Product Assembly
What’s Included In a Product Assembly Service?
Are you a startup or an already established company debating if you need to use an assembly service to meet your client’s demands? Have you thought about working with an overseas company, but you aren’t sure what to expect?
There are many different vendors that you could use who are local to you. Do they have the right materials you need to meet the demands of your clients? Like you, many product-focused companies and entrepreneurs take advantage of using oversea companies to meet their needs.
If you are in the looking stage of comparing product assembly services and you need more information on finding the right distribution company, you came to the right place. In this brief product assembly service guide, we will cover how to find the right manufacturer and who you can contact for more information.
What Are Product Assembly Services?
Product assembly services or product assembly companies create your product, and they ship them either to you or your customers. Doing this process on your own can quickly become expensive. It is best to partner with a reputable assembly service company to save you more time and money.
Product Assembly Services in China
The best way to save time and money is to outsource your product assembly tasks to a third-party company to build your items. Many companies outsource their work to China because of the cost-saving benefit. A company saves a large percentage in production and distribution costs when they partner with a reputable assembly service company.
Choosing the Right Product Assembly Company
When choosing the right product assembly company, make sure that you look for a company with certified professionals. High-quality 3rd party assembly companies typically have favorable testimonials from the past experience, which consistently demonstrate their ability to provide products that meet client requirements.
Review Their Expertise
Even if a company’s professionals have the required certifications, you should check out their previous work. As you compare different companies that offer assembly and inspection services, ask about their internal quality control process and methodology.
Does your inspector use statistical models? Does this company use random sampling?
Are all your assemblers certified quality assurance inspectors? Don’t be afraid to ask your distribution company questions about their process and timelines.
Look at Other Reviews
When speaking to a prospective company, it would be best to look at their reviews. You can use third-party review websites to see what clients did or did not like about working with them.
Although reviews are a great place to start, the only way to gauge a company is to call them and speak with them. One company’s expectation requirements will be different than yours, so what you may not like, someone else may have loved.
When speaking with your assembly company see how they respond to your requests. Do they handle requests on time?
Do they have excellent client service? Partnering with a distribution company is a long-lasting relationship, so make sure to work with a company that has top-tier customer service.
Available Assembly Capabilities
Not all assembly companies are the same. Some specialize in product assembly of all kinds, whereas others may only focus on producing products made with a specific material. The most common types of general product assembly use composites, carbon fiber, plastics, metals, and textiles.
Other types of assembly services:
- Prepackaging
- Food packaging
- Product re-assembly
- Assembly testing
- Powder and liquid filling
When comparing different companies, ask if they have the right items and materials to complete the job. You can also ask if they have experience making products like yours.
Intellectual Property Protection
All countries have their own sets of rules and regulations when it comes to privacy and the protection of intellectual property. It is a company’s worst nightmare to have its product specifications compromised after years of development. If your distribution company sends products to your clients, you want to make sure that their data is also safeguarded.
Before you partner with any company, be sure to look into their country’s intellectual property laws and their track record with other clients. If their track record is not good, even in the slightest, you should look elsewhere. There is no margin for error when it comes to protecting the rights of your products.
Software Information
An additional step in securing your intellectual property information is to look into the type of software your distribution company uses. Is their technology well-known for privacy features?
Does it mimic the same safety measures you set for your own business? If they are not willing to share that information with you, they may be hiding something.
Product Timelines
As you start interviewing different companies, you should inquire about their product project timelines. The amount of time it takes them to create and ship your orders can hugely impact how long it takes for you to deliver your product to your clients.
Of course, you want to partner with a company that can produce high-quality items without taking too much time, but you also don’t want to rush the process if they don’t have the capabilities to deliver high-quality items quickly.
When speaking about timelines, don’t just focus on how long it takes for them to create the product. Make sure to ask how they handle natural disaster situations and other weather-related delays. When these types of moments happen, you also will want to have a primary point of contact to reach out to for the next steps.
Product Assembly Process
The first step of the assembly process is to find the right company. Once you find them, you will want to send in a request. The right company will suggest scheduling time to speak with you about your product over the phone. This way, they can gauge what type of materials they will need, how much they will need, and more to make sure your product comes out just as you need it.
During the first few stages, you and the company should clearly understand what to expect of the product. You should receive a rendering of your product and a physical model in your hands before you ok the rest of production. Each company has its own processes, so make sure that you are aware of all steps during their production process.
Advantages of Oversea Manufacturing
As mentioned earlier, many companies like to outsource their products to cut down on their costs. Another major reason is because of a particular concentration.
For example, many corporations use China for their production needs because of their concentration on electronic products. They are also well known for creating plastic products and other mainstream items like clothes.
High-Volume Capabilities
One of the most significant advantages of partnering with a manufacturing company overseas is their production capacity. Most manufacturing companies can produce huge quantities of your items within a short time frame.
Depending on your production needs and your manufacturer, they may offer you a discount for ordering large volumes of product. When working with certain companies, they may have a minimum purchase order requirement. This helps keeps control costs on both ends. If you need a small order, you can expect high fees and costs.
Skills and Talent
The skill level in other countries is much higher than in the United States, mainly because many Americans don’t work in manufacturing jobs. This creates a skill gap in the US, forcing many companies to seek help overseas.
The most significant need in the United States is for those with computer and digital skills, technical knowledge, and programming expertise. All of these skills are easily found overseas in major manufacturing companies.
Close Proximity to Raw Materials
United States factories have to source their materials from overseas, increasing their costs and time-to-market deadlines. Many manufacturers in China have access to these raw materials already at their plants.
If they don’t, they know someone or some company that has what they need. They also most likely have a relationship or some partnership with those companies.
If you manufacture your product in the United States, you will face delays if your product requires raw materials. Countries that ship to the United States may have to charge you higher shipping costs, and you may experience long wait times due to the impact of COVID. Instead of having them ship you the materials, you can cut costs by having your manufacturer produce the product on your behalf.
Disadvantages of Oversea Manufacturing
Although there are many fantastic advantages to outsourcing, you should keep a few disadvantages in mind. For example, the components and cost of production are usually cheaper, but the shipping costs may not be ideal. If you find that the shipping costs are too much, you can always negotiate better shipping rates, especially if you plan on working with that company long-term.
Longer Lead Times
Even though creating and producing large quantities overseas is cheaper, the lead time can be longer than expected. What this means is that it takes time for your goods to make their way from overseas into the United States. When calculating the time it will reach you; you must consider shipping times, country holidays, and the manufacturer’s demands.
Possible Language Barriers
When working with a manufacturer overseas, you will most likely run into cultural and language barriers. This can cause issues when you try to understand workflows and negotiate pricing and contracts.
You may also need to learn about their culture and what they do and do not value. To make it easier to work with your manufacturer, you may want to partner with a company with a local resident familiar with your language and the language of your manufacturer. This liaison person can speak on your behalf to protect your best interest.
Safety Risks
Environmental and worker safety should always be a top concern for you and your business. Not every country values the environment or employee safety. Hence, it is best to partner with a company that follows good labor practices, takes care of the environment, and implements safety programs.
Local vs. Overseas
When trying to figure out where to manufacture your product, you can choose between using someone overseas or a local company. When you partner with a company local to you, you may have an easier time communicating your needs in your own language. You can also save on expensive custom and shipping fees and have a shorter delivery time.
That may sound ideal, but you may have a limited array of supplier capabilities. Not every manufacturer in the United States has the talent, skills, expertise, or raw material you need to create your product.
If you have a hard time sourcing a manufacturer local to you, you may have to reach out to a reputable company overseas. Of course, before you partner with any company, make sure you communicate with them to gauge if they can meet your demands.
Cut Down Production Costs Now
No matter how great your idea is, you need to have a reputable and high-rated manufacturing company on your side to bring your vision to life. These companies have the skills, experience, capacity, and raw materials to help you meet the demands of your customers.
Making sure that you and your distribution company are on the same page is crucial. The last thing you want, as a business owner, is for the entire operation to fall apart and for you not to be able to hit your quota because of your assembly service.
Contact us now if you are ready to bring your idea to fruition and want to work with a company that values quality and a safe working environment!
9 Things You Should Know Before Outsourcing Product Assembly to China
Outsourcing product assembly to China may seem like the easiest and most cost-effective solution to getting your product out on the market, but there are plenty of things you should consider before taking this route. If you’re not careful, you could end up spending more money on additional time and resources to get your products back than if you had stayed within your home country. To help you save yourself from these potential pitfalls, here are 9 things you should know before outsourcing product assembly to China.
1. Confirm The Basics
When you’re outsourcing anything, it’s important to make sure you have as many details worked out in advance as possible. That’s what makes product assembly different from most business processes: there’s no room for last-minute changes or rework. When dealing with international outsourcers like those in China, things can be even more complex; for example, if a supplier misreads your email and ships 100 units instead of 10, it could cost you thousands of dollars (and waste even more time). It is critical that you confirm every detail—length and width of each piece, exact location of holes or slots—before starting work. If any instructions are unclear or seem incomplete, ask your supplier to confirm them before proceeding.
2. What Are Your Shipping Requirements?
One of your primary concerns should be where your products will ship from. If a made in China label is part of your business plan, then it’s important to understand what your options are for product assembly and shipping. What kind of shipping timeline do you need? Talk to multiple suppliers and share your expected lead time, incoterm and final delivery details? One big perk of manufacturing in China is flexibility. Your candidates can go great lengths to win your order. Figure out what your priorities are and don’t easily settle on one option too soon. Depending on what’s most important—quality or price—you might have some better options than others.
3. What Is Your Communication Style?
One of the most important steps in product assembly outsourcing is making sure you’re communicating with your supplier effectively. Choose a communication style that works for you and stick with it: whether it’s email, phone calls/video conferences, instant messaging, find out what your preferred method of communication is and don’t waiver from it. If email is what you like best, make sure that your emails are on time and detailed; if you prefer conference calls, try to speak over each other as little as possible; if video conferencing is easier for you, get into a routine where both parties participate instead of just watching. The IM application, WeChat, is widely used in China. If you prefer instance responses, this might be the way to go. Regardless of how formal or informal you think your communications should be—stick with one style that works best for both parties.
4. Do You Need To Check on Quality?
If your product is new or complex, then you should definitely have someone on-site check on quality control. If it’s a well-established and simple design, some entrepreneurs may choose to trust their suppliers more and forgo regular visits. Either way, keeping in contact with your supplier can go a long way toward preventing mistakes before they happen. With the pandemic going on, it’ll be nearly impossible to travel to China physically. You might as well make good use of technology, like video recording! Use it to record yourself demonstrating how your product works so that you can send it over if questions arise during production (for tips on how best to do these types of videos). WeChat is great since it can work in any countries.
5. How Important Is Price?
One of your most common concerns is likely price. Oftentimes, people are under time constraints and are forced to choose what they think is a lower-cost option. But often, you end up spending much more when poor quality or communication causes delays in production and parts get lost in transit. The best way to ensure that price isn’t a deal breaker for your product assembly is by finding reliable manufacturers who adhere to agreed-upon pricing structures. Finding a manufacturer that doesn’t sacrifice quality or support for low costs will keep your project on schedule and under budget—not just at launch but moving forward as well. By establishing clear ground rules with your manufacturers from day one, you can reduce problems that lead to overruns later on down the line.
6. Do You Need Drawings/Sketches?
Sending drawings/sketches is ideal if you have a firm idea of what you want your product assembled, but no prototype. If you’re still in process with your design, it’s a good idea to wait until it’s finished before sharing. That way, whoever you hire can work off something concrete and visual. Many outsourcers use CAD technology for products with multiple parts or components; because foreign workers don’t always speak English fluently, drawings are a must for these types of projects.
7. Do You Have a Timeline?
Give yourself a deadline for when you want your product assembled and shipped. When outsourcing overseas, it can be difficult to gauge how long things will take, which can cause stress as you try to juggle multiple deadlines. Having a set timeline will allow you to manage your schedule more accurately. Many companies that work with foreign manufacturers are also able to provide assistance with logistics and shipping should you need help getting your products delivered on time.
8. Set Up Quality Control Throughout Manufacturing Process
When you’re outsourcing product assembly to China, it’s important that every stage of manufacturing undergoes quality control. Inspecting your products at each step ensures that a simple mistake or oversight at one point in production doesn’t snowball into a mass shipment of defective products—which can mean expensive returns, dissatisfied customers and even lawsuits. It can also help identify exactly where problems arise—and thus where additional quality-control measures should be implemented. Quality control is particularly important when outsourcing manufacturing because a hasty approach may skip important steps. For example, some manufacturers will cut corners by putting too much glue on an item or not applying enough pressure during gluing—both of which could render it unusable or prone to breakage.
9. Find the Right Supplier and Start Communicating with Them
It’s important that you find a company that specializes in product assembly. Some companies are not able to assemble products, and will send your components to another supplier who can complete assembly. Finding a reliable, competent partner will help make outsourcing a positive experience for both parties. Once you’ve found someone you want to work with, communicate clearly and directly in order to make sure each party understands what’s expected from them. Transparency is especially important when it comes to communication, as that way you’ll avoid misunderstandings or confusion which could delay your project schedule.
Shield Works is always ready to be your trusted partner for product assembly with our in-house and bilingual engineers. If you have questions regarding our contract assembly service, please don’t hesitate to contact us!
How Outsourcing Product Assembly to China Benefits Your Electronic Manufacturing
If you’re planning to manufacture and assemble electronics overseas, you might be wondering how outsourcing your product assembly to China can benefit your business. There are many benefits that come with manufacturing in China including lower costs, shorter lead times, and higher quality of products. These are just some of the perks of outsourcing product assembly to China that you should know about when deciding where to base your manufacturing operations or e-commerce distribution center. You can find out more about these advantages below.
Reducing Costs
According to a study from 2005, China has one of the highest costs of labor in Asia. However, other studies suggest that shipping products across oceans makes China an attractive location for manufacturing in terms of overall costs. Either way, saving money on product assembly will help your bottom line immensely. Manufacturers outsourcing their assembly process are typically able to cut between 20% and 50% off their product cost; without outsourcing, you could probably make a very similar product at a cost-per-unit profit comparable to or even greater than that of your competitors. It’s no wonder why so many manufacturers have chosen to outsource product assembly: The benefits are clear.
Improving Time to Market
It’s no secret that time-to-market is a major factor in determining success for new products. Starting with a lean manufacturing strategy can really improve your company’s ability to quickly get products onto store shelves and out into homes. Before you start building your product, consider if it makes sense to outsource product assembly or even electronics manufacturing. If done correctly, outsourcing certain parts of production can make prototyping faster, reduce costs and improve overall efficiency in product assembly and time-to-market. In addition, outsourcing electronics manufacturing overseas may allow you access to better talent at lower costs than you’d find domestically.
Improving Quality Control
One of the most important aspects of electronic manufacturing is your company’s quality control. All products, regardless of complexity, have at least one critical element that keeps them working properly: a single connector or set of wires, an integrated circuit or a battery. You must take special care when making these elements because any mistake can mean disaster for your customers. That’s why hiring outsourced workers to manufacture your product assembly allows you to retain more control over production than you would in-house manufacturing: When someone is actually constructing a product on your behalf in another country, they know they only have one shot at creating something that works perfectly every time—or it’s not going back on an airplane with them.
Increasing Customer Satisfaction
When it comes to outsourcing, customer satisfaction is just as important as cost. The most common mistake of new electronics manufacturers is trying to save money by selecting a vendor that cuts corners. This can lead to a lot of headaches further down the line, including returns and re-work. Start off right by finding an experienced partner with a proven track record in product assembly and electronic manufacturing services. You’ll have greater peace of mind knowing that you’re on your way to growing a successful business—not just doing business in China. Also, its time-saving benefit can also contribute to better customer satisfaction by keeping your design team focused on what they do best – designing new products! There’s nothing worse than spending hours making minor tweaks to an existing product when there are millions of dollars worth of opportunities out there just waiting for a new idea. Product design is where you’ll see huge improvements by hiring experienced engineers and designers with experience working with complex electronics like yours.
Helping Understand the Chinese Electronics Manufacturing Ecosystem
In China, product assembly work can be done through a large number of vendors. As a result, you have many different firms that are capable of handling specific tasks in your manufacturing process. To benefit from these resources, it is important to understand how they fit into the Chinese electronics ecosystem and what services they can provide. But to grasp each type of organization involved in electronics manufacturing in China can be very challenging for someone new to the country. It will be much easier for you to find an outsourced partner that can complete a specific stage of your production line and bridge all the gaps together with other departments for the output of quality products.
Shield Works is one of your best choices with a self-owned IP protected, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, including product assembly. Please feel free to contact us if you are interested.
How To Choose The Right Product Assembly Supplier In China?
Partnering with a product assembly company in China can help grow your business and save you money by allowing you to order more products without building an in-house assembly line.
However, finding the right product assembly partner isn’t always easy and problems often arise due to business misunderstandings.
To mitigate any issues there are some important things to know before you get started.
Know What You Want From A Product Assembly Supplier
First and foremost, you should have a clear idea of what you want from your suppliers.
Some small companies jump into outsourcing without any clear vision of what they want and what they need at the beginning, which can lead to major problems down the road.
Therefore, make sure you’re very clear about your expectations and standards.
The more details you provide to your assembly supplier, the easier it will be for them to achieve your goal.
Enquiry about expertise in your industry
Before deciding which product assembly supplier is the best for your project, you need to know if they have experienced with similar products in your specific industry.
For example, if you need to get some electronic parts assembled, but you choose a supplier that merely focuses on toys assembly, you may encounter troubles down the line.
Ideally, you want to find an expert within your niche who has several years under their belt and at least one other completed successful product assembly project.
If not, a lack of expertise can often lead to delays and added costs down the road as manufacturers learn on-the-fly rather than preparing beforehand.
If they aren’t willing or able to discuss their background and expertise during early conversations, it’s probably time to look elsewhere.
Finding a partner that fits in both categories is rare, but possible if you do some research and ask around (or bring on an expert yourself).
Ensure Your Intellectual Property Rights Are Protected
Your company’s intellectual property rights are one of your most valuable assets.
Before choosing a Chinese product assembly partner, it’s important to understand how your intellectual property is protected.
With so many companies in China today, it is hard to determine which ones are qualified and care for their customers’ IP. Therefore, it’s also a good idea to check if your supplier has any patent infringement history.
Additionally, it would be better to ask your supplier if they have any experience working on IP issues.
Keep in mind that you should ask your suppliers if they have intellectual property (IP) agreements before cooperation.
Make sure that you have an agreement in place that protects your intellectual property (IP) rights when you transfer technologies to a third-party company. There are many kinds of IP protection agreements available, so choose wisely. You may want to consult with experienced legal counsel.
Avoid Common Pitfalls With Product Quality
One more important factor you should keep in mind is how to avoid common pitfalls with product quality.
Poor-quality products will only hurt your business and tarnish your brand.
To avoid problems as best as possible, here are three keys to remember:
1) . Be clear and concise about your product requirements and expectations.
2) Investigate and work with your assembly supplier to ensure your product complies with the regulations of the final market.
3) Follow up throughout production and communicate effectively.
Let Shield Works Take Care of Your Product Assembly
Choosing a product assembly service provider in China is not an easy job, especially when you want to hire someone professional and reliable.
If you’re looking for an outsourcing partner in China, look no further than Shield Works.
Shield Works provides customized OEM manufacturing and assembly activities to meet your business’s needs. Contact us today.
Product Assembly Services in China: How to Secure Supply Chain Risk
The Chinese government is on a mission to produce 70% of the world’s electronic components. When you think about it, that’s an ambitious goal.
However, electronics aren’t the only thing manufactured within its borders. In fact, China manufactures a considerable share of the world’s goods.
If you’re considering outsourcing products or services to China, however, how would you manage risk? Well, with some insider insight, you can safely reap the benefits of product assembly in China.
Keep reading to learn more about how to secure supply chain risk for product assembly services in China.
Understanding Supply Chain Risk
Global supply chain risk is one of the biggest concerns of the world’s shippers. You never know when your supply chain could become exposed to an unanticipated vulnerability.
These occurrences can lead to increased costs. Even worse, you could end up with unhappy customers. It’s critical for you to mitigate these and other supply chain issues.
More supply chain stakeholders are turning to supply chain risk management for this reason. The term refers to the processes, strategies, and tools used to reduce supply chain risk. They can help you to identify dangers that could affect your supply chain.
The Benefits of Managing Risk
Your company could enjoy considerable benefits from a supply chain risk assessment. For instance, a risk assessment can help you reduce profit loss. It can also help you to ensure peak efficiency in production, fulfillment, and delivery.
This kind of evaluation will also improve the speed and effectiveness of your company. It will help you to respond to emerging situations that could affect your supply chain.
A risk assessment will also help you keep up with regulatory issues and maintain compliance. Moreover, it will help you create a reliable process for managing unexpected interruptions in your supply chain.
Even More Benefits of Effective Supply Chain Management
China’s assembly companies have unmatched expertise in putting together complex goods like electronics. Still, regular risk assessments can help you protect the reputation of your brand.
They’ll help you increase your competitive advantage. Also, risk assessments will help you improve customer satisfaction.
Most customers take for granted that you’ll deliver products whenever they need them. In reality, however, supply chains are quite fragile. For every activity and every level of your supply chain, there’s a risk of disruption.
The Importance of the Risk Mitigation Process
Your supply chain might only have one supplier. Alternatively, it could have thousands.
Imagine a pharmaceutical company that needs a third party to supply pill bottles. It may also need another supplier for the external packaging. Meanwhile, this company might also need an additional supplier to handle labeling and other aspects of product packaging.
You may have your own employees who manage various tasks, like taking orders. Yet, you more than likely use a third-party credit processing company. In turn, that company might contract with another firm to perform credit checks.
Any point in this supply chain is subject to vulnerability. The reliable, timely delivery of your goods would depend on all these suppliers. If any of them fails to perform as expected, you might not have the ability to deliver your goods on time and at the right price.
Effective Risk Management Matters
With a risk management process, you’d start with identifying the parties in your supply chain. You must emphasize the most critical suppliers.
Next, you’d assess them for regulatory compliance. You can then go on to assess your suppliers’ suppliers.
You must review every supplier for insights into past performance. You must also assess their potential risks to your supply chain.
If you discover issues, you must address them immediately. It’s important to resolve your findings as quickly as possible.
In the end, you should set up a monitoring system with real-time dashboards and up-to-date reports. This kind of system allows for continuous monitoring of your suppliers and notification of any critical changes.
Key Risk Management Points to Consider
There are four primary steps in this process. They include:
1. Identification
2. Quantification
3. Mitigation
4. Response
You must identify the risks that can impact your supply chain. You must also identify where you can find these risks in your supply chain.
Next, you must estimate the potential financial, operational, and reputational impact of these risks. Then, you can develop strategies to offset the negative impact of various forms of supply chain disruption.
Finally, you must figure out how quickly you can respond to a disruption. You must also assess how long it would take your company to recover from this kind of event.
Product Assembly Services in China
Suppose you were to hire a product assembly company in China. In that case, you must perform robust due diligence and risk mitigation. You must uphold the integrity of your imported goods.
In the United States, for example, there’s growing interest in countering controversial business practices. With this in mind, the US government has issued an advisory about potential exposure to these kinds of activities in certain regions. United States lawmakers expect companies to perform robust due diligence to combat allegedly unwelcome business practices in these territories
Protecting Your Interests in China
Furthermore, this advisory is an interagency effort. Involved organizations include the following:
• Department of Labor
• Departments of State
• Homeland Security
• Treasury Commerce
• United States Trade Representative (USTR)
These agencies are working together to draw attention to supply chain risk to US businesses related to areas of special interest.
The advisory warns that US businesses must have an awareness of their legal exposure. They must know whether partner entities in the area are linked to companies that maintain disputable business practices.
If so, decision-makers in these firms could face liability for criminal statutes and sanctions. Meanwhile, their companies could face export controls and import prohibitions.
Areas of Special Concern
Again, many companies are deemed responsible for these allegedly disputatious practices have headquarters in specific areas. In these areas, it’s implied that many cases of aforementioned business practices occur. These companies participate in various industries, including:
• Agriculture
• Cell phones
• Construction
• Cotton
• Electronics assembly
• Footwear
• Gloves
• Noodles
• Sativa
• Sugar
• Textiles
• Toys
What Can You Do?
If you believe you’ve become exposed to liability, you must increase auditing and other supply chain due diligence practices. In the above reference, for instance, you’d monitor for warning signs of a potentially disreputable business partner’s savory business practices.
This would become especially important if you were to continue doing business with a possibly distasteful company. In this case, you’d closely watch a company that hides the origin of its goods or ownership.
You’d also practice extreme caution with a company that has high revenue but a low reported number of employees. You could evaluate this circumstance by reviewing the company’s contributions to China’s social insurance program.
You could also monitor for a company’s use of terms that seem to indicate that a company is spinning its unfair practices. This elevated level of due diligence is essential when dealing with suppliers to ensure the integrity of your company’s brand and reputation.
Stay Informed
As a business operator, it’s also important to stay informed about developing sanctions and Withhold Release Orders (WROs). You must also monitor goods highlighted by the Department of Labor. The agency maintains a list called List of Goods Produced by Child Labor or Forced Labor.
The list includes the names of products and companies subject to WROs. You should also monitor for names on Department of Treasury lists. These documents include Specially Designated Nationals (SDN) and Blocked Persons lists.
Conduct Independent Audits
There are anti-sanction laws in China. As a result, you could find it’s difficult to secure reliable and independent information from native entities. You could even have trouble eliciting accurate information from your legal aid in China.
Accordingly, when working with a service provider in China, you should also conduct independent, on-site audits when possible. This practice promotes increased supply chain transparency.
Your Responsibilities as an Importer
You can’t defend yourself from liability by claiming a lack of knowledge. For example, you could find out the first or second level of your supply chain in China has disappeared.
It’s counterproductive to use lack of knowledge as a defense. This kind of defense will set you back if the Chinese government engages your company.
This position will make it much harder for you to gather an origin to destination paper trail. You’ll need this information to satisfy any inquiry or detention notice from the Chinese government.
Doing Your Due Diligence
You must remain prepared for a government inquiry, especially if you suspect foul play on the part of a supplier. In this instance, you may need to gather supporting purchase records.
You might also need to gather production documents. You could also need to collect labor documentation.
Overall, you might gather the same information you would need during an unfair trade investigation. These types of investigations might include antidumping or countervailing duty verification.
The Big Picture
When you partner with a reputable OEM manufacturing service provider in China, your biggest benefit is cost savings. The assembly service will create your products in bulk. As a result, you’ll save money on production costs.
Furthermore, you’ll find that the products are of superior quality. Still, it’s vital to maintain strict testing standards. If you’ve hired competent OEM manufacturers in China, they can withstand your testing.
Leveraging a China Assembly Service
There’s a good reason why OEM manufacturers in China provide the most outsourced production in the world. China has advanced production capabilities.
These capabilities make it easy for companies to meet massive production numbers. More importantly, the companies can do so at an affordable price.
It’s true that China is one of the first regions hit by the pandemic. Yet, the government has been able to contain it largely within the region.
It’s for these reasons that large brands like Apple and Nike outsource their contract manufacturing to China. In light of the pandemic, the nation’s positioned as one of the first countries that can dive back into full steam manufacturing.
Partnering for the Win
Some companies couldn’t exist without China’s assembly services. China service providers have specialized technology that allows them to create components that many companies couldn’t produce on their own.
When outsourcing product assembly services, you allow another company to produce your product. Yet, you’ll keep all intellectual property and trademarks.
Still, another company manages production. In China, this process often takes place through a network of multinational suppliers.
It’s vital to locate and secure an agreement with a China assembly company that you can trust. An experienced consulting company can help you to do just that.
Let Us Help You Safely Navigate Your Importing Risks
Now, you have a better understanding of risk when working with product assembly services in China. If you need to find a reputable China service provider, Shield Works Precision Mfg. can help.
Please feel free to contact us today to learn more about reputable assembly services in China.
Outsourcing Assembly: How to Use a China Assembly Service in Your Supply Chain Strategy
Despite recent uncertainty in the supply chain, China continues to serve as the second-largest exporter to the United States. For many companies, a partnership with a Chinese assembly service is essential for solidifying their full business potential.
Decision-makers around the world understand the importance of operating in a calculated and gradual way in China. With this in mind, how would you launch and scale your China assembly operations effectively?
Keep reading to learn more about outsourcing assembly and how to use a China assembly service.
Getting Off to a Good Start
Outsourcing production to China can serve as a vital part of your supply chain strategy. However, there are caveats involved when initiating business with China assembly services.
For instance, out-of-country interests typically have a modest local presence. They’re also unfamiliar with the nation’s bureaucracy and legal system.
Also, these firms must manage cultural barriers in the local business environment. Often, these companies make mistakes due to their lack of experience.
You can overcome these kinds of issues by working with a professional service provider that operates in the China market. You’ll find that this kind of consultant is aware of all local regulations. More importantly, they’ll help you operate efficiently from day one.
Managing Import Regulations
Companies often face another dilemma when starting business negotiations with OEM manufacturers in China. They face problems dealing with the local currency.
For some companies, doing business in China doesn’t justify the investment in establishing a local branch. On the other hand, some China service providers don’t want to accept payments in foreign currency. Some companies may not even have this capability.
By working with a China assembly service provider, however, you can enlist a consultant to perform these transactions on your behalf.
Finding a Stable Supplier in Uncertain Times
If ever an event represented uncertain times, the pandemic is definitive of this circumstance. During this and other market disruptions, companies must make operational adjustments. These adjustments result in a loss of time and risk-taking that are inherent to change.
Still, you can remain stable and flexible if you manage change properly. By outsourcing contract manufacturing in China, you can adjust to changes quickly.
Your business may have a sensitivity to these kinds of situations. If so, the benefits of working with a partner that always has their feet on the ground in China are obvious.
The Freedom to Focus On Growth
You need an efficient and economical solution for managing your business activities in China. With it, your sales managers can focus on finding more business.
Meanwhile, your company representatives can focus on other important business development functions. For instance, they can work on building your customer pipeline.
Tasked with managing your overseas interests, your team members could find themselves overwhelmed with China’s bureaucratic and operational requirements. As a result, they can struggle to find time to sell your products and grow your company’s presence.
Reducing Costs With the Right Partner
In most cases, it’s faster to have your products assembled in China. This is the exact kind of advantage your company needs.
China assembly companies can provide customized production facilities suited to your needs. These facilities serve as a cost-effective and fast solution for OEM manufacturing.
They enable you to operate your outsourced manufacturing processes responsibly. Meanwhile, your firm will continue to enjoy the benefits of a production operation that runs more efficiently versus one on your native soil.
Let’s have a look at a few more benefits of outsourcing product assembly in China.
Reduced Labor Costs
China has remarkably low labor costs. In China, the average salary is nearly half of that of salaries in the United States. This circumstance is a huge benefit for labor-intensive industries.
Outsourcing product assembly in China can help you to lower labor costs due to high turnover. You can also further lower labor costs by outsourcing to developing cities in China.
Reduced Product Costs
China is the home of the largest manufacturing sector in the world. In a single year, China produced nearly 30% of global manufacturing output. Furthermore, export growth in China at times matches the growth of all other export activities in the world.
What that means for your business is that there’s no need to import the many goods and raw materials needed for production. In turn, you can avoid import tariffs.
The Chinese manufacturing ecosystem is engineered to build products at lower costs. Chinese factories can easily access components, affordable labor, a strong technical workforce, and assembly suppliers.
More Efficient Use of Company Resources
China is rich in talent and resources. The country has a labor pool capable of handling your in-country interest in several areas, including:
• Accounting
• Customer service
• Information technology
• Manufacturing
You can save time and have more of it to concentrate on your business by outsourcing.
Meanwhile, your in-house team can focus on the core competencies of your company, such as team building, leadership, and product development. You can spare your company from using their talents wastefully on paperwork and other mundane tasks related to your manufacturing process.
Innovation You Can Count On
China ranks near the top of the global list of innovation among countries. It even outpaces countries like India, Japan, and the Philippines.
Premier China assembly services are on par with the best companies in the world. They can compete with companies in the US, Switzerland, and Sweden when it comes to innovation. In January 2022 alone, Chinese companies exported nearly $250 billion in goods.
Chinese companies have vast research potential. They can give you fast and easy access to technology. Moreover, their access to research can give you a considerable edge over your competitors in other countries.
A Legal Environment for Success
Each year, a growing number of companies import Chinese goods. The Chinese government welcomes foreign companies interested in assembly services. The country amends its outsourcing laws continually for this reason.
China works toward improving its infrastructure to ensure efficient outsourcing. At times, the country has spent ten times more on infrastructure development compared to the United States.
Yet, China’s improvements go beyond bridges and railways. The company has also developed its digital infrastructure, supporting the rapid transfer of vital business information.
Like any other industry, however, there are both good and bad elements in the Chinese market.
Challenges of Outsourcing China Assembly Service
If you choose the wrong service provider, you can find they deliver low-quality products. Often, these products won’t meet international standards.
Despite their affordable cost, they don’t offer much value. You must remain vigilant to ensure that your Chinese assembly service produces high-quality products.
You can achieve this goal by conducting regular quality control audits. Alternatively, you can hire a knowledgeable partner in China to conduct regular inspections on your behalf.
IP Protection
In addition, intellectual property rights vary around the world. With this in mind, you must research China’s copyright and trademark system. This task is especially important when a service provider has access to your designs, products, and other trade secrets.
The Chinese government and many national outsourcing companies have strict IP protection measures. Still, a service provider could make copies of your products and sell them at lower prices.
It’s prudent to draft non-disclosure, non-use, and non-circumvention agreements when working with product assembly services in China. These types of agreements will offer more protection compared to a standard non-disclosure agreement.
Verifying Assembly Services
When searching for a China assembly service, you’ll eventually develop a shortlist of potential providers. Before making a selection, however, it’s critical to verify their credentials. By verifying the credentials of a service provider, you can ensure they can meet your outsourcing needs.
For instance, you must check whether a supplier can produce goods according to your requirements. You must also investigate whether they can ramp up production if you choose to scale up your operation.
You must cross-check any information a potential supplier provides. For example, you may need to verify their:
• Business license
• Customs registration certificate
• International trade certificate
• VAT invoices
A reliable consultant can help you verify that any such documents presented by a potential assembly service are genuine.
Gaining an Advantage With the Chinese Assembly
If you want to launch an efficient operation in China, it’s in your best interests to partner with a local sourcing agent. An experienced consultant can help you to choose the right China assembly service. They’ll help you to avoid investing your money in the wrong provider.
An experienced consultant can also help you select a suitable city for outsourcing. They’ll also help you to source the legal guidance you need to successfully kick-start your China operation.
Expertise You Can Take To the Bank
A knowledgeable local consultant can help you in many areas. These areas could include:
• Accounting
• Logistics management
• Human resources
• Digital marketing
By partnering with the right consultant, you can lean on them for support in all aspects of your business. Meanwhile, you can remain focused on building sales and managing your native distribution channels.
Moving Forward With a China Assembly Service
Once you’ve selected a service provider, you must create an outsourcing agreement that defines the specifics of your arrangement. For instance, you might outsource product assembly in China.
In that case, the agreement should cover important details, like price per product, production value, and other important elements. You might also highlight terms for special services like just-in-time inventory management.
Your agreement might also cover minimum productivity, working hours, and KPI tracking. It should also specify ways to resolve disputes, dissolve your agreement, and other legal matters.
Most importantly, you must ensure that the meaning of your agreement doesn’t change when translated from one language to the other.
Defining Your Specifications
You must also clearly define your product specifications. This kind of clarity will help you avoid problems.
For example, you must explain exactly what you expect from your outsourcing partner. This explanation might include your product specifications.
You must list and explain even minute details. Furthermore, you must conduct regular inspections. They’ll ensure your service provider implements your instructions correctly.
Getting Your Team On Board
It’s a big decision to outsource your assembly to China. What’s just as important is getting your internal team on board with the change.
For example, you should explain why you decided to outsource assembly to China. You should also explain to every department how they’ll benefit from the transition.
In addition, you should clarify the roles and responsibilities of each team member. In this way, they’ll know how to manage their tasks related to your outsourcing operation.
Monitoring Service Provider Performance
It can prove challenging to monitor an outsourcing partner. However, this challenge becomes intensified when your base of operation is in another country.
It’s vital that your partner works productively. You must find a way to control absenteeism and distractions.
It’s helpful to use performance monitoring software. Companies of all sizes—from small startups to global conglomerates—use productivity management tools.
With this kind of resource, you can track the time that employees work. You can also manage employee performance based on real-time productivity reports. You can also use this kind of tool to assign projects and tasks to outsourced staff members.
Your Partner in Chinese Assembly Services
Now, you have a better understanding of how to use a China assembly service. What you need now is an experienced consultant with strong ties to the best service providers in the nation. Shield Works Mfg. can help.
We believe in building productive long-term manufacturing relationships. When we set out to deliver results, it happens.
Contact us today to learn more about securing your production interests in China.
9 Reasons to Outsource Product Assembly to China
As the name implies, product assembly refers to custom assembly that is so delicate it requires the use of precision tools and processes. The reason why you would outsource this type of assembly to China is because the precision tools and processes used in China are unmatched by anyone else in the world when it comes to cost-effectiveness and value. If you’re thinking about outsourcing your next product assembly project, here are 10 reasons why you should choose China over anywhere else in the world.
Affordable Prices
The main benefit of outsourcing product assembly to China is that it’s cheaper than having your product assembled in western countries. These days, you can get a variety of products, from T-shirts and baseball caps to umbrellas and pot holders, for a fraction of what it would cost if they were produced domestically. The comparatively low cost of living in China allows your company access to hundreds of skilled laborers who are willing and able to assemble products at a very affordable price. In fact, as much as it has grown over the years, labor costs in China are still much lower than they are in the west. Those savings can be used for higher-quality components or marketing and promotion so you end up with both an inexpensive final product and plenty left over for other aspects of your business.
Fast Delivery Time
When it comes to outsourcing, speed is critical. If a project isn’t finished on time, there’s a good chance you won’t receive any money from your client, and you could lose future business as well. That is why you want to be sure that when outsourcing product assembly in China, you are going with someone who can deliver quickly. Many Chinese factories with some of the best product assembly capabilities in all of Asia can get your parts out in less than 10 days when they are needed urgently, but they also have other faster shipping options as well. Assembling parts in China doesn’t have to take forever, but you do need to make sure that things are being done correctly by going with reliable manufacturers.
Quick Response Time
With China’s vast manufacturing and assembly experience, a proven system has been developed for shortening response times. You will get quicker quotations and better turnaround time on product samples and bulk orders. Most of the customers from the west comment that the quotes in China are extremely fast; many receiving them within 12 hours of first contact. It also depends on what needs to be made: if you need a simple design, then a quote can be given within 1 hour. If it’s more complicated, then it might take us 2-3 days. If everything is clear in your order details (material, dimension, quantity), your Chinese partner can send you a quotation immediately upon receipt of your order information or drawings.
Process-oriented Quality Control
Process-oriented quality control is very commonly seen in China now, where workers are given a certain amount of time (often just one minute) to assemble an item. If it takes longer than that minute, there’s something wrong with either their training or their tools and materials. Chinese firms have become experts at using very simple, easy-to-use products that can be built quickly and accurately. This type of approach could easily be used in other assembly lines nationwide in China—if you want your product built quickly and correctly, start by building a tool that makes it easy to do so.
No Surprises with Lead Times
You know exactly how long it takes for products to get from China. Since your goods are being produced offshore, you won’t have any unpleasant surprises about delivery dates either. You can choose from a variety of shipping options and will be provided with an estimated arrival date. And as long as you get things on time, no one will complain!
Diverse Product Lines
Diversifying your product lines is a good way to weather any economic storm. The U.S. auto industry’s reliance on trucks and SUVs is what brought them down in 2008; GM and Chrysler were making cars that no one wanted—not even Americans! Don’t make that mistake: Diversify your offerings, and you’ll be able to weather any storm that comes your way. China, with over 30 years of experience in manufacturing for the whole world, is a very ideal place for that with such variety to offer. Even when it comes to product assembly only, you can still be presented with countless options of industries.
Full-time Staff for 24/7 Support
Offshore outsourcing companies in China have full-time staff that are always available to provide assistance on your manufacturing project. There is no outsourcing night shift. You will be able to call them at any time and they will provide assistance with anything that you need. This is much better than waiting days for a reply from someone working at an office in another time zone, who may or may not understand what you want or be aware of specific details about your project.
More than 30 Years of Experience in Manufacturing Products for The World
People in China have been making things for a long time. And for good reason: it’s what they do best. You can count on China’s manufacturing capabilities, processes and workers, which has helped make them an integral part of supply chains and contributed to their high-value reputation. That makes outsourcing product assembly a very attractive proposition indeed.
A Wide Range of products Including Electronics, Medical Devices, Plastic Parts, etc…
Chinese manufacturers offer a wide range of products including electronics, plastic parts, medical devices, and much more. There’s a good chance that there’s a manufacturer in China capable of producing your product at competitive prices while focusing on higher quality products. This means that raw materials are relatively cheap and easy to acquire from nearby suppliers or imported from various countries around the world. No matter what type of product you need manufactured, there is likely an experienced factory in China ready to help you get it done.
Shield Works is one of your best choices with a self-owned IP protected, in-house bilingual engineering team and over 16 years of experience of manufacturing in China for clients worldwide, including product assembly. Please feel free to contact us if you are interested.
14 Benefits of Outsourcing Electronic Assembly to China
It’s no secret that China is the world’s factory. The country’s economy has grown rapidly in the past few decades. In fact, its share in global manufacturing output has been growing steadily at around 2% each year.
Its manufacturing goes from textiles to clothing, machinery, electronics, and even electronic assembly. As a result, manufacturers are adopting new technologies that allow them to stay on top of the game. It’s for this reason that China has become a world-class outsourcing destination.
If you’re thinking of joining the bandwagon, you absolutely should. There are many good reasons why you should outsource your electronic assembly in China. If you want to know what these reasons are, keep reading to find the top most beneficial reasons below.
1. Unmatched Expertise in Electronics
Many people are unsure about why product assembly in China is so popular. The answer boils down to the country having access to the resources required for manufacturing. Most manufacturers based in China have been doing this for generations.
They have a wealth of knowledge that surpasses what most other companies from around the world can produce. Does your company need a certain level of quality for its products? Outsourcing electronic assembly work to China would be a good idea.
Their highly skilled workers and advanced equipment mean top-quality production. China also specializes in developing affordable and reliable electronic products. When outsourcing, you get access to a team of seasoned experts that have years of experience in this field.
2. Availability of Different Types of Equipment and Facilities
China is a country with a large number of factories that offer electronic assembly services. There’s a high availability of different types of equipment and facilities. Hence, your company will be able to choose the right manufacturer for your production line.
You can focus on meeting customer demands by offering products manufactured as per their needs. In China, it’s easy to pull off product assembly, whether you need commercial or industrial goods.
3. Large Amount of Products Ready for Shipment Within 24 Hours
The fast-paced world we live in today has seen consumers demand products faster than ever before. As a result, many companies outsource to China because it offers quick turnarounds.
In most cases, companies can have all their products ready for shipment or delivery within 24 hours. This is one of the most significant advantages of outsourcing to China.
4. A Wealth of Materials and Services
China has a large number of suppliers, contract manufacturers, and logistics providers, all of which are necessary for running an efficient production line. Your business will not slow down even if you plan to increase the volume of goods produced for sale.
Companies that outsource their materials to China also get to save on storage space. You don’t need extra storage for materials and excess products. This makes manufacturing in China one of the best strategies.
5. Accessibility and Eco-Friendliness
China has expanded its economy to make it more accessible to people all over the world. This is possible due to low costs and simplified processes through automation and mass production.
Electronics manufacturing is one area where this is very efficient. The best part is that it makes consumer goods available at affordable prices.
For this reason, many countries outsource labor-intensive jobs to China to cut down on labor costs. You see, outsourcing eliminates the need for companies to set up manufacturing plants.
Even better, it’s increasingly eco-friendly. You eliminate the carbon footprint and wastage of materials that would be a result of manufacturing.
6. Quality Assurance and Quantity Control
Outsourced manufacturers are held accountable for providing quality goods and services. This is done by testing every product before it leaves the factories. They ensure that they meet all quality standards during transit and after delivery.
With this system, customers don’t have to worry about receiving faulty units. China is packed with highly skilled professionals that ensure quality control.
Another benefit of outsourcing your electronic assembly jobs to China is quantity control. You’ll be able to produce goods in the exact quantities you want, whether it is 1 or 1000, depending on your budget. With this flexibility, businesses save thousands by not having extra stock lying around.
7. Time Savings and Faster Time-to-Market
Outsourcing electronic assembly to China enables businesses to launch their products faster. Manufacturers in China can meet deadlines due to working at a fast pace. Companies outsourcing to China will have the advantage of launching their products on time.
This means that they can start marketing their goods early and increase sales before competitors even get a chance to enter the market. Furthermore, the turnaround time for getting samples is very short. The process makes it easy for businesses to test products before placing larger orders.
8. Free Trade Agreement (FTA) Benefits
Many high-tech companies outsource their manufacturing to China because of the FTA benefits. These include tax cuts, tariff remissions, and stimulus packages. Companies don’t have to worry about dealing with one country’s tariffs.
No tariffs will apply if they pass through another FTA member nation. At the same time, companies also enjoy zero customs duties on goods sold. This results in higher market penetration compared to non-FTA members.
9. Diverse Product Portfolio and No Minimum Order Quantity
China has one of the world’s largest populations. As a result, they have developed numerous manufacturing hubs. These hubs make it easier for businesses that outsource to access diverse markets.
If there is an increase in demand for one type of product, companies can easily scale up production. In China, facilities are already readily available and production can start ASAP.
Outsourcing electronic assembly to China is also ideal for start-ups and small businesses. They can do so without having to worry about meeting a minimum order quantity.
This allows them to experiment with a new product or design. Moreover, it also allows these companies to create personalized products at affordable prices.
10. Learn from Others’ Mistakes
Outsourcing your electronic assembly jobs saves you from making costly mistakes when entering a new market. Chinese manufacturers have years of experience. They also handle quality control and shipping operations.
They would make minimal to zero mistakes and not compromise on quality. This allows you to benefit from their expertise without worrying about major setbacks.
They have also established long-term relationships with shipping companies in America and Europe. They can negotiate for further discounts when sending goods to your country.
11. Reduced Overhead Costs
Companies that outsource to China can save up to 50% of overhead costs. This is money they would have spent if they were assembling them in their own countries. Low labor costs combined with low operating expenses make outsourcing effective.
Manufacturing in China is also possible because of the logistical efficiencies available. This includes easy access to seaports, airports, railways, and roads.
They make it possible for companies to ship goods quickly. Even when orders increase at the last minute.
At the same time, you can monitor product quality through tracking systems. Tacking in real-time allows you to receive fast feedback on all your production.
12. Lower Capital Requirement
Outsourcing electronic assembly to China leads to lower capital requirements. This is a huge benefit compared with setting up manufacturing plants locally. Because of the inexpensive labor market, it’s possible to hire hundreds of people at once.
This means that large orders are processed with minimal capital outlay. On the other hand, local manufacturing requires large amounts of capital. You have to hire or contract workers individually instead of hiring them by batch.
13. High-Tech Equipment and Affordable Labor
Advanced technologies are available for businesses that outsource their assembly to China. This is because of the availability of high-tech equipment in transferable conditions. The latter allows lower labor costs.
Electronics manufacturing jobs are being replaced by automation. It allows manufacturers to reduce costs further. In this way, companies can keep up with the competitive market without spending a lot.
14. Competitive Advantages and Business Growth
Businesses find it difficult to compete with bigger companies. However, by outsourcing their electronic assembly jobs to China, they can gain a competitive advantage. This is because of lower labor costs and proximity to the market.
Lower labor cost means that businesses have more affordable products than larger competitors. Having a warehouse in China means selling products to competing businesses at lower prices.
Outsource Electronic Assembly to China
Outsourcing electronic assembly can allow companies to focus on developing new technologies. Companies that outsource product assembly in China are able to benefit from the country’s massive market while still complying with their own innovation demands.
Are you ready to outsource your electronic assembly to China? Shield Works is the answer. We offer high-end electronic manufacturing services to businesses around the world. If you need a quote, simply contact us here.
Which Industries Benefit the Most From Product Assembly in China?
Globally, companies realize the benefits of manufacturing their goods in China. However, you might wonder which industries benefit the most from product assembly there.
Today, we’ll take a look at the industries that benefit from manufacturing in this nation. Keep reading to learn more about which industries benefit the most from product assembly in China.
China and the Global Marketplace
Around the world, there’s a wealth of goods that were made in partnership with a China assembly service. Some companies manufacture their goods in China because of the abundance of affordable employees.
Also, China’s ecosystem of suppliers, component manufacturers, and distributors has evolved. Now, the nation is a more cost-effective and efficient place to manufacture many products.
Years ago, many individuals migrated to China seeking work. Now, the labor pool in China enables the region to produce goods cost-effectively and in bulk.
Furthermore, China factories can meet any seasonal industry requirements. They can even help your company to meet unexpected fulfillment needs for sudden rises in demand.
Doing Business in China
Manufacturers in China don’t operate in a silo. Instead, they rely on a network of competent business partners. These partners include:
• Clients
• Component manufacturers
• Distributors
• Government agencies
• Suppliers
Together, these partners facilitate efficient production through competition and cooperation. In fact, the business ecosystem for product assembly services in China has evolved considerably over the last three decades.
Big Players in Product Assembly in China
Shenzhen borders Southeast Hong Kong. The area has become a hub for the electronics industry.
It’s cultivated an effective ecosystem for meeting companies’ manufacturing and supply chain needs. This ecosystem includes component manufacturers.
Also, the area’s factories employ affordable workers. However, part of the local workforce also consists of a highly skilled technical workforce.
Area manufacturers also partner with assembly suppliers. Moreover, they work closely with their clients.
Some of the most well-known and biggest brands in the world have realized the advantage of manufacturing and product assembly in China. For example, Apple Inc. leverages China’s supply chain efficiency. The partnership helps to keep the company’s costs low and its profit margins high.
FoxConn Technology Group is another major company that operates in China. It works with several suppliers and manufacturers of components in the area.
In fact, several industries rely heavily on OEM manufacturing in China.
Industries That Rely on Product Assembly in China
The global economy is expanding. Simultaneously, companies are struggling to meet the increasing demands of consumers.
As a result, a growing number of companies around the world are outsourcing manufacturing and product assembly to China. By doing so, these companies can afford to produce more products. More importantly, they can keep pace with rising consumer demand.
Still, there are some industries, in particular, that benefit from partnering with China. Let’s have a look at them.
Electronics
Electronics are one of the top goods exported with the help of manufacturing in China. In the United States, for instance, consumers are passionate about electronics.
The citizens of China represent only about 40% of end-users of electronics. Most of the electronics manufactured in the country are for export.
Some experts forecast that reliance on product assembly in China will continue to grow over the next decade. Around the world, there’s no sign that the demand for consumer electronics is slowing. As a result, a growing number of electronics companies will likely turn to China to support their operations.
Medical Supplies
A considerable number of medical equipment firms source product assembly in China. The devices designed by the medical field save lives. They also help to improve the quality of life for patients.
Their partnership with regional manufacturers helps to curtail costs. Most importantly, medical equipment companies continue to work with manufacturers in China because they consistently receive high-quality products.
Plastics
There’s no place on the planet that doesn’t use plastic goods. No matter where you go, you’ll see goods made of plastic. In part, companies can keep up with the demand for plastic goods because of their relationship with manufacturers in China.
Many of the things that people use daily are a result of contract manufacturing in China. There’s plastic in nearly every tool, toy, and component.
Factories in China continually output plastic toys, electronic devices, and parts. It’s in all the top manufactured products in various consumer industries.
People rely on these goods every day. As a result, the plastic industry’s reliance on OEM manufacturing in China will likely continue.
Textiles
Factories in China produce an incredible amount of clothing and textiles. In fact, clothing and textiles are the top exports in China.
Many United States companies sell textiles made in China. Manufacturing in China is a vital part of the fashion industry.
As with other industries, manufacturing in China enables companies to produce high-quality, affordable goods. Moreover, the production capacity of OEM manufacturers in China enables the fashion industry to meet the ever-increasing speed of today’s fashion cycles.
A Trusted Manufacturing Partner in China
Now, you know a bit more about which industries benefit the most from product assembly in China. Still, have you ever thought about how your company could take advantage of working with suppliers and manufacturers there?
If you want to learn more about working with companies in China, Shield Works Precision Manufacturing can help.
Our warehouse and manufacturing facility is located in the heart of Zhuhai City near the South China Greater Bay area. We provide custom OEM manufacturing, assembly, and warehousing. For more than 16 years, Shield Works Precision Manufacturing has worked with a growing international client base.
Please feel free to contact us today to learn more about risk-free, high-quality manufacturing solutions in China.
5 Benefits of Outsourcing Your Assembly Line Production
Studies show that about 66% of large businesses and about 29% of small ones outsource services for different reasons. While you may prefer to complete all your company’s work in-house, this may not always be possible. As the demand for your products grows, you may find it hard to keep up. Besides, you may lack the right skills and equipment to produce enough products to match the increasing demand. By outsourcing your assembly line production services, you can boost output and grow your business.
Here, we discuss the five top benefits of hiring another company to assemble your products. We will also explain how you can improve productivity and ease work by sub-contracting.
1. Reduces Costs
One key benefit of outsourcing your assembly line production services is that it can help you reduce costs. Most firms report that they experience at least a 15% decrease in the total cost by hiring another party to offer their services or produce goods.
Some of the expenses you can reduce by subcontracting are raw material sourcing and training employees. You will also reduce the cost of labor since you will not need to hire many workers for production and packaging.
Outsourcing can help you reduce the amount of money you spend paying for facilities like warehouses. Instead of storing assembled products in your company’s premises, the sub-contracted firm will keep them. They can then ship the goods from their location when a client places an order.
Maintaining equipment can be expensive and sometimes lead to reduced production. When you outsource assembly services, you will avoid such expenses. Since most of these firms have a large pool of equipment for different uses, you will not have to stop producing goods due to maintenance.
By cutting down the total costs, you can then direct more money into marketing and getting more customers. Also, you can hire more skilled workers in other departments. Such may include customer care, operations management, and information technology (IT).
2. Allows the Company to Focus on Other Operations
Another benefit of subcontracting assembly line production services is that it allows you to put more effort into other business areas. Instead of hiring workers for production, you can focus on getting those with other needed skills.
These may include employee management, strategy marketing, public relations, financial forecasting. Focusing more effort on these areas will give you a clear understanding of the target market. It will also allow you to observe market trends and make better decisions.
Other than that, your managers can direct more time and resources towards improving the skills of your employees. For example, they may conduct training and development sessions to help workers focus on the primary goals of your business.
Such measures can motivate them to develop more creative ways of running the business and getting new clients. Putting more funds into training can also reduce employee turnover and the cost of hiring more workers.
3. Improves Quality
A minor mistake in production can cause secondary damage and lead to more losses. For instance, using the wrong quantities of ingredients can affect the quality of the end product. It may also cause the machine to break down and lead to the loss of raw materials.
Outsourcing an assembly production line can help you avoid such mistakes and improve the quality of your goods. This is because firms that focus on production always hire employees with specific skills.
These experts have enough work experience, which allows them to notice a production mistake faster. They can then come up with ways to correct it before it causes further damage and losses.
Another way outsourcing product assembly can improve quality is through control. Firms that offer these services always test the strength and durability of manufactured products. This measure allows them to regulate the standards of each batch.
Once the manufacturing experts notice that a product is below the needed level, they will mark it as a reject. After that, they can check what went wrong and develop measures to correct the mistake. Such precautions will protect your firm from selling low-quality goods and help you maintain clients.
4. Allows You to Customize Products
Customization can improve efficiency and help you make goods designed to address specific needs. Tailor-made products are also more marketable and will allow your brand to expand into untapped markets.
Still, creating custom products calls for detailed research and testing. You may also need to use specific tools to create the desired outcome.
By outsourcing assembly line production, you can avoid most of the issues that may arise when creating custom goods in several ways. For example, the partner firm can create a better product because they know the production methods your competitors use.
Besides, they can liaise with your employees and selected consumers for a pilot launch to assess the pros and cons of the new model. They will also perform various durability and environment tests for quality assurance.
These processes allow them to identify defects and come up with ways to correct them before mass production.
5. Improves Organization
Keeping track of various processes can be challenging when you have a big company. You have to follow up on raw material sourcing, goods production, and distribution.
At the same time, you need to market new and existing products to maintain and gain more customers.
When you have so much work, you may neglect some tasks, which will affect performance in the long run. Luckily, an assembly line production company can also provide related services packaging.
Their warehouses are also safer for storage since they have designs that suit specific products. With their services, you will smoothen work by having a clear business process flow chart.
Storing goods in their warehouse can also make it easier to supply to your customers. Once the firm makes the goods, they do not need to ship each batch to you. Instead, they can hold some and send them to clients who are near their locations.
This way, you ensure that customers get their goods in time and save money that you would use in transportation.
Contact Shield Works Today for Assembly Line Production Services
Collaborating with another company for assembly line production can improve efficiency and help your business grow. At Shield Works, we provide reliable precision assembly and warehousing services.
We communicate with our clients daily, allowing them to follow up on the whole production process.
By partnering with us, you can increase output and enjoy the benefits of China-based manufacturing while saving costs. Reach out to us today for reliable assembly-line production outsourcing.