OEM Manufacturing
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!
An Overview of Processes, Regulations, and Quality Standards of OEM Manufacturers
Want to know more about OEM manufacturers and not sure who to trust? It can be hard to know who to trust when it comes to OEM manufacturers. How do you know that the processes and standards they adhere to are up to par?
There are a lot of shady OEM manufacturers out there, and it’s hard to know who you can trust. Not only do these companies often cut corners, but they also don’t always adhere to quality standards or regulations.
We can help you. At Shieldwords Precision Manufacturing, we are very careful to follow all the steps and standards for quality.
We are ISO9001, 14001, and 45001 certified. We also have a long history of supplying high-quality products to some of the world’s biggest brands.
Read on for more details:
Must-Have an Effective Supply Chain Process
The OEM manufacturer must have a good supply chain process. This means that the parts and materials needed to make the product arrive on time and are the right parts.
The supplier needs to check that the materials are the same as prior approval. This is important so that we can keep track of where things come from.
Must Adhere to Regulations
OEM manufacturers have to follow certain rules set by their industry or government. These rules include safety guidelines to keep workers safe from harm in the production environment.
They must also meet environmental regulations to protect the planet.
OEM manufacturers need to have a quality control system that meets international standards, such as ISO 9000.
They Must Have Consistency
OEM manufacturers in China need to make sure that their products always meet customer expectations. Not only for things like how well it works. But also, how long it lasts, and how safe it is.
They help customers throughout the design and development process. This is to understand their needs and create custom solutions to meet them.
This means always checking to make sure the quality is good. We do this at every step of production. That way, if there is a problem, we can fix it right away. That’s one of the benefits of outsourcing your OEM manufacturing.
Must Meet Customer Requirements
OEM manufacturers use strict processes to make sure their products are high quality and meet regulations,. But also standards, and customer specifications. They also have to be careful when choosing suppliers.
OEM manufacturers need to make sure that their products are high quality and meet customer requirements.
They can do this by monitoring quality throughout production and having a strong system in place to ensure the safety of workers.
Let’s dig deeper into each of these areas and more:
What Processes Verify Materials Received?
It is important to make sure that the materials suppliers give us are of good quality. This way, we can be sure that the products we receive meet our requirements. To do this, we use a process called quality control.
Suppliers must provide materials that meet the approved specifications. But also provide documentation to prove it.
Suppliers do extra safety tests on the products and the production areas. The people who make the product also check to make sure everything is okay before despatch.
With these exact steps in place, makers can rest assured that their received materials are up to par and adhere to safety standards.
What Types of Regulations Exist?
OEM manufacturers must adhere to a wide variety of regulations to remain competitive in the industry. These include safety regulations such as those on the structure and design of products.
There are environmental standards that factories have to follow. They can’t pollute the air or water. And there are other standards that businesses have to follow. These depend on what kind of business it is.
It is important for manufacturers to follow international standards. This makes sure their products are high quality.
There are standards for production, including ISO 9000. This establishes requirements for quality management systems. Other standards are more specific and depend on the product category or industry.
OEM manufacturers need to know about these changing guidelines. So they can stay in business and be successful.
How Do OEM Manufacturers Ensure Customer Satisfaction?
OEM companies want to provide good products and services that customers will like. This includes talking with customers often. But also making sure the products are high quality.
OEM manufacturers check every detail during production. This goes from design to final assembly, to make sure it meets customer standards.
Additionally, they run tests on parts even after they’re assembled to identify any flaws or issues before delivery.
OEM manufacturers provide custom solutions to their customers by communicating with them. But also inspecting products with care.
This way, they can make products that meet customer expectations and that are reliable.
How Do OEM Manufacturers Protect Workers?
OEM manufacturers must focus on keeping their workers safe from potential hazards. This means making sure proper safety protocols are in place.
Training is a must, both for operating equipment and protecting against injury. Protective clothing such as goggles and gloves should also be provided where necessary.
Employers need to be careful of any dangerous materials in the workplace. But also take the right measures to respond.
Of course, it is also important to take regular breaks and have good ventilation in the workplace. Both of these things are essential for creating a safe working environment.
What Quality Control Systems Are Typically Employed?
These systems involve regular inspections, testing, and verification of materials used in production. This includes tests performed both at the supplier’s facility and upon delivery.
The OEM manufacturer has a quality assurance team. This team does extra testing to make sure the product is good.
Quality control systems help to make sure that products are made correctly. This includes keeping track of production materials used. But also tracks changes during production, and saves information from the process.
Additionally, these systems help to make sure that products are without mistakes. But also that they meet customer expectations.
How Can an OEM Manufacturer Ensure the Quality of Their Products?
OEM Manufacturers must ensure the quality of their products. They do this by developing and implementing rigorous quality control plans. These plans account for customer specifications and expectations.
To do this, regular inspections of production processes should be carried out to check for defects or inconsistencies. Periodic tests on materials used in production are also necessary for quality assurance.
In addition, inspections upon delivery can be done by an established quality assurance team to ensure a high standard of product.
OEM manufacturers should source their components from reliable suppliers to prevent issues with quality. Investing in modern machinery can help maintain a consistent level of product quality as well.
It is important to test the product and make sure it is of good quality before selling it to customers. This way they know they are getting a good product.
What Other Standards Must Be Met by an OEM Manufacturer?
OEM manufacturers must meet the standards set by ISO 9000. They might have to follow other rules too, depending on what they make.
Automotive manufacturers have to make sure their cars follow the standards set by AMECA. They also have to make sure their cars don’t pollute the air too much.
Aerospace manufacturers have to follow quality management systems. These must be in the AS9100 regulations.
Also, any product that is going sold to people must meet safety standards. These are set by organizations like UL (Underwriters Laboratories).
It is up to the OEM manufacturer to be aware of these requirements and ensure their products are suitable and safe for use.
How Do OEM Manufacturers Get a Consistent Supply of Parts and Materials?
Maintaining supply chain management systems is essential for OEM manufacturers. They must ensure they have a consistent supply of parts and materials.
OEMs can figure out how many products they need by talking to suppliers. This way they get to see how fast they can make things.
This way, the OEMs can give their customers what they want without running out of things to sell. It is important for the supplier and the OEM manufacturer to have good communication.
This way, orders can fulfill with more speed to meet customer needs or respond to changes in demand. In this way, OEMs can make sure that their production lines are always running well.
What Role Does Quality Assurance Play in the Production Process?
It is very important for OEM Manufacturers to have quality assurance. This means that every product made meets certain standards. Quality assurance includes everything from the first design to the final inspection.
They make sure that all components are up to standard and fit together properly before the finished product leaves the facility.
Manufacturers make sure that each stage of production completes to expectations.
This meets industry guidelines and helps protect the manufacturer’s reputation. Customers get safe and high-performing products.
When a product has quality assurance, it means that the product is reliable and people can trust that it will work well. OEM Manufacturers are companies that make sure their products have quality assurance.
Why Do You Need an Efficient Supply Chain Process?
An efficient supply chain means that original equipment manufacturers (OEM) can reduce costs. This ensures fewer production delays and higher quality.
This happens when they have suppliers who they can rely on to provide the things they need in a timely way.
OEMs can avoid spending extra money on expedited shipping and focus on other aspects of the production process.
With modern technology such as automation and tracking systems, they can better keep track of inventories. This helps make sure there is always enough stock available for production.
OEMs can test materials and inspect products before delivery. This way they can make sure the products meet all safety standards and that they are what the customer wants.
These benefits enable OEMs to remain competitive while ensuring customer satisfaction.
How Do OEM Manufacturers Monitor Production Quality?
Detailed monitoring of quality levels during production is critical for OEM manufacturers. Quality assurance teams are typically responsible for testing materials and inspecting products at each step of the production process.
This is to make sure they meet all safety standards and customer requirements.
Additionally, modern technology such as statistical process control (SPC) software can be used to track product performance and detect any potential defects in real time.
By utilizing these methods, OEMs can ensure that their customers receive consistent, high-quality products every time.
OEMs should also implement continuous improvement systems that allow them to identify areas of improvement in their processes in order to further enhance quality.
With regular monitoring, OEMs can be confident that their products consistently meet or exceed industry standards.
What Safety Guidelines Must Be Followed to Protect Workers?
Strict guidelines must be followed by OEM manufacturers to ensure the safety of their workers in the production environment. These include providing personal protective equipment (PPE).
This would include gloves, face shields, and masks, implementing appropriate noise control measures, maintaining clean and well-ventilated work areas, and establishing safe operating procedures for machinery.
Additionally, regular workplace inspections should be conducted to identify any potential hazards and take corrective action if necessary.
By following these guidelines, OEMs can make sure that their employees are safe from injury or illness while on the job.
What Else Must OEM Manufacturers Keep in Mind?
OEMs should also consider environmental regulations when producing goods. This includes monitoring emissions levels from factory operations and ensuring the proper disposal of hazardous materials.
Additionally, OEMs should strive to reduce energy consumption and promote sustainability in their operations by making use of renewable resources and reducing waste.
By keeping these issues in mind, OEMs can make sure that their products are not only reliable and high-quality but also environmentally friendly.
If you want to learn more about our outsourced OEM manufacturing services, contact us now.
Clear on All Things OEM Manufacturers?
Regulations and quality standards are important for OEM manufacturers because they ensure that products are made correctly and safely. Adhering to these regulations can be costly, but it is worth it to protect the consumer.
The process of becoming an OEM manufacturer is long and difficult, but companies who go through with it usually produce high-quality products.
If you want to learn more about this topic, be sure to check out our blog for more articles like this one!
5 Tips for Choosing the Right Chinese Manufacturing Companies
The prevalence of Chinese manufacturing companies has grown immensely in recent years. This is due, in part, to the country’s large population and corresponding workforce. Additionally, Chinese wages have remained relatively low compared to other nations, making the country an attractive option for businesses looking to cut production costs.
When it comes to manufacturing products, Chinese companies are often the go-to choice for businesses all over the world. This is because these companies can offer high-quality products while keeping costs low.
However, with so many Chinese manufacturing companies to choose from, how do you know which one is right for your business? In this blog post, we will give you five tips for choosing the right Chinese manufacturing company!
Keep reading to learn about product manufacturing and product assembly by using Chinese manufacturing.
What Are Chinese Manufacturing Companies?
As the name suggests, Chinese manufacturing companies are those that are based in China and produce products for businesses all over the world. These companies often have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, Chinese manufacturing companies often have a wealth of experience and expertise in a variety of different manufacturing processes. This means that they can typically produce products to a very high standard.
Also, many Chinese manufacturing companies work with a variety of different businesses, from small startups to large multinational corporations. This means that they are typically very flexible and can tailor their services to meet the specific needs of their clients.
Who Has Access to These Companies?
Anyone who wants to manufacture products in China can do so! However, it is important to keep in mind that not all manufacturing companies are created equal.
There are many fly-by-night operations that claim to be able to produce high-quality products at low costs, but in reality, they often use substandard materials and processes. As a result, the products they produce are often of poor quality and may even pose a safety risk.
Therefore, it is important to be careful when choosing a Chinese manufacturing company. Make sure to do your research and only work with those that have a good reputation and can provide you with a portfolio of happy clients.
What Type of Manufacturing Can They Perform?
One of the advantages of working with Chinese manufacturing companies is that they often have experience with a wide range of different manufacturing processes.
This means that they can typically produce products using a variety of different methods, including injection molding, stamping, casting, and assembling.
Furthermore, many Chinese manufacturers also offer design and prototyping services. This means that they can help you bring your product ideas to life and create prototypes that you can use to test the market before committing to large-scale production.
Other types of manufacturing services that Chinese companies can provide include packaging, labeling, and shipping. This means that they can take care of everything for you from start to finish, making the manufacturing process as hassle-free as possible.
What’s Their Quality Control Like?
Surprisingly, quality control in China has come a long way in recent years. In the past, there were many stories of products being shipped from China that were defective or of poor quality.
However, nowadays, Chinese manufacturers have implemented strict quality control measures to ensure that their products meet international standards.
In fact, many Chinese companies now offer a money-back satisfaction guarantee to their clients. This means that if you are not happy with the quality of the products you receive, you can return them for a full refund.
Moreover, most Chinese manufacturers offer a warranty on their products. This means that if something does go wrong, you will be covered and can get your money back or have the product replaced free of charge.
Is It Expensive to Manufacture Products in China?
Manufacturing products in China is often much cheaper than manufacturing them in developed countries such as the United States or Europe.
This is because Chinese companies have access to lower-cost labor and materials, which allows them to keep their manufacturing costs low.
Furthermore, many Chinese manufacturers offer discounts for large orders. This means that if you are planning on manufacturing a large number of products, you can often get a lower price per unit by doing so in China.
Overall, manufacturing products in China is a great way to save money and get high-quality products.
However, it is important to be careful when choosing a manufacturer and to make sure that you work with a reputable company that has a good track record.
What Qualities Should the Right Chinese Manufacturing Company Possess?
Now that we’ve answered some of the most frequently asked questions about working with Chinese manufacturing companies, let’s take a look at what qualities the right one should possess:
A Good Reputation
As we mentioned before, there are many fly-by-night operations that claim to be able to produce high-quality products at low costs. However, in reality, these companies often use substandard materials and processes, which results in products of poor quality.
Therefore, it is important to make sure that you work with a Chinese manufacturer that has a good reputation. You can do this by reading online reviews or asking for referrals from friends or business associates who have worked with Chinese manufacturers in the past.
A Portfolio of Happy Clients
Any reputable Chinese manufacturer should be able to provide you with a list of happy clients that they have worked with in the past.
This is a good way to gauge their level of experience and to get an idea of the type of products they are capable of producing.
A Commitment to Quality
The right Chinese manufacturer should be committed to producing high-quality products. They should use high-quality materials and employ skilled workers who take pride in their work.
Furthermore, they should have a strict quality control process in place to ensure that all products meet or exceed international standards.
Competitive Prices
The right Chinese manufacturer will offer competitive prices without compromising on quality. They should also offer discounts for large orders, which can help you save even more money.
Excellent Customer Service
The right Chinese manufacturer will offer excellent customer service. They should be responsive to your questions and concerns and should always be available to help you with any issues that may arise.
How Do You Choose the Right Chinese Manufacturing Company?
With so many Chinese manufacturing companies to choose from, it can be difficult to know how to select the right one for your needs.
However, by following the tips above, you can be sure to find a company that possesses all of the qualities you are looking for. In addition, here are five tips to help you choose.
1. Do Your Research
The first step in choosing the right Chinese manufacturing company is to do your research.
This means looking into the different companies that are available and seeing what they have to offer. You can read online reviews, talk to other businesses that have used these companies, and get a feel for what each one is like.
Your research phase should also include a visit to the company’s factory. This will allow you to see firsthand how they operate and to get a better feel for their capabilities.
Also, be sure to ask lots of questions during your visit so that you can get a better understanding of what the company is all about.
2. Consider Your Needs
When you’re looking into different Chinese manufacturing companies, it’s important to consider your own needs. What type of product do you need to be manufactured? What are your budget constraints?
By taking the time to think about your specific needs, you’ll be able to narrow your choices and find the best company for your business.
Moreover, it’s important to be realistic about your needs. For example, if you’re looking for a company to manufacture a complex product, you shouldn’t expect to find a company that offers rock-bottom prices.
Instead, you should focus on finding a company that can provide you with a good quality product at a reasonable price.
3. Check Their Quality Control
One of the most important things to look for in a Chinese manufacturing company is quality control. You want to make sure that the products you’re getting are well-made and meet your standards.
Ask about their quality control process and what steps they take to ensure that their products are up to par.
However, it’s important to keep in mind that not all companies will have the same quality control standards. Some may be more strict than others.
As such, it’s important to find a company whose quality control standards meet your needs and expectations.
4. Compare Prices
Of course, you’ll also want to compare prices when you’re choosing a Chinese manufacturing company.
Get quotes from different companies and see who offers the best price for the manufacturing services you need.
Pricing structures are critical when it comes to finding the right company. For example, some companies may charge by the hour while others may charge by the project.
It’s important to find a company that offers a pricing structure that works well for your business.
5. Go With Your Gut
In the end, it’s important to go with your gut feeling when choosing a Chinese manufacturing company.
If you have a good feeling about a particular company, then chances are they’re the right choice for you. Trust your instincts and choose the manufacturing partner that you feel good about!
Of course, your instinct should be supported by valid reasons. For example, if you have a good feeling about a company because of their excellent customer service, then that’s a strong reason to go with them.
If you have a good feeling about a company because of its competitive prices, then that’s another good reason to choose them.
Common Mistakes With Chinese Manufacturing Companies
Now that you know how to choose the right Chinese manufacturing company, it’s time to avoid some common mistakes. These mistakes can cause big problems for your business, so it’s important to be aware of them.
1. Not Asking Enough Questions
When you’re looking for a manufacturing partner, it’s important to ask lots of questions. This will help you get a better understanding of the company and its capabilities. Make sure to ask about their quality control procedures, turnaround times, and pricing.
2. Not Getting a Contract in Place
Before you start working with a Chinese manufacturing company, it’s essential to get a contract in place.
This will protect your business in case there are any problems with the manufacturing process. Be sure to include all the important details in the contract, such as payment terms, delivery times, and quality standards.
3. Not Monitoring the Manufacturing Process
Once you’ve chosen a manufacturing partner and signed a contract, it’s important to stay involved in the manufacturing process.
This means keeping an eye on the quality of the products and making sure they’re being produced on time. If you’re not monitoring the process, it’s easy for things to go wrong.
4. Not Being Prepared for Problems
Even if you do everything right, there’s always a chance that something will go wrong with the manufacturing process.
That’s why it’s important to be prepared for problems. Have a plan in place for how you’ll handle delays, quality issues, and other potential problems.
The Right Company for You
Choosing the right Chinese manufacturing company is essential for your business. Be sure to ask lots of questions, get a contract in place, and monitor the manufacturing process.
And don’t forget to be prepared for problems. With careful planning, you can avoid common mistakes and find a manufacturing partner that’s right for you.
If you’d like help finding the right company to suit your needs, get in touch with us today. We have a team of experts who can help you find the perfect manufacturing partner for your business. Contact us now to get started.
Manufacturing in China: 10 Tips to Peak Season Preparation (Part 1)
As early as October through January, this is the time of year when the majority of eCommerce brands experience a huge spike in sales. But if you’re unprepared for this sudden rise in sales and don’t plan accordingly then it will hurt your business because your customers are unable to order products or receive them quickly enough.
With peak season quickly approaching, you should prep for production and there are many points to consider when taking on the pressure of doing everything at once and all the additional cost involved with producing more goods during this time.
With so many headaches around you, it can be hard to concentrate and make the right decisions. However, don’t let this discourage you from starting. Welcome to our “Manufacturing in China: 10 Tips to Peak Season Preparation” series which list the most important and useful production tricks that will make it easier for you to get started in manufacturing without much fuss. Let’s dive into part one of this three-part series.
1. Know about the Peak Season
Most businesses experience fluctuating levels of customer traffic throughout the course of a year. The slowest time of the year is often referred to as the low season or off-season, while the busiest time of the year is typically called the high season or peak season.
Though many seasonal peaks might seem similar, they vary depending on factors that differ from industry to industry. Factors such as population density, weather patterns, and available modes of transportation can determine the amount of traffic in an industry. For example, a business that sells swimming wear has better traffic during the summer months while others work best when it’s wintertime. So, it’s important to set a timeline and schedule for the peak season that your business focuses on.
Therefore, if your team is unaware of the span and the length of peak seasons, then your company is likely rising to incur unnecessary expenses throughout the year. And if your peak season lasts much longer than expected, there may not be enough employees or products available to meet all the demand coming from potential customers during this time.
In light of this, your company should always analyze the number of major holiday promotions, such as Black Friday, Cyber Monday, thanksgiving weekend, and Christmas. It may still be difficult to pin down the span of peak season for all industries but taking precautions, like reading some recent sales data, can help you diminish the consequences.
2. Forecast Demand
With the exponential growth of eCommerce around the world, more and more people are willing to make a purchase online. If you have both physical locations and an eCommerce store, it becomes readily apparent that digital traffic has increased even more than before and will continue to grow in popularity.
Therefore, you can forecast production demand for your store before peak season based on the different traffic sources.
Demand forecasting is one of the most crucial tools for brands to use in determining the best possible supply rates and building up adequate resources. This way, they can minimize their risks and costs. Furthermore, it enables collaboration between the outbound and inbound processes of the company, such as procurement, production, sales, and marketing. By predicting future demand, you can optimize current inventory levels by monitoring which products sell faster than others and predict when certain stocks will need to be replenished.
To forecast your production needs before peak seasons, one of the best ways is by staying on top of fashion trends. Following some influencers in your niche on TikTok and Instagram and leveraging the right hashtags can help learn about what your target customers are interested in currently and also gives you an idea of who you could be competing with. Then, you will have a better sense of what’s going to sell and be able to plan accordingly. It also means that you can monitor your inventory levels, so you will know ahead of time if something gets discontinued. This way, you won’t run out of your most popular items when the peak season comes.
3. Adjust Inventory
Nothing is more frustrating than running out of the most popular item in your store and turning down a potential customer because you don’t have enough inventory throughout the peak season.
To make sure that everyone who enters your store has a positive shopping experience, one of the most important parts is to make sure that your store is fully stocked and that you have plenty of your bestsellers readily available so that there will never be a need for backorders.
Inventory management is an essential part of ensuring a business’s profitability. Some businesses have too little inventory, unable to meet customers’ expectations by supplying enough available products, which often drives customers away to another brand or alternative items. However, excess inventory not only ties up valuable cash flow, but also carries the risk of damage and costs more to store and track.
So, it becomes important to know when to replenish stocks in what quantities, and at what price. If this happens too often or too late, then your margins will suffer. It is recommended that you take note of what sells the best and make sure you will have enough of those items available during the peak seasons, otherwise you risk losing out on both profits and potential customer base.
Takeaway
Peak seasons will be much different in the near future because of recent international dealings. In order to stay competitive, you need to prepare for these sudden changes and disruptions all the time.
If you’re looking for a reliable and professional company that can help with your production project before peak seasons, look no further than Shield Works Precision Manufacturing in China. There is no such thing as a “one-size-fits-all” approach to meet everyone’s needs, we can 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. Start your journey by reaching out today for more information.
OEM Manufacturing in China – Everything You Need to Know
OEM Manufacturing – it’s the reason why some of your favorite products are made in China, and the reason why you might be able to find a more affordable version of that product at your local store. What exactly does OEM mean? Simply put, OEM stands for original equipment manufacturing and it’s often used in reference to products like electronics, automobiles, and various types of machinery – basically anything that would need to be customized or configured according to customer needs before being sold.
What is OEM Manufacturing and its current state in China
OEM manufacturing is a type of manufacturing activity where a company manufactures and sells products or parts of a product for another company, putting the products under the company’s own branding. The manufacturer will manufacture the product according to specifications and then ship it to the buyer. Generally, the buyer will only provide money, expertise and trade secrets. The manufacturer will handle everything from production and shipping logistics to distribution.
It has become a very common type of manufacturing in China now. It accounts for more than 50% of all industrial output in China just last year.
There are mainly three types of OEM manufacturers: Original equipment manufacturers (OEMs) who produce goods based on other companies’ specifications; System integrators who design and assemble the systems but don’t fabricate any components themselves; and Contract manufacturers who buy components made by other firms that have been designed by system integrators.
For western businesses, an OEM manufacturer is a very popular option. It can provide products of good quality at a lower price than they could do it themselves. It offers them a chance to outsource complicated production tasks and focus on what they do best.
The Pros and Cons of OEM Manufacturing in China
The pros of OEM manufacturing in China are that it is less expensive than the United States, Europe, Japan and South Korea. Workers there are skilled because they are more educated with most having graduated with high school diploma, but they are paid less than their western counterparts.
Production times tend to be faster because there is a larger supply chain of suppliers and factories. Most companies send their product engineers over early on so they can set up production lines and make sure everything is operating smoothly before products start arriving from overseas, which can mean better quality control too. If you’re looking for lower costs and want something fast, then this could be the way to go.
However, you should also know about some disadvantages. For example, the deteriorating relationship between the US and China has made their bilateral trade more difficult than ever. Punitive tariffs between the two nations have made it more expensive for an American company to produce its goods there. In response, many Chinese manufacturers have started up factories in Southeast Asia as a major workaround.
How to Find a Reputable OEM Manufacturer in China
In order to find a reliable manufacturer, you will want to do as much research as possible. There are many manufacturers in China, so it is important that you know what to look for when choosing one. Here are some things you should consider:
– Is the factory certified? A factory with ISO certification is usually a good place to start.
– How long has the company been around? The longer a company has been around, the better chance they are dependable and trustworthy.
– What products do they specialize in manufacturing? Some factories specialize in just a few products while others can manufacture anything. Ask yourself if your product would be made by someone who specializes in it or not. It can be helpful to visit their website and read about their capabilities before making your decision on who to use.
– Check their website or other social media presence. Does it look professional? Does it appear active? These questions can help you determine how reputable the company is.
– Are there reviews online for them? Read them carefully and make sure that they’re from legitimate sources. Any reviews from sites like Alibaba are probably fake because these websites get paid by sellers to post reviews on their behalf. Reviews from real buyers often provide very useful information about a supplier’s reliability, such as whether or not they deliver quality products quickly, answer emails promptly, return phone calls, etcetera.
– Do they have an English-speaking customer service staff? If not, you might need to find someone who does as quite likely they don’t much experience in dealing with western customers. Nowadays most manufacturers certified to export have English-speaking staff members in this regard.
Avoiding Scams When Manufacturing in China
There are many scams out there that try and lure companies into thinking they’re getting a great deal on OEM manufacturing in China. If you’re going to do business with someone in the country, make sure you’ve done your research about their company history, including what kind of certifications they have for their products.
You should also be on the lookout for any red flags when it comes to how much the company wants for their services or if they are insisting that you pay upfront before anything is agreed upon. Remember, if it sounds too good to be true, then it probably is. It’s best to do as much due diligence as possible before agreeing to work with a new supplier. Even after you find one, stay vigilant by checking up on them often so that you don’t end up being scammed.
The last thing you want is problems with quality or time management along with possible legal issues. That’s why you should keep in touch with them on a regular basis so there aren’t any surprises for either party involved. It’s always important for manufacturers and clients to work together closely so they can best understand one another and work together to meet each other’s needs.
Shield Works is an ISO-certified and British-owned and managed OEM manufacturer that check all the boxes aforementioned with 17 years of experience in China. Contact us to see how we can help!
Understanding the Benefits of OEM
Are you wondering what an OEM is, and how it can help your business production? You’re not alone. Many people are unaware of the benefits of Original Equipment Manufacturer services.
In essence, an OEM is a company that manufactures products for other companies.
When you work with an OEM, you can outsource the entire manufacturing process, from design to delivery. This allows you to focus on your core business while still producing high-quality products.
As the world of manufacturing continues to grow and evolve, more businesses are turning to Original Equipment Manufacturers (OEMs) to help them with their production needs.
Well, there are many benefits to working with an OEM, so read on to start understanding the benefits of OEM for your business.
Access to Expert Knowledge and Experience
Working with an OEM can provide considerable advantages when launching or improving a product. The most significant benefit is access to the OEM’s wealth of knowledge and experience.
Their team will have an intimate understanding of every aspect of product design and manufacturing and will be able to offer support and guidance at every stage of the process.
This can be invaluable for businesses that are new to the industry, or who are looking to make significant improvements to their products.
In addition, partnering with an OEM can help ensure a high-quality control level, as they will have established methods and procedures to ensure that all products meet strict standards.
Ultimately, working with an OEM can be the difference between launching a successful outcome and seeing it fail miserably.
Cost Savings
Working with OEM manufacturers in China can save you money in the long run for a number of reasons. They are able to source the best materials and components at the most competitive prices.
In addition, they can help streamline your production process so that it is more efficient and cost-effective. OEMs also have a wealth of experience and knowledge that can be invaluable in helping you to avoid costly mistakes.
As a result, working with a China assembly service can help you to save money and improve the quality of your products.
Flexibility
As anyone who has ever worked with a large company knows, it can be difficult to get them to make even small changes to your order. They often have inflexible policies and procedures that make it hard to get things done.
That’s why working with an OEM can be such a breath of fresh air. They understand that every business is different and that each has its own unique needs.
So they’re willing to work with you to create a solution that is tailored specifically to your needs. This can be a huge benefit if you have a complex production process or if you need to make last-minute changes to your order.
You’ll never have to worry about being locked into contract manufacturing or having to follow inflexible rules. With an OEM, you’ll always be able to get the flexible solution you need.
With all of this in mind, why on earth would you try to go it alone?
Scale
One of the advantages of working with an OEM is their ability to scale up or down according to your needs. This means they can do small orders for start-ups and large orders for established businesses.
This gives you the ability to grow your business without worrying if your OEM partner can keep up. Another advantage of working with an OEM is that they usually have a lot of experience in the industry.
They know the ins and outs of mass production, which means they can help you troubleshoot any problems that might arise during the manufacturing process and find solutions to the issues faced.
And because they’re experienced, they can usually offer advice on how to improve your product assembly from top to bottom.
Finally, working with an OEM can save you money because they often have relationships with suppliers and can get discounts that you wouldn’t be able to get on your own.
So if you’re looking for a manufacturing partner that offers a China product assembly service, an OEM is a good option to consider for your long-term manufacturing success.
Time Savings
Time is one of the most precious commodities for any business owner. There are only so many hours in the day, and often it feels like there is more work to be done than there is time to do it.
This is where working with OEM manufacturing can be a real lifesaver. By entrusting them with the production process, you free up your own time to focus on other areas of your business.
This can be a huge advantage, especially for small businesses that may not have the staff or resources to handle all aspects of production internally.
In addition, because OEMs are experts in their field, they can often complete the work more quickly and efficiently than if you were to try to do it yourself. This also leaves you free to do what you do best and grow the business.
This can save you even more time in the long run. Ultimately, working with an OEM can help you to make the most of your time and resources, allowing you to focus on what you do best.
Risk Reduction
When you partner with an OEM, you can also reduce the risk involved in bringing a new product to market. That’s because they have extensive experience in the design and manufacturing process.
They will be able to identify potential problems early on and find solutions before they become major issues. This can save you a lot of time, money, and headaches down the road.
For example, if there are issues with the design of your product, they will be able to work with you to find a solution that meets your needs while also ensuring that the final product is of high quality.
In addition, because OEMs have established relationships with suppliers, they will be able to get you the best possible price for your components. This can help to reduce your overall costs and improve your margins.
Finally, by working with an OEM, you will have access to their customer service and technical support teams. This can be extremely helpful if you run into any problems after your product has been launched.
In short, partnering with an OEM can help you to avoid many of the risks associated with bringing a new product to market.
Improved Quality Control
Quality control is essential for any business that manufactures products. Defects or subpar products can lead to customer dissatisfaction and even legal problems.
When you work with an experienced Original Equipment Manufacturer (OEM), they can help you develop a quality control system that will ensure that your products meet your standards before they leave the factory.
Because OEMs are experts in manufacturing, they know all the ins and outs of the production process and can identify potential issues that could lead to defects or subpar products.
Having a strong quality control system in place can help you avoid costly problems down the road. Working with an OEM from the start can save you time, money, and headaches in the long run.
Enhanced Customer Satisfaction
Any business owner knows that customer satisfaction is essential for long-term success. After all, happy customers are more likely to come back and do repeat business.
Because OEMs are focused on quality control, partnering with one can help you ensure that your products meet or exceed your customers’ expectations. As a result, you may see an improvement in customer satisfaction levels over time.
And that, in turn, could lead to more repeat business and higher levels of customer loyalty. So if you’re looking for ways to enhance customer satisfaction, partnering with an OEM may be the way to go.
Environmentally Friendly
As businesses increasingly look for ways to reduce their environmental impact, original equipment manufacturers (OEMs) have become an increasingly popular option.
OEMs are typically more environmentally friendly than other businesses due to their use of fewer resources and production of less waste. In addition, OEMs typically have a lower carbon footprint than other businesses.
As a result, choosing an OEM can be a great way for businesses to reduce their environmental impact.
There are a number of factors to consider when choosing an OEM, but the potential environmental benefits should definitely be taken into account.
Community Involvement
In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways, such as by providing you with a good reputation, access to a skilled workforce, and networking opportunities.
OEMs are an important part of the global economy, and they play a vital role in many industries, including automotive, computing, and electronics. There are many benefits to working with an OEM.
These include such things as access to skilled labor, economies of scale, and R&D resources. In addition, OEMs often have a strong presence in their local communities. This can benefit your business in a number of ways.
For example, community involvement can provide you with a good reputation. If you’re associated with a well-respected company, it can rub off on you positively.
In addition, community involvement can give you access to a skilled workforce. Local talent is always in demand, and by working with an OEM you may have first dibs on the best candidates.
Finally, networking opportunities abound when you’re involved in the community. You’ll meet new people and build relationships that can be beneficial to your business.
Overall, there are many advantages to working with an OEM. When choosing an OEM partner, be sure to consider their level of community involvement. It can make a big difference for your business.
Economic Benefits
In these difficult economic times, it’s more important than ever to support businesses in our community. This is another benefit of partnering with an OEM partner.
When you partner with an OEM, you’re not only getting high-quality products and services, but you’re also helping to create jobs and stimulating the local economy.
This can have a positive ripple effect on the whole community, making it more attractive to other businesses.
So when you’re looking for a partner to help meet your needs, remember the importance of supporting your local economy. Partnering with an OEM is a win-win for everyone involved.
What Are the Different Types of OEM Agreements?
There are two types of OEM agreements: exclusive and non-exclusive.
An exclusive agreement means that the OEM is the only supplier for the specific product or component being manufactured. This type of agreement gives the OEM more control over quality and production, but it also limits your options if you want to switch suppliers in the future.
A non-exclusive agreement, on the other hand, allows you to work with multiple OEMs simultaneously. This gives you more flexibility, but it also means that you’ll have to manage multiple relationships.
When choosing an OEM partner, it’s important to consider your long-term needs and objectives. If you anticipate needing a lot of flexibility in the future, a non-exclusive agreement may be the best option.
If you want to ensure a high level of quality control, an exclusive agreement may be the way to go. But contact us if you need more help.
Whatever type of agreement you choose, make sure that you have a clear understanding of the terms and conditions before signing on the dotted line.
Ready to Use an Original Equipment Manufacturer?
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 original equipment 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.
For more on this topic and others like it, be sure to check out our blog!
OEM 101: Everything You Need to Know About Original Equipment Manufacturing in China
For years, China has been the best go-to manufacturing location around the world. Countless overseas companies choose to outsource their production to China for different types of products with lower costs and higher quality. But do you know much about an original equipment manufacturer (OEM) or why they’re so important? If not, it’s time to learn more.
Whether your business is selling a product directly to consumers or through retailers that make their products, learning about OEMs will give you a better understanding of how business works and how you can improve your bottom line. So, sit back and read this article on OEMs and how they work, then you’ll have all the knowledge you need to become successful in your field.
What is an Original Equipment Manufacturer (OEM)?
An original equipment manufacturer (OEM) is a manufacturing company that creates component products for other retailers to build finished items like a computer, phone, or car.
The company that makes the initial component products is called an original equipment manufacturer (OEM) while the company that buys those component products from an OEM is called a value-added reseller (VAR) because they add value to the original item by combining multiple parts together to create final finished items with more features.
The term OEM is most used in the automobile and computer industries. In the case of automobiles, the company that creates car parts is OEM and then sells those original pieces to another company that assembles them into cars for retail sale.
What is the Difference Between OEM and ODM?
ODM, an abbreviation for Original Design Manufacturer, is also referred to as private labeling.
For both OEM and ODM companies, many similarities make them comparable. However, they also have some key differences when it comes to unique flexibility and customization options for overseas clients.
When an overseas business has an original idea for both product design and product functionality, it’s worth looking into the use of an OEM to produce these goods at a lower price point while maintaining high-quality standards. And best of all, they can change their products according to the latest trends and innovations to suit the needs of consumers because they have exclusive IP rights over the products. This way, they don’t have to build out their engineering team or manufacturing plant. Instead, they just need to find an experienced OEM with a team of experts to take care of their production while they focus on marketing and running other aspects of the company. OEM is an ideal option for foreign companies that own their intellectual property rights and are looking to lessen production costs by outsourcing overseas.
ODM is a cost-effective option for importers who want to take advantage of the pre-existing product designs in the manufacturer’s catalogs. Importers are only allowed to make minor changes with the help of an ODM designer when selecting the certain products they would like to import and resell under their brand name. These changes may include color, size, and certain tweaks of components or functionality – all within limits set by the ODM. In this case, an ODM makes it possible for any overseas company to get products to market without having a huge investment in in-house design and manufacturing. ODM is suitable for startups and small businesses that don’t want to maintain a significant amount of inventory for themselves. Also, established businesses use ODM to make some promotional products with their logos to attract new customers.
How To Choose an OEM in China?
Now, you may have a better understanding of OEM. If you want to learn how to choose a reliable OEM partner for your project, keep reading on.
1. Know Your Expectations and Needs
First and foremost, if you want to complete your production successfully, you should clearly know what you want from your OEM supplier.
For example,
- What’s your product type?
- What are your quality standards?
- Do you need your OEM to deal with design and prototype or just manufacturing?
All these questions should be taken into consideration before diving into the world of original equipment manufacturing.
2. The Tradeoffs of Costs and Quality
There are always tradeoffs when it comes to making a choice. Costs and quality are two of the important things that are traded off in OEM manufacturing. This means that there will always be an opportunity cost for each decision made.
You have to understand that the overall costs go up because you have to pay for better raw materials, techniques, and skilled labor. If you don’t have enough budget, the quality of your product might suffer too much.
Therefore, when working with an OEM to make your products, it’s important to consider the tradeoffs between the overall costs and product quality.
3. Ensure Your IP Rights Are Protected
Your IP rights are the most valuable aspect of your brand and business. Your IP rights are all of the work that you’ve created and they’re what set you apart from everyone else.
So, you can’t take any risks when picking out a Chinese OEM supplier. With so many manufacturers here in China nowadays, it’s always best to double-check whether or not your manufacturer of choice has had anything stolen from them in the past. It’s also wise to sign an NNN agreement before agreeing upon cooperation and make sure everything is legal if transferring your design or idea over to them.
Work With a British-Owned OEM Supplier in China
Any time you outsource manufacturing factory selection is very important. When you move your manufacturing to China, you may feel overwhelmed by the choices and worry about the legitimacy of the operation.
As your OEM manufacturing service provider in China, Shield Work Precision Manufacturing can meet your production needs. We offer a forward-thinking approach with the ability to fully customize work procedures, equipment and develop new specialist in-house manufacturing processes.
At Shield Works, we have a proactive approach to manufacturing and are always keen to explore new specialist processes. We are one of the leading original equipment manufacturers and have been providing our services since 2005. Contact us today to discuss your requirements.
How To Get the Most Out of OEM Manufacturing Services
If you work in manufacturing, you know that your products are only as good as every component. Getting the right part at a reasonable price translates to better products, happier clients, and financial success.
This is where OEM manufacturing comes in. There are many advantages to using OEM parts, but there are also some things you can do as a client to get the most out of your relationship with the production company.
This article covers the basics of OEM manufacturing, including the advantages of their products. It also gives you some tips for maximizing your relationship with the company. It will help you ensure you are getting quality parts that allow you to meet your production demands.
What Is OEM Manufacturing?
The definition of “OEM manufacturer” is complex. In general, an “original equipment manufacturer” is a company that makes specific components that are then used in the products of another company. They work with clients to create a design and settle on manufacturing processes.
OEM companies set supply chain goals to produce the right component for the job. They also may offer add-on services, such as assembly, logistics, or warehousing.
Electronics and auto manufacturing are two of the most common industries that regularly use OEM parts. However, there are lots of different industries that rely on OEM manufacturers.
Advantages of OEM Parts
The biggest advantage of OEM parts is that, by definition, they are produced with a specific function in mind. They are made to fit and perform based on the original design of the finished product. This is why you can expect OEM parts to be the highest quality and design.
This may not be the case with aftermarket parts. These too are produced by a third party but without the original design in mind. For this reason, aftermarket parts may be sub-par in quality and function.
Aftermarket parts sales are usually directed toward consumers. OEM companies are generally business-to-business focused. That is due to the nature of the products.
The goal of an OEM is to make a component for a product before its original sale to consumers. Aftermarket parts are often produced as a cheaper replacement for a part after it has been sold, or to serve a different function than the original component.
An OEM is also distinct from an “original design manufacturer” (ODM). While OEMs make components for another end product, ODMs design and produce their own components for sale under another company’s label.
A good example of ODMs is third-party phone chargers. These tend to have a very similar design to other products on the market but are sold by distinct companies.
Getting the Most Out of OEM Manufacturing
The most important thing you can do to get the most out of an OEM manufacturing agreement is to establish a good relationship with the company. Communication is key. Having a working agreement with a manufacturer that is willing to field challenges as they arise will ensure you get the components you need on time.
This includes every step of the production process. Below are some tips to consider as you move through each phase.
Creating a Prototype
Prototyping is standard practice in OEM manufacturing. It allows you to establish a relationship with the company and lay out clear expectations about the process and the product.
This includes discussions of production timelines. If the OEM manufacturer is warehousing products for you, this is a chance to go over inventory management practices and standards.
Finally, the prototyping phase is the time to cover documentation. This includes conversations about how you will handle the exchange of files, blueprints, invoices, and other important documents.
Be sure to sign a non-disclosure agreement. This will grant the manufacturer permission to receive the product design necessary to produce the prototype while ensuring protection and privacy.
Pre-Production
If both parties are completely satisfied with the prototyping phase, they will continue with pre-production. This step involves honing production processes to make a component that is ready to go to market.
Pre-production is an opportunity to take what was learned during prototyping and apply it to the production processes. This will improve efficiencies and end product quality.
Production
Production begins when the OEM has finalized all adjustments from pre-production. Before actual production begins, the OEM manufacturer may ask you to sign a “manufacturing services agreement” (MSA). This solidifies all the expectations from each party.
The MSA is an important step for the manufacturer. It allows them to move forward to supply chain arrangements and set up inventory management. It also allows them to budget and put a production schedule in place.
Be sure you are comfortable with everything laid out in the agreement. This includes any applicable warranty information and production details. It also should specify steps for making changes during certain phases of post-production.
Post-Production
Once production begins, it may feel that things are “on autopilot.” This may be the case, and regular communication may slow a bit, but the manufacturing relationship does not end.
During post-production, be sure to schedule regular meetings for updates and adjustments. Spelling out this schedule in the MSA is even better.
As with any type of sales business, production needs may change. A reputable OEM manufacturer will want to help you meet all your demands, even amidst unforeseen circumstances.
Being upfront about changing needs or production specifics is the best course of action. It will allow you and the manufacturer to iron a plan together that is beneficial to both companies.
Find OEM Manufacturing Services
Now that you understand the basics of the OEM manufacturing processes, you get the most out of your agreement. Remember that the most important thing is to establish clear communication with the company. This will ensure that everyone is on the same page throughout all planning and production phases.
Shield Works Precision Manufacturing provides customized OEM production, assembly, and warehousing solutions to an international client base. We pride ourselves on maintaining the highest standards of customer service and product management. Reach out to us today to learn more about services or to get a customized quote today.
The Risks of Outsourced Manufacturing: What You Need to Know
When you outsource your manufacturing, you’re trusting someone else to handle the job of turning your idea into a tangible product. While this usually works out well and can bring significant cost savings to your company, there are risks involved with outsourcing that you should keep in mind as you consider outsourcing as an option for your business or organization. Read on to learn about some of the most common risks of outsourcing manufacturing and how to avoid them so that you can maximize your benefits and minimize your costs.
Supplier Risk
Direct arrangements with suppliers from any industry come with risks. However, the risk is greater when buying from an international supplier. Prior to outsourcing, you must conduct a thorough investigation.
Then, you need to conduct a thorough risk assessment using the possible markets and suppliers. Identify any potential issues with the provider’s possible suppliers.
It must include the supplier’s operations, quality, leadership, and labor. Check to see if their track record lives up to their promises.
By doing so, you will avoid disruptions caused by your supplier failing to follow through. You can also ask other helpful businesses who have used your potential supplier. As soon as you make your decision, you’ll gain insight into working with them.
Quality Assurance
The lead time, as a result, for transporting products is longer compared to domestic sources, if product failure occurs from an international source, which can cost you suffer severe business disruptions.
If the problems get severe, it can take months to resolve them. To mitigate this risk, you need to prepare detailed product specifications for your sources. You’ll periodically perform independent quality control inspections.
You may lose your reputation if your product quality declines. Avoid this by observing the manufacturing process for a few weeks. It is cheaper and ensures quality, so it’s better than having to recall a product.
Intellectual Property Protection
Don’t share sensitive information with your outsourced manufacturers until you check their origin country and their intellectual property rights. Otherwise, your proprietary information might be leaked.
In cases like this, IP laws are more relaxed in the manufacturer’s country. Depending on the product, you may find it better not to outsource anything. If your product undergoes regular updates, however, this might not be an issue.
You might overlook patent protection if you think you can produce better items faster and with better quality. This can happen when you pump out new products faster than the market can handle.
Transportation and Delivery
Outsourcing to a foreign service is tricky if you don’t take it one step at a time. If you do it poorly, the delivery will be delayed.
A common timeline for ordering and receiving your product should be important to your outsourced manufacturer. Think about whether they can meet a timeline for production. In case the total is greater than it has been, you must work to make the customer’s expectations fit reality.
One may also look for a workaround to restore the time to its correct place. Otherwise, you may accidentally erase all your work. Given the importance of this issue to customers, we’ll need to keep it at the forefront of our priorities.
Sourcing Labor
This type of conversation doesn’t happen as often, but when it does, it can hurt your brand. Make and fulfill your products with a manufacturer that follows humane standards.
It is especially important when it comes to labor laws and other relevant guidelines for employee safety that your manufacturer’s guidelines match your own country’s. It is your responsibility as well as your outsourced help to adhere to ILO guidelines if your country is a member.
Weather
Despite how it might seem, what your manufacturer does in relation to the weather can affect how it’s perceived. A rough bout of weather can lead to various delays. Doing so puts your brand in a negative spotlight because it has to be revealed what your labour force looks like.
How well your supply chain holds up to weather-related crises can affect your reputation, as well. Though they’re flawed, it’s not always best to steer clear of your brand name. As a result, you must put it before anything else.
Should You Outsource Manufacturing?
If your company is not ready for outsourcing, you should weigh the benefits of this decision. A number of benefits are available to you.
You will cut your spending as well as boost the productivity of your business by doing so. Popular demands are produced by many companies.
Additionally, you’ll avoid every aspect of manufacturing bureaucracy. It’s what slows businesses down, especially in countries with strict regulations.
Invest in Outsourced Manufacturing Today
While there are risks involved, partnering with an outsourcing manufacturing company can be helpful in boosting your business productivity. The first step is to find a reputable manufacturer. Use this advice to find the best provider.
Have you been considering manufacturing internationally? If so, please get in touch with Shield Works and we’ll talk about how our 17 years of outsourced manufacturing can help your business thrive!