesn’t deliver on time
- Prices increase
- Raw materials are low in supply
You will need to have a contingency plan in place so that you can mitigate these problems. For example, if your manufacturer is going to be late on delivery, find a carrier. This will ensure that your product gets to its destination on time.
Do Understand Quality Assurance Procedures
You’ll want to make sure that your manufacturer can provide reliable documentation on their quality control processes. There should be clear documentation of the process that your product goes through, including test results and inspection reports. You should also get a sample of your product from the manufacturer to make sure that they’re meeting your quality standards.
Do Get Your Product Tested
You should have your product tested and certified by a third party before it leaves the factory. This will ensure that your product meets international standards and is safe for use.
Also, test the product yourself before it goes on the market. You don’t want to find out later that your product is defective or dangerous. By testing it yourself, you can catch these issues before they become a problem for consumers.
Don’t Forget to Check the Manufacturer’s Experience
Always review the experience level of your manufacturer. If they have a new factory, they might not have the resources to meet your quality requirements. Consider their reputation and the size of their company before making a decision.
Do Choose a Country With Low Labor Costs
As you look at countries where your product will be manufactured, it’s important to choose one that offers low labor costs. This can save you a lot of money.
Choosing China for product development is often a good choice for small and large orders. They have some of the lowest labor costs in the world but also maintain high levels of quality control.
Don’t Pick a Manufacturer Who Doesn’t Speak Your Language
Communication is one of the most important components of a successful business. If you can’t communicate with your manufacturer, you’re going to have a hard time building and maintaining trust with them. You want your expectations to be received and understood in a way that works for both parties.
This doesn’t mean that the manufacturer has to be a native English speaker. They just need to communicate effectively in your language.
If you’re working with someone who doesn’t speak your native tongue, choose a manufacturer who works with translators and interpreters. These roles can help bridge the communications gap between you and your product partner.
Do Check Their Certifications
Make sure that the manufacturer you hire is certified in the manufacturing process. This includes credentials from organizations, such as ISO certifications. These organizations ensure that your product is manufactured safely and reliably.
This is important for your company’s reputation and your customers’ safety.
Don’t Ignore the Importance of Safety
You may want a price break, but don’t cut corners on safety. This means ensuring that your product partner has quality control systems in place for their employees. This includes making sure that their facilities are clean and free of contaminants.
You also want to make sure that their employees have the proper training for the equipment they’ll be using to make your products.
Do Calculate the Production Cost per Item
The cost per item will depend on the number of items produced. You can calculate it by dividing the total production cost by the number of items produced.
For example, suppose you manufacture 100 units for a production cost of $1,000. If you divide this $1,000 by 100, then you get a total cost per unit of $10.
You can then compare this number with the price you want to charge for your product. If it’s too high, then you may need to cut back on some of your production costs or look into finding a cheaper manufacturer.
Don’t Neglect to Get a Prototype Assembly
A prototype offers many benefits. It will help you get a better understanding of your product and identify any potential issues. Once you find these problems, you can correct them before they become too costly to fix later.
You should also order a prototype so you can test your product. The more time spent testing the product in advance, the fewer problems there are likely going to be when it comes time for mass production.
Do Get a Non-Disclosure Agreement
A non-disclosure agreement is a legal contract that prevents any parties involved in your project from disclosing certain information about the project. This can include anything from product plans to pricing and marketing strategies.
Non-disclosure agreements ensure confidentiality and safety. Team members can’t release sensitive information to others who might wish to use it against you.
Don’t Manufacture Several New Products at Once
When you’re manufacturing a new product, it can be tempting to think about creating other items and getting them on store shelves as well. This is a mistake. Manufacturing multiple products at once will only slow down your production schedule.
Focus on perfecting one product at a time until it’s ready for the market. That way, you can stick to your timeline and keep your costs down.
Partner With a Forward-Thinking Product Manufacturing Company
The process of product manufacturing can be quite complex, so it’s essential to partner with the right company. Use an experienced manufacturer that can help you with product design, prototyping and testing, as well as mass production.
Shipping and logistics are also important aspects of production. Work with a company that can handle all of your shipping needs.
Shield Works Precision Manufacturing Co. can help you bring your product to life. We’re a full-service contract manufacturer in China that also offers warehousing and shipping. Contact us today to learn more about our services.
Finding a Suitable Manufacturing Partner in China: How to Make an Inquiry?
To make an inquiry about what your custom manufacturing partner can do for you, you will need to know how to approach them and how much it’s going to cost you. As an international importer, you don’t want to pay any more than necessary, and that means asking the right questions and working with someone who can give you quality products at an affordable price.
To help, we’ve compiled some tips on starting that conversation with your manufacturing partner in China so that you can find what you’re looking for while avoiding costly mistakes.
What is a Professional Inquiry Like?
A professional inquiry is a request for information. When you need to learn about the supplier’s catalog, pricing, and payment terms or ask for product samples, you will need one. It enables your team to review your ideas and needs.
How to Make a Professional Inquiry?
Rather than a one-time contact, making an inquiry should be an ongoing process. By following these steps, you will be able to think more thoroughly and systematically about how best to inquire.
Step 1: Get in Touch with Potential Supplies
The first step to filtering some reliable suppliers is knowing their backgrounds to evaluate if they fit your needs. For example:
- Background and experience
- Scale
- Production Capacity
- Product Catalog
- Main Market
It is necessary to determine what the supplier focuses on. A good way of assessing this is by checking whether they have related production lines. For example, if you need to make PCB products, you should find those who have PCB production lines in their facilities. Otherwise, be wary of suppliers who are pretending to be factories but are trading companies or there are risks involved.
Also, it may be beneficial for you to make a decision by contacting around 10 potential suppliers from the start for more information comparisons.
To successfully receive responses from suppliers, it’s also important to mention both who you are and what product/service you need for your business or project. If not, most of them will not respond.
Step 2: Request Quotations Clearing
People in business are under pressure, and so the quicker you can get to the point and more specific you can be, the more likely you are to receive a reply. In this case, before requesting quotes from potential suppliers, you need to prepare a production proposal. It doesn’t have to be the same as what will end up being produced or shipped, but it does provide an important reference point for evaluating rates.
Another reason for quoting based on your production plan is that almost every manufacturing company needs to know your general production plan, including units, materials, and deadlines so they can provide detailed pricing, and nothing will be confusing or misunderstood.
Keep in mind that using a cookie-cutter template taken from a website may not accurately convey the message you want. So, spend some time creating tailored business inquiries so you can get what you need in a short time. For example, if you need to know the total costs for completing your products, it’s important to specify which type of pricing. Instead of simply asking about the general prices, request quotations in FOB (free on board) price that is not a pure product price but includes shipping fees coming off the factory floor to the harbor and other related costs.
Step 3: Be in Touch with Them Briefly
Before moving on, you can remove some manufacturers from your list that don’t meet your standards and reply accordingly.
After receiving quotations, reach out to them directly over the phone (either online or by phone) to discuss how they can handle your project as well as share other pertinent details.
Sending an email is more traditional but calling will leave a lasting impression to show that you didn’t indiscriminately send out Requests for Quotations (RFQs) to all the suppliers on your list. This means they are likely to respond faster and think highly of your project. It’s also beneficial because it shows your sincerity and interest in partnering with them, which makes the process easier for both parties and can be a good way to establish friendly relations with your potential suppliers.
Moreover, don’t forget to ask them to send over some on-site pictures or videos since you are not available to pay a visit to their factories currently. If you have any questions, try to approach a factory audit service company once you have narrowed your search down to 1 or 2 candidates.
Step 4: Negotiate Based on Value, Not Cost
Cost is often one of the priorities that comes up when finalizing a project. It’s common for factories to ask overseas buyers for their budgets at the beginning of their negotiation process. However, many foreign buyers would prefer not to disclose their budget because they want the factory to understand that they are looking for value and quality, not just a cheap price.
If you are asked about your budget, it’s a good idea to be honest and emphasize that you are looking for long-term partnerships where quality and service are more of the priorities, which helps build trust and ensure that both parties are on the same page from the start.
When finalizing the supplier for your company, there are many different factors to take into account, such as whether or not they have the capacity to deliver quality products, outstanding communication skills, and exceptional customer service. In addition, it’s important to find suppliers that can protect your IP rights, so you don’t compromise any of your work-in-progress ideas and designs.
Don’t forget, the price and the quality are inexorably linked in China. Negotiating a low price with any supplier usually means they will just shrug it off and say ‘sure’ and then go out of their way to find ways to give you the cheapest possible products. A universal rule of life is that everything gets what it pays for. Keep in mind that you make this decision based on what will help your company succeed in the long run.
Step 5: Choose the Most Professional Supplier
In the last step, it’s time to give more information about your product and your quality requirements to the most interesting candidates. Don’t hesitate to give them your target price if it is very different from what they offer you. Ask them to justify their price level precisely.
As a buyer, it is imperative that you select the most professional supplier. This will allow for your orders to be processed with the utmost urgency and care. Luckily, there are many ways for you to determine who is the best choice for you. If you’re looking for a company that has all your needs covered, reach out today for more information and see how we will be able to make them worth every penny!
Examining the Rise of Chinese Manufacturing
Chinese manufacturing is one of the largest sectors on Earth. With a GDP of 193885 CNY HML, as of June 2021, Chinese manufacturing makes up an enormous part of the Chinese economy.
In fact, China assembly service and OEM manufacturers are the largest producers and assemblers on the planet. It makes up nearly twice the GDP of Japan, who are themselves world leaders in manufacturing and assembling technological goods.
The question is – why are product assembly services in China and OEM manufacturers in China so prevalent? Why is it such a stronghold of OEM manufacturing and product assembly?
We’re going to take a look at OEM manufacturing in China to find out! By examining the history of OEM manufacturing and product assembly in China, we’ll help you have a better understanding of where the industry is headed!
The History of Chinese Manufacturing
A quick glance at the history of Chinese manufacturing reveals that China hasn’t always been the global superpower they are today. Before 1980, China was a relatively small player in the global manufacturing industry. In the 1970s, China was roughly tied with Italy in terms of manufacturing output.
That all changed in 1980. China slowly started to overtake the industrial powers, one by one. By 2010, they had even overtaken the United States. Prior to 2010, this was unthinkable, as the U.S. was the world’s largest manufacturing superpower.
What happened? How did China go from being a largely agrarian society to the manufacturing superpower of product assembly services in China and OEM manufacturers in China we know today?
Chinese Manufacturing in the 1980s
Like every industry in China, the industrial manufacturing plants are owned by the government. 1980 saw the beginning of widespread reforms and innovations that would eventually culminate in the manufacturing superpower we know today. China’s transition was not without its growing pains, though.
The 1980s saw the rise of large, centrally-owned manufacturing plants. These manufacturing plants were made possible by small-scale towns and large townships supplying the necessary workforce. Thanks to these innovations, China quickly became one of the world’s leading exporters of coal, construction materials, and leather.
China also increased their output of more traditional exports. These included bicycles and textiles.
Chinese manufacturing had also made serious headway in a variety of more modern industries. They were beginning to catch up on consumer goods. Updated equipment also allowed Chinese manufacturers to substantially cut costs. These innovations also allowed Chinese managers more autonomy, further cementing their place as global business leaders.
These updates were not without their hardships, though. The increased focus on manufacturing pushed China’s energy infrastructure to the limits. These limitations meant that Chinese plants and minds could only operate at 70 – 80% of their capacity.
Local politics also prevented China from fully inheriting their potential during the 1980s. Local management prevented manufacturers from achieving maximum productivity. So did Communist labor policies like the “iron rice bowl” and guaranteed lifetime tenure for employees.
Chinese Technology in the 1980s
There are many different reasons China lagged behind in manufacturing during the 1980s. A general lack of technology is one of the most prevalent, though.
Until the late ’80s, China was quite behind in terms of technological development. They’d recently made great strides in overall technology, helping them to catch up with the rest of the world. The ’80s saw the introduction of nuclear power, satellites, and widespread computing for example.
In terms of manufacturing, though, they had a lot of catching up to do. Much of their industrial technology was still from the 1950s, for instance.
Part of the reason for this discrepancy was a disconnect between research and development and the factories themselves. This was an era when China was finding itself as an innovator. Between the years of 1979 and 1984, the number of major Chinese scientific discoveries increased from 2,790 to 10,000.
Likewise, the number of inventions approved by the government went from 42 to 264.
There are a few different reasons for these discrepancies. One was the lack of intellectual institutions. The other was that factory managers were too busy meeting quotas to focus on R&D.
At that time, knowledge was pursued for knowledge’s sake. Chinese researchers hadn’t started thinking about industrial applications yet. This also meant that research wasn’t taken that seriously.
This all changed in 1985. That’s when CPC published the “Resolution on the Reform of the Science and Technology Management System.” This resolution specified the importance of science and technology for economic progress.
These changes saw increased collaboration between the factories, research centers, and universities.
Technological Innovations in the 1980s
The results were still mixed. These innovations saw some improvements in the metallurgy industry. That’s because metallurgy was already fairly well-established in the country.
The electronics industry was slower to evolve, though. It was still fairly compartmentalized by the end of that decade.
China’s technological isolationism started to break in the ’80s, though. Manufacturers started importing some West German cold-rolling technology. This was imported into the Anshan iron and steel complex in Liaoning Province.
The electronics industry took longer to develop, though. The innovations helped, but it wasn’t yet enough. Chinese electronics manufacturers were still limited by a lack of raw materials and skilled labor.
Since it’s such an important part of how China got to be such a global manufacturing superpower, let’s turn our attention to OEM. We’ll start with some history. Then we’ll turn our gaze towards the future.
But first.. what is OEM, anyway?
What Is OEM?
OEM stands for “original equipment manufacturing.” It’s originally from the Dutch phrase “onder eigen merk.” This roughly translates as “under one’s brand.”
OEM manufacturers produce goods for other businesses. Companies that buy from OEM manufacturers are called “value-added resellers” (VARs). Generally, VARs will add additional components. This increases the value, thus the name.
Already, you’re probably starting to imagine the role that OEM manufacturers play in industries like product assembly in China.
OEMs generally operate as B2B. Recently, there’s been a rise in OEMs selling directly to individuals with niche interests, though. This includes electronics hobbyists, who look to OEMs for components, for example.
How OEM Works
OEM manufacturers sell specific goods to VARs.
For an illustration, think of Intel. Many PC companies use Intel processors. The PC companies would be the VAR, in this case. Intel would be the OEM.
OEMs can assemble products as well, though. This is another area where OEMs intersect with product assembly services in China. iPhones are the best example of this trend. iPhones are assembled in Longhua District of Shenzhen city, China.
Benefits Of Working With An OEM
There are a lot of different benefits of working with OEM manufacturers. Let’s take a look at some of the leading benefits of working with an OEM manufacturer, to give you some ideas.
Expertise
OEM manufacturers don’t try and do it all. Instead, they focus on a small handful of products. Then they make them really, really well.
Focusing on specific products lets the OEM manufacturer produce those goods in large batches. This lets them sell their products at the lowest-possible prices.
OEM manufacturers tend to work with many of the world’s biggest and most advanced companies. This means they have the latest, most state-of-the-art understanding of their industry. They can share their wisdom and experience with you and your brand, as well.
Cost
In today’s hyper-competitive business world, it’s essential to cut costs and find savings wherever we can. We agonize over our HR payroll for hours looking to shave off a dollar or two. Why wouldn’t we do the same for our components?
OEM’s specialization lets them keep their prices as low as humanly possible. They’re some of the most affordable electronics on Earth, which is part of how China became such a manufacturing powerhouse in the first place.
This also means you can pass these savings on to your customers. In times of global recession and financial hardship, which are becoming increasingly common, every dollar counts. Consumers are far more likely to purchase the less expensive option.
Your business’s future could literally depend on saving even a few cents per component.
Speed
OEM manufacturers are set up and ready to go. They’re primed to produce large quantities of whatever you need in as little time as possible. If you need good, reliable, inexpensive components, OEM manufacturers are just what you’re looking for.
Flexibility
Letting OEM manufacturers worry about the manufacturing frees you up to focus on other things. Instead of having to run around and deal with all of the logistics of physically producing products, you’re free to expand your customer base or work on developing new projects.
This, in and of itself, can become a lucrative business model. You can design and develop a new product and then let Chinese OEM manufacturers produce them for you. Meanwhile, you can create your next project or design.
You’ll be ready to begin manufacturing your next product by the time the first one’s hitting the shelves!
The Future of Chinese OEM Manufacturing
Even with all of these benefits, the future of OEM manufacturing in China is far from set in stone. The complications to the global supply chain, in the wake of the COVID-19 pandemic, has shaken the Chinese manufacturing industry, for one thing.
It’s also made some raw materials difficult to come by, reproducing some of the conditions of OEM manufacturing in the ’80s. These problems are relegated to China, though. They’re problems facing the entire global manufacturing industry.
This means there are also opportunities to be had from the restructuring.
Chinese OEMs have emerged as global leaders in electrical car production, for example. Volvo, Polestar, and BMW all assemble their vehicles in China, for example.
Tesla produces almost half of their vehicles through Chinese OEM manufacturers, as well.
Chinese OEMs also have almost a monopoly on semiconductor assembly. Almost all microchip manufacturers are in Asia, after all. The same goes for batteries.
These challenges come in the wake of similar shifts during the 2010s. Chinese manufacturing underwent a paradigm shift during that decade, as well, as China began to lose many of their historical advantages.
Years of being the leader of the global manufacturing industry meant that China had become rather well-off by the 2010s. Chinese workers were beginning to collect wages comparative to what their U.S. counterparts used to make. Customers were beginning to have increasingly high demands, as well, after years of living in a globalized economy.
Chinese manufacturers managed to adapt, anyway. Given the past 40 years, there’s every indication that will always continue to do so.
Why You Need Chinese OEM Manufacturing
While Chinese OEM manufacturers are experiencing difficulties, like every other industry, they’re also primed to become the only game in town. With such an advanced infrastructure of government-controlled manufacturing, there’s every likelihood they will take the global lead in manufacturing even more than they already have in the next few years.
This means it’s in your best interest to line up your OEM suppliers now and begin cultivating your relationships.
Are You Looking For Precision Manufacturing?
You’ll find it here! With over 16 years in the Chinese manufacturing industry, Shield Works Precision Manufacturing has the experience, as well as the local knowledge, to meet all of your Chinese OEM manufacturing needs.
Shield Works Precision Manufacturing offer everything you need to make the most of today’s globalized marketplace. From OEM manufacturing to assembly to warehousing, you can find it all here.
If you’re ready to find out how high-quality manufactured goods can elevate your business and help you to reach your goals and realize your potential, get in touch with us today to find out how a trusted manufacturing partner can boost your business needs!