Posts Tagged ‘manufacturing companies in China’
OEM Manufacturing in China: More Pros for Business than Cons
For many years, China has been the manufacturing hub of the world. Last year, this production rate shrank, partially due to the impact of COVID-19. This means that China needs your business and there has never been a better time to manufacture in the country. If not you don’t know how to benefit, then we can help. Read on as we discuss why you need to outsource OEM manufacturing to China.
Lower Costs
One of the more obvious and important benefits of OEM manufacturing in China is the reduction in cost. The bottom line is that the better your product and price, the more units you will sell. Even if you are putting out a high-end brand, then you can increase your profits by lowering manufacturing costs.
Domestic manufacturing sounds good in theory. However, it has increased overheads that do not exist in China. This makes locally produced products expensive and is why manufacturing in Western countries has declined in modern times.
Of course, you will have to pay to ship the products and pay import tax. But even if the overall price works out fractionally less, you are still saving. Over time and in increased volumes, you can expect this to be a substantial amount added to your balance books.
Warranty
When OEM manufacturing in China, many manufacturers will offer you a warranty for a given period of time. This can set your mind at rest when ordering products from across the world. If a product has issues, then you can ask for a replacement or ask for a solution to the problem.
Quick Output and Turnaround
China creates goods for companies all around the world. This means they have scaled up their manufacturing to unprecedented levels. If you need a large number of goods in a short time, they will deliver them.
These factories will have produced similar items to yours before. That means they have all of the procedures in place to get things manufactured quickly and on time.
One of the arguments against this is the unfair conditions of Chinese workers. However, if you research the plant you are using you will be able to find out if workers are paid a fair amount and treated fairly. You should also take into account that the attitude to work in China is culturally different from that in the West.
Excellent Service
Manufacturing in China brings with it the exceptional service inherent in their culture. Even for smaller businesses, you will get the same treatment as a larger, global operation would.
This service also carries through to product support. When you contact an OEM manufacturer’s support team, you will get to talk with their engineers. Speaking to their technical team cuts out the middlemen, meaning you can make informed decisions and get great advice on how to improve and refine your product.
Duplication
By no means do you need to counterfeit a product. However, when manufacturing in China you can specify things you like about one item and have them replicated.
Perhaps you want to include a feature you have seen on someone else’s products or use the same dimensions. By discussing this in advance, Chinese manufacturing companies will be able to arrange this for you easily.
This is how a product evolves. By taking something great and improving, you have the opportunity to make it even better. With each iteration of the item, you can expect the quality to improve as well.
Lead Time Reduction
When you outsource OEM manufacturing to China, you have a number of options to help you reduce lead times. One way is to use automation software to manage your inventory. This will ensure you stay on top of how much stock is needed, ordering at the precise time as you begin to run low.
The other option is to order regularly and consistently. This will mean a reduction in delivery and you won’t miss out when orders run low.
Expansion and Diversification
Outsourcing allows you to add new product lines and verification to your portfolio. This has been something you have been thinking of for a while but did not think possible with your current manufacturers. All of this can be done while keeping prices low and with better production.
This can also help you engage more international markets. You can ship to areas all over the world, allowing you access to markets not possible in the past.
Low Labour Costs
Another of the main benefits of OEM manufacturing is that you gain access to all the best that the company has to offer, including their labor. This means you get expertise without having to search, recruit and train your workers. Not only are labor costs lower in China, but you will not have to pay many of the expenses related to hiring local workers.
Scam Prevention
If you deal directly with overseas manufacturers, scamming is a possibility. You may find deposits or whole budgets go missing. In addition, even delivered products could be below standard if you have never dealt with the company before.
That means it is important to get a reputable company to arrange this for you. They will have trusted manufacturers who work to the highest standards. In addition, they will have agents who can traverse language and cultural barriers for you.
OEM Manufacturing
Now you know the benefits of OEM manufacturing in China, speak with an expert. They will be able to work out the best way for you to benefit. You may be able to improve profit more than you think.
Your first stop should be Shield Works. We are a British company working in Southern China for OEM manufacturing needs. Contact us here and see what we can do for your business.
How to Find an OEM Manufacturer for Your Products
China’s factories ran at record-high levels in the second quarter of 2021. High demand for Chinese exports in places like the US and Europe fueled this production.
Would you like to take advantage of the benefits a Chinese OEM manufacturer can bring your business, but you’re not sure where to start? Are you wondering how to choose an OEM manufacturer?
Learn more here about how to find the right OEM manufacturer for your products.
Why Use an OEM Manufacturer?
Many companies don’t have the resources for high-volume manufacturing or highly specialized products. You can outsource manufacturing to reduce costs and avoid the complexities of keeping production in-house.
An Original Equipment Manufacturer (OEM) makes the components for your product. You provide the design specifications for anything the OEM produces. You receive the parts and assemble them into the finished product with your trademark.
An OEM with experience making products similar to yours knows the product assembly process. They already have a supply chain in place. You can put this experience to work for you.
Domestic or Overseas Production?
Before you start looking for the right OEM manufacturer, you need to decide if you want to use a factory in the US or overseas. The best solution for your product manufacturing depends on your business priorities.
Pros and Cons of Domestic Manufacturing
Domestic manufacturing has some advantages. Using a factory in the US can give you more direct control over production. You can visit the site more regularly. You avoid dealing with tariffs and international shipping logistics.
American factories usually let you order small batches of a product. Overseas factories often have large minimum orders.
The main disadvantage of using an American factory is that you’ll almost always pay more. In addition, you may not be able to find a domestic manufacturer for some types of products.
Pros and Cons of Overseas Manufacturing
Using a factory overseas has several benefits. A factory in a country like China will almost always be cheaper than a factory in the US.
You have more options. The vast number of companies that have outsourced their manufacturing to China means that you’ll usually be able to find several sites with experience making your type of product.
Possible challenges include longer shipping times and handling import/export regulations. You’ll also need to navigate differences in business cultures. However, you can address many of the issues surrounding overseas production when you start vetting potential manufacturers.
Start Looking for a Chinese Manufacturing Plant
You can get suggestions for Chinese manufacturers you may want to use from many sources. Your industry trade association can give you potential names. The small business network for your industry is another resource.
You can also get recommendations from business contacts and networking groups.
International trade shows in the US that attract Chinese manufacturers are a good starting point as well. You can meet manufacturers and make connections with exhibitors selling products similar to yours.
Online directories of overseas manufacturers are a good resource. These sites include:
- Alibaba
- Global Sources
- Global Sourcing Specialists
- Kompass
- MFG
- ThomasNet
Searching by industry or product category can help you find manufacturers with expertise in your area.
Narrow Down Your Choices
You can use several factors to narrow down your list of potential manufacturing partners. One of the most important considerations is to find a factory that makes products similar to yours. Some manufacturers will offer to make anything, but the quality will likely be lower.
Look for online ratings and reviews to see what other buyers say about the manufacturer.
Finally, look for manufacturers that primarily export to the US and other western countries. These manufacturers already have experience complying with the necessary quality standards, product safety standards, labeling regulations, and packaging requirements. They’re more likely to have the international shipping logistics you need.
You can also look for a Wholly Foreign Owned Enterprise (WFOE). A WFOE manufacturer has its production facilities in China. However, the company has non-Chinese ownership and management.
Depending on its ownership, a WFOE will give you the quality and service western businesses expect.
Protect Your Intellectual Property
Protecting your intellectual property (IP) is critically important as you begin the process of outsourcing your manufacturing. Copyrights, trademarks, and patents are some tools you can use. Be sure your legal protections are designed for international situations.
A non-disclosure agreement (NDA) is a legally binding contract. It helps protect you against other companies copying your product. Before you start getting quotes from potential manufacturers, they should sign an NDA.
Questions to Ask a Potential OEM Manufacturer
Once you’ve narrowed down your list, it’s time to start asking some detailed questions. Ask about the labor practices of any factory you’re considering. Be sure to verify this information the best you can. Unsafe working conditions or abnormally low compensation for workers are at minimum a PR risk for you.
Ask to see a business license and documentation of the quality control system. Recent proof of inspections or third-party audits is also important. A reputable company will give you this information.
Other questions to ask include:
- What is your experience making this type of product?
- Who are some of your current clients?
- Do you do all the work in-house or subcontract to other factories?
- What is the minimum order size?
- How long will it take to make my order?
- What is the price for samples?
- What is the price for production?
- What are the payment terms?
With this information, you can choose two or three finalists and ask them to make a sample of your product. Comparing the results will show you which Chinese manufacturing plant you should use.
Choose Your OEM Manufacturer
The process for finding and evaluating an OEM manufacturer in China can seem overwhelming. Thorough research will help you find the best factory for your products.
Avoid the hassle and choose Shield Works for your product manufacturing. We’re a 100% British-owned WFOE. You get benefits like full IP protection, a live video stream from your manufacturing zone, and ISO standard quality control.
We also offer warehousing and logistics. Contact us today to find out how we can be your outsourcing solution.
Look to the East: How China Manufacturing Facilities Provide an Edge
Choosing the right manufacturer for your business will play a significant role and how much revenue you are able to generate. For this reason, most entrepreneurs tend to work with a Chinese manufacturing plant.
However, not everybody understands the benefits that they can experience from doing so. Let’s explore the key details you need to know about China manufacturing.
Lower Overall Costs
As you might assume, one of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
This is simply due to the fact that Chinese facilities have much less overhead to work with. Additionally, they also have fewer training costs. When manufacturing domestically, facilities need to allocate a significant amount of money to cover these expenses.
This leads to businesses of all types outsourcing instead. Of course, wages in China are also lower than those in the United States.
This allows each dollar you spend to go much further when outsourcing. Keep this in mind when moving forward so that you can take advantage of the utility Chinese product assembly can provide.
Larger Production Volume
Not every business needs to manufacture thousands of products within a single order. However, large organizations often find it difficult to find a domestic facility that can satisfy their needs.
Chinese factories produce goods for a substantial number of countries on Earth. This means that China has typically created facilities that are capable of high-volume production. In fact, even the average Chinese factory could drastically outperform most facilities within the United States.
For companies that need a massive supply of their product, there is simply no better alternative than outsourcing to China. In many cases, doing so is also the only way to hit your target metrics.
Diversification
Part of long-term success involves scaling your business.
This can occur in a multitude of different ways. For instance, you might introduce a new product line to customers in order to generate additional revenue.
Or, you may break into growing markets in order to establish a niche. Regardless of how you do so, Chinese manufacturers can help you diversify your business opportunities. Creating new products, in particular, is one of the primary ways in which they can help.
In some circumstances, choosing a Chinese OEM manufacturing plant could be what helps you set yourself apart from your competition.
Quick Changes to Product Design
Domestic facilities can’t always accommodate design changes. More specifically, it may take them days or weeks in order to implement your new ideas.
As you can tell, this can easily cause issues with your sales numbers. Your current product might not be something your customers would be satisfied with. Delayed orders due to design changes also carry the risk of having your audience turn to competitors instead.
Chinese facilities are always ready to implement required changes. In fact, all you need to do is get in touch with a representative from your manufacturer and convey what you need.
More often than not, the facility will begin manufacturing the revised products immediately. This is a crucial factor to consider, as it can often mean the difference between whether or not you maintain your brand reputation.
Intellectual Property Protection
Interestingly, many people are unaware of the fact that many Chinese factories prioritize intellectual property protection.
This means that they painstakingly work to avoid any sort of infringement that could land you in legal trouble. For example, let’s assume that you sell a product that is highly similar to that of a competitor.
A reputable manufacturing facility in China will go out of its way to ensure that no copying or reverse engineering has occurred. As with any other manufacturing industry, there are shady facilities that employ the above tactics.
The good news is that you can research the reputation of your prospective factory to ensure that you avoid working with ones that use underhanded tactics. Otherwise, you may find yourself in a situation that is difficult to overcome.
Overall Efficiency
Not only are Chinese factories capable of mass production, but they can also do so at a notable rate.
These facilities have the newest and most efficient equipment that makes them capable of meeting virtually any production standard. This also allows smaller organizations to compete with larger ones.
Under many circumstances, small companies simply can’t keep up with the rate at which larger companies produce goods. Without the right manufacturer on your side, there’s a strong chance you can’t remain competitive.
How Can I Find The Factory Right for Me?
It can seem overwhelming to find a Chinese manufacturer. Not only are there time zone complications, but the language barriers in place often deter entrepreneurs from doing so. Working with a professional will help get you in touch with the facility that is ideal for your business.
These individuals will serve as the liaison between you and the other party. So, they will handle nuances making agreements, conveying production needs, etc.
You can check out this resource to learn more about how you can benefit from doing so.
China Manufacturing Can Be Game-Changing
So, be sure that you keep the above information in mind when determining whether or not this decision is right for you. From here, you’ll be able to leverage China manufacturing if it’s appropriate for your business.
Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.
5 Benefits of Outsourcing Your Assembly Line Production
Studies show that about 66% of large businesses and about 29% of small ones outsource services for different reasons. While you may prefer to complete all your company’s work in-house, this may not always be possible. As the demand for your products grows, you may find it hard to keep up. Besides, you may lack the right skills and equipment to produce enough products to match the increasing demand. By outsourcing your assembly line production services, you can boost output and grow your business.
Here, we discuss the five top benefits of hiring another company to assemble your products. We will also explain how you can improve productivity and ease work by sub-contracting.
1. Reduces Costs
One key benefit of outsourcing your assembly line production services is that it can help you reduce costs. Most firms report that they experience at least a 15% decrease in the total cost by hiring another party to offer their services or produce goods.
Some of the expenses you can reduce by subcontracting are raw material sourcing and training employees. You will also reduce the cost of labor since you will not need to hire many workers for production and packaging.
Outsourcing can help you reduce the amount of money you spend paying for facilities like warehouses. Instead of storing assembled products in your company’s premises, the sub-contracted firm will keep them. They can then ship the goods from their location when a client places an order.
Maintaining equipment can be expensive and sometimes lead to reduced production. When you outsource assembly services, you will avoid such expenses. Since most of these firms have a large pool of equipment for different uses, you will not have to stop producing goods due to maintenance.
By cutting down the total costs, you can then direct more money into marketing and getting more customers. Also, you can hire more skilled workers in other departments. Such may include customer care, operations management, and information technology (IT).
2. Allows the Company to Focus on Other Operations
Another benefit of subcontracting assembly line production services is that it allows you to put more effort into other business areas. Instead of hiring workers for production, you can focus on getting those with other needed skills.
These may include employee management, strategy marketing, public relations, financial forecasting. Focusing more effort on these areas will give you a clear understanding of the target market. It will also allow you to observe market trends and make better decisions.
Other than that, your managers can direct more time and resources towards improving the skills of your employees. For example, they may conduct training and development sessions to help workers focus on the primary goals of your business.
Such measures can motivate them to develop more creative ways of running the business and getting new clients. Putting more funds into training can also reduce employee turnover and the cost of hiring more workers.
3. Improves Quality
A minor mistake in production can cause secondary damage and lead to more losses. For instance, using the wrong quantities of ingredients can affect the quality of the end product. It may also cause the machine to break down and lead to the loss of raw materials.
Outsourcing an assembly production line can help you avoid such mistakes and improve the quality of your goods. This is because firms that focus on production always hire employees with specific skills.
These experts have enough work experience, which allows them to notice a production mistake faster. They can then come up with ways to correct it before it causes further damage and losses.
Another way outsourcing product assembly can improve quality is through control. Firms that offer these services always test the strength and durability of manufactured products. This measure allows them to regulate the standards of each batch.
Once the manufacturing experts notice that a product is below the needed level, they will mark it as a reject. After that, they can check what went wrong and develop measures to correct the mistake. Such precautions will protect your firm from selling low-quality goods and help you maintain clients.
4. Allows You to Customize Products
Customization can improve efficiency and help you make goods designed to address specific needs. Tailor-made products are also more marketable and will allow your brand to expand into untapped markets.
Still, creating custom products calls for detailed research and testing. You may also need to use specific tools to create the desired outcome.
By outsourcing assembly line production, you can avoid most of the issues that may arise when creating custom goods in several ways. For example, the partner firm can create a better product because they know the production methods your competitors use.
Besides, they can liaise with your employees and selected consumers for a pilot launch to assess the pros and cons of the new model. They will also perform various durability and environment tests for quality assurance.
These processes allow them to identify defects and come up with ways to correct them before mass production.
5. Improves Organization
Keeping track of various processes can be challenging when you have a big company. You have to follow up on raw material sourcing, goods production, and distribution.
At the same time, you need to market new and existing products to maintain and gain more customers.
When you have so much work, you may neglect some tasks, which will affect performance in the long run. Luckily, an assembly line production company can also provide related services packaging.
Their warehouses are also safer for storage since they have designs that suit specific products. With their services, you will smoothen work by having a clear business process flow chart.
Storing goods in their warehouse can also make it easier to supply to your customers. Once the firm makes the goods, they do not need to ship each batch to you. Instead, they can hold some and send them to clients who are near their locations.
This way, you ensure that customers get their goods in time and save money that you would use in transportation.
Contact Shield Works Today for Assembly Line Production Services
Collaborating with another company for assembly line production can improve efficiency and help your business grow. At Shield Works, we provide reliable precision assembly and warehousing services.
We communicate with our clients daily, allowing them to follow up on the whole production process.
By partnering with us, you can increase output and enjoy the benefits of China-based manufacturing while saving costs. Reach out to us today for reliable assembly-line production outsourcing.
How Does OEM Manufacturing Work?
OEM manufacturing is a part of most people’s lives, whether they realize it or not.
The products that people use in their daily will have parts from OEM manufacturers. These include automobile, electrics, and computer software products that benefit from OEM manufacturers.
In this article, we’re going to take a deep dive into the world of OEM manufacturing. So take a seat, buckle up, and enjoy the ride!
OEM Manufacturing
An original equipment manufacturer (OEM) is a company who manufactures parts to be used in another companies’ products. The purchasing company then sells the end product to the consumer.
Take, for example, a car that’s driven daily. An OEM manufacturer is the one that manufactures parts such as the steering wheel or tires that are then assembled and sold to individuals.
Traditionally, OEM manufacturers have only dealt with business-to-business transactions. Recently they have been selling directly to consumers with the help of the internet. Say an individual consumer wants to buy a graphics card. They can then purchase the graphics card directly from the OEM manufacturers or retailers with the OEM product in stock.
Contract Manufacturing
Like OEM manufacturers, contract manufacturers also develop products based on their client’s designs. However, contract manufacturers have the added benefit if a company wishes to expand its range of products.
A company looking to hire a contract manufacturer typically has a design or a formula for the product they want to sell to individual consumers.
One example would be a cleaning supply company. They would hire a contract manufacturer to produce the product according to their design, then throw on a private label specific to them.
Some contract manufacturers also provide warehousing options. This means that they can provide services including:
- Manufacturing the product
- Storing the product
- Labeling
- Shipping directly to the consumer
In today’s globally connected world, the services above become a valuable part of any profitable business plan.
Working together with a contract manufacturer has an added benefit – giving the business owner more time to focus on customers rather than worrying about their supply chain.
Benefits of OEM Manufacturers
Working with an OEM Manufacturer in China has its advantages that blow its competition out of the water. Here are some of the most important.
Cost
Manufacturing in China has been a practice that is recognized not only in the U.S. but also globally. The main reason for the recognition is the significant decrease in production costs. The advantage is competitive pricing. This enables the selling company to decrease the product’s price while maintaining a higher profit margin.
The competitive pricing that OEM manufacturers located in China provide makes working with them ideal. The higher overhead costs of domestic OEM manufacturers only lead to higher prices for both parties.
Scale
The fact that OEM manufacturers in China produce goods for companies globally is a well-known fact. Due to the demand, these manufacturers can scale their production well beyond any domestic company for a fraction of the price.
Limited storage space is a problem for many small business owners and companies. But it’s a problem that OEM manufacturers in China with warehousing services solve. Specifically, warehouses that can provide next-day shipping.
Let’s say a company wants to expand its products or dip its toes into a new market. An OEM manufacturer in China or contract manufacturer can develop the product line for the company with a quick turnaround.
Assembly
Several well-known companies contract out their production of parts to OEMs. However, they assemble their final product themselves. Unfortunately, this isn’t always possible or even profitable for smaller businesses.
Contract manufacturers provide another solution to a problem here. Some contract manufacturers provide assembly services in addition to manufacturing, warehousing, and shipping. Thus, they are essentially an all-in-one shop.
Quality
Some people tend to think that products made in China are of lower quality because the cost to produce is so low. That’s not the case whatsoever.
A large majority of these OEM manufacturers have been implementing the same production process for decades. This makes them experts on that process. Many companies and small businesses make the costly mistake of attempting to produce a product on their own. That mistake doesn’t make sense when they have the option to contract an OEM manufacturer in China with decades of experience.
Cost-Effectiveness
Another benefit we want to discuss also has to do with the cost-effectiveness of OEM manufacturers. For example, say a company wishes to produce its product domestically.
This means that a large part of their investment will have to go into the factory as well as the purchase of expensive equipment. It also includes the added cost of raw material prices fluctuating in the market. Yet, manufacturers in China can mitigate the risk. The OEMs lock in costs per unit over a fixed period. This protects them against fluctuations in currency and raw materials costs.
Disadvantages of OEM Manufacturers
Working with OEM manufacturers is not all roses and sunshine. However, the disadvantages discussed below can be avoided with proper research.
The most apparent drawback of working with an OEM manufacturer overseas is the lack of complete control over the final product. The lack of total control can be mitigated by building a relationship with the manufacturer. This entails clear, consistent communication from both parties.
An international agreement entails two different legal systems. Before signing a contract, a company must understand which legal system the contract falls under.
In addition, culture and language differences are also a cause for concern for many business owners.
Despite the disadvantages, companies looking to work with an overseas OEM manufacturer can avoid the risks. Proper research is a vital step towards a fruitful relationship.
Change the Game
Shield Works is a 100% British-owned and managed company headquartered in China with offices in the U.K. and the U.S.
We are the one-stop-shop for all your OEM manufacturing needs. We provide a range of services, including assembly, manufacturing, warehousing, or management needs. That’s in addition to any other custom services you require. To better serve our clients, we leverage our C2W membership to provide supply chain services as well. Get in contact with us to change the game.
The Impact of Outsourced Manufacturing on Industry Growth
Have you ever thought to wonder about outsourcing your business internationally? There are quite a few benefits to outsourced manufacturing, especially during the last few decades. One of the main benefits is how cost-efficient it can be for businesses, thereby allowing you to save money and resources while providing a living to skilled individuals.
Another benefit to outsourcing is that your business can provide specific solutions to specific issues for your customer and give you a wide range of tasks to delegate. This gives you the time and energy to focus on the core of your business without worry.
Finding experts in their trade is yet another positive in the realm of outsourcing. You can find a whole host of people skilled in their craft and willing to provide that expertise to your business.
There are many different industries that are benefiting from outsourcing their manufacturing. Interested in learning more?
Keep reading, as we’re going to show you why you should consider it and the reasons to outsource.
Outsourced Manufacturing In Retail
Though considered to be at the bottom of the distribution chain, retail can gain as much benefit from outsourcing as any other company. As a result, the practice can boost profit margins and cut costs to customers by outsourcing for cheaper alternatives to products the store already carries.
Benefits include multi-channel customer support, through phone, email, live chat, and social media. And outsourcing, in turn, assists with multiple customer inquiries across the many channels at once.
Retail outsourcing can also gain flexibility in staffing needs during busier seasons. And the extra staff takes some of the burdens of the heavy workload when numbers are high and questions need to be answered quickly.
Another great benefit to outsourcing is data analysis and collection in retail, such as online shopping. The results include showing which items are most popular to the items that are mostly being returned, supplying valuable feedback.
Overall, the process comes together to create a better customer experience, able to handle a variety of customer problems, and the likelihood of resolving those problems becomes very high.
Up Next With Pharmaceuticals
Manufacturing in pharmaceuticals is yet another way that outsourcing can benefit important, essential companies.
Outsourcing provides a wide spectrum of services like preclinical development, drug discovery support, contract manufacturing, and clinical trials. Outsourcing helps the world of developing medicine go quicker and easier.
Pharmaceutical and biotech companies receive outsourced assistance in the care of sick, elderly, and everyday consumers to maintain their health. This results in securing a trusting partnership for the ultimate good cause.
The end result of outsourcing is saving money in bringing in medicine, and for the consumer to not have to spend so much to take care of themselves.
Tech & Software
Did you happen to know that manufacturing domestically is more expensive than outsourcing it? Not a lot of people do.
Saving costs is the top reason most tech companies usually outsource to either China or India. They outsource due to the lack of raw materials available as well as lack of sufficient labor in the US.
In a nutshell, that means that saving money on manufacturing has the added benefit of also saving money for the consumer. Essentially those software companies save on costs and as a result, so do their customers.
The resulting experience is that everyone remains happy in the long run.
Time Is Definitely Money
In the current US economy, being a one-stop-shop for all of your business needs is now more of a pipe dream than anything else.
Unless you’re running the smallest business known to man, outsourcing is not only a wiser choice but a smarter one, too. The result helps you create profits and growth even in hard economic times.
One of the main benefits of outsourcing is obviously saving money on company costs which results in even longer-term cost reductions and ensuring the survival of your company.
Time is money and you don’t want that time to cost much of that money in manufacturing stateside, and it allows you to spend more time creating and less time stressing.
Focus On The Important Stuff
Snowballing from the section above, being cost-efficient in the long run can have a positive effect on your company when you outsource. Namely, allowing you to focus on the company you’ve worked so hard to get off the ground.
Saving money is important, but so is taking care of your business, free of unnecessary headaches that extreme worry about costs can bring.
Savings can increase sales and revenue, giving you the time to focus on core areas of your house. Those areas being marketing, research, and development, instead of being concerned if your customers aren’t getting the service they need.
All in all, outsourcing contributes to a bigger, more robust bottom line for you and your workers. Saving you the money and hassle for a hopefully long time.
Being More Efficient
Another outsourcing benefit, aside from saving on costs, is definitely finding experts who are masters at their trade. Thus, ensuring that all of your bases are covered when it comes to customer service.
Any outsourced expert who can do their job the best is naturally very useful to any company worth their salt in providing a quality product for their consumers.
If you want all your customers to receive answers to any query they pose, having someone with proven expertise is always pivotal. Outsourcing lessens you of all the stresses of whether your people have all the necessary answers at hand.
Less stress, along with increased productivity and efficiency contributes even more to your company’s bottom line. And it gives you more confidence in the resources you acclimate along the way through time.
The main point here is that having outsourced experts on the payroll is a setup for all kinds of success in the future.
Check Us Out
We hope that this has been a more than interesting read for anybody wanting to try outsourced manufacturing in the near future.
Why not start here, at Shield Works?
We can help you with any outsourcing knowledge you need as well as provide you with our company expertise to assist you in your outsourcing. As a result, it allows you access to our resources to walk you through outsourcing for your company.
Whether you need answers to your questions or simply want to acquire our services, please check us out right over here. Can’t wait to hear from you!
Is It Difficult to Set up Contract Manufacturing?
In 2018, the global Contract Manufacturing Organisation (CMO) was valued at $92.42 billion. Business is booming, and more companies than ever are now using contract manufacturing.
So, what is it, and is it right for you?
Let’s find out.
What Is Contract Manufacturing?
Businesses that use contract manufacturing hire other companies to produce their products for them. This provides smaller businesses with a significant advantage.
They can sell their products on a large scale without needing the assets required to run a large warehouse or factory.
It’s the dream of any entrepreneur or business owner: Your product will be manufactured swiftly and sold in vast quantities by a contract manufacturer.
This process can save time and money, all while increasing the reach of your business. A contract manufacturer can be based anywhere, but China and the U.S provide some of the most popular services.
The Benefits of Contract Manufacturing
Businesses of all shapes and sizes can benefit from contract manufacturing. Here are just a few of the ways it can help you:
The Hiring of Service or Labor
With contract manufacturing, it’s also possible to subcontract labor. For example, if you’re a smaller company, you might not have enough employees to make your production process run smoothly.
In these cases, you can outsource. This method is popular with many large-scale manufacturers, especially as you’ll be able to select manufacturers who are experts in your specific field.
You Gain an Operational Advantage
If the demand for a specific product is high, and a contract manufacturer can provide the capacity to meet this demand, you’ll generate more profit.
In some cases, you’ll also be able to work with contract manufacturers if you’re looking to pilot a new product. They’ll be able to test the market for you before you launch into large-scale manufacturing, saving you time and resources.
Flexibility
This is one of the most significant benefits of contract manufacturing. They’ll have the resources, time, and manpower to adapt to the specific needs of your product.
This means it can often get to the market quicker than you can achieve by working in-house.
You’ll also find that many suppliers offer a range of services. These can include warehousing and 3PL services, quality inspection and testing, manufacturing, order consolidation, assembly, IP servicing, and more.
If you outsource and select the appropriate supplier, the expansion opportunities are vast. Your customers will also be satisfied with more resources.
CM’s can provide high-quality testing and assembly, so your products are guaranteed to be safe and fully functional.
You Can Enter Different Markets
As a merchant, it can sometimes be hard to trade and perform business in other countries.
When you outsource and provide contracts to manufacturers in different countries, you’ll find it much easier to sell your products outside your national market.
It can also be cheaper to enter other markets through contract manufacturing, so you’ll give yourself the best chance to generate more profit.
You Can Dedicate More Time to Selling
Marketing is an important business. Suppose you can’t target potential consumers effectively. In that case, the quality of your products won’t matter because you won’t be reaping the rewards.
If you use contract marketing, you’ll be allowing other people to handle the practical side of your business while you focus on selling. As a result, you’ll be able to strike a better balance and give yourself a fighting chance in the market.
High-Quality and Low-Cost
Your products will be safe in the hands of professionals who can use their expertise to maximize the quality of your products. Many contract manufacturers are experts in production activities.
They can often perform this work to a higher standard than most businesses who choose not to outsource.
What Are the Disadvantages?
The benefits of contract manufacturing are substantial, but the process doesn’t come without its disadvantages. These can include the following:
Lack of Control
You’ll lose control over your production activities. If you have solid and existing production skills, you might choose not to outsource. If you’d prefer to hand-pick your employees yourself, this may also be a problem.
Although you’ll be able to select the manufacturer yourself, you won’t be able to choose individually or approve the people who manage your products. Your CM will take care of this for you.
Potential Delivery Delays
Contract manufacturers work on a colossal scale. Sometimes, due to a heavy workload, they may not produce products on time, and your customers could experience some delays.
Potential Outsourcing Problems
If you choose to outsource abroad, you could be interacting with people who speak different languages and live in different time zones. If you’re impatient, communication could become stressful for all parties involved. Make sure you’re happy with who you’re outsourcing to.
What channels will you use to communicate? Are you happy to speak with manufacturers in different time zones, even if it’s not during your business hours? These are all critical questions to consider.
Are You Ready to Get Started With Contract Manufacturing?
We hope that having read this blog post you now have a clearer idea of why you need contract manufacturing.
If you’re looking to hire a labor force, access better equipment and facilities, and/or have goods built, contract manufacturing could be a perfect solution.
You’ll also be able to negate start-up costs, improve product quality, concentrate on your brand and keep up with seasonal demand.
Contract manufacturers like Shield Works offer companies an array of different services and high levels of expertise. So if you’re looking for a reliable manufacturer and want to move your production to China, contact Shield Works today for more information.
All About Contract Manufacturing in China: 5 Tips
It’s no secret that outsourcing your manufacturing obligations can save you plenty of time and money. In fact, China is one of the most popular destinations to do so.
But, not every entrepreneur knows everything they should about contract manufacturing in China. So, we’ve put together a guide with all the details you should keep in mind.
Let’s get started.
1. You Need to Find a Reliable Supplier
As you might guess, you’ll need to find a reputable supplier before you can move forward with your manufacturing obligations. Although this responsibility can seem overwhelming at first, is not as difficult as you might anticipate.
In general, you’ll want to consider the following factors before you make your decision:
- The size of the factory
- The location
- Total production capacity
- Exclusivity
To elaborate on this last point, you should decide whether or not you want your supplier to exclusively manufacture for your business during the production process. Once you’ve figured out the necessary criteria, you can begin your search.
Keep in mind that either you or a dedicated professional must visit the actual facility before production begins. This is to ensure that the facility meets all your needs and that you aren’t being misled.
2. You Must Register Your IP
Unfortunately, many entrepreneurs are unaware of the fact that they need to register their intellectual property in China. This means that you should pursue any necessary patents, trademarks, or copyrights.
Foregoing this obligation can easily become a significant obstacle for your production process if another entity in China decides to register your IP under their name.
Not only will this prevent you from manufacturing a product, but you could also run into legal issues for infringing upon their copyright. Due to the murkiness of international law, it can be highly difficult to prove that you were the original creator and owner of a particular IP.
Even after you have registered your IP in China and found a reputable manufacturer, there is one extra step you need to take.
You must have your manufacturer sign a nondisclosure, non-use, non-circumvention (NNN) agreement in order to further protect your rights. Anyone who attempts to avoid this obligation is someone that you should never work with.
3. Prioritize Quality Control
Ideally, you would be able to provide your manufacturer with the necessary information and then receive a high-quality product. But, this isn’t always how things turn out.
It’s not uncommon for you to encounter quality issues while outsourcing your production overseas. Fortunately, though, this is often a result of misdirection that can be resolved through communication.
The best way to accomplish this is to have a third party regularly conduct QC checks during the production process. This will allow you to catch issues as quickly as possible and then take steps to remedy them.
Failure to do so could easily result in dissatisfied customers, delayed deadlines, etc. Put simply, brushing off your quality control obligation comes with a strong risk of hurting your brand’s image.
4. Preserve Approved Samples
It’s not abnormal for different batches of products to have inconsistencies between them. To elaborate, the first few rounds of Chinese contract manufacturing may meet your standards while subsequent batches may fall short.
To help keep everything on track, it’s essential that you preserve copies of approved samples. This will give your manufacturer a solid reference that they can strive to duplicate in the future.
Additionally, you can use an approved sample as an index of whether or not a current batch meets your standards. If it doesn’t, your manufacturer is obligated to make changes.
But, these can take a significant amount of time to complete. This also means your manufacturer may not be able to adhere to your time constraints.
So, it’s in your best interest to have multiple high-quality samples that your manufacturer can use in order to streamline the production process. In the event that your standards change, you should obtain new samples as quickly as possible.
5. Establish an Original Equipment Manufacturer (OEM) Agreement
For those who are unfamiliar with this type of document, this is an agreement between you and your manufacturer that aims to remove any form of ambiguity in your relationship.
This means that you need to elaborate upon any minute details that could cause complications in the future. In practice, you’ll find yourself having to clearly define the color you want your product to be, the projected timeline, etc.
In fact, colors are defined by Pantone number as opposed to terms like ‘red’ or ‘blue.’
Other factors to consider include:
- Ownership of tooling
- Dispute resolution
- Payment terms
- Quality requirements
- Certification
The same can be said about product weights and dimensions. In addition to all of this, you’ll need to ensure that this agreement is enforceable in China and not just the United States.
This often means working with a Chinese legal professional to help you navigate the nuances of Chinese law. Additionally, it’s required that you write the document in Chinese.
Otherwise, your manufacturer could break all of your guidelines and suffer no consequences.
Contract Manufacturing In China Can Be Game-Changing
So, it’s essential that you keep the above information in mind. From here, you’ll understand everything you should about contract manufacturing and can then make the most of this opportunity.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.
The Benefits of Chinese Manufacturing
Are your manufacturing costs running your business into the ground? Are you looking for a better way to have your goods produced? If so, you should consider turning to Chinese manufacturing.
There are several benefits of choosing a foreign manufacturer. To help you determine whether it’s the right decision for you, we’re going to discuss those benefits below.
Lower Costs
The most obvious benefit of Chinese manufacturing is lower costs. Costs are lower in China for a variety of reasons.
For one, there are fewer regulations on Chinese businesses. As such, they have much lower overhead costs. This enables them to produce an item at a lower price, thus allowing them to pass a lower price on to the customer.
There’s also the fact that labor costs in China are substantially lower than in the United States. Workers don’t need to be paid as much, thus lowering the overall cost of manufacturing. Again, these savings are passed on to the consumer.
If you want high-quality products at a very reasonable price, having your products made in China is the ideal option. You’ll save tons of money, allowing you to get your business out of the red as soon as possible.
More Products
Not only do Chinese manufacturers work cheaply, but efficiently as well. As such, they can produce a substantial number of products in just a short amount of time.
This could bode well for your business, especially if you’re struggling to keep up with demand. The rapid manufacturing pace of Chinese factories will maintain a steady stream of products into your warehouses. You’ll never have to worry about whether you have enough supply on hand.
What makes Chinese manufacturing so efficient? 1. Less regulation, and 2. Practice! These companies have fine-tuned their operational processes, allowing them to be extraordinarily consistent in their manufacturing efforts.
Easy Scalability
Odds are, your business won’t stay the same size forever. At some point, you’re probably going to want it to grow. After all, it’s growth that increases revenue, and increasing revenue is one of the primary goals of running a business, right?
The key is for you to have a manufacturer who can keep up with demand when the time comes. Chinese manufacturers are more than suited to do so.
As was noted above, Chinese manufacturers can produce unbelievable amounts of products in just a short amount of time. So, if you ever need to scale up your business, a Chinese manufacturer will be able to accommodate you. Just make the call and your wish will be granted.
Knowledge of the Product
It doesn’t matter what your product is. Odds are, there is a Chinese manufacturer that has manufactured it at length. This is a good thing, as it means that your product can be made to perfection.
This wouldn’t necessarily be true of other types of manufacturers. After all, if they’ve never manufactured your product before, they’re likely not going to do it perfectly the first time. In fact, it could take months or even years before they’re able to adequately manufacture your product.
Utilizing Chinese manufacturing allows you to take advantage of a tried and true knowledge base. These manufacturers have manufactured your type of product many times before and will have no problem doing it again for your business.
An Enhanced Ability to Try New Products
You’ve been selling a single product for a while now, and have seen some good success along the way. But, at this point, you’ve reached about as high as you can reach with it. For this reason, you’re considering selling new products in addition to your original product.
The issue, of course, is that it costs money to sell new products. But with Chinese manufacturing, you can greatly reduce your cost obligation, thus making it easier (and less risky) to facilitate the change.
Were you to use an American manufacturer, you would have to pay a substantial amount of money just to get the new product made. This would be fine if you knew that the product would sell as intended, but you can’t make that guarantee. In other words, it’s tremendously risky.
So, if you’re interested in expanding to new products, there’s really only one option: you have to use a Chinese manufacturer.
Good Quality
When you think of Chinese manufacturing, you might think of poor quality. Yes, in some cases, that is certainly true. After all, not all manufacturers are created equal.
But that’s the case in the United States as well, just as anywhere else. In the end, it’s all about the manufacturer you choose. Some will do a good job, some will do a decent job, and some will do a fantastic job.
Just be sure to vet your manufacturer before signing any contracts. Ask to see examples of their past work and make sure that you’re totally satisfied with the quality.
Remember: Chinese manufacturers have devoted substantial amounts of time working on these products. As such, many of them have perfected the processes, and know exactly how to create the product in question.
Interested in Utilizing Chinese Manufacturing?
What do you say? Are you interested in utilizing Chinese manufacturing? If so, we here at Shield Works are the people to see.
We manufacture a wide variety of goods and do so at a low rate. If you’re at all interested in manufacturing in China, we have you covered.
Contact us today to discuss your needs!
How To Choose Original Equipment Manufacturers
Original equipment manufacturers (OEMs) can help a business with its production processes at a cost-effective price.
They can also be a reliable source that helps drive your business to the next level by taking care of some essential business tasks.
However, if you choose the wrong partner, this can cause production problems. Delivery delays could even result in your company losing customers.
Fortunately, there are several crucial aspects you can look for when deciding how to choose an original equipment manufacturer.
Read on to learn how to find the right OEM supplier for your business.
Original Equipment Manufacturers Quality Standards
Customers have more options than ever before, and if your products fall below their standards, they will simply buy from one of your competitors.
There are many stories about companies purchasing cheap goods that suffer from a severe lack of quality.
While you will want to keep your production costs affordable, it’s important to remember you may have to pay slightly more to obtain superior merchandise.
You should ask if the OEM service adheres to ISO standards throughout their manufacturing process. In addition, the company should train all their staff and ensure that employees are encouraged to report any potential issues.
When a company can identify potential problems early on, there is less likely to be a delivery delay. This can be a vital factor if you need a supply of high-demand products quickly to satisfy your customers’ needs.
A reliable OEM will be proactive and agree on the standards you require before they begin the production process. Then, they can examine their finished items in line with these terms.
By checking all products before they leave the factory, an OEM ensures you do not have to return items when they reach your premises.
OEM Transparency
When deciding how to choose an OEM, an open and honest line of communication is essential. To maintain your high standards, you can ask the company if they provide access to their site.
There is no need to have a physical presence on the premises because you can use technology to gain 24/7 access.
Whether you are at your desktop computer or using a mobile device, you can always get a live update on the production process.
If the OEM is happy to allow you to view their work through a secure video feed, this provides peace of mind that they will deliver what they promise.
You can even request access to specific locations along the production process. For example, you could view their quality control area to ensure you are satisfied with the finished article.
Independent Testing
You may be wondering should you get an OEM if you are worried about the quality of their work. After all, if you haven’t worked with them before, you only have their word that they manufacture high-quality merchandise.
But, you can have more confidence when you partner with an OEM that uses independent third-party testing. When choosing your supplier, you can ask how you can communicate with the independent testers.
It’s best if you can discuss your product quality with them directly. This means you have the reassurance that the factory is working to the agreed standards.
Although the factory should also have its own internal quality control team, an extra layer of testing is reassuring. There is a reduced chance of inferior products slipping through the net.
OEM Analytics
It can be challenging to outsource your production needs to a company based in a different country. If companies don’t provide you with real-time information, then how do you follow the order progress?
You may also have to inform customers when they can inspect their goods. In this scenario, it’s important to have access to production analytics at all times.
You may be in a different time zone from your OEM and don’t have time to wait for a manager to get to the office.
Before partnering with an OEM service, you can query if they use a manufacturing software system.
For example, you may want to know about the production output, so you know when your order will be ready for shipping. In addition, if deliveries are later than expected, you should be able to view production downtime.
If a supplier consistently has too much downtime, you can decide to move your business to a different OEM.
Access to analytics can also be important as you will expect your supplier to take corrective action when there are issues.
Business doesn’t always run smoothly, and your OEM needs to know how to fix any issues that could have a negative impact on your company.
If you can see this information through the analytics software, it can be reassuring that your products are in good hands.
OEM IP Protection
If other companies steal your Intellectual Property (IP), they could target your customer base. Therefore, when selecting your OEM service, it’s good practice to ask about IP protection measures.
You can query if they have designated zones for specific processes. Also, how do they protect your information? Your partner company should have robust hiring procedures and use the latest technology to protect your data.
It’s also a good idea to work with a company that helps you register your IP in China. This can make it easier to obtain the protection you need for your products without having to navigate the required steps on your own.
Partner with Shield Works Today
Shield Works is a British-owned and managed OEM based in China. We are one of the leading original equipment manufacturers and have been providing our services to satisfied clients for over 15 years.
We operate to the highest quality standards and use the latest technology to provide our clients with the products they need.
We work closely with our partners to ensure we meet delivery times and exceed expectations.
Contact the Shield Works sales team to book a consultation today.