Posts Tagged ‘manufacturing companies in China’
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!
Supply Chain Management: The Backbone of Your Business
Supply chain management is the backbone of any company, big or small, that deals in physical goods with substantial production and distribution processes. When you’re starting out your business, supply chain management might seem like an afterthought; you’re more concerned with what goes on inside your company than the goods that come in and out of it. But when you’re ready to scale up, you’ll need a way to manage your goods from their point of origin all the way to where they’re being used—and that’s where supply chain management comes into play.
What Is A Supply Chain?
A supply chain is the network of all suppliers and producers, distributors, warehouses, and end customers involved in producing and delivering a product. Supply chains are found in a variety of industries including automobile manufacturing.
A consumer goods business’s supply chain can be broken down into four main categories: supplier development and management; distribution; operations management; and customer service. These four components work together to ensure that goods are delivered to customers on time while maintaining a high level quality.
Suppliers need to be monitored for quantity, delivery times, and any changes in price or availability. Distribution requires coordination with carriers and transportation services for getting products from point A to point B without any delays or damage. Operations must handle such things as plant floor layout, storage equipment design, assembly line design, production scheduling strategies and inventory levels. Customer service involves managing customer expectations with respect to pricing/costs, lead times and order fulfilment.
An effective supply chain is crucial because it ensures your company has continuous supplies which allows you to stay competitive by meeting your customers’ needs at a low cost while still ensuring profit margins remain healthy enough for long-term success.
Benefits Of Having A Good Supply Chain In Place
A good supply chain will ensure the availability of your products and services to buyers. Having a reliable supply chain in place means you can trust that what is promised is delivered, without worries about product shortages or delivery delays. It also means you can focus on other aspects of your business, such as marketing and customer service, knowing that your supply chain is running smoothly. Good inventory management also saves you money by reducing the amount of time spent managing inventories; it eliminates waste by reducing excess production; and it prevents overbuying or underbuying by estimating demand more accurately.
It also allows you to offer same-day shipping or delivery services, which can greatly improve your customer experience while enhancing your brand image in shoppers’ eyes. Finally, having control of every step of the process from production to distribution gives you peace of mind because you know where your products are at all times.
Problems With A Poorly Planned And Managed Supply Chain
A poorly planned and managed supply chain can lead to a variety of problems. For example, if your supplies are delivered late or in the wrong quantities, it will be difficult for you to keep up with demand and meet customer expectations. This could cause your customers to look elsewhere for products, meaning you’ll lose money. Similarly, if something goes wrong with a shipment – say you ordered 2,000 units but only received 1,500 – then you won’t have enough product on hand to fulfill orders and may have to cancel some orders altogether. This can damage your reputation as well as cause delays in production that hurt your bottom line.
In addition, a poorly planned and managed supply chain can lead to even financial problems. If your supplier ships you faulty products – say they accidentally send you 2,000 units that don’t work properly – then it may be difficult for you to get a refund or replacements. This could force you to halt production as your staff tries to identify and replace all of these faulty units and seek compensation for losses. Worse still, if there’s an issue with your suppliers’ products that leads to serious injuries or health complications for customers, then it may be difficult for you to find a lawyer who will take up your case due to consumer protections laws in many countries. And it’ll be detrimental to your cash flow.
How Can You Effectively Manage An Effective Supply Chain?
There are many factors to consider when it comes to supply chain management, but the most important is having a plan. You should start by writing down all the points that are essential to your business and then create a list of what you need for each point. You can also make use of a system that will help you manage your inventory and keep track of where things are in the process. When it comes to order fulfillment, be sure that you have enough space in your warehouse or storage area to account for the time it will take for customers’ orders to arrive. If you’re not sure how much space you’ll need, speak with a professional who deals with these matters on a daily basis.
Or you can hire a professional supply chain management company. They will work closely with you to establish goals for your organization’s future manufacturing plans as well as strategies that address potential problems like an increase in problems or changes in technology. They also provide recommendations and support for establishing a sustainable supply chain strategy. With their guidance, there’s no doubt about it: You’ll be able to continue running an effective supply chain without wasting money, resources, or time.
Shield Works Can Take Care of It All
Shield Works has over 17 years of experience in managing supply chain, all the way from manufacturing to delivery. We can help you achieve your goals and objectives while saving time and money. For a free consultation on how we can help your business, call today!
Why China is the Top Country for Product Prototyping
Although there are prototyping services in numerous countries around the world, China provides one-of-a-kind advantages to entrepreneurs and manufacturers alike. Let’s take a look at why China is the best place to prototype products before they launch globally.
Labor cost is lower
While labor costs in China are still cheaper than those of other high-tech economies like Japan and South Korea, they use more advanced machinery and better manufacturing processes to make products cheaper, faster, and higher in quality. Allowing these firms to set lower prices, such efficiency come from better use of technology (like robots) and closer monitoring of labor schedules to minimize downtime (i.e. breaks taken by workers). These different factors increased efficiency and lower wages, which mean that Chinese manufacturers are capable of supplying a higher quantity of products at a lower cost than anywhere else in the world.
They take care of it all
Some Chinese prototyping shops provide all the help you need to build a prototype. On-staff designers, 3D printers, and injection molders will give your ideas form and shape. if you purchase a package deal, they’ll do all of your work for you. Startup founders love this because it lets them focus on what they do best. Even better: specialized prototyping companies are popping up in increasing numbers, with faster-than-normal manufacturing processes, which work well for small startups aiming to get specific things accomplished.
For example, if you’re building a medical device, you might want to partner with a firm that specializes in the design and manufacture of medical devices. These firms know the details that the regulatory agencies such as FDA need to make sure that you’re following their protocols and as such you don’t need to concern yourselves with that information. Entrepreneurs who are launching hardware-based products should work closely with these experts from the earliest phases of the project.
Fast delivery
Inexpensive prototyping and large-scale manufacturing allow product developers to innovate at an unprecedented pace. Chinese factories offer lower costs, shorter lead times, and larger production volumes than other countries. Companies like Apple have established relationships with Chinese manufacturers for over a decade. Today, a large percentage of Apple’s products are manufactured in China—including final assembly for some parts (e.g., cables and batteries). While there are many factors that come into play when deciding where to locate production, high speed of prototype delivery has become increasingly important as consumers demand better turnaround times on pre-orders.
Preloaded technology
Since they make 3D printers with helpful software to make them easier to use, Chinese manufacturers also preload their 3D engineers with more industry experience, because they typically hire skilled workers who are experienced with manufacturing similar products or work with experienced consultants. Due to its large population, the talent pool in China is nothing comparable to those in other countries. It’s been difficult to close this sizable gap.
Innovative culture
While in the past China’s reputation has been that of a country that has stolen technologies and has relied on a copier culture, it’s now on the verge of becoming a leading economic power. Beijing’s top leaders are beginning to think that innovation, not imitation, can be the solution to some of the country’s problems and that it can create new industries and jobs, as well. They believe that innovation will lead to economic growth and more opportunities. nearly 700 universities in China have revamped their names to incorporate innovation, signifying an emphasis on teaching for research and development. Only a few years ago, these schools focused solely on providing the lowest common denominator of engineering training, churning out manufactured products for countries around the world.
Home-made tech forces
One of the reasons why Chinese startups can prototype at such an accelerated rate is that they take advantage of local tech hubs. These facilities allow startups to rent office space, equipment, and more–eliminating expensive overhead costs while also fostering a sense of community and support. For a tech startup’s success in prototyping its product, being closer to industry experts and resources as well as proximity to large financial markets might be just as important as proximity to Silicon Valley’s startups and innovation.
For instance, take Huaqiangbei in Shenzhen for prototyping needs. With processors, motors, sensors, and circuit boards, this massive market has all of the electronic components imaginable. This place would be like a godsend for an entrepreneur! Don’t worry, those needing a startup engineer or product designer needn’t walk the thin line of distributors or manufacturers – they can take to the equally harrowing but far shorter task of searching Huaqiangbei Street instead! Of course, they also gain an attractive other benefit, though access to information.
Shield Works’ in-house engineering team is well-seasoned and bilingual, and we have over 17 years of product prototyping experience in China. Contact us now for more!
What Are the Benefits of Contract Manufacturing in China?
Over $540 billion worth of goods were imported into the United States from China in 2021.
China has been and remains the manufacturing hub of the world for the last few decades. This growth allowed China to invest in infrastructure to further its dominance in the sector. These investments have made China the perfect one-stop shop for the world’s manufacturing needs.
Contract manufacturing in China offers a wide range of benefits to businesses of all sizes. Outsourcing production in this way can help lower your costs and set yourself up for expansion throughout Europe and the rest of the world.
Interested in moving your manufacturing needs overseas? Here are a few of the major benefits of contract manufacturing in China.
Lower Production Costs
China is home to over 1.4 billion people. These population numbers have created a labor market where wages have remained low compared to other markets in the world. The minimum wage varies in different regions, but the average is still below $3 an hour.
The lower cost of labor directly decreases the overall cost of production as companies can afford to hire more people with the same budget. The ability to hire more people makes the entire process more productive. This increase in productivity means that every unit produced ends up being cheaper.
Fewer Regulations
The manufacturing sector in the United States is heavily regulated. Red tape and production regulations can delay internal processes and even halt production. This can have a massive financial impact on the company.
This is why many outsource their manufacturing to China as there are far fewer regulations to navigate. While there are still strict health and safety regulations in place, everything is designed to be as efficient as possible. This allows businesses to instantly start production and distribution.
Excellent Logistics and Shipping Services
China has dominated the manufacturing industry for a seriously long time. This industry has grown to contribute around $4 trillion to the national GDP every year. However, these finances were invested to make the country the manufacturing hub of the world.
China has invested in strategic infrastructure to help make logistics as efficient as possible. They have done this by upgrading their shipping ports, airports, and national highways. China has also invested heavily in international highways to help deliver goods throughout Asia and some parts of Europe by road.
This, along with its geographical location, makes it the perfect place for contract manufacturers.
Central Location
China may not be as central as Europe, but it’s close enough to its largest trading partner, the United States. This allows American companies to sign contract manufacturing agreements with local companies online.
Modern technology has helped make this process as easy as possible. There are even online platforms designed to help businesses find local manufacturers. However, there are also experienced firms that offer guidance every step of the way.
Productive Business Culture
Contract manufacturing agreements are designed to be as efficient as possible. This is because outsourcing your manufacturing helps reduce the risk of production for your business. While there may be other options available, the Chinese market is by far the best choice.
This is because the manufacturing industry has world-class infrastructure, local support, and experience. The industry is designed around efficiency and comes with a productive business culture to match. This productivity can help you lower your overall production cost to boost your profits.
Saving you time, making you money.
Global Expansion
As mentioned above, China has the best logistics networks in the world. This allows the local supply chain to operate with accuracy locally and internationally. This is because China is already linked with almost every country in the world.
In this way, outsourcing your production to China gives you access to the country’s logistic network around the world. This makes it easy for you to produce goods in China and ship them directly from China to various countries. Shipping directly from the factory to the destination can save you money.
China has trade agreements and deep diplomatic relations with almost every country in the world. This means that you can leverage the country’s existing infrastructure to grow your business around the world.
Attractive Local Currency
The Chinese currency is one of the country’s most powerful tools. This currency is not exchanged like other currencies in the world as it’s completely under the control of the local government.
This means that the government has the ability to create a stable economic environment for investors. By controlling the currency, the government can use it as a tool to encourage investment whenever it’s needed.
The local currency is kept at an attractive rate for foreign investors. This helps keep local costs down for international companies. By making every dollar go further in China, it encourages businesses around the world to move their operations to the country.
Contract Manufacturing in China
China is the manufacturing hub of the world for a reason. While businesses around the world may have seen China as cheap labor in the past, the country has evolved. This has resulted in a productive business culture that can help serve businesses around the world.
Whether you’re a small business looking to cut down production costs or a company trying to expand, contract manufacturing is the way to go.
Interested in outsourcing your manufacturing with a contract manufacturer in China? Contact us for more information. Our experienced team is ready to help.
7 Benefits of Working with China Manufacturers You Must Know
Deciding whether to outsource your manufacturing to China can be an overwhelming process, but there are many reasons to choose China as your manufacturing hub. Here are five of the most important benefits you should consider before making a decision.
Lower Costs Than Western Counterparts
One of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
Besides having fewer overhead costs, Chinese facilities also have lower training costs. In order to cover these costs, domestic manufacturing facilities must set aside a significant amount of money.
Businesses of all types outsource instead, as wages in China are also lower than in the United States.
When you outsource, you can spend less per dollar, so you can reap the benefits that can come from using Chinese product assembly. Keep this in mind when you are considering moving forward.
Larger Production Volume
A business does not necessarily need to manufacture thousands of products in one order. However, in some cases, large organizations often have a hard time locating a domestic facility that can meet their bigger-than-normal needs.
This means that China has typically built facilities that are able to produce large volumes of goods for many different countries. Even an average Chinese factory can outperform the vast majority of western facilities.
When it comes to companies that require a massive supply of their product, there is no better alternative than outsourcing to China. In many cases, it is also the only way to meet your goals.
Diversified Production
To long-term success, scaling your business may be needed.
This can happen in a variety of ways. For example, you might add a new product line to generate additional revenue.
One option would be to find growth opportunities in one of China’s developing markets. That way, you can use them to establish a niche in your business. Designing new products is one of the key ways in which they help.
Choosing a Chinese OEM plant, in some cases, might give you an edge over your competition.
Flexibility of Product Design
Domestic facilities usually cannot adjust their design at your behest because it could take them days or weeks to actually put them into practice.
You may have to change the way you do business to sell a more desirable product if you don’t have high enough sales numbers. Adding to this, delayed orders because of design changes also carry the risk of your customers turning to competitors.
It is our understanding that Chinese manufacturers are ready to implement any changes required of them. As for you, all you need to do is contact the representatives from your company and describe the alterations that you need.
The manufacturer will typically make revised products as soon as possible after you inform them of your change, which is an important consideration as it will affect your brand’s reputation.
IP Protection
Many people are unaware that many Chinese factories prioritize intellectual property protection.
This means they make sure you don’t end up in legal trouble by avoiding any form of infringement. To illustrate, suppose you sell a product that is extremely similar to that of your competitor.
As with any other manufacturing industry, there are shady facilities that engage in such tactics. A reputable factory in China will make sure that there is no copying or reverse engineering going on.
It is good news that you can research the reputation of your prospective factory before choosing to work with them. Otherwise, you may find yourself in a situation that is difficult to remedy.
Efficiency
China’s factories are capable of mass production, and it is a simple matter for them to do so with remarkable speed.
These new and efficient facilities can meet any production standard. This will allow smaller organizations to compete with larger ones.
Many small businesses can’t keep up with the production rates of large corporations. Without the help of the right manufacturers, these businesses will never be competitive.
Tips of Finding The Factory Right for You?
It can be difficult to find a reliable Chinese manufacturer for all sorts of reasons, like time zone challenges and language barriers. With the help of a professional, you will be able to get a firm grasp on which factory is best for your company.
You’ll find that they are a go-between who has contacts at the other party’s end. That way, they’ll be able to work out the finer points and make agreements without you even needing to intervene.
You can take a look at this resource to find out how you can use this to your advantage.
We Are You Go-To Option
With the above information in mind, you can be sure that you are deciding the right course of action for your company.
From here, you’ll be able to employ Chinese manufacturing for appropriate businesses. Want to learn more about Shield Works with 17 years of China manufacturing experience? Please get in touch with us today and see how we can help.
The Risks of Outsourced Manufacturing: What You Need to Know
When you outsource your manufacturing, you’re trusting someone else to handle the job of turning your idea into a tangible product. While this usually works out well and can bring significant cost savings to your company, there are risks involved with outsourcing that you should keep in mind as you consider outsourcing as an option for your business or organization. Read on to learn about some of the most common risks of outsourcing manufacturing and how to avoid them so that you can maximize your benefits and minimize your costs.
Supplier Risk
Direct arrangements with suppliers from any industry come with risks. However, the risk is greater when buying from an international supplier. Prior to outsourcing, you must conduct a thorough investigation.
Then, you need to conduct a thorough risk assessment using the possible markets and suppliers. Identify any potential issues with the provider’s possible suppliers.
It must include the supplier’s operations, quality, leadership, and labor. Check to see if their track record lives up to their promises.
By doing so, you will avoid disruptions caused by your supplier failing to follow through. You can also ask other helpful businesses who have used your potential supplier. As soon as you make your decision, you’ll gain insight into working with them.
Quality Assurance
The lead time, as a result, for transporting products is longer compared to domestic sources, if product failure occurs from an international source, which can cost you suffer severe business disruptions.
If the problems get severe, it can take months to resolve them. To mitigate this risk, you need to prepare detailed product specifications for your sources. You’ll periodically perform independent quality control inspections.
You may lose your reputation if your product quality declines. Avoid this by observing the manufacturing process for a few weeks. It is cheaper and ensures quality, so it’s better than having to recall a product.
Intellectual Property Protection
Don’t share sensitive information with your outsourced manufacturers until you check their origin country and their intellectual property rights. Otherwise, your proprietary information might be leaked.
In cases like this, IP laws are more relaxed in the manufacturer’s country. Depending on the product, you may find it better not to outsource anything. If your product undergoes regular updates, however, this might not be an issue.
You might overlook patent protection if you think you can produce better items faster and with better quality. This can happen when you pump out new products faster than the market can handle.
Transportation and Delivery
Outsourcing to a foreign service is tricky if you don’t take it one step at a time. If you do it poorly, the delivery will be delayed.
A common timeline for ordering and receiving your product should be important to your outsourced manufacturer. Think about whether they can meet a timeline for production. In case the total is greater than it has been, you must work to make the customer’s expectations fit reality.
One may also look for a workaround to restore the time to its correct place. Otherwise, you may accidentally erase all your work. Given the importance of this issue to customers, we’ll need to keep it at the forefront of our priorities.
Sourcing Labor
This type of conversation doesn’t happen as often, but when it does, it can hurt your brand. Make and fulfill your products with a manufacturer that follows humane standards.
It is especially important when it comes to labor laws and other relevant guidelines for employee safety that your manufacturer’s guidelines match your own country’s. It is your responsibility as well as your outsourced help to adhere to ILO guidelines if your country is a member.
Weather
Despite how it might seem, what your manufacturer does in relation to the weather can affect how it’s perceived. A rough bout of weather can lead to various delays. Doing so puts your brand in a negative spotlight because it has to be revealed what your labour force looks like.
How well your supply chain holds up to weather-related crises can affect your reputation, as well. Though they’re flawed, it’s not always best to steer clear of your brand name. As a result, you must put it before anything else.
Should You Outsource Manufacturing?
If your company is not ready for outsourcing, you should weigh the benefits of this decision. A number of benefits are available to you.
You will cut your spending as well as boost the productivity of your business by doing so. Popular demands are produced by many companies.
Additionally, you’ll avoid every aspect of manufacturing bureaucracy. It’s what slows businesses down, especially in countries with strict regulations.
Invest in Outsourced Manufacturing Today
While there are risks involved, partnering with an outsourcing manufacturing company can be helpful in boosting your business productivity. The first step is to find a reputable manufacturer. Use this advice to find the best provider.
Have you been considering manufacturing internationally? If so, please get in touch with Shield Works and we’ll talk about how our 17 years of outsourced manufacturing can help your business thrive!
5 Questions to Ask Yourself When Selecting an OEM Manufacturing Company in China
Making products by outsourcing manufacturing to China can be an incredibly rewarding experience. Not only does it enable you to develop the item exactly how you want, but it also allows you to create high-quality products in much larger quantities than you would otherwise be able to make on your own. For these reasons, more and more entrepreneurs are choosing to manufacture their products in China by enlisting the help of an OEM manufacturing company.
However, with all the options currently available, selecting the right OEM company can seem like a daunting task.
Asking yourself the right questions before you begin production with a new partner can save you time and money in the long run, ensuring that you have an efficient manufacturing experience from start to finish. Let’s get started!
Question #1: What Are My Requirements & Standards?
The first question to ask yourself before approaching an OEM company is to develop an exhaustive understanding of your product. Not only should you have a general idea of the product, but also write down the product specifications in detail like:
- Colors
- Materials
- Dimensions
- Components
- Manufacturing techniques
- Manufacturing process
- Quality standards
- Packing requirements
- Import and export requirements
When you manufacture a product, the outcome can be drastically different based on what type of raw materials or techniques are used. It’s important to establish your criteria beforehand so that you know which company will create the best result for you.
Question #2: What Is My Budget Limit?
It’s important to define the upper limit of your budget when outsourcing your production to any supplier, because a more affordable company may not be able to provide you with the same quality and efficiency as a more expensive option. And you may not want to sacrifice the product quality just for saving a bit of money. That being said, while the price is certainly something you should consider when shopping for an OEM supplier, it shouldn’t be the only deciding factor.
However, it’s not a good idea to set an exact budget number right off the bat before all other factors are not considered.
In this case, you can estimate the price range for this manufacturing project based on what you think would work best for your company. Then you can also compare various service providers to have a better understanding of the perfect investment for your business.
Question #3: What Should I Do to Conduct Due Diligence?
After fully considering your needs, then you can conduct due diligence to know whether the manufacturing company is knowledgeable about your specific product type, or if it has worked with similar products before.
The best way to find this information out is by researching the company website to know their background, qualifications, service category, past work, etc.
You can also ask for references from a supplier you trust or reach out to other businesses that are manufacturing a similar product.
Doing detailed due diligence is not an easy task, check out our blog to know how to spot a real factory or a trading company in China.
Once you have all the relevant information, compare different manufacturers’ strengths and weaknesses against your needs and make a decision based on what will work best for your business.
Question #4: A One-Stop Shop Factory VS. Different Suppliers
Then you also need to think about do you want to use a one-stop shop factory that can fulfill all your needs or different suppliers who can specialize in different areas.
A one-stop shop factory is a model whereby one company manufactures, assembles, and distributes the product that they have been commissioned for. This factory can potentially increase efficiency and reduce production costs as a result of having all production processes under one roof. However, this could also limit your options for product customization if their manufacturing capabilities are limited.
If you need to make products with different materials or designs than what they produce, then you will need to find a different supplier. Furthermore, there may be certain materials or suppliers that are hard or expensive to acquire domestically in China so it may be necessary to find another supplier.
If time is not a concern and cost savings are your main priority, then finding one supplier might be the best option for you. However, if flexibility is more important for you, then working with multiple suppliers would be recommended.
Question #5: How to Guarantee My Product is Perfectly Working?
One way that a manufacturing factory can prove its commitment to quality assurance is by providing a sample of your product for inspection. In this case, requesting a product sample before placing your first order can be a good idea.
If there are any flaws, you have the opportunity to give feedback before mass production. In other words, if the manufacturer has nothing to hide, then there should be no problem with sending out a sample or a finished product for testing. This eliminates the risk of encountering problems and ensures your customers get what they pay for!
In addition, it’s imperative to look at whether your potential manufacturing supplier has an in-house quality inspection team or not. You want someone who will stand by you when things go wrong because inevitably something will go wrong at some point. If they assure you of having quality inspections available, ensure that the inspection report specifies what exactly is being inspected and which parts aren’t included.
Final Thoughts
Ultimately, your choice of manufacturer in China should be determined by what matters most to you and how much involvement you want with the production process.
Keep in mind that there is no perfect way of choosing a manufacturer but it’s worth taking some time to think about what’s important and how much you want to be involved in the process.
If you need any help, look no further than Shield Works. Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements.
We focus on the provision of a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.
How to Work Successfully with a Product Development Company in China
Whether you’re outsourcing manufacturing or just having product development done, working with a product development company in China may be the best thing you can do for your company. It’s not always easy to work with these companies and get what you want, but by following these tips, you can make sure you have the best experience possible when working with a product development company in China.
Researching if a Chinese company is right for you
Do your research to make sure the company is reputable and has a good track record. Request referrals from other clients, read reviews, and look for third-party verification on their website or social media pages.
If you’re still not sure, contact your potential manufacturer directly via email or phone to ask them questions about their manufacturing process, products they’ve made before, turnaround time, etc. Make sure you’re clear on what you want upfront so there are no surprises later. Make sure you have a clear idea of how much it will cost and how long it will take to get the product manufactured once all details have been finalized.
Finding the right supplier
There are many things to consider when looking for a supplier, such as cost, quality, turnaround time, and communication. Quality is always the most important consideration but you will have to weigh that against your budget and desired timeline. For example, if you’re going for high-quality but don’t want it delivered quickly, you’ll need to find someone who specializes in producing slow-moving items or can give you a discount on the price.
A product development company with a widespread network of suppliers in China can help you a lot as they provide a vast pool of options for you. This can save you time and money, as you’re likely to find several good suppliers from one firm.
Use an Online Translation Tool
If you’re looking to develop a product with a company based in China, it’s important to establish clear communication from the start. Using an online translation tool can help bridge the language barrier and ensure that both parties are on the same page. You should find a reliable translation software provider such as Google Translate or ICanLocalize before your project starts.
Always be sure to get in touch with your partner before starting work on your project. Communication is key to everything, and make sure you language is simple to understand. Do not assume that the partners will understand what 5×5 means when used in reference to size, or finish by Labor Day, as the Chinese Labor Day falls on May 1, when referencing deadlines. Be specific when discussing measurements and timelines so there is no confusion.
Use Templates as a Starting Point
When you are ready to start working with a product development company in China, it is important to have a clear idea of what you want your product to be. Templates can be a great starting point for this process. However, be sure to communicate your vision clearly to the company you are working with.
It may also be helpful to do some research about popular products on the market and create images or sketches based on these ideas. For example, if you want a toy that will help teach toddlers how to count and learn colors, you could use pictures of other toys that teach those skills as a template.
Ask For Samples
Always ask for samples of their previous work. This will give you an idea of their quality and craftsmanship. If possible, try to have someone visit their facilities, given the current travel restrictions, and meet with their team in person. This will help you get a better sense of who you’ll be working with and how they operate.
It’s important to find the right balance between trusting your instincts and choosing the company that checks all your boxes when it comes to your budget, timing, quality standards and expertise.
Document Everything
When working with a product development company in China, be sure to document everything. This includes contracts, communication, and any other important details. If god forbid, when it comes time for you to file a complaint or lawsuit against the manufacturer, you will have everything on hand for the process.
It is also important to remember that often times there are discrepancies between what was agreed upon and what was actually delivered. It is best to document as much as possible so that you can catch these discrepancies early before they escalate into an issue.
Deal With Design Changes at Scale
Changes are common in a design process. They may be minor, such as changing the color or size. Or they can be major, such as changing materials or components and all that entails. However, it is important to note that there are two types of changes: those that can easily be made at scale and those that cannot. The latter must always be done by hand.
When working with a product development company in China, make sure you specify which type of change you want done so the designer will know what to do! If your project requires many changes, have your Chinese manufacturer provide guidance on how to handle them.
Working with a product development company in China is not something to take lightly, but the rewards can be great if you do your research. That takes an experienced product development company for you to achieve, and Shield Works is one with 17 years of experience in this area. Reach out to us if you’d like to know more!
4 Things You Must Know about IP Protection in China If You’re Manufacturing There
China manufacturing has become much more popular in recent years, with the China being known as the ‘world’s factory’. However, while China manufacturing offers many benefits, it also comes with its own unique set of challenges, including intellectual property protection issues. For those considering manufacturing in China, here are four things you must know about IP protection in China if you’re manufacturing there to help you avoid potential legal issues down the road.
It’s Different When You Are Not From There
In any country, protecting your intellectual property (IPR) is difficult. It becomes even more complicated when you are dealing with a foreign jurisdiction like China, which has its own set of laws and customs that differ from your own. While no one wants to consider they might ever need to use IP protection methods, they can be an asset if you are faced with problems.
Before you seek legal help or pursue someone for violating your IP rights, remember that many IP cases fail because companies make basic mistakes; before taking action, it pays to know some of them. For example: Remember that you are a foreigner – Chinese laws should protect you against infringement, but don’t assume they will.
Having a backup plan is important because there is always a possibility that law enforcement may not assist you. Keep in mind who owns what – In China, registered trademarks are owned by the registrant rather than being assigned based on where products are sold. Due to this rule, you could lose ownership over your trademark simply by failing to register it properly. In addition to using multiple locations for manufacturing facilities and offices, Chinese businesses tend to utilize multiple forms of IP protection, such as patents, trademarks, and copyrights.
Trademark Registration in China
In order to fully protect your intellectual property (IP) rights, you must apply for trademark protection in China. There are three ways to do so: chinese national or regional trademark offices can be contacted directly, through a representative, an agent, or through a representative of an agent.
Direct registration is cheapest and fastest. If you don’t speak Chinese fluently, you will likely want to use an agent rather than trying to do this on your own. The best agents have years of experience filing trademarks in China and can walk you through the process.
Make sure your trademark is maintained by filing periodic renewal applications before its expiration. If you fail to renew, you risk losing all legal protections conferred by registration-including the right to prevent others from registering a similar mark. It is called trademark squatting when someone registers a trademark similar to yours after yours has expired. This process occurs frequently and is called trademark squatting.
Generally, copyright protection is achieved through registration with CIPA (China Intellectual Property Office). This ensures your work is protected legally.
Following completion of examination and approval procedures, trademarks can be registered with SAIC (State Administration for Industry & Commerce) or SIPO (State Intellectual Property Office). In addition to providing exclusive rights for your trademark, it also allows you to contest its use in court if necessary. If you wish to register a trademark, the most important thing is to make sure it hasn’t been registered by another party first; otherwise, you may face difficulties if you want to register it at a later date.
Brand Protection
When it comes to your creations, if you haven’t registered them through patent or copyright registration with qualified departments, you cannot take advantage of their legal protection. For instance, when developing something new, ensure it is registered intellectual property before distributing it to others for commercialization. This will allow you to lay the groundwork for future protection of your rights and interests.
Make sure you include an effective copyright notice on all of your original works. Copyright is defined as a form of personal ownership that protects original works of authorship including literary, architectural and artistic works from being used by others without permission or compensation.
What To Do with An IPR Dispute
You should definitely keep your records – things like your business contracts, licenses, registrations, licenses, licenses, you name it. You don’t want to destroy any records!
Check with a local attorney before signing agreements like these because they often have clauses that should be looked at beforehand. The clauses listed in this section may jeopardize Intellectual Property Rights in China.
When a dispute does arise, you can find a way to solve it by going to the police or foreign courts, among other choices. They are many instances, like going before the entire commission of Beijing Arbitration and seeking help from other departments such as SIPO and the National Copyright Administration.
Alternately, many foreign companies can solve their problems by going to the local technology offices for consultation at any time. One solution you may turn to after you consult with an infringer and find that it refuses to respond to the consultation is to take the infringer to court by yourself or to apply for help from SIPO. The most important thing is to be prepared with IPR protection before bringing the infringement to an end in China.
It’s better to prepare for the worst-case scenario, like if you found a company with a safe production facility and its own IP protection zone. Shield Works is just such a company. Different types of IP protection services are available, such as a partnership with a leading IP industry expert in China. If you want more information, you can always get in touch with us!
Manufacturing Contracts: Everything You Need to Know
The global contract manufacturing market will be worth over $2.7 trillion by 2023. Contract manufacturing is a significant part of the economy and drives business growth.
And for a good reason. Contract manufacturing is beneficial to companies hiring a contractor. They can use the latest technology and machinery, resources, and expert knowledge.
With so much at stake, manufacturing contracts include more than an agreement to work together. Manufacturing contracts are incredibly specific and cover a vast range of terms.
Before signing on the dotted line, here’s everything you need to know about manufacturing contracts.
What Is A Manufacturing Contract?
Many businesses don’t have the facilities or funding to manufacture their own products. Instead, they work with a dedicated manufacturing company that can produce the product for the company to sell.
If a company cannot or doesn’t want to make its own product, it will sign a manufacturing contract. Manufacturing contracts cover everything, from construction to children’s toys and military equipment. Even some perishable goods like food fall under manufacturing contracts.
A manufacturing contract is an agreement between the company that makes the items and the company that sells them. The contract covers every aspect of the manufacturing process, including:
- Sourcing raw material
- Delivery dates
- Quality
- Quantity
- Price and payment
- Transportation
- Liabilities and legal responsibilities
- Ownership and Intellectual property rights
- Testing and Certification requirements
The manufacturing contracts let both parties know what is expected of them. Eventually, working with a production partner will come to an end.
A manufacturing should include information about how and when the contract will end. This may include information on breach of contract, insolvency, and conflict of interest.
Types of Manufacturing Contracts
In general, manufacturing contracts are relatively straightforward. There are several different types of manufacturing contracts. Each type makes allowances for specific partnerships and agreements.
These are the most common types of manufacturing contracts.
Private Label Manufacturing
Private label manufacturing is the most common type of manufacturing contract. This agreement involves a manufacturer making a product to particular specifications. The design, sales, and marketing are the responsibility of the business. The manufacturer does not make decisions.
This is the ideal contract for businesses with exact specifications that don’t want to deal with the effort of manufacturing.
End-To-End Manufacturing
Also known as full-scale production, this is similar to private label manufacturing. End-to-end manufacturing means the manufacturer provides has input into the design and materials. For example, a company might enter an end-to-end contract for a manufacturer to make a specific industrial machine. The manufacturer will then take responsibility for the exact design, process, and materials.
The benefit of this type of contract is that the manufacturer can save money by designing a cost-effective operation. For companies that want an affordable product without hassle, this contract is ideal.
Individual Component Manufacturing
Some manufacturing contracts are limited to certain parts or components. The contracted manufacturer handles making one part of a larger product. Manufacturers may work alongside other manufacturers. Alternatively, they may send parts to the final assembly line.
These contracts can become very complex. Often these contract are in agreement with third-party companies. If Company A hires Company B to make a part, Company B might want to hire Company C to make a small part of the final product. In this case, the agreement because companies B and C must be approved by Company A.
This type of contract is common in specialist industries. Manufacturers outsource components that need expert knowledge and labor.
Labor Or Service Subcontracting
This contract is similar to individual component manufacturing contracts. Labor and services contracts are common in specialist industries. If a manufacturer doesn’t offer a full service, they may outsource some elements to a third party.
Manufacturers hire third-party suppliers or extra subcontractors for tasks that need specialists. This could include particular industry standards or qualifications.
The Benefits of Using Manufacturing Contracts
The contract manufacturing market is still growing. More companies are appreciating the benefits of outsourcing manufacturing. Contracts benefits both sides by setting expectations and outlining exactly what needs to be done.
Here are a few of the main benefits of manufacturing contracts.
Cost Savings
A good manufacturing contract should save money for both sides. Outsourcing manufacturing means companies don’t need to invest in specialist equipment. There is no need to set up factories, hire more staff or source materials. Furthermore, depending on the cross-border conditions, there may be tax savings.
For the manufacturer, contracts can help manufacturers adjust for expected quality and deadlines. With more information, companies can plan resources to save energy and labor costs. Manufactures can also bulk-buy raw materials at a lower cost.
Improved Focus
Working with a manufacturer allows companies to focus on what they do best. There is no need to become experts in the manufacturing process. Companies can spend money and resources designing and marketing their product.
The manufacturing company doesn’t need to worry about finding customers and making sales. This makes each company more efficient and more successful in its own field.
Increased Quality
Outsourcing manufacturing to an expert manufacturer means benefitting from their experience and expertise. The manufacturing company will have processes to ensure quality. A professional company is less likely to make mistakes resulting in recalls. This allows most companies to benefit from a higher-quality product from the start.
For companies that don’t have experience in manufacturing, outsourcing guarantees quality.
A contract makes the acceptable standard clear for manufacturing companies. This allows them to work to the quality requirements. Manufacturing companies can clearly understand what is expected.
Legal Security
A proper manufacturing agreement provides security for both sides. It can also help to increase trust between partners. With a signed contract, both companies can relax knowing they are protected. Neither side will end up in trouble for the other’s mistakes.
Legally-binding contracts help protect intellectual property and patents. And ensure that health and safety are taken seriously. Failure to adhere to the agreed-upon standards can result in the contract being void.
With secure agreements in place, both companies can trust the other. The result of not meeting expectations could have severe consequences.
Things To Look Out For
Manufacturing contracts are usually drawn up by legal departments. They are designed to protect the interests of both parties. A contract should help everything run smoothly and ensures the process is simple.
However, some companies run into problems with poorly written contracts. A production contract can cause more trouble than expected if you’re not careful.
Copyright and Selling Ideas
For protected and patented ideas or designs, outsourcing means more people could leak the design. Even if you have airtight restrictions on a design, competitors can create similar designs.
For unprotected designs, unethical manufacturers can sell ideas to other companies. They may make a profit and help the competition by creating your product for others.
Cutting Corners
Unless a contract is very specific, some manufacturers may source from questionable locations. The contract should include testing capabilities and procedures. The contract should outline potential consequences for manufacturers that cut corners during production.
Damage to Reputation
Child labor and slavery are not uncommon in some parts of the world. Companies need to be sure they trust their manufacturer to make good decisions. The potential for reputation damage is significant. A product made using child labor could be a PR disaster, even if the company was unaware. Your manufacturer is an extension of your business. Your business values and ethics should align.
Other Priorities
Many manufacturers will work with several clients at a time. This can result in one contract taking priority over another. The result is that deadlines can be missed as the manufacturer focuses on another project. A contract should make deadlines clear. This also means that surges in demand may not be met by production. The manufacturer cannot necessarily stop working with another client to fulfill demand surges.
Cultural Differences
Contract manufacturing is a global industry. As a result, there are plenty of cultural differences. Contract manufacturing in China has different expectations from similar companies in the USA. Working across borders with Chinese contract manufacturing means double-checking language translations. There may also be country-specific regulations and cultural differences.
What To Know Before You Sign A Manufacturing Contract
If you’re thinking of outsourcing manufacturing, you want to be sure you’re signing the right contract. Before putting pen to paper, here are some things to ask your production partner.
Who Is The Point Of Contact?
Often overlooked, knowing your specific contact is incredibly important. It means that if you have a problem, you can get in touch with someone fast. Otherwise, you may be unsure who to contact when things go wrong or when you want to make changes to your product.
Do You Have Testimonials?
If you want to take advantage of someone’s experience and skill, they should be able to demonstrate it. Ask to see client testimonials or example products from their line. This will allow you to be a judge of their quality of work.
Can I See Your Factory/Workshop?
A manufacturer should be transparent and willing to show you around their facilities. If they are reluctant, they may have something to hide. In minor cases, this can include a few health and safety breaches or operational inefficiencies. In more extreme cases, this can consist of child labor.
How Are You Maximizing Efficiency And Keeping Costs Low?
This will give you a good idea of how the manufacturer balances cost savings while maintaining a high standard. You should be aware of internal quality assurance procedures. Asking this can also help you understand exactly what you are paying for. It can also give insight into what type of business the manufacturer is.
Will Raw Material Price Increases Be Passed On?
Raw material costs frequently fluctuate. This can become an unplanned hidden cost later on. Some manufacturers will bulk buy in advance and take price increases into account. However, some contractors will ask for a price increase later on as raw material costs change.
What Process Do You Have In Place When Things Go Wrong?
To have total trust in your manufacturing partner, you need to be confident they know what to do when things don’t go to plan. This can include fire to supply chain issues and quality control failure. This should include how and when they inform you of problems.
What Non-Compete Clauses Do You Have?
His might not be relevant for every situation. However, there are many cases where you don’t want your manufacturer working with your competitor. You should check how they deal with competition proposals before signing.
What Possibility Is There For Contract Flexibility?
Business changes fast. You may sign a contract for one thing and find a few months later that you need to make changes. This could be quantity, quality, design, or price. Before signing, check out how much of the contract is flexible. What are your options for changing it, and how long will it take for changes to be implemented? You should also check if changes will incur extra costs.
The Right Manufacturing Contract For Your Business
Not all manufacturing contracts are created equal. Getting the right contractor for your business takes time, effort, and knowledge. Before you sign a contract, you should get it checked by your legal department or an independent lawyer.
Working with a good manufacturing company can save you time, money, and hassle and help you achieve a higher quality product.
Get in touch today to start enjoying all the benefits of contract manufacturing.