Risk Mitigation When Hiring Product Assembly Services in China

By 2030, the global outsourcing market is projected to reach over $587 billion in value. Under the right circumstances, outsourcing certain responsibilities can help save your company a substantial amount of money. This is especially true when it comes to manufacturing assembly, as handling this yourself is an expensive and complicated process.

Hiring product assembly services in China is one of the most popular options entrepreneurs take advantage of, but everybody understands how to mitigate risk when working with Chinese assembly companies.

We’ve put together a brief guide that outlines key information. Let’s get started.

Check Their Level of Experience

This is one of the most important attributes to consider. Under no circumstances should you work with an inexperienced service provider. Not only will this cause you to fall short of your goals, but you may encounter additional complications.

For example, they may fail to meet certain deadlines, reach your quality standards, etc. Gaining insight into their experience should be straightforward.

Reputable companies often have examples of their past work and professional relationships on their websites. If you can’t seem to find relevant information, this is a sign you should continue your search elsewhere.

How Is Their Communication?

It’s no secret that language barriers can prevent fluid communication with Chinese manufacturers. However, many of these providers strive to eliminate this issue.

Gauge how easy it is for you to communicate with the company. Are their responses coherent and detailed? Do they understand what you ask of them?

It’s best to continue searching until you find someone you can easily interact with. This isn’t limited to language, though. Issues sometimes arise with assembly tech infrastructure.

Your manufacturer might have a completely different system you’re unfamiliar with. In a case like this, it can be difficult to communicate the necessary data.

Instead, it’s best to prioritize manufacturers who emphasize communication.

Look Into Their Fees

Unfortunately, some manufacturers include hidden costs. These often aren’t substantial on their own, but they can add up over time.

This can include high customs fees or import taxes. They can also include added labor costs.

Regardless of what the fees are, the manufacturer should be transparent about them. The last thing you want is to exceed your budget unexpectedly.

Stay away from manufacturers who seem deceptive about their billing structure. Instead, search for a company that provides itemized breakdowns.

This will help you see exactly where your money is going. The manufacturer should also have a certain level of flexibility and allow you to omit services you don’t need.

Do They Have Quality Assurance?

Under no circumstances should you work with a manufacturer that doesn’t have a quality assurance policy. What is their method for assessing quality? How do they react to products falling below their standards?

This is one of the most important steps in mitigating risk. Without the right policy, you’re sure to receive low-quality products.

By extension, this will also affect your company’s performance. A situation like this could have a negative impact on your brand’s reputation.

It’s not uncommon for businesses to invest in third-party inspections. These are often held at random and can go a long way when it comes to getting the best results.

Ongoing Customer Service

It can be notably frustrating to work with a provider who’s difficult to get in touch with. Even with time zone differences, you shouldn’t have issues reaching out to the manufacturer.

They should have a dedicated customer service team that’s ready to handle your needs. Otherwise, you’ll be left in the dark for most of your professional relationship with them.

This can cause numerous issues, such as dealing with concerned shareholders. Search for a manufacturer that prides itself on its customer service. This is one of the most important steps you can take when it comes to outsourcing.

Are There Intellectual Property Concerns?

One of the biggest concerns people have when outsourcing to Chinese manufacturers is over intellectual property (IP). More specifically, they worry about IP theft or duplication. Due to international laws, IP protection can be complicated.

In some cases, shady manufacturers reverse engineer designs. They may outright copy products and sell them to other businesses. To help prevent this, it’s essential to establish a strong agreement.

This contract should outline the key details of the project and put protections in place. For example, the agreement could include language about information sharing.

It’s in your best interest to work with an attorney to ensure everything is in order. They can review your agreement and make the necessary changes. They can also identify if a manufacturer is using shady tactics in their contracts.

Check Their Credentials

The manufacturer you outsource to should have a legitimate business license, tax registration certificate, and ISO 9001 certificate. Under no circumstances should you work with a company without these credentials. In a situation like this, it will be impossible to determine their legitimacy.

If you know the company’s official Chinese name, you can research their business license with the relevant authorities. This can help you confirm that the company is reliable.

Getting Started

Getting started is as simple as researching online. Take a look at their past reputation and see what others have had to say. Were past clients satisfied with the results?

Did the manufacturer remain professional throughout the process? Trust your intuition when researching your options. If they seem shady or uninterested, look elsewhere.

It’s also worth noting that you often get what you pay for. Those looking for the cheapest options will often get poor results.

However, this doesn’t mean you always need to pay as much as possible. A manufacturer in the middle of the price range can likely meet your goals.

Optimize Your Outsourced Product Assembly

Product assembly services in China can be a great way to take your company to the next level. As long as you do your due diligence, you can find the ideal option for your situation.

Get in touch with a representative at Shield Works Precision Manufacturing. Our professional team can help bring your vision to life.