OEM Manufacturing
OEM Standards: Why They Matter and What They Are
Original Equipment Manufacturer (OEM) standards are the requirements that manufacturers must meet when producing parts or components for a specific product.
These standards are set by the company that originally designed the product, and they outline the quality, safety, and reliability requirements that must be met in order for the parts to be considered acceptable for use in that product.
In this blog post, we will explore why OEM standards are important and how they impact product performance.
Why OEM Standards Matter
OEM standards matter for several reasons, including quality, safety, and reliability.
Quality
First and foremost, OEM standards help to ensure that products are of a consistent quality. By setting specific requirements for materials, manufacturing processes, and testing procedures, manufacturers can minimize variations in product quality and ensure that each component meets the same high standards.
This can help to improve the overall quality of products and increase customer satisfaction.
Safety
In addition, OEM standards are important for ensuring the safety of products. Manufacturers must comply with specific safety regulations and standards to ensure that their products are safe to use.
This may include requirements for components that are flame-retardant, non-toxic, or resistant to high temperatures, among other things. By meeting these safety standards, manufacturers can help to prevent accidents and injuries that may result from product failures or malfunctions.
Reliability
Reliability is another important factor that is impacted by OEM standards. By setting specific requirements for materials, manufacturing processes, and testing procedures, manufacturers can help to ensure that their products are reliable and perform as intended.
This can reduce the risk of product failures or malfunctions that can result in costly repairs or replacements, as well as damage to the manufacturer’s reputation.
In addition to these factors, complying with OEM standards can also have other benefits. For example, it can help manufacturers to streamline their production processes, reduce waste, and improve efficiency. It can also help to encourage innovation and the development of new technologies and methods that can improve product performance and reliability.
How OEM Standards Impact Product Performance
OEM standards play a critical role in determining the performance of a product. There are several ways in which these standards can impact product performance, including materials, manufacturing processes, and testing.
Materials
One of the most important ways in which OEM standards impact product performance is through the use of high-quality materials. This includes:
Material selection
Manufacturers must carefully select the materials used in their products, taking into account factors such as durability, strength, and resistance to wear and tear.
Material quality
The quality of the materials used can impact the performance of the product over time. Using high-quality materials can help to ensure that the product performs well and meets the specific needs of customers.
Manufacturing Process
Manufacturing processes also play a key role in determining product performance. This includes:
Consistency
Manufacturers must ensure that their manufacturing processes are consistent and repeatable in order to minimize variations in product quality and ensure that each component meets the same high standards.
Quality control
Techniques such as statistical process control, automated testing, and continuous improvement programs can help manufacturers improve product performance and reliability, and reduce the risk of defects or malfunctions.
Testing
Testing is another important aspect of OEM standards that impacts product performance. This includes:
Performance testing
Manufacturers must rigorously test each component to ensure that it meets specific performance criteria. This may include tests for strength, durability, resistance to temperature and humidity, and compatibility with other components in the product.
Environmental testing
In some cases, manufacturers may also conduct environmental testing to ensure that their products can withstand harsh conditions, such as extreme temperatures or exposure to saltwater. By conducting these tests, manufacturers can identify and correct potential performance issues before they become a problem for customers.
Design & Innovation
In addition to these factors, OEM standards can also impact product design and innovation. This includes:
Encouraging innovation
By setting specific requirements for materials, manufacturing processes, and testing procedures, manufacturers can encourage the development of new technologies and methods that can improve product performance and reliability.
Creating better products
This can lead to the creation of new products that meet the evolving needs of customers and perform better than previous generations. By staying up to date with OEM standards, manufacturers can create products that are safer, more reliable, and better suited to the needs of their customers.
Overall, OEM standards are important for ensuring the quality, safety, and reliability of products.
By setting specific requirements for materials, manufacturing processes, and testing procedures, manufacturers can improve the overall quality of their products, reduce the risk of accidents or injuries, and protect their reputation in the marketplace.
Whether you are a consumer, manufacturer, or regulator, understanding OEM standards is essential for ensuring the safety and reliability of the products we use every day.
At Shield Works, we understand the importance of OEM standards and the impact they have on product performance. With over 18 years of experience in the industry, we have a professional engineering team that can help you meet the ideal OEM specs and standards for your product. Contact us today to learn more about how we can help you meet your OEM standards and take your product to the next level.
Choosing an OEM Parts Manufacturer: A Complete Guide
Apple is one of the largest companies in the world, with its iPhone being one of the most popular smartphones on the market. If you’ve ever held an iPhone in your hand, you know it’s a premium, well-made device. So it may come as a big shock that Apple does not manufacture almost any of its individual parts.
Instead, Apple sources OEM parts from other companies. They get accelerometers from Germany, gyroscopes from Switzerland, and batteries from China. Apple even sources some of its parts from direct competitors, such as Samsung.
This is common practice in the world of manufacturing. And it’s one that can make your business more efficient and cost-effective.
What are OEM products, and how does one choose an OEM vendor? We hope to answer that and many other questions here. Keep reading for a definitive guide on OEM parts and finding good manufacturers.
What Are OEM Parts?
OEM stands for Original Equipment Manufacturer. The screen on an Apple device has an Apple label, but the OEM is actually Samsung. Samsung makes the screen, sells it to Apple, and Apple claims the screen as its own.
It’s a continuous cycle. The iPhone gets high-quality screens for a good price, and Samsung sells more screens. As counterintuitive as it may seem, this is a mutually beneficial relationship that is unlikely to end.
Samsung is unafraid to admit this because it only proves that its screens are of the highest caliber. Apple does not want to burn a valuable business partner, either.
This practice extends far beyond consumer electronics. Car parts, printers, and countless small electronics require OEM parts.
Why Not Manufacture In-House?
You may be wondering why Apple does not produce the screen itself. At first glance, it would seem to be a better deal overall. Apple could potentially save money and create screens that meet their expectations exactly.
But upon closer examination, it’s not as easy as just manufacturing some screens. Screens require specific manufacturing hardware, long processes, insider knowledge, and a workforce equipped to make them.
If Apple were to manufacture its own screens, it would likely cost them billions of dollars to create the production lines. Sure, they will get custom Apple screens. But the cost would put a huge dent in their operational expenditures.
Samsung already has the infrastructure to make screens. They have know-how and years of industry experience. They can produce the screens cheaply and sell them to companies like Apple.
In short, OEM products give companies access to affordable parts that would otherwise cost a fortune to make.
Benefits of OEM Parts for Small Businesses
OEM products are not just for gigantic companies like Apple. They are a means for smaller companies to save money on manufacturing, without sacrificing quality.
Apple not only purchases OEM parts but also outsources its manufacturing to other companies. Foxconn, for example, makes custom Apple silicon chips. This allows Apple to scale up and down in response to demand, and easily pivot toward new products.
The same is true for your company. OEM parts will allow you to manufacture on a smaller budget, compared to manufacturing yourself. It’s an excellent way for small businesses to get their foot in the door, as it were.
As your business grows, you can scale up to meet demand. Most OEM vendors have the ability to adapt to your ever-changing business requirements.
With all that said, let’s discuss how you can find an OEM parts manufacturer.
Things to Look for in a Reliable OEM Vendor
As you shop around the OEM vendor market, you will discover a huge number of manufacturers. There are hundreds of companies, from Shenzhen to Beijing, looking to make your product a reality. But as you might expect, there are some bad eggs among the bunch.
There are some important do’s and don’ts when working with foreign companies. Some of them amount to cultural differences, but others may be unsavory business practices.
Here are a few key points to get you in the right direction.
GMP Compliance
GMP, also known as Good Manufacturing Practice, ensures that the company you work with adheres to the highest manufacturing standards. Regulations vary depending on your country or region. But the name is self-explanatory, to make sure companies behave well during the manufacturing process.
Part of GMP compliance is the implementation of a quality management system or QMS. This is a body of processes, policies, and procedures to ensure OEM parts meet the highest standards. A QMS ranges from procurement of raw materials to the finished products at the end.
GMP compliance includes specialized employee training and regular audits of the process. This means having accurate records and making adjustments over time to improve.
Find a company that is GMP compliant before you settle on a contract.
Understanding OEM vs. ODM
OEM refers solely to the manufacturing of individual parts that go into a product. However, the company that makes these OEM products uses its own design and engineering team to create them. When you buy an OEM product, you are essentially picking a ready-made product off the shelf.
However, some companies have very specific needs for their products. The OEM parts that a vendor makes may not be sufficient for your standards. In that case, you might feel better suited to an ODM manufacturer.
ODM, which stands for Original Design Manufacturer, designs a product according to your specifications. Then they manufacture this product for you. The only part left for your company is assembly.
A perfect example of ODM is car chargers for electric vehicles. In this case, the design of the plug across car chargers is very similar. But each design has a custom brand, unique coloring, and entirely different packaging.
Good Reputation
A common issue with Chinese companies is that they can easily shut down one company and open another. A company with a bad reputation can become a new company with a fresh slate overnight. Many who consider outsourcing to China understand this as one of the risks involved.
Just like any business relationship, you must establish bona fides. It pays to do your research about a company’s past dealings. If the information runs dry after digging only a few years deep, you may have a problem.
Word-of-mouth is an excellent tool in the manufacturing industry. Other companies you know or have worked with may have had bad run-ins with specific manufacturers.
Of course, there are always online reviews that you can check out. Aggregate reviews can provide an intimate window into a company’s dealings with past customers.
Capabilities
Technology advances at a breakneck pace. As it concerns chip manufacturers, this means that new processes get outdated within years of their fabrication.
For example, 10 nm chips release one year, then shrink down to 7 nm the next. Each shrinkage requires completely retooling the factory to make the updated chip.
Granted, not many industries upgrade at the same pace that silicon manufacturers do. But generally speaking, industry innovation in all fields grows at a steady pace.
Ideally, you want a manufacturer that uses the most modern processes. The more modern it is, the more efficient and cost-effective a company can be.
Older processes deprive you of all the new advancements. Plus, a company that can support current advancements is likely better off financially. Having modern processes also means they have highly skilled people onboard.
Things to Avoid in an OEM Vendor
Naturally, there are big red flags that you should spot before signing any contracts. Some of these are small things that can be remedied easily. Others are a very clear no-go and you should avoid them if at all possible.
Inconsistent Communication and Language Barriers
It’s understandable that there will be communication delays between East Asia and your headquarters. It’s difficult to convey things over email or even a video call. But you want to avoid OEM vendors that don’t give you consistent, comprehensive communication.
A good vendor will update you through every step of the process. They will alert you promptly to any delays and communicate any manufacturing challenges. They will help you achieve a seamless assembly process and take into account any input you may have.
Language barriers can provide misunderstandings. And even if there is no language barrier, there may be cultural barriers. Having a company that tries to bridge this gap with you will be invaluable.
To be clear, you shouldn’t discount a manufacturer only on account of a language barrier. It’s how both parties overcome that barrier that matters.
Constant Delays and Manufacturing Issues
Some manufacturers may prove to be a pain in the neck throughout the process. There may be constant delays in finishing a run of products. These delays may cost you money, create logistics issues, and prevent you from distributing your product on time.
Delays will happen from time to time. But if they are very, very frequent–without good explanation–then this may point to bigger internal issues.
For example, your manufacturer may be biting off more than it can chew. They may have attempted to fulfill more orders than they have the capacity for. This leads to them prioritizing some customers over others.
Ensure that they have the capacity to meet your needs. If they are bogged down with too many orders, you may want to look elsewhere.
Lackluster Prototype Models
Before doing a run, it’s common practice to produce a few prototype models. This gives you a physical example you can hold in your hand. You can see with your eyes and feel for yourself the quality of the manufacturing.
This is an excellent chance to see from the start what you’re going to get. You can ask for quality checks throughout production. If there is any degradation in the product, it allows you to identify what has happened.
If they cannot get your OEM parts up to snuff from the beginning, then perhaps you should shy away from that company.
Reasonable Pricing
Everyone wants a good deal, but you don’t want an agreement that seems too good to be true. You get what you pay for, after all. An unnaturally low price is a good sign that you might be getting a low-quality product.
Take a look at comparable rates from other companies. This gives you a good idea of what you should expect to pay for bulk OEM parts. This way you can find a good balance between an affordable price and parts that meet your quality standards.
Protection of Your Intellectual Property Rights
Intellectual property theft is a risk you have to take into account when working with Chinese companies. As such, you should prioritize companies that keep your intellectual property safe.
This usually isn’t a huge issue with OEM manufacturers, since they design the products. However, if you share blueprints and schematics of your products, you are likely sharing valuable IP information.
Only trust companies who have a reputation for protecting this valuable information. Otherwise, you may see your patented product designs appearing in cheap Chinese products, with no recourse for legal action.
Get Custom Manufacturing with Shield Works
OEM parts allow companies of all sizes to get high-quality components for affordable prices. If you decide to source your OEM products from a vendor, take the time to vet them well. Keep the above tips in mind before you settle on a contract manufacturing run.
Shield Works serves professionals in all industries. We do assembly, manufacturing, and much more. Contact us today to find out how we can help you get the best OEM parts for your business.
Made in China: Its Pros & Cons
If you have ever purchased a product, it is quite likely that it was made in China. China is the world’s largest exporter and has been manufacturing products for decades. The country’s lower labor costs and large workforce have made it a top destination for businesses looking to pursue higher cost-effectiveness, against all odds.
While there are many benefits to products made in China, there are also drawbacks that you should consider. In this article, we will explore the pros and cons of manufacturing in China.
Pros
Cost Savings
One of the most significant benefits of manufacturing in China is cost savings.
Labor costs in China are lower compared to many other countries, which allows businesses to save on labor costs and invest in other areas of the business such as research and development, marketing, or expanding their product line.
This cost savings can give businesses a competitive edge in the market and allow them to offer products at a lower price point.
Wide Range of Products
China is known for its diverse manufacturing industry that can meet the needs of many businesses. From clothing and electronics to furniture and toys, businesses have access to a wide range of products to sell.
This diversity allows businesses to find suppliers for their specific needs and gives them more options to choose from.
Additionally, Chinese manufacturers have experience in producing large volumes of goods, which can be a significant benefit for businesses looking to scale their operations.
Established Supply Chain
Another benefit of manufacturing in China is the established supply chain.
The country has a well-developed infrastructure that allows for efficient transportation of goods and materials. Additionally, there are many suppliers and manufacturers in China that businesses can work with, making it easier to find the right partner for their needs.
This established supply chain helps businesses reduce costs, increase efficiency, and improve the speed of delivery.
Improved Quality Control
China has made significant improvements in quality control in recent years.
Many manufacturers have invested in new technologies and processes to improve the quality of their products.
This can be a significant benefit for businesses that want to ensure that their products meet high standards. Improved quality control can help businesses reduce costs associated with returns, refunds, and negative customer feedback.
Scalability
Chinese manufacturers have the ability to rapidly scale up production to meet increased demand.
This is due to the country’s large and highly skilled workforce, as well as the advanced technology and equipment that many manufacturers possess.
For businesses looking to expand their product offerings or enter new markets, manufacturing in China can offer the scalability needed to meet growing demand without sacrificing quality or increasing costs.
Additionally, Chinese manufacturers can often provide customized solutions for businesses looking to create new products or modify existing ones to better suit their needs.
Cons
Labor Laws and Working Conditions
China has faced criticism for its labor laws and working conditions in some factories. Reports of long working hours, low wages, and poor working conditions have raised concerns about worker exploitation.
This can be a reputational risk for businesses that partner with manufacturers that have poor labor practices.
Businesses need to conduct proper due diligence to ensure they are working with manufacturers that adhere to local labor laws and have safe working conditions for their employees.
Additionally, businesses can prioritize partnerships with manufacturers that have certifications for ethical labor practices to demonstrate their commitment to social responsibility.
Intellectual Property Theft
Intellectual property theft is a significant concern for businesses that manufacture in China.
There have been many cases of companies having their designs or technology stolen by Chinese manufacturers, which can be a significant threat to a business’s competitiveness.
Businesses need to have proper legal protections in place, such as trademarks and patents, and work with trusted manufacturers to mitigate this risk.
Language and Cultural Barriers
Doing business in China can be challenging due to language and cultural barriers. Many Chinese manufacturers and suppliers do not speak English fluently, which can make communication difficult.
Additionally, there may be cultural differences that can impact business relationships and negotiations. Businesses need to have a clear understanding of cultural differences and have bilingual staff or translators to help bridge the communication gap.
Environmental Concerns
China has been criticized for its environmental practices, with many factories emitting pollutants and contributing to air and water pollution.
This can be a concern for businesses that are committed to environmental sustainability. Businesses need to conduct proper due diligence to ensure they are working with manufacturers that have proper environmental practices in place.
Geopolitical Risks
Finally there are geopolitical risks associated with manufacturing in China. The country’s relationship with the United States and other countries can impact trade policies, tariffs, and regulations.
This can create uncertainty for businesses that rely on stable trade relationships. Additionally, political unrest or changes in the government can create instability in the country, which can impact business operations.
Overall, manufacturing in China is still a very viable option for businesses, but it’s important to weigh the pros and cons carefully and take necessary precautions to mitigate risks. By doing so, businesses can take advantage of the benefits of manufacturing in China while protecting themselves from potential drawbacks.
Or you can consider working with a manufacturer that can help you reap the many benefits of the developed manufacturing in China while perfectly dodging its side-effects. Shield Works is one of them, priding itself on the 18 years of operation, international team of design and development, in-house assembly facility and vast suppler networks in Asia. Contact us now!
OEM vs ODM Manufacturing: The Differences Explained
It can be hard to understand the differences between OEM and ODM manufacturing, especially when you’re not familiar with all the jargon.
Even if you’re pretty savvy when it comes to business, some of the language used in the manufacturing world can be confusing. What’s more, these terms are often used interchangeably, which only adds to the confusion.
In this article, we’ll explain the key differences when it comes to OEM vs ODM manufacturing so that you can make an informed decision about which manufacturing is right for your business.
Read on for more details:
OEM vs ODM Can Be Confusing
OEM vs ODM manufacturing can be a confusing comparison to understand. OEM stands for Original Equipment Manufacturer while ODM stands for Original Design Manufacturer.
OEM manufactures products as specified and designed by another company (the “original” company), but with its own branding and logo.
An ODM, however, designs the product according to its customer’s specifications but then produces it under its own label.
Differences in Manufacturing
Original manufacturers make designs for their products. They give parts and materials to other people. The other people put the parts together to make the product.
ODM is different from other types of design. The original designer only makes the design, then they hire a different company to make the product with their own label.
OEMs and ODMs are companies that make things. OEMs are big companies that make a lot of one type of thing. ODMs are smaller companies and they can be experts in making one special kind of product.
This lets them have more control over how much it costs to make stuff and it helps them check the quality too.
What About Scale and Cost?
OEMs make lots of things at the same time, so it is cheaper. They also have access to special technologies that help them make better products that are good quality.
OEMs use their special knowledge to make the best products. They use the latest methods and techniques when making them.
On the other hand, ODM provides flexibility and customization options that OEMs may not offer.
ODMs (Original Design Manufacturers) can make special things that customers want. They can also save money because they focus on certain parts of making stuff.
They Are Both Very Different
OEM and ODM can be different for each company. It is important to know the good and bad things about them before you choose one.
OEMs are good at certain things and can save you money. But you won’t have as much control over the cost and quality. ODMs are more expensive but they give you more control.
If you own a business, it is important to know the difference between OEM and ODM manufacturing. This will help you find high-quality items at good prices.
OEM companies are usually bigger than ODM companies because they focus on making one type of product.
This means that the company can use their knowledge and the best ways to make products for customers.
OEMs make a lot of products. They can make them cheaper and people get good quality products.
On the other hand, ODMs are smaller, more specialized companies that focus on specific areas of manufacturing.
This lets them make special designs based on what customers want. It also might cost less to produce because they are good at certain things.
However, OEMs may offer more control over production costs and quality than ODMs.
It Depends on Your Requirements or Needs
OEM and ODM manufacturing are different. It is important to know the good and bad of each one before picking one.
Original Equipment Manufacturers (OEMs) are experts in some areas and can save you money. But they do not have as much control over how much things cost or how good the quality is.
Original Design Manufacturers (ODMs) give you more options to customize, but it usually costs more money.
It’s important to know the difference between OEM and ODM manufacturing when making products. This will help you make the best quality items at a good price.
Learning about OEM and ODM manufacturing can help you get the best product for your business. It will also be a good price.
OEM and ODM are different. Knowing the difference can help you pick the right one for your business. This will help you get good value for your money.
OEMs may give cost savings but less control over production costs, while ODMs offer flexibility but may be more expensive.
Ultimately, it’s important to weigh all these factors when comparing OEM vs ODM to find a solution that fits your company’s needs and budget.
Get the Full Picture to Make an Informed Decision
By understanding OEM vs ODM manufacturing and their respective advantages, companies can make informed decisions when selecting the right partner for their production needs.
OEM manufacturers provide expertise in certain areas and cost savings, while ODMs provide flexibility and customization as well as potentially lower production costs.
Taking the time to understand OEM and ODM manufacturing trends can help ensure you find the best solution for your business needs and receive a quality product design at a competitive price.
They Are Both Beneficial to the Right Business
The differences between OEM manufacturing and ODM manufacturing are substantial but can be a beneficial tool for businesses looking to produce high-quality products at competitive prices.
OEMs offer greater economies of scale, access to advanced technologies, and more control over production costs and quality, while ODMs are more specialized and provide greater flexibility and customization.
Ultimately, understanding OEM vs ODM manufacturing products is essential for businesses looking to get the most out of their production investments.
OEM vs ODM, Which Is It for You?
Hopefully, this blog post has provided you with a clearer understanding of the differences IN OEM vs ODM manufacturing. From quality control standards to operations, material selection, customer service, and more.
Selecting the right type of manufacturing process for your business needs is an important decision. Knowing the differences between OEM and ODM helps you to get the product that perfectly meets your needs and budget.
To learn more about how we can help meet your specific product requirements, check out our blog today!
Finding an IP Protective Manufacturing Partner in China: 5 Common Mistakes to Avoid
Outsourcing your production to China can offer considerable benefits, such as decreased production costs and manpower requirements.
However, many Western companies that don’t know how to protect their ideas and designs when searching for a manufacturing partner in China can risk compromising their quality and facing IP leakage or other unexpected consequences.
To help you make an informed decision and ensure a strong partnership that benefits both parties in the long term, we have put together this guide on the five most common mistakes to avoid when searching for an IP protective manufacturing partner in China. Read on to learn more!
1. Not Defining and Registering Your IP
Before choosing a manufacturing partner in China, it is essential to define and register intellectual property (IP) in your home country. Typically, intellectual property consists of different forms of assets, including trademarks, patents, and copyrights.
Trademarks
A trademark can be a word, phrase, symbol, design, or a combination of these elements that distinguish a specific item from the rest. For example, the Coca-Cola Company has registered its Coca-Cola® trademark in both standard character format and special form formats.
Patents
A patent is an exclusive right granted for an invention, which could be a design, process, improvement, or physical invention such as a new machine. Typically, there are three types of patents:
- Design patents
- Plant patents
- Utility patents
Copyrights
A copyright is a collection of rights that automatically vest to someone who creates an original work of authorship. The most common copyrights include:
- Literary works
- Musical works
- Dramatic works
- Pictorial, graphic, and sculptural works
- Architectural works
2. Not Knowing Your Rights Under Chinese Law
Having a good understanding of your rights and the legal protections available is an essential part of securing your intellectual property (IP) when moving your production to China. This is because registering your IP in your homeland won’t provide the same protection when you begin to produce in another country as the regulations of IP laws vary from nation to nation. In this case, you should register your IP in China and become knowledgeable of your IP rights according to Chinese laws and regulations.
Depending on the type of IP protection you need, it is important to know which laws apply to you and your product. For example, if you are looking for patent protection in China, you must register your patent with the Chinese Patent Office and make sure it complies with all applicable regulations.
For the best protection against potential IP infringement, you can consider employing a dependable legal service provider in China. Their knowledgeable attorneys, fluent in both Mandarin and English, will guide you through the entire process.
3. Not Conducting Proper Due diligence
Before making a commitment to any manufacturing company in China, don’t forget due diligence. When searching for an IP protective manufacturing partner in China, you should ask yourself the following questions:
- Are they capable of manufacturing my product?
- What are their past experiences with similar projects?
- Are their employees familiar with IP protection?
- Can they guarantee the security of my IP?
It’s also important to read reviews from previous customers. By doing so, you can find such information by posting questions on Quora.
Additionally, don’t forget to confirm that your chosen manufacturing partner has the right certifications and qualifications, as well as industry standard procedures in place to ensure your IP is adequately protected.
4. Not Having an Enforceable Contract
Before developing an IP protective agreement with a manufacturer in China, you should first identify and clearly communicate your IP expectations. Without a well-defined IP strategy, you are unable to effectively protect your assets when you enter into a manufacturing partnership in China.
After ensuring a potential supplier is able to satisfy your requirements, be sure to record every term in a formal, legally-binding agreement. An enforceable contract should specify all the rights, responsibilities, and obligations of both parties and be written in accordance with Chinese law in both Chinese and English to protect your IP rights. It should clearly lay out the procedures for IP protection and enforcement, as well as any disputes that may arise. This contract should also include the terms and conditions of any transfer of IP, including licensing, confidentiality, and non-disclosure agreements.
By having a comprehensive and enforceable contract in place, you can ensure that your IP is properly protected and secure.
5. Not Monitoring Your IP
The last and most common mistake that many Western companies make when moving their production projects to China is that they don’t constantly monitor their IP.
It is important to keep track of what happens to your intellectual property once it is in the hands of your manufacturing partner in China. This includes tracking where your products are manufactured, as well as ensuring that proper IP protection measures are in place to prevent any unauthorized use or theft.
It is important to also ensure that any changes made to the design of your products are reported back to you and approved by you before they are released for production. Without this level of monitoring, you may find that your IP is infringed upon without your knowledge and be unable to take action.
Partner with an Experienced Manufacturer in China
Even if you have a well-established strategy to safeguard your IP, you still need to be careful when selecting the right manufacturing company in China. This is a vital step that should not be made in haste, as many factors should be evaluated thoughtfully.
With Shield Works on board, you can have your production outsourced to China smoothly while keeping your intellectual property safe and secure, which can help you get the best results from your investment.
Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering IP protective contract manufacturing services. We have a team of bilingual engineers on the ground to offer tailor-made services to meet your requirements. Get the ball rolling by contacting us today to go over the specifics and see how we can support you.
What Is OEM and Why Is It Important for Your Business?
Did you know that 80% of all iPhone screens actually come from Samsung?
If that’s surprising, then you’re in for even more surprises. Thousands of companies purchase third-party components rather than producing them in-house. The process is so common that it even has a name: OEM.
What is OEM? It’s a way for businesses to get high-quality components without draining their resources on building them themselves. It’s such a common practice that even giants like Apple and Ford make use of it.
Most importantly, OEM can benefit a small business as well. Keep reading as we discuss the importance of this concept, and how it can improve everything from prototype design to production.
What Is OEM?
OEM stands for original equipment manufacturer. In layman’s terms, this is when an established manufacturer makes a specific component that they sell to other companies. For example, Samsung screens.
Those other companies purchase these parts and use them in their own products. However, they brand their products as entirely their own.
So when you purchase an iPhone, it’s likely that you have a Samsung screen. But nowhere on the packaging or in the advertising will you see the word Samsung. Apple purchases the screen but gives none of the credit to Samsung.
It’s a win-win for both companies. Apple gets a high-quality screen to better sell the product, and Samsung makes a profit. Samsung then gets more business when other companies come to them to purchase screens.
This is a mutually beneficial relationship that you can find both in the electronics world and beyond. Many car manufacturers thrive off of OEM parts, for example.
What Is the Benefit of OEM Parts?
On the surface, it may almost seem like cheating. Apple is a multibillion-dollar company. Why do they not make their own screens?
The answer is quite simple: creating the production lines to make the screens is quite expensive. It requires invaluable industry knowledge, highly-skilled engineers, and highly-specialized machinery. Building the production lines just to create this single component can cost millions or billions of dollars.
You can observe the same phenomenon with computer chips. A single Taiwanese company dominates the market for silicon wafers. Virtually every company on the planet that requires silicon wafers has to purchase them rather than make them themselves.
In the case of semiconductors, creating a single facility to produce them costs billions of dollars. That facility quickly goes out of date and requires a costly overhaul every few years. This means that most companies simply cannot produce semiconductors affordably.
Using Apple as an example again, many components go into a single iPhone. They have radios, flash memory storage, batteries, and so forth. Producing all of these components in-house would result in an iPhone that costs thousands of dollars.
In other words, purchasing OEM parts gives you high-quality, industry-standard products without needing to fund your own manufacturing equipment and production lines. The benefits and savings with OEM far outweigh the cons.
Why Is OEM Important for Your Business?
Apple cannot afford to make everything in-house, and neither can a small business. OEM is invaluable for your business because it brings the cost of production down without sacrificing overall quality.
Further, there are some myths surrounding OEM parts. One common myth is that OEM products cannot be custom. They say that you are stuck with the way a manufacturer produces them even if it doesn’t meet your standards.
This simply is not always the case. Many manufacturers can completely retool their factories to produce OEM parts to your desired specifications. Apple, for example, has considerable influence on how Samsung produces Apple-specific screens.
In addition to this, OEM gives you freedom thanks to the free market. If you are not satisfied with the OEM products of one company, you can often go to another. With the exception of a few industries like semiconductors, there is flourishing competition.
Last but not least, you can save money by purchasing in bulk. It’s far cheaper to make a large run of products than to make smaller numbers one at a time. Establishing a long-term relationship with an OEM manufacturer can save you a lot of money.
How Does OEM Work with Your Business?
So you are sold on the concept of purchasing OEM parts. Now the question is, how do you get started?
First, you will want to contract a Chinese manufacturer. China has a low cost of living, and therefore labor is far more affordable. For this reason, there are thousands of Chinese companies ready to produce Western products at reasonable prices.
You’ll need to take the time to find a reliable company, as you’d want to avoid getting ripped off. But once you get a decent assembly partner, this will be an invaluable business partner for life.
You’ll need to take the time to establish bona fides. You can often find reviews and references from other Western companies. If they had a bad experience with a particular manufacturer, then it behooves you to stay away from them.
You will need a cultural and language liaison when collaborating with a foreign manufacturer. You may need to visit their factories to get a lay of the land.
You will also need to take steps to protect your intellectual property. Some companies have struggled to keep a leash on their IPs when dealing with Chinese companies. This is rare, but it is a caveat you should be aware of.
Get Your OEMs with Shield Works
What is OEM? It’s the most affordable way for companies to obtain specialized parts without building them in-house. OEM parts are high-quality and don’t require your small business to build a production plant for a single component.
Shield Works provides customized assembly, manufacturing, and other related services. Contact us today and find out how we can help you build your products of tomorrow.
5 Risks When Outsourcing to an OEM Manufacturer in China
Outsourcing production to China is becoming a common business strategy for many Western businesses due to the quality of production and its potential for enhanced functionality at a lower investment. This is why even well-established corporations and startups alike are tapping into this lucrative approach, having already identified its myriad benefits.
It is not always the case that utilizing an outsourcing service yields successful and desirable outcomes. Since you are counting on a third-party company to execute essential assignments for you, you could end up with different results due to their capacities.
In this blog post, we’ll discuss 5 of the major risks of outsourcing manufacturing to China and how you can avoid them. With this knowledge, you can make sure you have the most competent manufacturer and a successful business venture.
1. Communication Barriers
One of the main risks of outsourcing manufacturing to China is communication barriers. This can be due to cultural and language differences, as well as a lack of technological infrastructure and understanding of how business is conducted in other countries.
To avoid this, it’s important to make sure there is clear communication between your business and the Chinese manufacturer you choose to work with. Make sure they understand your expectations and timeframes and that you have clear processes and documentation in place. It’s also helpful to have someone on your team who is familiar with Chinese culture and language so they can better communicate your needs. Finally, make sure you are regularly checking in on the status of the project and keeping track of key milestones. By taking these steps, you can ensure effective communication when outsourcing manufacturing to China.
2. Inexperienced Manufacturers
When outsourcing manufacturing to China, it is important to ensure that the manufacturer you choose has experience in the industry. Without sufficient experience, they may not be able to provide the quality and consistency you need to produce a successful product. Additionally, inexperienced manufacturers often lack the necessary machinery and personnel to handle complex projects.
What’s more, most Chinese manufacturers don’t use modern cloud-based project management systems, so it can be difficult to stay updated on progress, changes, and any issues that arise.
Therefore, it is important to research the potential manufacturers you are considering for your project before committing to a relationship. Make sure that they have the necessary resources, technology, and personnel for your specific manufacturing needs. You should also inquire about their previous work and ask for references from their previous clients. This will give you a better understanding of their capabilities and allow you to make an informed decision about whom to trust with your project.
3. Hidden Costs
When outsourcing manufacturing to China, it is essential to review all the costs involved to avoid any additional costs or hidden costs that you may not have initially budgeted for.
Typically, the additional costs may include high customs fees and import taxes when shipping finished products, added labor costs to ensure quality control, and additional materials needed due to substandard production.
When outsourcing manufacturing to China, it is critical to take the time to understand all the associated costs that come with manufacturing in the country. Carefully review any quotations and contracts prior to signing, as they may contain clauses or restrictions that can increase costs without your knowledge. Additionally, seek out experienced partners who have an understanding of China’s business environment and culture, as this can help you avoid costly mistakes.
4. Quality Assurance Problems
Another risk of outsourcing manufacturing to China is the potential for poor product quality. Manufacturing in China requires companies to monitor the production process in order to ensure that the finished goods meet quality standards. To mitigate this risk, you must take proactive steps to ensure that the manufacturers they are working with have the necessary experience and resources to produce quality products.
To do this, companies should establish a quality assurance plan that outlines how the process should be monitored and documented. Companies should also require all manufacturers to sign a contract that clearly states the expectations for product quality and penalties for failing to meet them. Furthermore, companies should consider conducting random quality control inspections throughout the production process to identify any problems before they become costly. Finally, companies should consider investing in third-party inspections to verify the final product meets their requirements before shipment.
5. Intellectual Property Issues
When outsourcing manufacturing to China, companies must be aware of the risks of Intellectual Property (IP) theft. With an increasing number of Chinese manufacturers offering services to global businesses, it can be difficult to protect IP. Chinese manufacturers are often willing to reverse engineer designs or take advantage of a company’s Intellectual Property. This can lead to stolen designs, copied products, and damaged reputations for companies relying on manufacturing in China.
In order to prevent IP theft when outsourcing manufacturing, companies should establish strong agreements with their manufacturer outlining the details of the project and outlining any expectations around IP protection. It is also important to have an international attorney review the contract prior to signing. Lastly, companies should only work with manufacturers they trust and be sure to thoroughly vet the manufacturer before signing any agreement. Taking these measures can help protect companies from IP theft when outsourcing manufacturing to China.
Work With a Professional OEM Company in China
If you are looking to outsource your manufacturing needs to China, then it is essential to work with a professional OEM company like us Shield Works.
We are a British-owned and managed company that specializes in making products according to the highest industry standards and offers a variety of services such as product design, engineering, and fabrication services in a wide variety of fields. Our rigorous approach guarantees the highest quality and consistent service from order placement to delivery. Contact us today for further information.
OEM VS. ODM: How to Choose the Right Manufacturer for Your Business?
China remains the world’s manufacturing superpower and many overseas businesses with great concepts would love to put their dreams into action in this country. If you ever find yourself wanting to produce items in China, there are two common phrases that may come up while reaching out to a supplier: OEM and ODM.
These two terms are crucial when dealing with manufacturing projects. But do you know what they mean? How to differentiate them? Which is the best fit for you? In this blog, we will explore the meaning of these acronyms, the difference between them, how they differ from one another, and their respective benefits. Let’s get started!
What Does OEM Mean?
OEM is an abbreviation that stands for Original Equipment Manufacturer. In China, OEM also denotes contract manufacturing or outsourced manufacturing.
Typically, OEM refers to a product made by a production factory based on the original company’s specifications and guidelines. In this case, the OEM firm plays only a manufacturing role in the supply chain.
An OEM operates on a business-to-business (B2B) basis and the most common products created by OEMs are for businesses in industries such as automotive and electronics.
Why Do You Need An OEM?
In many cases, a firm with great ideas or product designs, but doesn’t have enough resources to produce high-volume or highly specialized goods. Then outsourcing production to an OEM company can help to cut down on costs while making goods of high quality.
And the most important thing is that the company that owns its exclusive intellectual property rights over the products has full control over the product they are requesting, meaning that it can make changes to the product whenever possible.
The company does not need to spend time and money on construction; instead, it can spend time on improving its ideas and designs and it can spend money purchasing goods from the OEM. Likewise, the OEM has in-house staff and production lines, and it just needs to make products on demand in bulk. This arrangement benefits both parties because they are free to specialize in their skills while still making profits.
The business usually asks the OEM supplier to manufacture parts and components according to their specifications. The business affixes the finished product with the company trademark and sells it on the market under its name, and at competitive prices.
What Does ODM Mean?
The acronym ODM means Original Design Manufacturer. An ODM company design and manufacture products before distributing them to other companies who then market and sell to end customers under their brands. Products that an ODM company produces are also known as white-label products or private-label products.
Product categories that benefit heavily from ODM manufacturing include plastics, cosmetics, clothes, and consumer electronics.
Why Do You Need An ODM?
Unlike an OEM company that manufactures individualized products accordingly one at a time, an ODM produces the goods in bulk based on their capabilities and techniques. This way, an ODM supplier usually has a few set production lines producing the same products for years.
This provides small or medium-sized businesses with the chance to use these generic finished products to start their businesses or expand their product lines without having to invest too much money, time, and new staff into it. Thus, ODM is a cost-effective yet efficient option for many importers.
Actually, ODM is getting increasingly popular among Amazon sellers who are creative but have little capital, they still have chances to be successful and make a great fortune when they don’t have much knowledge in this field. They just need to be a bit fortunate and smart to choose the best OEM supplier, buy high-quality products and properly market the products themselves. A lot of times, many supermarkets with various types of necessities at a reasonable price are purchasing items from the same ODM supplier.
Final Thought
There are many similarities between OEM and ODM that can be compared, but one of the major aspects that people mention all the time is how they can help businesses save up on costs and time. This is a prime reason why you should consider working with an industry-savvy China-based company to diversify your company’s offerings.
However, different suppliers offer similar services but they each have their own working processes and specifications, which means there is no such thing as the perfect supplier for everyone. For example, if you are in need of an OEM company, their prices may vary due to differing availability of material sources or specific machinery needed. So, it’s important to make sure you understand these differences before working with one supplier over another.
If you want to start your production project in China but are not sure how to get started, let Shield Works make it easy for you! We are a British-owned and managed company that specializes in the high-quality and competitive rate of contract manufacturing and product assembly services. By following a rigorous process, we are able to ensure quality and consistency from order to delivery. Whether it’s for one-time or large batch orders, we work to deliver only the best product strategies and results for each client. Start your journey by reaching out today to see how we can help you reach your production goals.
Comparing OEM Manufacturing With In-House Production: Pros & Cons
OEM (Original Equipment Manufacturer) manufacturing is a business model in which a company contracts with another company to produce parts or finished products that the first company will sell under its own brand.
In-house production, on the other hand, is the process of producing goods within a company’s own facilities, using its own resources and workforce.
Both OEM manufacturing and in-house production have their own set of benefits and challenges, and companies must weigh the pros and cons of each approach to determine the best fit for their needs.
Pros
Cost-Saving
One of the main benefits of OEM manufacturing is cost savings. OEM manufacturers often have specialized equipment and processes that allow them to produce goods more efficiently and at a lower cost than companies that produce goods in-house.
This can be particularly beneficial for companies that do not have the resources or expertise to produce certain products themselves.
OEM manufacturing can also allow companies to scale their production more quickly, as they can leverage the existing production capacity of their OEM partners rather than building and maintaining their own facilities.
Focused on Core Competence
Another advantage of OEM manufacturing is the ability to focus on core competencies. By outsourcing non-core production activities to OEM partners, companies can free up resources and focus on their core competencies, such as research and development, marketing, and sales.
This can help them to be more competitive and innovative in their market.
Cons
Loss of Control
However, there are also some potential drawbacks to OEM manufacturing. One concern is the potential loss of control over the production process.
When companies outsource production to OEM partners, they may have less visibility into and influence over the production process, which can lead to issues with quality, delivery, or compliance.
It is important for companies to carefully manage their OEM relationships and establish clear lines of communication and expectations to minimize these risks.
IP Risk
Another challenge of OEM manufacturing is the potential loss of intellectual property. When companies share their designs and technology with OEM partners, there is a risk that this information could be leaked or copied. To protect their intellectual property, companies must have strong contracts in place and carefully manage their relationships with OEM partners.
However, in-house production can also be more expensive than OEM manufacturing. Companies must invest in their own production facilities, equipment, and workforce, which can be a significant upfront cost.
In-house production can also be less flexible than OEM manufacturing, as it requires a more permanent and fixed production capacity. This can be a disadvantage for companies that need to scale their production up or down quickly in response to changes in demand.
Why a Good OEM Manufacturer Can Help You Overcome These Drawbacks
There’s always a solution to every problem. How to overcome these OEM challenges so that you can minimize the risk and fully enjoy its benefits?
One effective way is to work with an OEM manufacturer. Let the professional do their work.
But how to ensure that your product is in good hands? Here are a few key qualities to look for:
Strong communication
A great manufacturing company will have strong communication processes in place to ensure that there are clear lines of communication and expectations between the company and its OEM partners. This includes regular updates on production progress, alerts about any potential issues, and an open-door policy for addressing concerns or questions.
Quality control
A great manufacturing company will have robust quality control processes in place to ensure that the products they produce meet the standards of their clients. This may include measures such as inspections, testing, and certification to ensure that products meet relevant quality, safety, and regulatory standards.
IP protection
A great manufacturing company will have strong processes in place to protect their clients’ intellectual property. This may include measures such as non-disclosure agreements, licensing agreements, and technology transfer agreements to ensure that clients’ designs and technology are kept confidential. A great manufacturing company will also have robust processes in place to prevent the unauthorized use or reproduction of clients’ intellectual property.
Compliance
A great manufacturing company will be compliant with relevant laws and regulations, including labor laws, environmental regulations, and intellectual property laws. This ensures that their products are produced ethically and sustainably, and helps to protect their clients’ intellectual property.
Flexibility
A great manufacturing company will be flexible and able to adapt to changing customer needs and market conditions. This may include being able to scale production up or down quickly in response to changes in demand or offering custom solutions to meet specific needs.
Innovation
A great manufacturing company will be innovative and constantly seeking ways to improve their processes and products. This may include investing in new technologies, implementing lean manufacturing principles, or developing new products and services.
In conclusion, both OEM manufacturing and in-house production have their own set of benefits and challenges. Companies must carefully weigh the pros and cons of each approach to determine the best fit for their needs.
If you are looking for a great OEM manufacturer that check all the boxes of the aforementioned criteria, look no further than Shield Works. Our transparency, flexibility and integrity are proven by our over 17 years in the industry and our IP-Protective Production Zone. Contact us now!
5 Hidden Perks of OEM Manufacturing in China You Aren’t Told of
OEM manufacturing in China can be a great option for businesses looking to expand their reach in the global market. It offers many advantages, including cost savings, a larger customer base, and access to more resources. However, there are several hidden perks that many people are unaware of when it comes to OEM manufacturing in China. In this blog post, we’ll share five of these lesser-known benefits that you may not have known about before. So keep reading to learn about the hidden perks of OEM manufacturing in China that you aren’t told of!
Cost-Effectiveness
OEM manufacturing in China has become increasingly popular over the last few decades due to its cost-effectiveness. China offers lower production costs, wages, and overhead expenses compared to other countries, allowing businesses to remain competitive and maximize their profits.
In addition to the general cost savings associated with outsourcing production to China, there are other financial benefits.
Companies are able to reduce the cost of shipping by having their components made close to the source of raw materials. Additionally, due to the scale of production available in China, businesses can benefit from bulk discounts and better pricing on raw materials.
Finally, by keeping production in China, businesses can reduce the need for long-term investments in expensive equipment and staff. This allows them to focus on the core aspects of their business and invest their resources more effectively.
A Large Pool of Skilled Workers
When it comes to finding reliable workers for your OEM manufacturing in China, there is an abundance of skilled and experienced labor available. There are over 800 million people in the labor force in China, making it one of the largest markets for hiring workers.
Moreover, the Chinese workforce is known to be highly dedicated and driven, ensuring that your manufacturing projects will be completed on time and to the highest standards.
Not only does China have a large pool of skilled workers but their wages are also significantly lower than other developed countries. This makes it a great choice for companies looking to cut costs and increase their profit margins.
Furthermore, many Chinese factories are willing to negotiate prices and terms, meaning that you can get a good deal on manufacturing services when working with them.
Overall, China’s large pool of skilled workers makes it an attractive choice for OEM manufacturing. With so many experienced laborers available and relatively low wages, you can save money while still getting high-quality results.
Efficient Lead Times
One of the biggest hidden advantages of OEM manufacturing in China is the efficient lead times. OEM manufacturers have established supply chains that can help to speed up production time, helping you to get your products to market faster.
Additionally, Chinese OEM manufacturers have been able to establish extensive networks of suppliers and raw materials to reduce the time it takes to get your products ready for sale. This can save your business both time and money.
Chinese manufacturers are also well-versed in international logistics and can often provide competitive shipping rates. By utilizing these services, you can reduce the cost of shipping and have your products delivered to customers faster. This can be extremely beneficial for businesses that rely on quick turnaround times.
Furthermore, OEM manufacturers in China are also very good at ensuring orders are filled in a timely manner. Many Chinese OEM manufacturers have established processes and systems to ensure orders are fulfilled as quickly and efficiently as possible. This can help to reduce the stress of managing orders and ensure that your customers receive their products when they need them.
Quality Control
When it comes to OEM manufacturing in China, one of the most important aspects is quality control. You need to make sure that all components are created with precision and accuracy, and that the finished product is of the highest quality possible.
With OEM manufacturers in China, you can rest assured that quality control processes are strictly followed and enforced.
It is required that all manufacturing processes adhere to the relevant quality standards and regulations. In addition, many Chinese manufacturers are also required to have their products tested by an independent 3rd-party certification agency before they can be sold.
This helps to ensure that all products meet the highest levels of quality and safety requirements.
Furthermore, OEM manufacturers in China use advanced technology such as Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) to ensure the production process is precise and accurate. This allows them to produce complex components with a high level of accuracy and consistency.
Finally, experienced technicians monitor the production process on a regular basis to ensure quality is maintained throughout the entire manufacturing process. This ensures that any issues are identified and rectified quickly, thus ensuring that the finished product is of a high quality.
Technology and Innovation
The one thing often overlooked is the country’s commitment to developing and implementing cutting-edge technology and innovation.
From using the latest equipment and advanced machinery to embracing new technologies, OEM manufacturers in China are leading the way in modern manufacturing solutions. They offer efficient processes, such as AI-powered solutions and robotics, that can drastically reduce production costs and time-to-market.
In addition, Chinese manufacturers have also invested heavily in improving their factory automation and quality control measures. This means that many OEM manufacturers are now able to produce components with great accuracy and consistency.
The result is high-quality products that meet the expectations of customers, while still being cost-effective.
Finally, the Chinese government has also been very supportive of the country’s move towards innovative solutions. They have provided funding to many initiatives, including the Made in China 2025 program, which encourages OEM manufacturers to adopt new technologies and automation solutions.
This commitment to technology and innovation ensures that Chinese OEM manufacturers remain competitive in an increasingly globalized market.
But there’s a sea of options for you to choose from. How to nail a good one? Find one with their in-house design and engineering team, supplier networks and industry experience, just like Shield Works. Talk to us today, and let us know how we can help you advance your business goal!