Posts Tagged ‘OEM Manufacturers In China’
How To Get the Most Out of OEM Manufacturing Services
If you work in manufacturing, you know that your products are only as good as every component. Getting the right part at a reasonable price translates to better products, happier clients, and financial success.
This is where OEM manufacturing comes in. There are many advantages to using OEM parts, but there are also some things you can do as a client to get the most out of your relationship with the production company.
This article covers the basics of OEM manufacturing, including the advantages of their products. It also gives you some tips for maximizing your relationship with the company. It will help you ensure you are getting quality parts that allow you to meet your production demands.
What Is OEM Manufacturing?
The definition of “OEM manufacturer” is complex. In general, an “original equipment manufacturer” is a company that makes specific components that are then used in the products of another company. They work with clients to create a design and settle on manufacturing processes.
OEM companies set supply chain goals to produce the right component for the job. They also may offer add-on services, such as assembly, logistics, or warehousing.
Electronics and auto manufacturing are two of the most common industries that regularly use OEM parts. However, there are lots of different industries that rely on OEM manufacturers.
Advantages of OEM Parts
The biggest advantage of OEM parts is that, by definition, they are produced with a specific function in mind. They are made to fit and perform based on the original design of the finished product. This is why you can expect OEM parts to be the highest quality and design.
This may not be the case with aftermarket parts. These too are produced by a third party but without the original design in mind. For this reason, aftermarket parts may be sub-par in quality and function.
Aftermarket parts sales are usually directed toward consumers. OEM companies are generally business-to-business focused. That is due to the nature of the products.
The goal of an OEM is to make a component for a product before its original sale to consumers. Aftermarket parts are often produced as a cheaper replacement for a part after it has been sold, or to serve a different function than the original component.
An OEM is also distinct from an “original design manufacturer” (ODM). While OEMs make components for another end product, ODMs design and produce their own components for sale under another company’s label.
A good example of ODMs is third-party phone chargers. These tend to have a very similar design to other products on the market but are sold by distinct companies.
Getting the Most Out of OEM Manufacturing
The most important thing you can do to get the most out of an OEM manufacturing agreement is to establish a good relationship with the company. Communication is key. Having a working agreement with a manufacturer that is willing to field challenges as they arise will ensure you get the components you need on time.
This includes every step of the production process. Below are some tips to consider as you move through each phase.
Creating a Prototype
Prototyping is standard practice in OEM manufacturing. It allows you to establish a relationship with the company and lay out clear expectations about the process and the product.
This includes discussions of production timelines. If the OEM manufacturer is warehousing products for you, this is a chance to go over inventory management practices and standards.
Finally, the prototyping phase is the time to cover documentation. This includes conversations about how you will handle the exchange of files, blueprints, invoices, and other important documents.
Be sure to sign a non-disclosure agreement. This will grant the manufacturer permission to receive the product design necessary to produce the prototype while ensuring protection and privacy.
Pre-Production
If both parties are completely satisfied with the prototyping phase, they will continue with pre-production. This step involves honing production processes to make a component that is ready to go to market.
Pre-production is an opportunity to take what was learned during prototyping and apply it to the production processes. This will improve efficiencies and end product quality.
Production
Production begins when the OEM has finalized all adjustments from pre-production. Before actual production begins, the OEM manufacturer may ask you to sign a “manufacturing services agreement” (MSA). This solidifies all the expectations from each party.
The MSA is an important step for the manufacturer. It allows them to move forward to supply chain arrangements and set up inventory management. It also allows them to budget and put a production schedule in place.
Be sure you are comfortable with everything laid out in the agreement. This includes any applicable warranty information and production details. It also should specify steps for making changes during certain phases of post-production.
Post-Production
Once production begins, it may feel that things are “on autopilot.” This may be the case, and regular communication may slow a bit, but the manufacturing relationship does not end.
During post-production, be sure to schedule regular meetings for updates and adjustments. Spelling out this schedule in the MSA is even better.
As with any type of sales business, production needs may change. A reputable OEM manufacturer will want to help you meet all your demands, even amidst unforeseen circumstances.
Being upfront about changing needs or production specifics is the best course of action. It will allow you and the manufacturer to iron a plan together that is beneficial to both companies.
Find OEM Manufacturing Services
Now that you understand the basics of the OEM manufacturing processes, you get the most out of your agreement. Remember that the most important thing is to establish clear communication with the company. This will ensure that everyone is on the same page throughout all planning and production phases.
Shield Works Precision Manufacturing provides customized OEM production, assembly, and warehousing solutions to an international client base. We pride ourselves on maintaining the highest standards of customer service and product management. Reach out to us today to learn more about services or to get a customized quote today.
Supply Chain Management: The Backbone of Your Business
Supply chain management is the backbone of any company, big or small, that deals in physical goods with substantial production and distribution processes. When you’re starting out your business, supply chain management might seem like an afterthought; you’re more concerned with what goes on inside your company than the goods that come in and out of it. But when you’re ready to scale up, you’ll need a way to manage your goods from their point of origin all the way to where they’re being used—and that’s where supply chain management comes into play.
What Is A Supply Chain?
A supply chain is the network of all suppliers and producers, distributors, warehouses, and end customers involved in producing and delivering a product. Supply chains are found in a variety of industries including automobile manufacturing.
A consumer goods business’s supply chain can be broken down into four main categories: supplier development and management; distribution; operations management; and customer service. These four components work together to ensure that goods are delivered to customers on time while maintaining a high level quality.
Suppliers need to be monitored for quantity, delivery times, and any changes in price or availability. Distribution requires coordination with carriers and transportation services for getting products from point A to point B without any delays or damage. Operations must handle such things as plant floor layout, storage equipment design, assembly line design, production scheduling strategies and inventory levels. Customer service involves managing customer expectations with respect to pricing/costs, lead times and order fulfilment.
An effective supply chain is crucial because it ensures your company has continuous supplies which allows you to stay competitive by meeting your customers’ needs at a low cost while still ensuring profit margins remain healthy enough for long-term success.
Benefits Of Having A Good Supply Chain In Place
A good supply chain will ensure the availability of your products and services to buyers. Having a reliable supply chain in place means you can trust that what is promised is delivered, without worries about product shortages or delivery delays. It also means you can focus on other aspects of your business, such as marketing and customer service, knowing that your supply chain is running smoothly. Good inventory management also saves you money by reducing the amount of time spent managing inventories; it eliminates waste by reducing excess production; and it prevents overbuying or underbuying by estimating demand more accurately.
It also allows you to offer same-day shipping or delivery services, which can greatly improve your customer experience while enhancing your brand image in shoppers’ eyes. Finally, having control of every step of the process from production to distribution gives you peace of mind because you know where your products are at all times.
Problems With A Poorly Planned And Managed Supply Chain
A poorly planned and managed supply chain can lead to a variety of problems. For example, if your supplies are delivered late or in the wrong quantities, it will be difficult for you to keep up with demand and meet customer expectations. This could cause your customers to look elsewhere for products, meaning you’ll lose money. Similarly, if something goes wrong with a shipment – say you ordered 2,000 units but only received 1,500 – then you won’t have enough product on hand to fulfill orders and may have to cancel some orders altogether. This can damage your reputation as well as cause delays in production that hurt your bottom line.
In addition, a poorly planned and managed supply chain can lead to even financial problems. If your supplier ships you faulty products – say they accidentally send you 2,000 units that don’t work properly – then it may be difficult for you to get a refund or replacements. This could force you to halt production as your staff tries to identify and replace all of these faulty units and seek compensation for losses. Worse still, if there’s an issue with your suppliers’ products that leads to serious injuries or health complications for customers, then it may be difficult for you to find a lawyer who will take up your case due to consumer protections laws in many countries. And it’ll be detrimental to your cash flow.
How Can You Effectively Manage An Effective Supply Chain?
There are many factors to consider when it comes to supply chain management, but the most important is having a plan. You should start by writing down all the points that are essential to your business and then create a list of what you need for each point. You can also make use of a system that will help you manage your inventory and keep track of where things are in the process. When it comes to order fulfillment, be sure that you have enough space in your warehouse or storage area to account for the time it will take for customers’ orders to arrive. If you’re not sure how much space you’ll need, speak with a professional who deals with these matters on a daily basis.
Or you can hire a professional supply chain management company. They will work closely with you to establish goals for your organization’s future manufacturing plans as well as strategies that address potential problems like an increase in problems or changes in technology. They also provide recommendations and support for establishing a sustainable supply chain strategy. With their guidance, there’s no doubt about it: You’ll be able to continue running an effective supply chain without wasting money, resources, or time.
Shield Works Can Take Care of It All
Shield Works has over 17 years of experience in managing supply chain, all the way from manufacturing to delivery. We can help you achieve your goals and objectives while saving time and money. For a free consultation on how we can help your business, call today!
Why China is the Top Country for Product Prototyping
Although there are prototyping services in numerous countries around the world, China provides one-of-a-kind advantages to entrepreneurs and manufacturers alike. Let’s take a look at why China is the best place to prototype products before they launch globally.
Labor cost is lower
While labor costs in China are still cheaper than those of other high-tech economies like Japan and South Korea, they use more advanced machinery and better manufacturing processes to make products cheaper, faster, and higher in quality. Allowing these firms to set lower prices, such efficiency come from better use of technology (like robots) and closer monitoring of labor schedules to minimize downtime (i.e. breaks taken by workers). These different factors increased efficiency and lower wages, which mean that Chinese manufacturers are capable of supplying a higher quantity of products at a lower cost than anywhere else in the world.
They take care of it all
Some Chinese prototyping shops provide all the help you need to build a prototype. On-staff designers, 3D printers, and injection molders will give your ideas form and shape. if you purchase a package deal, they’ll do all of your work for you. Startup founders love this because it lets them focus on what they do best. Even better: specialized prototyping companies are popping up in increasing numbers, with faster-than-normal manufacturing processes, which work well for small startups aiming to get specific things accomplished.
For example, if you’re building a medical device, you might want to partner with a firm that specializes in the design and manufacture of medical devices. These firms know the details that the regulatory agencies such as FDA need to make sure that you’re following their protocols and as such you don’t need to concern yourselves with that information. Entrepreneurs who are launching hardware-based products should work closely with these experts from the earliest phases of the project.
Fast delivery
Inexpensive prototyping and large-scale manufacturing allow product developers to innovate at an unprecedented pace. Chinese factories offer lower costs, shorter lead times, and larger production volumes than other countries. Companies like Apple have established relationships with Chinese manufacturers for over a decade. Today, a large percentage of Apple’s products are manufactured in China—including final assembly for some parts (e.g., cables and batteries). While there are many factors that come into play when deciding where to locate production, high speed of prototype delivery has become increasingly important as consumers demand better turnaround times on pre-orders.
Preloaded technology
Since they make 3D printers with helpful software to make them easier to use, Chinese manufacturers also preload their 3D engineers with more industry experience, because they typically hire skilled workers who are experienced with manufacturing similar products or work with experienced consultants. Due to its large population, the talent pool in China is nothing comparable to those in other countries. It’s been difficult to close this sizable gap.
Innovative culture
While in the past China’s reputation has been that of a country that has stolen technologies and has relied on a copier culture, it’s now on the verge of becoming a leading economic power. Beijing’s top leaders are beginning to think that innovation, not imitation, can be the solution to some of the country’s problems and that it can create new industries and jobs, as well. They believe that innovation will lead to economic growth and more opportunities. nearly 700 universities in China have revamped their names to incorporate innovation, signifying an emphasis on teaching for research and development. Only a few years ago, these schools focused solely on providing the lowest common denominator of engineering training, churning out manufactured products for countries around the world.
Home-made tech forces
One of the reasons why Chinese startups can prototype at such an accelerated rate is that they take advantage of local tech hubs. These facilities allow startups to rent office space, equipment, and more–eliminating expensive overhead costs while also fostering a sense of community and support. For a tech startup’s success in prototyping its product, being closer to industry experts and resources as well as proximity to large financial markets might be just as important as proximity to Silicon Valley’s startups and innovation.
For instance, take Huaqiangbei in Shenzhen for prototyping needs. With processors, motors, sensors, and circuit boards, this massive market has all of the electronic components imaginable. This place would be like a godsend for an entrepreneur! Don’t worry, those needing a startup engineer or product designer needn’t walk the thin line of distributors or manufacturers – they can take to the equally harrowing but far shorter task of searching Huaqiangbei Street instead! Of course, they also gain an attractive other benefit, though access to information.
Shield Works’ in-house engineering team is well-seasoned and bilingual, and we have over 17 years of product prototyping experience in China. Contact us now for more!
What Are the Benefits of Contract Manufacturing in China?
Over $540 billion worth of goods were imported into the United States from China in 2021.
China has been and remains the manufacturing hub of the world for the last few decades. This growth allowed China to invest in infrastructure to further its dominance in the sector. These investments have made China the perfect one-stop shop for the world’s manufacturing needs.
Contract manufacturing in China offers a wide range of benefits to businesses of all sizes. Outsourcing production in this way can help lower your costs and set yourself up for expansion throughout Europe and the rest of the world.
Interested in moving your manufacturing needs overseas? Here are a few of the major benefits of contract manufacturing in China.
Lower Production Costs
China is home to over 1.4 billion people. These population numbers have created a labor market where wages have remained low compared to other markets in the world. The minimum wage varies in different regions, but the average is still below $3 an hour.
The lower cost of labor directly decreases the overall cost of production as companies can afford to hire more people with the same budget. The ability to hire more people makes the entire process more productive. This increase in productivity means that every unit produced ends up being cheaper.
Fewer Regulations
The manufacturing sector in the United States is heavily regulated. Red tape and production regulations can delay internal processes and even halt production. This can have a massive financial impact on the company.
This is why many outsource their manufacturing to China as there are far fewer regulations to navigate. While there are still strict health and safety regulations in place, everything is designed to be as efficient as possible. This allows businesses to instantly start production and distribution.
Excellent Logistics and Shipping Services
China has dominated the manufacturing industry for a seriously long time. This industry has grown to contribute around $4 trillion to the national GDP every year. However, these finances were invested to make the country the manufacturing hub of the world.
China has invested in strategic infrastructure to help make logistics as efficient as possible. They have done this by upgrading their shipping ports, airports, and national highways. China has also invested heavily in international highways to help deliver goods throughout Asia and some parts of Europe by road.
This, along with its geographical location, makes it the perfect place for contract manufacturers.
Central Location
China may not be as central as Europe, but it’s close enough to its largest trading partner, the United States. This allows American companies to sign contract manufacturing agreements with local companies online.
Modern technology has helped make this process as easy as possible. There are even online platforms designed to help businesses find local manufacturers. However, there are also experienced firms that offer guidance every step of the way.
Productive Business Culture
Contract manufacturing agreements are designed to be as efficient as possible. This is because outsourcing your manufacturing helps reduce the risk of production for your business. While there may be other options available, the Chinese market is by far the best choice.
This is because the manufacturing industry has world-class infrastructure, local support, and experience. The industry is designed around efficiency and comes with a productive business culture to match. This productivity can help you lower your overall production cost to boost your profits.
Saving you time, making you money.
Global Expansion
As mentioned above, China has the best logistics networks in the world. This allows the local supply chain to operate with accuracy locally and internationally. This is because China is already linked with almost every country in the world.
In this way, outsourcing your production to China gives you access to the country’s logistic network around the world. This makes it easy for you to produce goods in China and ship them directly from China to various countries. Shipping directly from the factory to the destination can save you money.
China has trade agreements and deep diplomatic relations with almost every country in the world. This means that you can leverage the country’s existing infrastructure to grow your business around the world.
Attractive Local Currency
The Chinese currency is one of the country’s most powerful tools. This currency is not exchanged like other currencies in the world as it’s completely under the control of the local government.
This means that the government has the ability to create a stable economic environment for investors. By controlling the currency, the government can use it as a tool to encourage investment whenever it’s needed.
The local currency is kept at an attractive rate for foreign investors. This helps keep local costs down for international companies. By making every dollar go further in China, it encourages businesses around the world to move their operations to the country.
Contract Manufacturing in China
China is the manufacturing hub of the world for a reason. While businesses around the world may have seen China as cheap labor in the past, the country has evolved. This has resulted in a productive business culture that can help serve businesses around the world.
Whether you’re a small business looking to cut down production costs or a company trying to expand, contract manufacturing is the way to go.
Interested in outsourcing your manufacturing with a contract manufacturer in China? Contact us for more information. Our experienced team is ready to help.
7 Benefits of Working with China Manufacturers You Must Know
Deciding whether to outsource your manufacturing to China can be an overwhelming process, but there are many reasons to choose China as your manufacturing hub. Here are five of the most important benefits you should consider before making a decision.
Lower Costs Than Western Counterparts
One of the primary benefits of outsourcing your manufacturing to China is the lower labor costs.
Besides having fewer overhead costs, Chinese facilities also have lower training costs. In order to cover these costs, domestic manufacturing facilities must set aside a significant amount of money.
Businesses of all types outsource instead, as wages in China are also lower than in the United States.
When you outsource, you can spend less per dollar, so you can reap the benefits that can come from using Chinese product assembly. Keep this in mind when you are considering moving forward.
Larger Production Volume
A business does not necessarily need to manufacture thousands of products in one order. However, in some cases, large organizations often have a hard time locating a domestic facility that can meet their bigger-than-normal needs.
This means that China has typically built facilities that are able to produce large volumes of goods for many different countries. Even an average Chinese factory can outperform the vast majority of western facilities.
When it comes to companies that require a massive supply of their product, there is no better alternative than outsourcing to China. In many cases, it is also the only way to meet your goals.
Diversified Production
To long-term success, scaling your business may be needed.
This can happen in a variety of ways. For example, you might add a new product line to generate additional revenue.
One option would be to find growth opportunities in one of China’s developing markets. That way, you can use them to establish a niche in your business. Designing new products is one of the key ways in which they help.
Choosing a Chinese OEM plant, in some cases, might give you an edge over your competition.
Flexibility of Product Design
Domestic facilities usually cannot adjust their design at your behest because it could take them days or weeks to actually put them into practice.
You may have to change the way you do business to sell a more desirable product if you don’t have high enough sales numbers. Adding to this, delayed orders because of design changes also carry the risk of your customers turning to competitors.
It is our understanding that Chinese manufacturers are ready to implement any changes required of them. As for you, all you need to do is contact the representatives from your company and describe the alterations that you need.
The manufacturer will typically make revised products as soon as possible after you inform them of your change, which is an important consideration as it will affect your brand’s reputation.
IP Protection
Many people are unaware that many Chinese factories prioritize intellectual property protection.
This means they make sure you don’t end up in legal trouble by avoiding any form of infringement. To illustrate, suppose you sell a product that is extremely similar to that of your competitor.
As with any other manufacturing industry, there are shady facilities that engage in such tactics. A reputable factory in China will make sure that there is no copying or reverse engineering going on.
It is good news that you can research the reputation of your prospective factory before choosing to work with them. Otherwise, you may find yourself in a situation that is difficult to remedy.
Efficiency
China’s factories are capable of mass production, and it is a simple matter for them to do so with remarkable speed.
These new and efficient facilities can meet any production standard. This will allow smaller organizations to compete with larger ones.
Many small businesses can’t keep up with the production rates of large corporations. Without the help of the right manufacturers, these businesses will never be competitive.
Tips of Finding The Factory Right for You?
It can be difficult to find a reliable Chinese manufacturer for all sorts of reasons, like time zone challenges and language barriers. With the help of a professional, you will be able to get a firm grasp on which factory is best for your company.
You’ll find that they are a go-between who has contacts at the other party’s end. That way, they’ll be able to work out the finer points and make agreements without you even needing to intervene.
You can take a look at this resource to find out how you can use this to your advantage.
We Are You Go-To Option
With the above information in mind, you can be sure that you are deciding the right course of action for your company.
From here, you’ll be able to employ Chinese manufacturing for appropriate businesses. Want to learn more about Shield Works with 17 years of China manufacturing experience? Please get in touch with us today and see how we can help.
5 Questions to Ask Yourself When Selecting an OEM Manufacturing Company in China
Making products by outsourcing manufacturing to China can be an incredibly rewarding experience. Not only does it enable you to develop the item exactly how you want, but it also allows you to create high-quality products in much larger quantities than you would otherwise be able to make on your own. For these reasons, more and more entrepreneurs are choosing to manufacture their products in China by enlisting the help of an OEM manufacturing company.
However, with all the options currently available, selecting the right OEM company can seem like a daunting task.
Asking yourself the right questions before you begin production with a new partner can save you time and money in the long run, ensuring that you have an efficient manufacturing experience from start to finish. Let’s get started!
Question #1: What Are My Requirements & Standards?
The first question to ask yourself before approaching an OEM company is to develop an exhaustive understanding of your product. Not only should you have a general idea of the product, but also write down the product specifications in detail like:
- Colors
- Materials
- Dimensions
- Components
- Manufacturing techniques
- Manufacturing process
- Quality standards
- Packing requirements
- Import and export requirements
When you manufacture a product, the outcome can be drastically different based on what type of raw materials or techniques are used. It’s important to establish your criteria beforehand so that you know which company will create the best result for you.
Question #2: What Is My Budget Limit?
It’s important to define the upper limit of your budget when outsourcing your production to any supplier, because a more affordable company may not be able to provide you with the same quality and efficiency as a more expensive option. And you may not want to sacrifice the product quality just for saving a bit of money. That being said, while the price is certainly something you should consider when shopping for an OEM supplier, it shouldn’t be the only deciding factor.
However, it’s not a good idea to set an exact budget number right off the bat before all other factors are not considered.
In this case, you can estimate the price range for this manufacturing project based on what you think would work best for your company. Then you can also compare various service providers to have a better understanding of the perfect investment for your business.
Question #3: What Should I Do to Conduct Due Diligence?
After fully considering your needs, then you can conduct due diligence to know whether the manufacturing company is knowledgeable about your specific product type, or if it has worked with similar products before.
The best way to find this information out is by researching the company website to know their background, qualifications, service category, past work, etc.
You can also ask for references from a supplier you trust or reach out to other businesses that are manufacturing a similar product.
Doing detailed due diligence is not an easy task, check out our blog to know how to spot a real factory or a trading company in China.
Once you have all the relevant information, compare different manufacturers’ strengths and weaknesses against your needs and make a decision based on what will work best for your business.
Question #4: A One-Stop Shop Factory VS. Different Suppliers
Then you also need to think about do you want to use a one-stop shop factory that can fulfill all your needs or different suppliers who can specialize in different areas.
A one-stop shop factory is a model whereby one company manufactures, assembles, and distributes the product that they have been commissioned for. This factory can potentially increase efficiency and reduce production costs as a result of having all production processes under one roof. However, this could also limit your options for product customization if their manufacturing capabilities are limited.
If you need to make products with different materials or designs than what they produce, then you will need to find a different supplier. Furthermore, there may be certain materials or suppliers that are hard or expensive to acquire domestically in China so it may be necessary to find another supplier.
If time is not a concern and cost savings are your main priority, then finding one supplier might be the best option for you. However, if flexibility is more important for you, then working with multiple suppliers would be recommended.
Question #5: How to Guarantee My Product is Perfectly Working?
One way that a manufacturing factory can prove its commitment to quality assurance is by providing a sample of your product for inspection. In this case, requesting a product sample before placing your first order can be a good idea.
If there are any flaws, you have the opportunity to give feedback before mass production. In other words, if the manufacturer has nothing to hide, then there should be no problem with sending out a sample or a finished product for testing. This eliminates the risk of encountering problems and ensures your customers get what they pay for!
In addition, it’s imperative to look at whether your potential manufacturing supplier has an in-house quality inspection team or not. You want someone who will stand by you when things go wrong because inevitably something will go wrong at some point. If they assure you of having quality inspections available, ensure that the inspection report specifies what exactly is being inspected and which parts aren’t included.
Final Thoughts
Ultimately, your choice of manufacturer in China should be determined by what matters most to you and how much involvement you want with the production process.
Keep in mind that there is no perfect way of choosing a manufacturer but it’s worth taking some time to think about what’s important and how much you want to be involved in the process.
If you need any help, look no further than Shield Works. Founded in 2020, we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements.
We focus on the provision of a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.
How to Work Successfully with a Product Development Company in China
Whether you’re outsourcing manufacturing or just having product development done, working with a product development company in China may be the best thing you can do for your company. It’s not always easy to work with these companies and get what you want, but by following these tips, you can make sure you have the best experience possible when working with a product development company in China.
Researching if a Chinese company is right for you
Do your research to make sure the company is reputable and has a good track record. Request referrals from other clients, read reviews, and look for third-party verification on their website or social media pages.
If you’re still not sure, contact your potential manufacturer directly via email or phone to ask them questions about their manufacturing process, products they’ve made before, turnaround time, etc. Make sure you’re clear on what you want upfront so there are no surprises later. Make sure you have a clear idea of how much it will cost and how long it will take to get the product manufactured once all details have been finalized.
Finding the right supplier
There are many things to consider when looking for a supplier, such as cost, quality, turnaround time, and communication. Quality is always the most important consideration but you will have to weigh that against your budget and desired timeline. For example, if you’re going for high-quality but don’t want it delivered quickly, you’ll need to find someone who specializes in producing slow-moving items or can give you a discount on the price.
A product development company with a widespread network of suppliers in China can help you a lot as they provide a vast pool of options for you. This can save you time and money, as you’re likely to find several good suppliers from one firm.
Use an Online Translation Tool
If you’re looking to develop a product with a company based in China, it’s important to establish clear communication from the start. Using an online translation tool can help bridge the language barrier and ensure that both parties are on the same page. You should find a reliable translation software provider such as Google Translate or ICanLocalize before your project starts.
Always be sure to get in touch with your partner before starting work on your project. Communication is key to everything, and make sure you language is simple to understand. Do not assume that the partners will understand what 5×5 means when used in reference to size, or finish by Labor Day, as the Chinese Labor Day falls on May 1, when referencing deadlines. Be specific when discussing measurements and timelines so there is no confusion.
Use Templates as a Starting Point
When you are ready to start working with a product development company in China, it is important to have a clear idea of what you want your product to be. Templates can be a great starting point for this process. However, be sure to communicate your vision clearly to the company you are working with.
It may also be helpful to do some research about popular products on the market and create images or sketches based on these ideas. For example, if you want a toy that will help teach toddlers how to count and learn colors, you could use pictures of other toys that teach those skills as a template.
Ask For Samples
Always ask for samples of their previous work. This will give you an idea of their quality and craftsmanship. If possible, try to have someone visit their facilities, given the current travel restrictions, and meet with their team in person. This will help you get a better sense of who you’ll be working with and how they operate.
It’s important to find the right balance between trusting your instincts and choosing the company that checks all your boxes when it comes to your budget, timing, quality standards and expertise.
Document Everything
When working with a product development company in China, be sure to document everything. This includes contracts, communication, and any other important details. If god forbid, when it comes time for you to file a complaint or lawsuit against the manufacturer, you will have everything on hand for the process.
It is also important to remember that often times there are discrepancies between what was agreed upon and what was actually delivered. It is best to document as much as possible so that you can catch these discrepancies early before they escalate into an issue.
Deal With Design Changes at Scale
Changes are common in a design process. They may be minor, such as changing the color or size. Or they can be major, such as changing materials or components and all that entails. However, it is important to note that there are two types of changes: those that can easily be made at scale and those that cannot. The latter must always be done by hand.
When working with a product development company in China, make sure you specify which type of change you want done so the designer will know what to do! If your project requires many changes, have your Chinese manufacturer provide guidance on how to handle them.
Working with a product development company in China is not something to take lightly, but the rewards can be great if you do your research. That takes an experienced product development company for you to achieve, and Shield Works is one with 17 years of experience in this area. Reach out to us if you’d like to know more!
Product Assembly in China: 5 Tips to Make Your Assembly Project More Efficient
Outsourcing product assembly to China has helped many Western companies expand their market reach and maintain competitive pricing.
It’s a simple yet effective process for those who want to increase productivity without breaking the bank or spending too much time waiting for shipment deliveries.
Do you take efficiency into account when planning to assemble a product? To improve your abilities at assembling products in China, here are five tips for business owners to keep in mind. Let’s get started.
1. Avoid Intellectual Property (IP) Theft
First off, as a brand owner, it is imperative to always keep your intellectual property (IP) intact. If this leaks out of course there will be legal action taken against you and it becomes a difficult process.
To ensure you’re making the right decisions when it comes to choosing an assembly partner and avoiding IP theft, do some research on how trademarks and patents work in China. Then find a supplier with a good reputation and a proven track record for helping other businesses succeed.
We also highly recommend having your chosen assembly partner sign NNN (Non-Disclosure, Non-Use, and Non-Circumvention) agreements to protect your confidentiality like product details, drawings, marketing strategies, etc.
If your potential assembly partner has any issues signing these agreements, then this should be a red flag and you may need to look for alternative options. Because if anything goes wrong with your IP rights, then that becomes an extremely difficult problem to deal with and you’ll have to postpone your assembly project.
2. Pay Attention to the Lead Time
Lead time is the period of time between an order being placed and the final product being received. The short lead time means the faster you can get the products.
As the old saying goes, time is money. Reducing lead time is an important goal when making products in China. There are many benefits to this activity such as:
- Outpace your competition
- Lower additional costs like warehousing costs and logistics costs
- Quicker replenishment of stock to avoid stockouts and backorders
So, when you plan to start your product assembly project in China, you have to ask your service provider about the lead time before starting the project. If they refuse to offer an accurate reply, they may not have confidence in dealing with your project or would rather make false promises than get things done properly. In this case, communication is key. Try to keep everything clear, concise, and to the point, so it’ll be easier for both parties to understand without confusion.
Not only your customers will be happy to purchase and receive products in a timely fashion, but also you will be delighted with the short lead time. This is especially true for Amazon sellers who need to optimize their inventory performance so they can avoid being out of stock and having to pay high warehouse fees because they are running out of space.
3. Use Quality Control Services
Customers expect you to deliver high-quality goods that meet their needs. If they receive defective products that don’t meet these expectations, it will damage your company.
Therefore, you should consider quality control services.
Quality control is an important process aimed at ensuring that the product quality meets your requirements and standards.
By conducting quality control during or after the product assembly process, you can determine whether the defective rate is within an acceptable range, which is a good way to improve efficiency. Because this provides assurance to both your business and your customers and minimizes loss.
If the defective rate is too high that you can’t feed up with it, you should talk to your supplier if they can offer a solution before shipping out faulty products.
4. Streamline the Logistics
Logistics chains are a lot more complicated these days than they used to be.
More than one company is involved in any given shipment, not to make mention the number of distributors and points for unloading or reloading cargo.
Moreover, due to Covid-19, international freights are in shortage, and logistics fees are going up.
Manufacturing and trading companies are trying to accomplish every logistics mission from start to finish and aim to do so in the fastest and cheapest way possible.
At this point, to improve efficiency and maintain costs, you can consider ordering consolidation services instead of shipping all products on your own.
A consolidation service is ideal if you wish to have all your goods shipped together as a single international shipment to minimize your shipping costs.
5. Work with an Experienced Supplier
Now that you have a better understanding of how to improve efficiency when getting products assembled in China, it is time to take these factors into consideration before making your final decisions about who will be your best fit to deal with your project.
Finding a supplier to assemble your product is easy in China. However, looking for an experienced and reliable supplier is still a time-consuming job.
Take your time and reach out to suppliers who have dealt with similar projects before, so there are fewer chances for making mistakes. Focus on finding an assembly partner that can provide both efficiency and high-quality output.
Partnering with Shield Works, founded in 2020, as an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area, things will be easier.
Whether you are an established brand or a new startup, Shield Works is a reliable and professional partner providing customized manufacturing and precision assembly for Western companies who are fed up with poor product quality, and lack of transparency, and are worried about reliability and delivery time from their Chinese suppliers.
We can build a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.
How to Find the Right Chinese Manufacturer for Your Business
In the last few decades, the Chinese economy has grown incredibly fast. One of the big reasons for this is because Chinese companies manufacture a considerable amount of products for western companies.
If you want to reduce production costs and grow your business, it makes a lot of sense to work with a China manufacturer. Given that you’d be working with a foreign company, the process can feel overwhelming.
So what exactly do you need to look for to make sure you find the right company for the job? This article lists some of the things you need to consider before signing a contract with a Chinese company.
Do They Have Certifications?
When you work with Chinese manufacturers, you need to be sure they have the right certifications. This helps to make sure you can rely on the company. If the China assembly service doesn’t have certifications to show you, it could be a red flag.
Always make sure you get proof of the correct documentation. A good company should be more than happy to provide proof.
Are They Financially Stable?
It’s also important that you work with product assembly services in China that are financially stable. The reason for this is simple. If the company goes out of business during production, it causes you a lot of problems.
A good Chinese product production company will be financially stable enough that you can rely on them to consistently deliver the product. You can find out if a company is financially stable by asking them about its finances. You should also verify what they say by researching the company.
Do They Offer Any Additional Services?
When looking into product assembly in China, you should also look for companies that offer multiple services. Many manufacturing companies in China offer other additional benefits, such as graphic design or packaging design.
This means that the company could deliver your product fully packaged and ready to go. Working with a company that offers such additional services can save you a lot of time and money in the long run.
You should take the time to analyze exactly what your company needs. Then see if you can find a Chinese manufacturing company that can meet all of those needs. When you’re only dealing with one company for a variety of services, it can really streamline your production process.
How Big is the Company?
You should also pay attention to the size of the company. While you might be tempted to go for the biggest company possible, this isn’t always the best choice. If you’re a small business, it may make more sense to go with a small or medium-sized manufacturing company.
As a small company, you’d probably be a much lower priority for a large company. On the other hand, if you go with a smaller company, they’ll have much more time to focus on your manufacturing job.
Before signing a contract, make sure that the company you’re considering doesn’t work with many big clients.
What is the Minimum Order Quantity?
You’ll also need to figure out if there’s a minimum order quantity. Many Chinese manufacturing companies will only work with you if you want to produce a certain number of units.
For larger businesses, this isn’t usually a problem, but for a small company, it could be problematic. Always make sure you confirm the minimum order quantity before you start doing business. This makes sure you won’t face any nasty surprises in the future.
Also, beware that if you work with a larger manufacturing company, they may implement a minimum order quantity later on in the business relationship.
Do They Have Good Quality Control?
When working with a Chinese manufacturing company, quality control is key. If the company sends you products that are not up to standard, your profit margins will decrease.
While Chinese manufacturing companies had a bad reputation for poor quality control in the past, they’ve gotten much better in recent years. If you work with a reputable company, you should have no problems getting quality products delivered.
Manufacturing companies should also have policies in place to reimburse you if some of the products are not up to standard.
Can They Provide a Product Sample?
Working with a foreign manufacturing company is always a risk. That’s why you should ask for a product sample before you commit to a serious business relationship.
A good manufacturing company would be more than happy to provide you with sample products. They should also be receptive to your feedback. It’s not uncommon to go through a few prototype examples before you get something you’re happy with.
Beware of any companies that aren’t willing to provide samples as it suggests they might not be a company you can rely on.
Check Out Reviews and Get Recommendations
You should also make sure you check out reviews of a potential company. These days a huge range of businesses use Chinese manufacturing, so you should find no shortage of online reviews.
You should try to verify the legitimacy of these reviews to make sure they’re not fake. You might also consider talking to other business owners you have a relationship with. Recommendations from friends are worth a lot as you know they’re genuine.
A China Manufacturer Can Grow Your Company
If you’re looking for a way to take your company to the next level, a China manufacturer makes a lot of sense. If you want to make a reasonable profit, you’ll need to find a way to keep costs down. Chinese manufacturers allow you to do exactly that.
If you want to work with a company with a lot of experience in working with Chinese manufacturing, contact us today, and we can help you to grow your business.
What Is an OEM and How Do You Choose One?
Entrepreneurship lives in the American Spirit as surely as independence, as evidenced by the approximately 32.5 million small businesses across the nation. Yet, despite that independent, entrepreneurial spirit, business is a collaborative endeavor.
Let’s say you design a new product and want to take it to market. Unless you plan on manufacturing every single part in that product, you’ll rely on parts produced by others. When customers need replacement parts, where do they turn?
Both of these problems are solved by using an OEM or original equipment manufacturer. Not clear on what an OEM manufacturer is, does, or how to pick one? Keep reading for our breakdown of the OEM’s role and tips for selecting one.
What Is an OEM Manufacturer?
An original equipment manufacturer fills a specific niche in the world of goods production. They make parts that other companies use to finish their products.
Take electronics production as a case in point. Almost every piece of electronics and, these days, most electrical appliances use circuit boards. While the electronics company may design the circuit board, most of them rely on other companies that specialize in printed circuit board manufacturing to produce the actual boards.
You see similar cases in car manufacturing. Auto manufacturers buy parts like glass and radios in bulk and install those parts in their vehicles.
How Does OEM Manufacturing Work?
OEM manufacturing typically works in one of two ways. In the first case, the OEM manufacturer produces a part in bulk that lots of other companies use as designed.
For example, a ball bearing manufacturer might simply produce ball bearings in a set of specific sizes and materials. Businesses that need ball bearings will design their products around the available sizes and buy from that company. The ball bearing manufacturer is an OEM manufacturer because all of the other businesses use their products as is.
The other option is when a business works directly with a contract manufacturer. In those cases, the business typically needs a custom part that they can’t get elsewhere.
For example, a product might need a part with a specific level of precision. While similar parts might be on the market, they don’t meet that level of precision. The business will then work with the contract manufacturer to design and make the part to the right level of precision.
OEM vs. Aftermarket
You traditionally see OEM contrasted with aftermarket manufacturing. Aftermarket manufacturers make parts that work with a product but were not made by the OEM.
These parts often perform as well as OEM parts, but not always. In some cases, such as car parts, aftermarket parts are generally considered generic or cheap stand-ins for OEM parts.
Selecting an OEM
Selecting an OEM might look simple on the surface, but it’s a fairly complicated process for businesses. Let’s take a look at some of the biggest factors you need to keep in mind.
Experience
OEM manufacturers tend to specialize. For example, they may specialize in working with particular industries.
Let’s say that your business produces food preparation equipment for restaurants. A lot of food prep equipment is made from specific grades of stainless steel. Minimally, you want an OEM that works a lot with steel and, preferably, one that has experience with production equipment.
That experience on their part will save you a lot of headaches because you won’t need to walk them through why you’ve chosen a particular material for a part.
On the other hand, let’s say that you make toys. In that case, you probably want a company that deals a lot in plastic extrusion and has experience with toy production. In that case, as long as they understand safety requirements for toys, they can offer you recommendations about materials.
Customization Services
In many cases, one of the biggest factors is whether the OEM can offer customization services for your part. Most contract manufacturers will offer some level of customization, but the service may prove limited in some ways.
For example, they may only offer customization for certain kinds of materials or processes. You should do a little research and even contact the companies in advance to get a handle on what kind of customization services they offer.
Cost
Another factor you must keep in mind is the overall cost. Manufacturing is an expensive proposition, but it’s often substantially more expensive to do OEM manufacturing domestically. The labor and overhead costs for the OEM are just higher when they operate in the US as opposed to overseas.
You can often find OEM manufacturers in China that will cost you less, even when you add in the shipping costs. While part costs aren’t the only concern, they can make a real difference in your per-unit profits.
If you can get the parts made to your specification levels for less, it’s practical to do so.
Production Minimums
You must also keep an eye out for production minimums. Depending on the company, they may require that you order a certain number of the parts before they’ll even consider taking you on as a client.
For example, some companies might require a minimum order of 500 parts, while others might require a minimum order of 5,000. Given that setup is often the most expensive part of setting up a production run, these minimums make sense. Yet, the order size minimum for a company might prove higher than you need or want.
OEM and You
An OEM is often the best and only solution for businesses that need specific, customized parts. Of course, picking the OEM is often the bigger challenge.
You must consider many factors. Does the OEM have experience in your industry? What are the overall costs?
Does the OEM offer customization services that meet your needs? Will you meet the minimum order threshold for a company? When you need a part made just so, however, there is no replacement for a good OEM partner.
Shield Works specializes in OEM manufacturing. For more information about our services, contact Shield Works today.