Posts Tagged ‘manufacturing companies in China’
Contract Manufacturing Services in China: A Guide on What to Consider
Let’s say you’re a small business owner and have just received an order for 500,000 watches. What do you do?
Well, first off, you’re probably feeling pretty overwhelmed! It’s a big deal to get that kind of business, and you want to keep them coming back for more. All you need is the resources to fulfill their order.
You’ve heard about contract manufacturing services in China, but you don’t know where to start. You can’t afford to make a mistake, so you need to be sure that whoever you choose understands your needs and offers quality products at competitive prices without compromising on safety or environmental standards.
Instead of trying to choose the best candidate on your own, read on for everything you need to know to make the right choice.
Quality Control and Inspection
You need to be sure that the products your company sells meet or exceed quality standards. Ask manufacturers about their quality certifications. You should also consider whether they have industry-specific certifications, such as FDA certification.
Ask about the steps a manufacturer takes to ensure quality, including inspection techniques and certifications. You also need to consider whether they use third-party testing. If they do, ask which organizations they use and what types of tests they do most frequently.
Cost
With so many variables involved in your product’s production and delivery, it’s not always easy to determine how much something will cost. The price of your final product will depend on several factors. So, it’s best to work with a contract manufacturer who can provide you with a comprehensive quote. This will help you understand all the costs involved in production and shipping so there are no surprises down the line.
Capabilities
When you’re looking to manufacture a product, you need to consider the capabilities of your supplier. You should ask:
- What type of products they can produce
- How many units per month they can produce
- At what price it will be possible to get them manufactured
For example, if you want to produce 500 units per month and require a high-quality material for your product, then finding a supplier who can do this would be ideal. However, if you only need 100 units per month with no specific requirements for the materials used, you have a wide range of options. Assuming you’re looking for the lowest price per unit, then your best bet is to find a supplier with no minimum order size.
Longevity
If your supply chain is disrupted in any way, it could wreck your bottom line and your business. You should carefully evaluate a potential manufacturing partner’s financial stability and performance record before choosing them for your product.
Communication
Contract manufacturers in China have low-cost labor, which can be a benefit if your goal is to reduce manufacturing costs. However, this also means that you may face communication difficulties because of language barriers. To circumvent this issue, consider working with a contract manufacturer that has experience communicating with Western businesses.
If you have limited opportunity to communicate with the production facility on an ongoing basis, then you should consider whether another manufacturer might be better suited for your needs.
Production Flexibility
It helps to choose a manufacturing company that’s willing to add to their production tools when necessary. For instance, some manufacturers only produce with injection molding equipment. If your project requires casting or machining equipment, then you’ll need to find a different company.
But if you can find a company that’s constantly updating its machinery and processes, then you should have the flexibility to make any changes that might be necessary.
Experience
A manufacturing company will only be able to produce your product if they understand the design specs and goals. If you’re working with a facility that doesn’t fully grasp your project, then it may not come out as expected. To avoid this problem, try to choose a manufacturer with experience in your industry or with similar products.
For instance, when choosing a manufacturing company for plastic injection molding projects, you should look for companies that have produced high-quality plastic components in the past.
Certifications
The quality of your products hinges on the quality of your manufacturing partner. It’s important that they have the right certifications and follow best practices. Manufacturers who don’t have certifications should be avoided at all costs, as they represent a risk for both you and your customers.
There are many certifications that manufacturers can earn, like ISO 9001, ISO 14001, and ISO45001. However, there is no law requiring a contract manufacturing service to have any particular certification. Each organization has its own standards for what is required for membership or accreditation.
Some industries also require specific certifications from their suppliers to sell their products to specific markets. For example, food packaging or medical devices require FDA approval before being sold in the United States’ market. If you’re planning on selling internationally, then make sure that any contract manufacturer you work with can meet those requirements as well!
Choose Reliable Contract Manufacturing Services
Getting the help of contract manufacturing services can help bring your ideas to life. At Shield Works, we have a wide range of capabilities and services to help you design, prototype, and manufacture your products. If you’re looking for engineering support to help you create the right product, we can do that too!
Get in touch with our team and tell us about your amazing idea. You’ll hear from us in 24 hours!
How Partnering with a China Manufacturing Company Can Benefit Your Product Design And Development
Are you an entrepreneur who’s looking to partner with a China manufacturing company in order to bring your product design and development process to the next level? If so, there are several reasons why partnering with China’s manufacturing industry can be extremely beneficial to your goals as an entrepreneur. Read on to learn how it can benefit you, as well as some tips on how to go about it if you’re interested in pursuing this option.
Shorten time-to-market
One of the main benefits to outsourcing product design and development to China is that you’ll be able to shave time off your schedule. There are many facets of every project that can be outsourced, including: design, prototyping and 3D modelling, etc.
Designing and developing products takes time, but if you choose to partner with a manufacturer in China, you’ll be able to reduce that time significantly. There are many aspects of your product that can be outsourced, including: design work, prototyping, 3D modelling and more. Working with outsourcing partners means not only being able to work faster (by hiring those who have experience), but also saving money by splitting up the workload between parties. If you choose to go through an entire project (or any part) on your own though, don’t expect costs to stay low. After all, time is money.
Keep up with demand
With Chinese manufacturers, you’ll get instant access to an enormous, world-class supply chain. Instead of producing small batches of products for an uncertain audience, you can create a minimum order quantity (MOQ) large enough to keep up with demand at any given time. A foreign production partner that handles warehousing, shipping and logistics means you won’t have to worry about overseas shipping and import/export documentation; it all gets taken care of automatically by these suppliers.
With so many Chinese manufacturers online today, finding one that meets all of your specific needs is easier than ever before. All you need to do is type in what you want into a search engine or go through Alibaba’s list of vendors. From there, you can select potential partners based on their location, reputation and other factors(Shield Work will be your ideal option!). Once you’ve found a few options that seem like good fits, contact them directly to learn more about their capabilities and ask questions. The key here is to be proactive: don’t wait until after your first shipment arrives—or even worse—after your first customer complaint!
Improve Quality Control
Letting manufacturers in China handle all aspects of production frees up resources to concentrate on quality control. With Chinese manufacturers, you have instant access to hundreds or thousands of factory workers. This means you can scale production quickly as needed. It also helps ensure that every unit produced is identical; from batch to batch, every piece is exactly how it’s supposed to be. When you produce small batches by hand in-house, inconsistencies are inevitable and quality control becomes very difficult. And there’s no way around it—anyone who produces products for resale has to control quality when producing on such a large scale.
With a wide selection of factories at your disposal, it’s simple to move orders between suppliers if one is having issues or just wants to temporarily take on less work. If there are problems with quality control, you have options. And if you don’t have a problem but another factory does, you can easily switch things up without wasting too much time or money. As long as you have good relationships in place, production companies will be willing to accommodate your needs. This saves time and ensures that every unit produced meets your standards—and gets shipped out quickly so that customers receive their products as soon as possible.
Cut Costs
Product design and development costs in China are notoriously low compared to Western countries. There’s plenty of reason for that, including a large talent pool at competitive prices, very inexpensive electronics components, taxes that aren’t levied on imported goods, and no trade tariffs on exported products. Moreover, there’s an enormous variety of suppliers to choose from — more than any other region in the world due to their full-fledged supply chains — so you have more control over specific aspects of your product. For example, assembling devices could be done at one facility while circuits are designed elsewhere. Finally, when it comes to producing prototypes or small runs before going into full production—or even if you just want to validate ideas quickly—prototyping is generally faster in China than anywhere else.
Use New Technology
One of the biggest things that distinguishes Chinese manufacturing is its tech boom over the past decade. This has greatly equipped its manufacturing ecosystem, particularly in areas like product design, where technology has become an integral part of the final product. As such, when it comes to product design and development in China, many foreign businesses have begun to take advantage of new technologies—3D printing being one prime example—to speed up their processes. With these new technologies, foreign companies are able to make prototypes faster than ever before and create higher-quality products than they could otherwise.
Another big difference between Western manufacturers and those in China is how modern factories use data to improve productivity. In China, every aspect of production is tracked digitally, which means workers know exactly what’s happening at any given time during production. This means there are fewer errors—and more importantly, faster turnarounds—than you would find in other countries.
The list of benefits of using China manufacturing to design and develop your next product can go on forever. If you haven’t yet manufactured in China, you need to weigh out all options before making a final decision. It isn’t as cheap as it used to be, but with manufacturers’ experience and current technology, it’s definitely very cost-effective and saves you from a bunch of headaches. Shield Works is one that can take care of all you need for your product with over 17 years of experience and excellent in-house team. Contact us if you’d like to know more!
Choosing the Right Product Manufacturer in China: Contract Manufacturing vs OEM Manufacturing
Contract manufacturing, original equipment manufacturing, and ODM manufacturing, oh my! There are so many different types of manufacturing companies that you can use to fulfill the needs of your business.
When you need to manufacture your product, you will want to pick the one that best protects your intellectual property while upholding the best labor practices possible.
If you are looking for more information about these product manufacturers and how to choose the right one, you came to the right place. This brief product manufacturing guide will cover all you need to know about the common manufacturers and who you can reach out to for more guidance.
What Is Contract Manufacturing?
Contract manufacturing is when you outsource part of your product’s manufacturing process to a third-party company. A large majority of companies use this method, so they don’t have to handle the bulk of their production process. Instead, a contract manufacturer manufacturers products for the OEM, producing items based on a set formula or design.
Advantages of Contract Manufacturing
A significant advantage of using a contract manufacturer is that they can help you create your products without investing in machinery or equipment. This also allows you and your business to minimize labor costs, free up capital, and commit additional resources toward research and development. Contract manufacturers also accept a certain amount of manufacturing-related liability.
Disadvantages of Contract Manufacturing
A major disadvantage of working with a contract manufacturing company is that there is more research and development work. The time to market your product is also a disadvantage.
Because it takes a bit longer to get the product, you will have to wait. Be sure to have a testing and validation plan from the beginning so you and the manufacturer can adjust it over time.
Types of Contract Manufacturing
There is a wide range of contract manufacturing services available. Standard contract manufacturing services include molding, assembly, machining, packaging, and sterilization. It is imperative that you partner with a contract manufacturer that provides the right services needed to support your product.
ODM Manufacturing
ODM manufacturing, also known as Original Design Manufacturer, is a business that creates products designed by you, but they are based on existing products. When you work with these types of companies, you purchase items that the factory already produces; you can just customize the items and add your logo.
You don’t always have to change the logo or design unless you want to. China is currently the leading ODM manufacturer, and most manufacturers outside of China are contract manufacturers.
Advantages of ODM Manufacturing
When you work with an ODM manufacturer, you don’t have to wait too long to market your product. There is also a much lower introduction price since you don’t have to go through the research and development process. ODM manufacturers also have strong expertise in technologies and in the market space.
Possible Issues with ODM Manufacturing
ODM manufacturers have the ability to send out your products quickly because they already have the item on hand or the specifics of the item on hand. A significant issue that comes with working with an ODM is intellectual property and who owns the design of the product even after you add customizations.
For the most part, the manufacturer created most if not all of the design, so they technically own the product’s intellectual property. This means that you own the copyright to the branding.
If you decide to work with an ODM manufacturer, make sure that you check the product you wish to customize. If the product looks similar to another name brand company, they can sue you for using their intellectual property.
OEM Manufacturing
OEM, also known as Original Equipment Manufacturer, is a company that creates a product based on the blueprint you send in. When you create a partnership with an OEM manufacturer, they expect you to provide them with a product specification sheet and a product design document so they can make your product properly.
There are several different varying degrees of original equipment manufacturing companies. Some of them already have a product on site that they can use to make changes to, or you can start from scratch and create a brand new product.
If you plan on creating a brand new product, you may want to reach out to a contract manufacturer for more assistance. With most original equipment manufacturing projects, the client must create custom molds or some other tooling to create the item.
If the OEM does not already have what you need, they will need time before production to get that all prepared. This is a cost most clients have to bear upfront, but there are other manufacturers who purchase molds and just charge you after the fact.
Intellectual Property with an OEM
Since you’re the product designer and you created the product specification sheet, you most likely own the intellectual property of your product. Since you’re also paying for the parts of production (tooling and molds) and you have contracts that prevent the manufacturer from using the specification of your product, the intellectual property is yours. Just to be safe, make sure that you protect your intellectual property with the appropriate documents.
Advantages of OEM Manufacturer
The time to market with an OEM manufacturer is typically relatively short. This is because the original equipment manufacturer already makes products similar to yours, and they can use their current suppliers. Working with an OEM manufacturer comes with lower research and development costs.
Disadvantages of OEM Manufacturer
Although working with an OEM manufacturer comes with several beautiful advantages, a few significant disadvantages can affect your project. For example, if you have to change suppliers, you can’t just make a quick switch.
You will have to change up your entire supply chain. This means you will need a new component supplier as your OEM won’t disclose their component supplier to you.
Because these sub-suppliers are not disclosed to you, there is a chance the OEM could switch out sub-suppliers without you knowing. This could significantly affect the quality of your product.
How to Find a Product Manufacturer
Before you can look for the right product manufacturer for your needs, you must decide if you want a factory overseas or here in the United States. The best solution for your business needs depends on your personal goals and priorities.
Advantages and Disadvantages of U.S. Manufacturing
Using a factory in the United States does come with a few benefits. For example, when you use a manufacturer in the United States, you have more direct control over overproduction. You have the opportunity to visit the site more regularly, and you avoid dealing with international shipping logistics and tariffs.
Unlike overseas factories, manufacturers in the states allow you to order smaller batches of products. Overseas, they have minimum order requirements that you must meet before they fulfill your order. If you don’t meet the minimum, they may add an additional fee.
One of the most significant disadvantages of working with a supplier in the United States is the fact that they cost more. Sure, you may have access to the supplier, but they typically charge more since they are closer.
Advantages and Disadvantages of Overseas Manufacturing
A factory overseas is almost always cheaper than using one in the United States. When you look for a product manufacturer overseas, you will notice that you have more options than you do in the United States.
This means you will have a large pool of applicants to choose from who have experience creating products similar to yours. The biggest challenge that comes with outsourcing is the longer shipping times and handling of import/export regulations.
There is also an issue of a possible language barrier. Thankfully, there are several different companies that have a dedicated representative that can communicate your needs in your language.
Look for a Product Manufacturing Plant
You can attend several networking events for more information on other Chinese manufacturing plants. International trade shows in the United States are another great resource to use when looking for the proper manufacturer.
When looking for the right company, make sure they make products similar to yours. A manufacturer may be eager to let you know that they can make it, even if they have no experience doing so.
Although this may work in some factories, that does not work with all of them. If they offer to create the product but have no experience, the product may lack quality.
United States Exports
Lastly, it would be best if you looked into a manufacturer that regularly exports products to the United States. These manufacturers already have experience complying with product safety standards, quality standards, and packaging requirements.
Look for a company that is a Wholly Foreign-Owned Enterprise. Wholly Foreign-Owned Enterprise, also known as a WFOA, is a company that has production facilities in China. Still, the ownership and management of the company are run by non-Chinese teams. Depending on who owns the facility, you can expect the same quality and service that you would receive from a western company.
Protect Your Intellectual Property
As mentioned earlier, regardless of who you use to manufacture your products, you will want to protect your intellectual property at all costs. Without that protection, you risk having the manufacturer sell your product to another client.
You can use trademarks, copyrights, and patents to protect your intellectual property. Make sure that the protection you use is also designed for international situations.
If you would like to, you can use an NDA. An NDA, or a non-disclosure agreement, is a legally binding contract prevents other companies from copying your product. It would be best if you made potential manufacturers sign an NDA before you get any quotes.
Questions to Ask the Manufacturer
Before you partner with a manufacturer, you must ask a few questions to ensure they are the right fit for you. For example, make sure to ask the company about their labor practices.
The last thing you want is to work with a company that uses unfair labor practices. Not only is that inhumane, but it can also damage the reputation of your business.
Ask to see their business license and any documentation that proves they have a solid quality control system. It would also be best if you asked about their proof of inspections or their third-party audits. If a company refuses to give you that information, they may be hiding something.
Additional probing questions to ask your potential manufacturer:
- What is the price for production?
- What are your company’s payment terms?
- Do you have a minimum order quantity?
- How long does it take to get the product exported
- Who are some of your clients?
- What experience do you have making products similar to mine?
- Do you charge for samples?
- Is all of your work in-house?
- Do you use sub-contractors?
Asking these types of questions can help you determine which manufacturer is best for you and your needs. Don’t be afraid to ask clarifying questions. You’re hiring them to do a service for you at the end of the day.
Partner with the Best Product Manufacturer
Picking out the right manufacturer does not need to be a complex process, but it can be challenging if you aren’t sure what you’re exactly looking for. Once you figure out which type of product manufacturer you want to use, check out their reviews and business licensing.
You want to make sure you partner with a reputable manufacturer that can make your product just the way it is intended to be made. Contact us now if you are ready to learn more about your manufacturing options. We also offer warehousing and logistics if needed.
Reasons the China Manufacturing Boom Is Actually Good
China produces over 28% of the world’s manufacturing. Because of the China manufacturing boom, it’s not surprising that China’s gotten the nickname “the world’s factory.”
But why is there an increase in China manufacturing? How can it benefit your business? And how has the COVID-19 pandemic affected global relations?
Read this guide to find out everything you want to know about the China manufacturing market and why it’s actually good for your business.
What’s Driving the China Manufacturing Boom?
There are several factors that contribute to the boom in China manufacturing.
For most people, the lower cost of labor is probably the first factor they’d consider. There are lower wages in China. This makes manufacturing much cheaper.
China is the most populous country in the world. This means there are more workers than jobs. That keeps the cost of labor relatively low.
However, certain provinces have begun enacting more laws to protect workers. This includes installing minimum wages throughout the country.
Manufacturing is still cheaper when outsourced to Chinese factories. But, the cost of production isn’t the only consideration you should take into account.
The Chinese-U.S. Business Ecosystem
Manufacturing isn’t the only part of industrial production one must consider. In fact, there is a large network to consider that includes:
- Suppliers
- Distributors
- Government agencies
- Customers
American companies such as Apple utilize China’s efficient supply chain. This efficiency helps them to keep costs down and margins high.
Most U.S. companies operating in China find it unrealistic economically to complete productions on U.S. soil.
Additionally, business relations remain strong between the U.S. and China. Though political tensions may be high, many businesses feel confident in their Chinese manufacturing relationships.
In fact, this is the most confidence many businesses have felt since the beginning of the COVID-19 pandemic.
Lower Compliance Standards
Product assembly in China does not have to meet certain guidelines American businesses must follow. For example, China is much more relaxed about the following standards:
- Involuntary and child labor
- Health and Safety Guidelines
- Wage laws
- Environmental protection laws
Though labor laws are changing in China, they are still far less strict than in the United States. This helps to save on labor costs.
Chinese factories also save on waste management. This is because environmental protection laws are not strictly enforced.
Savings on Taxes and Duties
In 1985, China enacted the export tax rebate policy. This policy abolished double taxation on exported goods. This was responsible for making Chinese manufacturing much more attractive to potential investors.
Exported goods in China are subject to 0% value-added tax (VAT). That means these products are exempt from VATs.
Chinese products are also exempt from import taxes. This keeps production costs low, which attracts more investors.
International Expansion
China is a massive pillar in the Asian market. The Asian market in general is growing at an extremely rapid rate.
Doing business in China helps to expand your reach to these valuable Asian markets.
These expansions can multiply your company’s business opportunities exponentially. You also streamline your ability to introduce products into markets across Asia, especially Chinese markets.
How Did COVID-19 Affect Chinese Manufacturing?
It’s no surprise that the COVID-19 pandemic affected the boom of Chinese manufacturing. China was, after all, the first country to experience the effects of the pandemic.
It is common practice for Chinese businesses to take a week off for Lunar New Year celebrations. In 2020, this break was extended. This was China’s attempt to stop the spread of COVID.
Unfortunately, like many American businesses, Chinese businesses experienced delays in production. Many workers became sick, slowing down manufacturing.
Additionally, issues in the global supply chain created fear around reliance on outsourced manufacturing. This included Chinese manufacturing.
Chinese Recovery in a Post-COVID Economy
However, Chinese factories continued on. Many of them capitalized on mask production to keep them operating throughout COVID.
Now, it appears that China’s manufacturing is on the come-up. However, since the roughest days of the pandemic, it would appear China has made a full recovery.
How Did the US-China Trade War Affect Chinese Manufacturing?
While in office, US President Donald Trump attempted to decouple the Chinese and US economies. This created a trade war that affected, and still affects, the manufacturing industry.
However, an annual member survey by the American Chamber of Commerce in Shanghai revealed that 92.1% of its members had no plans to leave China.
Even with Trump’s push, leaving Chinese manufacturing was not an attractive prospect to many companies. Most of these companies have revenues above $500 million USD.
How Is China Upgrading Its Manufacturing Industry?
The Chinese government’s goal is to have 30% of its gross domestic product (GDP) come from new industries. So what are they doing to meet this goal?
By 2025, China plans to have strong innovation in its manufacturing industry. They expect to use these innovations to drive high-quality growth.
Some manufacturing innovations China is currently working on include:
- Sharing production facilities
- Sharing tools and equipment amongst facilities
- Making intellectual resources such as designs and development practices public use
Their goal is to use this plan to boost resource allocation. This will help to improve efficiency and drive higher ROIs for business manufacturing in China.
Take Advantage of the Chinese Manufacturing Boom
So, you can see how Chinese manufacturing is a valuable market for American businesses.
The factors driving the China manufacturing boom can help to lower costs and boost your ROIs so that your business sees significant returns. Plus, you can streamline your business for introduction into the up-and-coming Asian markets.
Contact our team if you’re ready to begin manufacturing in China. With Shield Works, you can rest easy knowing you’re making the right choice for your business’s manufacturing needs.
The Future of OEM Manufacturing
COVID-19 affected many people’s lives physically, mentally, emotionally, and financially. This also affected several different businesses, causing them to halt their production. Fortunately, even though the pandemic still lingers, there are many OEM manufacturing companies that can still meet the demands and needs of many customers.
If you’ve ever considered working with an OEM manufacturing company, but you aren’t sure how that relationship will look due to the market’s changing trends, you aren’t alone. Many different companies are turning to OEMs to help with their production needs to keep up with product quality demands. If you want to learn more about OEM companies and how they can benefit your company in today’s changing landscape, continue reading below.
What Is OEM?
An Original Equipment Manufacturer, also known as OEM, is a company that produces and sells parts of a product or products for a particular company. That company then takes those parts of a product or complete product and sells it to their clients. OEMs commonly operate in the computer and auto industries.
An original equipment manufacturer often works directly with a retail company. For example, Lenovo’s computer parts aren’t all manufactured by Lenovo themselves. Instead, Lenovo utilizes a manufacturing company to create their processors.
Examples of OEM
To better explain how an original equipment manufacturer works, let’s use Company D as an example. Company D manufacturers several different versions of a memory card to sell to various computer manufacturers or retailers, like Lenovo or Dell. Those companies are considered value-added resellers who will sell their version of the product to their clients.
OEM vs. Value-Added Reseller
Value-added resellers, also known as VARs, sell products from the OEM, but they also incorporate certain added features before doing so. The two companies benefit from one another because VARs help original equipment manufacturers sell their products.
OEM vs. Aftermarket
While an OEM produces original equipment, an aftermarket manufacturer creates products that are made to look like and work with those of an OEM. To simplify, aftermarket parts or products are not original because different companies manufacture them.
Some of these aftermarket companies are locally based, whereas others are foreign-based. Although these parts are cheaper, they don’t have the same guarantees that an OEM part or product would.
How to Make Aftermarket Parts
As we all know, as time passes and technology advances, well-known auto companies, and technology companies release updated versions of their products. Most auto companies update their vehicles at least once every six years, and phone manufacturing companies change almost every year or two. So what happens to those old models and machines used to create those products?
These companies sell them. Many manufacturers purchase those old molds and models to create similar products to market.
Example of Aftermarket Products
You commonly see aftermarket parts in the auto industry. Auto shops and insurance companies prefer to use aftermarket parts over OEM parts whenever someone gets into an auto accident and needs their vehicle fixed. This is because aftermarket products are cheaper to manufacture and purchase.
Characteristics of an OEM
If you want to know if a company is an original equipment manufacturer, there are a few characteristics to look out for. For example, OEMs sell licenses which means they typically sell their product licenses to the resellers they market to.
Hardware
You can easily purchase hardware off the internet through an OEM or a retail product manufacturer. However, the OEM hardware typically is shipped without cables or adapters necessary for the installation and operation of said hardware.
Software
OEM software isn’t very common, but there are OEM software products. Some of the OEM software products created are versions of Windows productivity software, operating system, and security applications. This licensed software typically does not come with technical support, but it is instead provided with basic documentation and a few logos.
Most of these products are created for specific machines. For example, an OEM Windows system for an HP computer won’t operate the same on Dell or Lenovo. Even more so, that certain software may work for one specific HP model, but it won’t perform the same on other models.
Benefits of Original Equipment Manufacturers
There are several different benefits of using an OEM manufacturers in china. For example, when working with an OEM, you can expect a quick response time because less time is required to identify and produce the parts you need. Most manufacturers you work with like to have their products assembled and sent to you within a timely manner.
Quality
When replacing a part on a machine or a vehicle, you will want to have the utmost confidence that the replacement part is the same, if not better, than what was there before. The only way to secure this confidence is to use an OEM. When using an OEM manufacturing company, they will ensure that your products or parts of a product are created and tested to match your original specification.
Support
When approaching OEM support engineers, you will want to be reassured that those engineers have access to the same engineering team that designed your products or parts. Most, if not all, OEM support engineers do have that access, which will provide you with a wide variety of engineering and technical support. OEM staff members are pretty knowledgeable, and they can help you with all your part needs.
Value and Lifespan
When replacing parts in your products or machines, you expect that you will continue to get the same performance you had before needing the replacement. Buying from an OEM manufacturing company ensures that your replacement part will have that same quality, and there will be no degradation in performance.
Warranty
Having a warranty is one of the most important benefits when working with any OEM manufacturer. Should your company receive your parts with any defects, or if the parts are faulty, you can always reach out to your OEM. They will make sure to make it right so that you aren’t stuck with unusable products.
High Return on Investments
Since the parts your OEM supplies are designed to perform and fit factory specifications, these parts increase the life of your product. In the long run, this can save your business a lot of money and help reduce downtime.
Current OEM Trends
The relationship between OEM companies, dealerships, and other companies has always been healthy and symbiotic. Most OEMs depend on their networks to sell and service their products.
On the other hand, these companies have fallen back on OEMs to provide specific components or parts. In the auto industry, original equipment manufacturers also have the task of financing their servicing activities while the cars are covered under warranty.
Updates to the Market
Most OEM companies are now working towards creating remote software upgrades and establishing direct relationships with their clients with subscription models. With that said, this means that OEMs are taking ownership of customer relations which usually falls back on the dealers, or as you now know, VARs.
The dealers still get a significant portion of profits from after-sales and services. Activities like new car sales or new product sales can also create a profit, but the margin is relatively small.
What Does This Changing Landscape Mean?
Consumer demands of the auto industry are changing. Apart from the shift in needing or wanting more electric vehicles, cars are now viewed as a part of a shared mobility service. Models of car ownership are changing as well, meaning that customers now view their cars like smartphones. These clients expect their vehicles to be updated and refuse to pay a premium for a service that offers benefits down the line.
OEMs are currently working on creating capabilities that reduce cost due to connected diagnostics, predictive maintenance, and over-the-air software updates. They are also seizing more opportunities for direct relationships with consumers, such as creating innovative techniques to sell cars.
Customer Trends and the Marketplace
As technology continues to advance and the way we work and live continues to change, customers are doing things more online. To support dealerships, OEM manufacturing companies have to consider the value they add.
As mentioned earlier, OEMs are set to take greater ownership of customer relationships, but they should provide additional support to dealerships to ensure they don’t just disappear altogether.
To help with this, OEMs can incentivize dealerships to drive traffic to online showrooms, or they can reward dealerships for high brand engagement.
How to Find an OEM Manufacturer
When looking for an OEM, you will want to ensure that they have experience making products similar to yours. For example, an OEM who specializes in computer parts may not have the same capabilities for creating auto parts. You also must consider if you want to use a factory in the United States or overseas. Most OEMs who have better capabilities are overseas, not in the United States.
Domestic vs. Overseas
Manufacturing in the United States has its benefits, but it also comes with a few disadvantages. With an OEM in the U.S., you have more control over production; you can also visit the site regularly and avoid dealing with international shipping logistics.
Although that may sound ideal, you will most likely have to pay more for parts and labor. With overseas manufacturing, you still have a say in your product specification, but the cost to the manufacturer is much cheaper.
Even though dealing with international shipping logistics may sound like a headache, it won’t be when you partner with the right company. They will make sure to have a dedicated contact who can speak your language and explain the entire process to you.
Review Their Certifications
Not all manufacturers in China are the same, nor do they have the same qualifications. No matter how well-established the plant is, there is a possibility that they don’t have the necessary licenses or certifications.
To ensure that your manufacturer creates your product in compliance with regulatory standards, make sure that your supplier has the proper licenses and certifications to assemble your product.
Common ISO certifications manufacturers should have:
- ISO 14001: Environmental Management
- ISO 9001:2015: Quality Management Systems
- ISO 45001:2015: Occupational Health and Safety
Each industry has its own certifications, so each manufacturer needs to have the same certificates and documents to ensure they produce high-quality products. Before working with a specific manufacturer, make sure that you check the required materials for assembling.
Capacity
The last thing you want is to work with a manufacturer who doesn’t have the capacity to manufacture your parts or products. You wouldn’t want to send your money and products to a company just for your products to be stuck on a shelf awaiting their assembly.
To ensure that you don’t get stuck with a company that doesn’t assemble or manufacture your products as fast as you need, make sure you check in with your manufacturer’s production space. The OEM should provide you with information about their current output rate and deadlines.
Produce High-Quality Products
Partnering with a reputable OEM manufacturing company is critical to make sure that your business meets the demands of your clients and ensures long-lasting performance and high-quality products. Working with a reputable OEM manufacturing company is more than just finding someone reputable and knowledgeable; it is about creating a stable relationship.
You want to make sure that the company you work with values you and your business just as you do. Contact us now if you are ready to create a lasting relationship with an OEM manufacturing company overseas. Our team is prepared to answer any questions or concerns you have about our future partnership.
Contract Manufacturing in China: 5 Ways To Mitigate Costs
For the past decades, manufacturing in China was a rather inexpensive process. Many overseas companies have outsourced their production to China.
But now, China has hiked up their production costs because of major and minor changes in its policies and regulations.
Overseas businesses should keep costs low to remain competitive in the market. That’s why we’ve collected this list of five ways for you to reduce your costs by using contract manufacturing in China. Let’s get started!
Costs Are Rising, But…
Despite these headwinds of rising costs, China’s manufacturing future remains bright and you shouldn’t miss out on the benefits.
While the country is losing its edge in some labor-intensive sectors, it is gaining strength by building more modern infrastructures and hiring more talents at home and abroad.
A quick look around Shenzhen tells you this is a different type of China. It’s a place that doesn’t need to be cheaper than anywhere else because it’s better than anywhere else. In this factory city, no one is thinking about cutting corners and doing things cheaply to compete with other countries. Instead, everyone is thinking about how to innovate and be more productive than any other country in the world.
Manufacturing costs may be higher, but you can get better quality products and customized services and support. In this regard, you can save your company a lot of money, time, and hassle.
Conduct A Manufacturing Cost Estimation
There are many things that you should be aware of before outsourcing manufacturing operations in China, conducting A manufacturing cost estimation is the main one.
As you know, overspending and underspending can lead to confusion, lower confidence, and many other negative outcomes. The right manufacturing cost estimation is essential to optimizing the manufacturing process and building value-driven product, which is capable of competing in the global market.
So it’s particularly important to figure out manufacturing costs associated with raw materials, product units, quality control inspection and shipment.
Use Design From The Contract Manufacturer
When it comes to industrial design, you will probably have a hard time.
As you may not be a design expert and you have no idea how to use CAD and build a prototype, and more importantly, you can’t start learning design from the scratch. You know your product design needs to be done by someone who has the skill set required for this task. So, you may want to hire an in-house designer to achieve a better appearance result. However, it may not be economically viable for small-business owners.
To cut costs, many businessmen would look for freelancers to help with their product design. But the problem is how to guarantee the result when your project is complex. You will end up in endless chats and files without getting things done.
You can count on your contract company which has a team of engineers and industrial designers working together for a certain project. They will work closely with you to create a well-designed prototype that can be used as a final product or can be modified to suit other requirements.
And the cost of product design is negligible comparing the production costs, estimated at around 5% of total expenses in your project.
Substitute Raw Materials
Don’t make the mistake of relying on the same raw materials for your products throughout the business’ life cycle.
That’s because raw materials are influenced by many factors that change over time, which can significantly impact your total costs and production deadline.
As a business grows, you need to consider producing the same or similar product with alternative raw materials, which are more economically sustainable for your business.
For instance, consider ways you may be able to recycle materials into new products or use less expensive substitute materials. These small changes can drastically help you reduce manufacturing costs.
However, this could be risky if you don’t plan and make the appropriate changes. So, make sure you know what materials are best suited for your product so that your goods are always meeting industry standards and customer expectations.
Conduct Quality Inspection
Maybe you’ve read a few stories about how an overseas business has reduced its costs by cutting down on quality inspection.
However, it’s not a good idea especially when you are running a big business and want to hold the company in long term. Using quality control offers you peace of mind.
That’s because when customers receive your product which is of low quality and defective, they will complain online and never come back to you again. You will lose your reputation and profits.
If you want to reduce costs but still need to check if your product meets your expectations, you can work with a third-party quality inspection company.
By hiring an experienced quality inspector to conduct regular checks throughout production, you can be sure that your products are safe for consumption.
Get Started with Contract Manufacturing Today
Using contract manufacturing in China is a smart move for your company, which helps to save costs and time. So you can focus on expanding your business.
When your company needs contract manufacturing services, come to Shield Works. Our experienced team helps to keep your project moving smoothly and efficiently. With our British management background and long-term manufacturing experience, we are so sure of our proven process and expertise we take the responsibility of protecting you from all manufacturing defects. Contact us to diss your project today!
5 Qualities to Look for in a China Manufacturing Partner
Finding the right manufacturing partner can be tricky, especially if you’re new to China manufacturing or just starting out with your business.
There are plenty of quality manufacturers out there, but it’s important to make sure that they have these 5 qualities before you enter into an agreement with them.
Only then will you know you can trust them and put your business in their hands without having to worry about things getting messed up along the way.
1) Knowledge
When you partner with a manufacturer, they’ll act as your vendor or factory.
This can be intimidating when you’re not sure what questions to ask or how much to spend.
A good China manufacturing partner will have knowledge of both manufacturing and international business and can help determine which factory or vendor is right for your product.
It’s important that your manufacturing partner understands what your product is, where it comes from and how it’s made—otherwise, how can he/she help you?
Skilled manufacturing partners are invaluable when it comes to navigating things like quality assurance, intellectual property protection and shipping logistics; manufacturers with specific knowledge will know exactly what questions you should be asking.
2) Transparency
If you have questions, or something goes wrong with your order, it’s nice to know that your manufacturer is open and honest about what happened.
It’s no good if you don’t get your calls returned or emails responded to quickly and thoroughly.
If you need a manufacturer who will constantly track and ensure they are producing quality products, make sure you ask around and do research before settling on one.
Chinese business culture can be complex and difficult for outsiders to navigate.
If you plan on doing business in Asia at some point, it’s a good idea to find someone who knows their way around and won’t hide how they do business from you.
3) Language
Communication is key with your new manufacturer.
Be sure you speak the same language.
If there’s a language barrier, it will make working together much more difficult and might lead to frustrations on both sides.
Make sure you clearly understand what your manufacturer will do—and won’t do—for you before signing any contracts or paying any fees.
You should be able to get an idea of their working style just by talking on Skype or even emailing back and forth for several weeks. (If they get upset easily when dealing with customers, it might not be worth continuing.)
If communication doesn’t go well at first, consider ending your relationship early rather than suffering through something that could eventually lead to problems down the road.
If you need much more timely response, you can also use WeChat, an IM chat app most Chinese use.
4) Dependability
Many manufacturers offer low-cost goods and services.
Although it might be tempting to use one of these companies, it’s important that you remember that you are paying for more than just products.
Quality customer service can be lacking from low-cost companies; you’ll want to work with an manufacturer who makes you feel comfortable and is always willing to answer questions.
This can help build a relationship of trust between your company and your manufacturer, which will be beneficial throughout your business venture.
On top of that, having direct access to someone at your manufacturer’s facility will make communication easier as you enter into negotiations
5) Personal Relationship
You might think that saving some money is good enough of a reason to choose a manufacturer solely based on price, but keep in mind that it’s much easier and more enjoyable to work with someone you already know.
You’ll get more out of your partnership if you feel like there’s trust and camaraderie on both sides.
Plus, buying in bulk will allow you to negotiate better prices than if you were working alone.
Your personal relationship should be one that allows communication channels open at all times.
This can also be a reflection of his/her relationship with suppliers.
In China, especially when it comes to dealing with factories, maintaining guanxi(relationship) is extra important.
It can make direct impact on how your order will be made.
Shield Works has over 16 years of manufacturing experience in China. Feel free to let us know if interested!
The Benefits of Using a Contract Manufacturer
Manufacturing continues to grow throughout the years and has become incredibly profitable. Did you know that manufacturers contribute about $2.71 trillion each year?
If you’re thinking about using a contract manufacturer, you might wonder if it’s worth it. There are several benefits to using one, and some might surprise you! Read this guide on the various benefits of using a contract manufacturer today.
Keep Costs Low
Contract manufacturing is a great way to reduce the cost of your services and products. This is because there’s a lower chance of errors. You can also benefit from bulk purchasing and skilled labor.
All of this can lead to satisfied customers since you can lower the cost of goods. Manufacturing businesses specialize in high-volume production lines and cutting costs.
This means that you can focus on running your business instead of worrying about production or making errors. Many companies are experts in their field and what they sell, but they struggle with the production process. That’s where a contract manufacturer comes in.
Save Money
Did you know that manufacturing accounts for 12% of the U.S. economy? You’ll be able to save money since you won’t have to worry about buying equipment for production. Skilled laborers will already have the equipment that you need.
If a product is high in demand, a manufacturer can focus on decreasing the time that it’ll take.
Test Products
You can test products before they’re in the hands of your customers. This is a great way to save money by not producing a defective design.
Determine what the needs of your business are since each manufacturing company could offer different services. They can also make changes to the product as necessary.
They can improve the products, increase the production rate, and give you great profit margins.
Professionalism
Product manufacturing companies will provide you with products without errors. This will help the reputation of your company.
Some companies will try to do production on their own and then make a grave error. Let a manufacturer perform production and watch your production rates increase.
They can also bring fresh, new ideas to your products. Manufacturers are experts in design and can help your product shine.
Improved Efficiency
Many manufacturers learn how to reduce waste. They can perform various tasks such as painting, machining, difficult assembly, welding, etc. This can help reduce the manufacturing costs for your company.
Manufacturing companies can also provide you with more flexibility. Whether you’re looking to scale production, develop products at the same time, etc.
You can start and schedule projects when it makes the most sense for your business. You’ll also know that they’re using the top-of-the-line equipment in the company to provide you with high-quality products.
Save Resources
Since they’re knowledgeable about reducing waste, you can lessen your carbon footprint. This also means fewer costs for you.
Your staff will have more time to work on business tasks. You can focus on your business, marketing, etc.
If you wanted to do production yourself, you’d need to hire a large staff. This could include operators, engineers, managers, etc.
Whereas contract manufacturers already have their staff in place. You’ll have a large team working on your products without having to worry about shifts, payroll, or hiring workers.
Sell Your Products Sooner
Since managers can create your products fast, you can get your products out there to the consumers quicker. There are different methods such as CNC machining and Rapid prototyping that can help speed up the process.
You might be able to get your products out there in a few weeks!
Various Options
They can handle various aspects of the manufacturing process. These can include material purchases, product design for manufacturing, assembly, packaging, etc.
Since everything is happening under one roof, it reduces costs for you. They’ll handle the difficult parts of the manufacturing process so you as a business owner can have less stress.
Deadlines and Estimates
You’ll know in advance how much to budget for the process. They’ll provide you with a detailed estimate before they begin.
This will make it less likely that you’ll experience delays or unexpected costs. They’ll also be able to tell you how long it should take.
Improved Communication
If you try to have the product manufacturing process internally, you’ll need to contact multiple vendors at all times. Through contract manufacturing, you’ll be able to stay in communication with them. You won’t have to worry about a response.
Who Can Benefit From Manufacturing Contract Companies?
Most businesses can benefit from contract manufacturers. You might decide to use product assembly services in China since it’ll save your business money. Keep in mind that how skilled a manufacturer is will vary.
Some ways they can help include:
- Packaging products
- Manufacturing products manually
- Product assembly
- Creating computer models of products
- And more
When you’re first starting out with a production company, it’s a good idea to test out a contract manufacturer. See how their production process is and if it slows you down. You might find that you’ll have more time to focus on your business and productivity will increase overall.
Understanding the Benefits of a Contract Manufacturer
After exploring this guide, you should have a better idea of the benefits of a contract manufacturer. Take your time deciding if it’s right for your business.
Are you ready to speed up the process of manufacturing in your business?
Contact us today! We offer customized manufacturing, including developing new processes, using top-notch equipment, and customizing work procedures.
Manufacturing In China: How To Protect Your Intellectual Property?
It is not surprising that China has developed to become a major manufacturing superpower and more and more overseas companies have moved their production to China. However, some of them are having issues with IP protection while manufacturing in China.
If you are planning to manufacture your products in China, make sure you do everything possible to protect your intellectual property rights. Read on to learn more about the strategies you can use to avoid patent infringement issues in the Chinese market.
What Is IP?
Before you outsource your production to China, it is important to understand what happens to your intellectual property rights (IPR) once you outsource to a Chinese manufacturer.
Intellectual property is a broad term that can include anything from a new fashion trend to a specific software algorithm to an entirely new product design.
The World Intellectual Property Organization (WIPO) makes a definition of IP as “creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.”
No matter what type of intellectual property you have, there are some things you should know before starting manufacturing in China to ensure your intellectual property rights are protected.
Each Country Has Its IP Laws
Whether you are a small business or a large corporation, you have to consider how you’ll protect your intellectual property.
The first thing you should do is have a basic understanding of Chinese IP laws.
For example, patents for inventions can be protected for up to 20 years in China. Also, China protects utility models (for up to 10 years) and design patents (for up to 15 years). Utility models are sometimes called “mini-patents” and require a lower level of inventiveness. Design patents protect the look of products.
All patent rights in China are subject to the payment of annual fees after they’ve been granted.
The National IPR Organizations You Should Know In China
In China, the government plays a substantial role in promoting and protecting intellectual property rights (IPRs).
Several governmental departments are responsible for IPRs matters. Keep in mind the differences and functions of these organizations.
China National Intellectual Property Administration (CNIPA)
China National Intellectual Property Administration (CNIPA) was formerly known as the State Intellectual Property Office (SIPO). It was renamed in 1980.
The department is responsible for the patent work and comprehensively coordinating the foreign-related affairs in the field of intellectual property throughout the country.
If you want your patent registered in China, make sure you check these common questions that you will need to know:
Trademark Office of China National Intellectual Property Administration
When it comes to handling matters of trademark disputes, you should reach the Trademark Office of the China National Intellectual Property Administration.
It’s responsible for the registration and administration of trademarks throughout the country.
However, the website does not provide an English option, so it would be hard for foreigners to research and apply for a trademark online. Therefore, you can click on the CNIPA website to search for trademark-related information. Or you may go to the local trademark office to make an enquiry in person.
National Copyright Administration of the People’s Republic of China (NCAC)
If you want any copyright information, the National Copyright Administration of the People’s Republic of China website is a good option for you.
It accepts and examines copyrights applications in accordance with the law.
Keep in mind to check the copyright regulations and laws in China before you register your copyright.
IP Protection Agreement
When partnering with a manufacturing company, make sure you have a well-drafted and properly executed manufacturing agreement that will help you protect your IP, and provide you with relief if the manufacturer breaches the agreement.
The IP agreement should list all relevant details, including IP ownership, confidentiality, non-competition and non-circumvention and more.
Let Shield Works Be Your IP Protective Manufacturing Partner
With our British ownership background, we know how to help our overseas clients to protect their IPs without excessive costs and time.
Shield Works partners with Innopat a leading Zhuhai based IP industry expert to provide you with clear no-nonsense advice and IP protection services.
Our IP protective system safeguards your production line in our innovative facility.
We are ready to accommodate your needs. Contact us today.
3 Tips For Finding The Right Custom Manufacturing Partner In China
When you need to source custom manufacturing services, it can be hard to know where to start.
Finding the right custom manufacturing partner can be challenging.
There are many companies out there with the capabilities to manufacture your product, but finding the right one can be difficult and time-consuming without some guidance.
Thankfully, you don’t have to go at it alone. Here are three tips that will help make finding the right partner much easier.
Tip #1 – Know What You Want
Start by listing your needs and expectations before choosing a custom manufacturer in China.
- What’s your budget?
- Do you have a strict deadline?
- Are your product materials hard to obtain?
- Will you need samples before production begins?
All of these details can help narrow down your list of potential partners.
Finding a company that already has experience with similar projects can make sure that production goes as smoothly as possible since they’ll be familiar with what it takes to meet all your needs and deadlines.
Tip #2 – Understand Your Suppliers
Another thing to take into consideration when you’re looking for a custom manufacturer is to do your research.
Find people who have successfully worked with a company that provides custom manufacturing services.
If someone has had a good experience, you can use them as a reference to find other companies that provide similar services in case their recommendation didn’t work out so well.
Also, you can compile a comparison list of potential options.
After you list all the key factors you need to know beforehand, you’ll be ready to begin contacting them directly.
Tip #3 – Choose A Custom Manufacturer That Fits Into Your Supply Chain
Choosing a custom manufacturer requires an understanding of how they fit into your supply chain.
If you are looking to get started with rapid prototyping, then your supplier must have access to both traditional and 3D printing equipment.
This will allow them to offer you a full range of services including design iteration and custom parts made from advanced materials.
If, on the other hand, you are looking for custom injection molding services, you need a manufacturer that can handle creating tooling and assembling large quantities of products efficiently.
Remember: your final product will only be as good as your supplier’s capabilities!
Let Shield Works Be Your Custom Manufacturing Partner
If you need to customize your product, Shield Works can be your best partner in China.
We are a British owned and managed company providing customized OEM manufacturing and assembly activities.
Your product will be manufactured in one of our state-of-the-art facilities. We are prepared to accommodate your needs; from bulk production through final product finishing. Contact us today.