Posts Tagged ‘contract manufacturing companies’
6 Questions to Ask Before Finding a Suitable Contract Manufacturing Partner in China
There are many different considerations to keep in mind when choosing who will be responsible for manufacturing your products in China.
Whether you’re looking for a new manufacturer or thinking about an alternative option, it’s better to ask these 5 questions to evaluate if a manufacturing company can be your partner before finalizing anything. Let’s get started.
1. How Long Have They Been in the Industry?
If you’re looking for a quality contract manufacturer in China, it’s important to see how long they’ve been in business.
If they have been in the manufacturing industry for many years, you can be sure that their quality will be top-notch and that they know what they are doing.
If they have only been in business for two or three years, then this may not be the best option because there is more chance that they will not have experience with certain techniques or processes.
Also, by knowing the history and background of a supplier, you will have a better idea of their company development. Are they expanding or shrinking? What are some possible causes for these changes? With that knowledge at hand, not only can you learn more about how they operated in the past, but also you can make predictions about their future changes and think strategically before deciding whether or not worth working with them for the long term.
2. What Is Their Current Customer Base?
Asking your potential supplier about their current customer base gives you a clue as to what types of projects and customers they are taking on.
The more information you have, the better idea you’ll have of how well-versed they are in different industries and if there will be a good fit for what you’re looking for from them.
One of the most useful ways to estimate the customer base that your contract manufacturing supplier has is by reviewing the case studies and testimonials on the supplier’s website.
3. Are They Aware of International Standards?
A contract manufacturer should understand all the most common domestic and international standards, as well as its quality control procedures. Without knowing standards, the manufacturing company will not be able to apply related certifications, thus they are not allowed to produce certain products even though they have capacities.
If you want a production partner who will work with you on every step of the process, look for a company that specializes in your field so they can answer all your questions. This way they can help you develop your prototype and create a production plan before they start producing any items.
4. Do They Understand Your Product?
Finding a contract manufacturer that understands your product and idea can be an important consideration because they will be making your products to reach your expectations and requirements.
Many times, contract manufacturing companies are also responsible for product design and prototyping, so they should know your products as deeply as you do. Especially when it comes to PCB manufacturing because there are so many components and complicated techniques involved in this process.
Also, an experienced manufacturing partner that knows your products can provide much more useful information beforehand such as if there are any specific materials you might need, how to source the best raw materials to produce quality items, and how much production time is needed.
A red flag in the partnership with a contract manufacturer is that they don’t ask you any questions but keep saying yes instead. This can mean they don’t care about your product, or they are simply unable to communicate with you.
5. Who Will Manufacture Your Product?
As many overseas buyers complain about the scams of the manufacturing sector in China, you must pay more attention to who will be the real one to take care of your production.
Some companies claim that they are a legitimate manufacturer with appropriate facilities, but it turns out those claims might just be fake news upon further due diligence. If you want to how to identify whether a manufacturing company is real or not, click here to learn more about know how to spot a real factory or a trading company in China.
6. How Does Quality Control Work?
Quality control is extremely important in manufacturing. If your product is not up to your standards, you need a manufacturer that will work with you until the product meets your expectations.
Before you find a manufacturer, it’s important that you understand what quality control practices they follow and how they handle products with defects or errors.
In most cases, defects or errors are referred to as AQL which stands for Acceptable Quality Levels. These levels can vary depending on the industry and company. For example, if you’re making electronic products, then the acceptable defect rate might be higher than for outdoor fitness equipment.
It’s essential that you understand the manufacturer’s policies before signing any contracts so that there won’t be any surprises down the line.
Conclusion
The search for a manufacturing partner can be long and arduous, and it also may take some effort on asking questions and getting information from a supplier, but when you consider just how much time and money will be saved by taking these steps, it’s worth it!
Many overseas companies may feel more comfortable working with a Western-owned contract manufacturing company in China because they think that a company with western management background has higher standards and more positive reactions, so they don’t need to worry about product quality and communication.
If you’re on the way to looking for a company that has all your security needs covered, we can help! Start your journey by reaching out today for more information and see how we will be able to make them worth every penny!
5 Questions to Ask Before Working with a Contract Manufacturer in China
As an entrepreneur, when you start working with a contract manufacturer in China, it can be tempting to simply not ask any questions and just trust that your Chinese partner will do everything necessary to manufacture your product correctly, on time and within budget. However, doing so can end up costing you precious time and money if you run into any issues with the product later on down the road or don’t receive what you expected from the manufacturer. That’s why it’s important to ask these 5 key questions every time you work with a new contract manufacturer in China.
1) What materials are available?
Some of the materials that are available for contract manufacturing include metal, plastic, and rubber. These can vary depending on what industry the manufacturer is focused on.
For example, if the manufacturer is focused on metal, they will be able to provide manufacturing services for metals like steel and aluminum. If they have a wider focus on plastics or rubber, then they may be able to manufacture more items that contain these materials.
This is important because it will give you an idea of what your options are for this particular company and how wide their capabilities really are. Knowing which types of materials they work with will also help you decide which type of contract manufacturer might be best suited for your needs.
If you’re looking for someone who can handle all types of products, then you’ll want to find someone who works with as many different materials as possible. However, if you need someone who specializes in one particular material only (for example, metal), then finding a company that focuses only on metal products might be better.
2) What techniques do they use?
Contract manufacturers use many different techniques. Some of these include injection molding, extrusion, and machining. They may also specialize in one or two of these manufacturing processes.
For example, if you’re interested in making a product with key metal components, it would be best to work with someone who specializes exclusively in metal injection molding. By doing so, you can ensure the highest quality products and efficient turnaround times.
In addition, you may want to ask what they can do regarding special coatings and logos. If you have something that requires extreme heat resistance or chemical resistance, it would be best to work with someone who has experience dealing with these types of coatings.
3) Do they have minimum order quantity
One of the first questions you should ask is what their minimum order quantity is. If they don’t have any, then you should probably keep looking and find one that does. This is a red flag for indecent quality.
If they do have a minimum order quantity, then you should find out exactly what that is. If you’re on a budget, this is important because it will give you some flexibility and cost control when it comes to production runs. You’ll be able to experiment with different designs and sizes of products without committing too much money or ending up wasting an excessive amount of product inventory.
It’s also possible that there are other benefits to having a higher order quantity, such as being eligible for wholesale prices or receiving discounts.
4) How Long Have They Been in Business?
One of the first questions you should ask is how long have they been in business. Ideally, you want a company that’s been around for at least five years and has experience with your industry. If not, it’s worth asking about their team’s experience and what they’ve accomplished over the course of those years.
For instance, a contract manufacturer might have experience working with other brands or companies within your niche. Once you find out how long they’ve been in business and what they’re capable of doing, it’ll be easier to decide if they’re the right partner for you.
It is not only about how long they’ve existed, but also their history of working with an international customer. If they are able to provide references, then it will make your decision much easier. Their past clients can either confirm or deny whether they will provide excellent service as well as quality products. The relationship between the customers and manufacturers are quite important so this question is worth asking when you meet them in person.
In addition, if possible try to talk to the owners directly and find out more about their background. In order for them to grow successfully and continuously learn new skills, these factors are crucial especially when thinking about potential expansion. Asking these types of questions before hiring a contract manufacturer will help both parties understand what type of expectations each side has from one another from the start!
5) Do they offer in-house design?
If you’re looking for design services, it’s important to find out whether the contract manufacturer can provide them. If they do, there are follow-up questions you might need answers to.
Does the manufacturer have an R&D department? If so, how many people work there? What are their credentials and what are they working on now?
If they don’t have an R&D department or if they only employ a small team, it might be difficult for them to get work done quickly or meet your expectations. In that case, you may want to consider hiring another company for design as well as manufacturing.
Good candidates for China contract manufacturing don’t come by easily. Shield Works is one of them with over 17 years of experience, spread out over the vast array of the industry in the region. Our background is the UK, and our expertise is in China. This combination means we’re knowledgeable in affordable China-made products. We would be happy to help your company be successful, if you’re interested! Contact us today!
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!
5 Things about Outsourced Product Assembly You Can’t Afford To Miss
If you’re looking for ways to save time and money, outsourcing your product assembly could be one way to do that without compromising your overall quality. Here are some things you can’t afford to miss if you’re considering this option. These tips apply whether you’re looking at outsourcing on a small or large scale; the only difference will be in the amount of detail each section of your post needs. With that in mind, here are the five things you can’t afford to miss if you’re planning to outsource product assembly.
First off, What Is Outsourced Product Assembly?
What is outsourced product assembly? How does it differ from in-house assembly?
When a business outsources assembly, it hires a third-party company to make the items it uses or sells in part or in full, depending on the relationship established between the two parties.
Whenever you consider outsourcing your product construction, think about the items that you would like to have made, then find businesses that can build them, and then talk to them about forming a relationship.
It’s important to know exactly what you want a third party to do for you before you begin outsourcing.
It Lowers Your Costs
Doesn’t it make more sense for companies to produce everything themselves rather than outsource it?
The cost of running a business increases when a company creates its own products. It can especially hurt small companies, since they may lack the funds to hire many workers.
Your production costs can be reduced by partnering with another company. When you do this, the other company will provide and employ the workers for you. Thus, you do not need to pay salaries or hire new employees.
Other companies are usually based overseas, such as in China. China’s manufacturing costs are cheaper than in other developed nations, so you will not have to spend as much on your final product. As a result, you are able to cultivate productive and positive business relationships with professionals abroad!
You Can’t Just Work with Any Product Assembly Company
Just as with any business partnership, you want to make sure you find the right manufacturing company for your specific requirements.
Make a list of all the materials and items your product requires. Does the company have them?
Also, ask them if they have worked with any companies similar to yours in the past.
Furthermore, you should pay attention to how friendly and professional the company’s workers are. In order to be productive for as long as possible, you should look for a company with great client service.
If their customer service is not up to par, then it will be difficult for them to get things done efficiently.
In addition, you need to know what type of warranty is offered by the manufacturer so that when problems arise, it can quickly be resolved without too much stress on your end.
Furthermore, price is also important when choosing a product assembly company.
Timeline Is Important
When you first talk to a company, ask them how long it takes them to produce and ship items. This will affect how quickly you can deliver materials to your clients. Therefore, you should find a company that makes high-quality items quickly.
You should discuss what happens when unforeseen circumstances occur. Natural disasters, for example, might cause the company’s ability to deliver your product to you to be interrupted. In times of emergency, you should know what measures the company takes to keep its production running smoothly.
If an urgent situation arises, ask who you should contact. This will give you a person to go to, instead of wasting time looking up who to contact.
The last thing you want is to miss deadlines because of miscommunication. Lastly, make sure that both parties have contingency plans in place in case any problems arise.
Make Sure They Have Everything It Needs to Protect Your IP
Copyright is different depending on which country you are in, so a company should do what it can to ensure that its intellectual property is safeguarded.
That’s why you should research the intellectual property laws of the country in which your products will be made. If they do not protect the rights of other companies, consider making your products elsewhere.
As a bonus, you might also be able to use this to assess the company’s technological competency in keeping your data safe. Do they use leading-edge, state-of-the-art software? Is it comparable to the security you take at your place of business? Do they make regular security checks and upgrades?
A leak of your intellectual property can result in serious, business-damaging losses such as intellectual property piracy and lost data. If you’re trying to keep your company safe, think about the level of security that others have.
When you find a potential supplier that meets these standards, take things a step further. Ask them how they will keep your data and IP safe. Do they have a physical security system? Will they test regularly to make sure everything is working as it should be? If so, then you can work with them more confidently.
Also, you can take precautions on your end. Always have NDAs prepared for your supplier to sign before giving out any sensitive information; register trademarks and patents to prevent copycats and protect your brand; if you source parts or components from multiple suppliers, assemble them at one secure location;
Ready to Outsource Your Product Manufacturing?
In light of this, have you given thought to outsource assembly process?
Outsourcing production may help a company get their goods faster and more cheaply than trying to produce everything on-site. Further, they are freed to focus on innovation and growth of their company.
Here at Shield Works, we manufacture goods. Located in China and British-owned and managed, our goal is to provide clients with high-quality items at affordable prices. If you would like to know more about what we can offer, please get in contact with us!
Contract Manufacturing in China: How to Get Started
China manufacturing. It is one of the most well-known industries in the country, and it has a strong global presence.
It is known as a leader in the manufacturing industry because China commands 28% of the global manufacturing industry. For perspective, the United States is second place on that list at just over 16%.
With the country having such a strong manufacturing presence, you may be tempted to do business over there. If you have this interest, you have to look into contract manufacturers.
What do you need to know about contract manufacturing? What do you need to get started?
This is your guide.
Remember Your Intellectual Property
You have to remember that when you are doing business in China, there are different intellectual property laws than in your home country. If you are coming from the United States, you need to be aware that there is much less protection for intellectual property in China than there is back home.
So, if you have a product where success relies on you being the exclusive provider of it, you need to do your homework about intellectual property laws in China before drawing up a contract. Make sure you go through all of the proper channels and have all of the paperwork to protect your intellectual property as much as possible there.
Set Quality Requirements
The next thing that you have to do is make sure you set up quality requirements in your contract. This can help protect you from a business that may not be known to operate with the highest standards.
Putting your standards and requirements in writing strengthens your position and gives you a higher chance of getting quality results. The reason for this is with having this in writing; you have something to fall back on if something goes wrong along the way.
Whereas if the lack of quality comes up unexpectedly, you may be stuck dealing with it if you signed the wrong type of contract with this company. Make sure you spell this out and figure out what quality requirements you want before agreeing to do business with a company.
Be Very Detailed
When it comes to contracts, in general, you want to have as many details listed as possible. Manufacturing in China is no different.
A contract helps make clear what your standards are, what your expectations are, and what you are expecting a manufacturer to provide. For example, if you have a quota for how many items need to be shipped every week for one product, you should put that in your contract.
What standards need to be put in place? How much money are you going to pay the manufacturer? How are you determining that price? What is the size and color of the product requirement?
These are things that you need to think about in terms of details in a contract. You may also want to consider how long you want this contract to last and if you want to be exclusive with this manufacturer.
If you do, then that can have an influence on what the contract terms are and how much you are going to agree to give a manufacturer.
Go Over Pricing
Along with the above, you need to go over the pricing and payment procedures with your manufacturer. It is a detail of the contract, but it is arguably the most important detail.
The reason is that having the pricing and payment structures laid out could be the difference as to whether your business survives or not. This is because if there is a misunderstanding, you may not have the funds to pay for litigation or even to pay what you owe.
Go over this carefully and make sure you understand exactly how much you have to pay and what exactly you are getting in return for this payment.
Prepare for Disputes
Going off of the above, the best way to put out a potential fire is to prepare for one that might come up. This includes disputes because it is likely that you may have at least a minor one with the manufacturer that you choose to do business with.
Try not to worry too much because this is a normal thing to go through. About 85% of people in business experience a conflict at one point or another.
The best way that you can handle this is to prepare for the worst and hope for the best. Essentially, be aware of any possible problems in the future and come up with plans to resolve them.
Find a Reliable Manufacturer
Finally, you are going to need to have a reliable manufacturer by your side. It is best to have someone that has a good reputation in the industry and someone that has taken good care of colleagues. If you do not know anybody like this, perhaps check reviews and testimonials.
Having a good manufacturer can save you time and money, along with any potential business headaches in the future.
Get Started With Contract Manufacturing
These are some of the key things that you need to know when it comes to contract manufacturing. Two of the most important things that you need to make clear are the pricing and payment of services, along with the quality you expect. In general, it is best to have all details covered with a reliable manufacturer.
Are you ready to get started? Message us today to take the leap.
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.
Is Product Development in China Up to Snuff?
Product development in China has earned itself a reputation as one of the most innovative nations in the world. But just how good are the products that come out of China? Are they up to snuff? Some business owners find themselves questioning the value of outsourcing their product development needs to China, so let’s take a look at how the country stacks up against others when it comes to producing products that meet global standards.
It is still a good idea to outsource product development to China
The idea of outsourcing product development to China may seem strange to many. Most engineers and product developers assume that manufacturing abroad only applies to sourcing parts from other countries, but there are many advantages to having your invention made in China. Chinese companies, for example, often provide ready-made factories, so you don’t have to worry about setting up the factory space before production begins. The biggest benefit of outsourcing product development is the cost savings. there are generally cheaper manufacturing costs in Asian countries than in Western ones, which allows startups to take risks they otherwise wouldn’t be able to.
With years of development, China is able to produce quality products that meet international standards. Engineers and product developers think outsourcing manufacturing to China is a risky decision, since they are concerned about the quality of the products. American brands are realizing, however, how reliable Chinese companies can be as more use them for their projects.
Get off to a good start
Working with a partner who has impeccable standards and experience is the best way to avoid quality issues in the future. In spite of the numerous problems that can arise when making products abroad, you’ll want someone on your team who can spot these problems before they snowball. Working with an experienced partner will help you avoid major setbacks, whether it’s minor translation errors or hardware problems. Know what aspects of your product or business could cause problems. When unsure of anything regarding your production process, consult an expert or do some research.
For example, if you’re using a new material or technology for your product, it’s critical to know how that material will interact with other components. Whether you’re making a hard drive, an electronic device, or anything else that contains moving parts and circuits, you need someone who knows how these things work together. This can help you avoid quality issues that may arise later during production when pieces are put together in different locations around the world.
How long it takes
From preparing a prototype and testing it, to finding materials and ordering samples, bringing an idea to life can take up to six months on average. Consequently, product development timelines are dependent on various factors such as the creation of a custom mold instead of a mass-produced mold or production in China. This could result in significant changes in the timeline, depending on your design and goal. What will the timeline be for receiving your samples? It will vary based on what type of shipping you select. Ordering standard delivery is good for packages to reach you in two weeks or less; order express shipping and you’ll receive your package in one week.
But with COVID and geopolitics, everything still remains more or less unclear. It’s important to have an adaptable mindset.
How much you should invest prototyping
Getting prototypes made is often a great way to see how your product will look (and feel) and how durable it will be. It’s also worth taking into account the fact that prototypes have varying prices. If you are looking for low-cost prototyping solutions such as 3D printing, get quotes from multiple suppliers. Injection-molded parts can cost hundreds to thousands of dollars. Many manufacturers don’t charge their first-time clients much for printouts if cooperative desire is demonstrated.
It’s also important to consider how many products you will make. If you’re only going for one prototype, that might not be a bad place to start. But if you are trying to test multiple variables or aspects of your product idea, investing in several iterations could make sense. (For example, if you want both male and female feedback on a product before going into production.)
How to make sure you don’t get ripped off
Although you may be hesitant to send money to a company you don’t know, most clients choose to have an agreement in writing before making any payments. The agreement should include timelines for delivery, agreements for delayed shipping and detailed specifications. If you’re worried about your contract being followed to the letter, hire a lawyer who works in this area, or find a partner that has experience making goods in China. That way you can rest assured that there will be no mix-ups, you’ll get exactly what you wanted, and there’ll be less chances for headaches.
If you don’t have time to vet a partner thoroughly before entrusting your project to them, you could run into some problems, but investing your time up front into researching reputable ones will solve the majority of potential issues. From the UK and with a 17-year history in product development, Shield Works definitely understands your language. Give us a call and find out more!
IPR Protection: Why Do You Need to be Smart about Your Ideas
Developing an invention that could potentially make you millions can be exciting, but it’s also important to realize the legal responsibilities involved. If you don’t know how to protect your idea, you risk losing it altogether, or at least never realizing its full potential because of an infringement.
Curious about intellectual property rights? Don’t know what an IPR is, or why it matters? It’s time to get yourself up to speed on this essential aspect of business that affects all inventors and entrepreneurs.
In this article, you’ll learn about the basics of IP protection when manufacturing in China, what it can mean for your business, and some ways to protect your ideas in the long run.
What Is Intellectual Property?
Intellectual Property (IP) is an umbrella term describing the set of intangible assets that are legally protected by a company or person from unpermitted use.
Intellectual property consists of different forms of assets, including trademarks, patents, and copyrights.
Trademarks
A trademark can be a word, phrase, symbol, design, or a combination of these elements that distinguish a specific item from the rest.
For example, the Coca-Cola Company has registered its Coca-Cola® trademark in both standard character format and special form formats.
Patents
A patent is an exclusive right granted for an invention, which could be a design, process, improvement, or physical invention such as a new machine.
For example, the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple Inc.
Typically, there are three types of patents:
- Design patents
- Plant patents
- Utility patents
Copyrights
A copyright is a collection of rights that automatically vest to someone who creates an original work of authorship.
A copyright protects an author’s right to reproduce the work, prepare derivative works, distribute copies, and perform and display the work publicly.
The most common copyrights include:
- Literary works
- Musical works
- Dramatic works
- Pictorial, graphic, and sculptural works
- Architectural works
What is IP Infringement & Why Should it Be Avoided?
Intellectual property infringement refers to the act of violating works that are protected by IP laws. This can happen in a manufacturing environment where the manufacturer copies the idea or design without permission from the original owner.
Nowadays, many overseas companies spare no effort to identify and protect intellectual property due to its high value in their businesses.
IP is essential for making sure that your hard work and creativity are credited to you. Having the satisfaction of knowing others use what you create makes it all worthwhile.
Not only does developing high-quality intellectual property take a substantial investment of time and intellect, but also requires an organization or individual to put in hours of work. It would be unfair for another party to access this knowledge without the consent of those who invested so much energy into its creation.
IP infringement can come in many forms, including unauthorized use, copying, reproduction, or distribution of materials protected by Intellectual Property Rights and counterfeiting products intended to mislead consumers.
So, protecting IP and avoiding IP infringement are serious matters.
How to Avoid IP Infringement When Manicuring in China?
Manufacturing products overseas can be challenging. When it comes to working with a manufacturing company in China, you need to take precautions to avoid any type of IP infringement. There are a few tips you can take to protect your invention from legal troubles.
1. IP Registration
IP rights are territorial rights, which are only applicable in the country or region where they are filed and granted by the law of that country or region.
If you manufacture your product in China (or anywhere outside of your home territory), which mentions or reflects your brand, then you must register that trademark locally even if you don’t plan on selling it there.
Registering for trademark protection can save your business from being ripped off and taken away. It protects your intellectual property rights because if you don’t do this somebody else will take advantage of the opportunity and steal your idea or design and produce them under a different name in China.
2. Confidentiality Agreements
The next necessary step is to sign an IP-protected agreement with your manufacturing factory to safeguard your confidential information.
In China, the most used contract is an NNN agreement, which means Non-disclosure, Non-use, and Non-circumvention.
Make sure the contract includes a confidentiality clause that prohibits your supplier from disclosing information about the product and its design or production process.
3. Intellectual Property Insurance
If the defense mentioned above doesn’t work, or you still have a great concern about your IP, then you can carry intellectual property infringement insurance in China.
However, such insurance is not widely used in China and is rarely covered by a standard business insurance policy, so it is not as effective as you think.
4. Work With a Reliable Manufacturing Supplier in China
It is essential that you are diligent and strategic with your intellectual property right protection so that your invention won’t be stolen or copied by someone else, which would prevent you from making money off it.
For this reason, it’s important to establish a strong IPR protection strategy from the beginning. Working with a reliable manufacturing supplier in China can help you protect your product design, production process, and ideas for new improvements or modifications.
If you’re looking for a company that has all your security needs covered, look no further than Shield Works. We are a British-owned and managed company that specializes in the high-quality and competitive rate of contract manufacturing and product assembly services. We follow a rigorous process to safeguard your IP with our 70,000-square-foot facility. Start your journey by reaching out today for more information and see how we will be able to make them worth every penny!
3rd-party Quality Control Service in China: Your Key to Protecting Your Product
A lot of people are considering sourcing their products from China, and this isn’t without good reason. However, one concern that many people have with sourcing from China is whether the product they purchase will be safe to use once they get it in their hands. Thankfully, there are ways to ensure that your product arrives safely, including the use of 3rd-party inspection services in China. This article will discuss this important part of any China sourcing process in greater detail and provide you with tips on how to choose an ideal 3rd-party inspector for your project.
Why it’s important
It is of the utmost importance to control quality in manufacturing. It’s common knowledge that quality control is crucial for any product, but many people overlook how important 3rd-party quality control services in China can be in ensuring product safety. Get quality control services from a qualified 3rd-party like C2W. With quality control services, you will never worry about getting faulty products again. Invest in trusted 3rd-party quality control services today if you want quality products every time!
Reason to choose a 3rd-party quality control service
You can ensure your product arrives at its destination without any defects or flaws by using a 3rd-party QC company, and you will also show potential customers that you care about quality and safety. Whether or not you hire a 3rd-party quality control company comes down to the fact that a 3rd-party inspection does not change your product safety standards. Prior to shipping your product out of China, you will have an expert ensure that all of your requirements are met. There is a greater chance of making a mistake along its route toward distribution, resulting in money and time loss on your part.
How to pick the right one?
When you find a company with experienced 3rd-party quality inspectors, be sure to take a good look at their certifications. 3rd-party certification and ISO 9001 compliance should come up. Professionals who are trained for audits, inspections, and analyses: a certified professional is worth it and all that counts is how much experience the professional has. Once you’re in the process of selecting inspection services, be sure to inquire about the companies’ methods. You will want to know what systems of internal quality control the company follows and whether inspectors will use a random sample or a statistical model.
You’ll want to ask about turnaround times. Inspections are not cheap, but then neither is a recall or a lawsuit from faulty products. There’s no point in rushing your inspection or ordering one that doesn’t offer enough quality assurance for your standards. Do it right from day one. And don’t forget – if you’re still worried about a product after it gets its certificate of quality, don’t be afraid to ask for another inspection. This will show your commitment to quality and protect both you and your customers down the line.
What do they look for?
Inspectors may study an array of features of a product and its packaging including how it was constructed, what materials were used, how it was packaged and labeled, whether it complied with safety standards, and so on. If a product was intended for children or if it was inherently unsafe, inspectors would look for warnings labels or other ways to inform consumers of potential hazards. Items such as stuffed animals are also subject to inspection to make sure they’re safe for children to play with. Inspectors check that children won’t choke on them or hurt themselves. Lots of people have one electric device tested by checking to see if sparks fly and also to see if there’s anything exposed that could give you an electric shock.
What can you expect from them?
In China, there are many 3rd-party QC companies offering QC services. How do you know which ones are good? In addition to being qualified, a 3rd-party quality control company should possess a wide range of certifications related to quality control. Ask for references if you are unsure. Do not just rely on their word. Furthermore, it is important for your supplier to work with them as well, so that there are no errors caused by miscommunication along the way.
Inspectors from 3rd-party QC companies should be able to speak and read English. As mentioned before, it is important for your supplier, as well as your customer, to understand exactly what was inspected and what problems were found. If there are any disputes over defects found on a product during an inspection, you will want a translation that is easy for everyone involved to read and understand.
You should also make sure that they have inspectors with years of experience working on products similar to yours. It is all too easy for an inexperienced inspector who doesn’t know much about your product or industry to miss some kind of defect – even one that could easily impact how well your product works once it gets used by customers.
Major Takeaway
In China, your manufacturer may tell you that hiring a QC service is unnecessary because their products come with quality warranties, but when things go wrong, that warranty means nothing. A 3rd-quality control service will protect you against defective manufacturing and ensure safe delivery of your goods. There aren’t all 3rd-party inspectors created equal, so consider how often they’ve worked on your product and choose one who you trust.
Contact us today to learn more about quality control services for Chinese goods, or to speak with one of our experts in the quality control industry!
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.