Posts Tagged ‘OEM Manufacturers In China’
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.
What Are the Benefits of OEM Manufacturing: Your Ultimate Guide
Have you ever received parts for your equipment and products that don’t work as expected? This is a common problem businesses face when they don’t partner with an OEM manufacturing company.
Choosing aftermarket products to save money will end up costing you more in the end. Parts will fail, take longer to ship, and don’t meet the required specifications of your products.
OEM manufacturing, however, delivers quality parts designed to fit your equipment and products. Every product you receive will work as expected and comes with additional warranties and support.
Do you want to invest in long-lasting parts guaranteed to work with your products? Check out these benefits of OEM manufacturing.
What is OEM Manufacturing?
When you see OEM manufacturing on an item, it stands for Original Equipment Manufacturer. An OEM manufacturer is a company that produces original products or parts to a product. Another company purchases the OEM parts and products to use in their products or sell to buyers under their branding.
The companies reselling the OEM parts are Value-Added Resellers or VARs. The VAR sells OEM products with added features to enhance its benefits. VARs and OEMs have a mutually beneficial relationship.
Your car is a perfect example of an OEM and VAR relationship. The brand of the car is the VAR but they don’t manufacture every part of their vehicles. An OEM company manufactures these parts, such as the tires, seat belts, or the car battery.
OEM Manufacturing Benefits
Working with an OEM manufacturing partner guarantees the products you buy are high-quality and will properly fit in your products. Some aftermarket companies may offer similar parts but they may not fit nor offer the same compatibility.
Here are a few reasons why you need to work with an OEM original manufacturer.
Faster Response
When you need a specific part for a project or as a replacement, ordering from your top OEM manufacturers will take less time. There’s no “middle-man” as you can directly order parts from the OEM manufacturer.
Working with a third-party distributor, broker, or aftermarket company will take significantly longer. These companies may take longer to identify the part and determine whether they have a particular part or product in stock. In other cases, it will take longer for them to locate it in their storage warehouse since they distribute other products as well.
Reputable OEM manufacturers take pride in delivering their products as quickly as possible. Many monitor their delivery methods to ensure your receive your parts and products on time.
Additional Support
OEM manufacturers offer superior support when it comes to ordering or asking questions about a specific part or product you’ve ordered in the past. This is because the original engineers are a part of the OEM manufacturing company. You have access to engineering and technical support directly from the engineers.
OEM manufacturers have the greatest knowledge base of their products. They designed and crafted their products to fit a specific need or needs. From there, they tested the products to ensure they meet requirements and to find out their limitations.
OEM manufacturers know their products best. You’ll receive the most accurate information and answers to your questions directly from the source.
Quality Products
OEM manufacturers take pride in the products they create and place their name on every part and product. The OEM’s pride and confidence translate into high-quality products. OEM manufacturing companies work directly with their customers to ensure their parts fit their customers’ needs perfectly.
The success of an OEM manufacturing company largely depends on keeping their customers satisfied. Their parts and products need to continuously meet their customers’ expectations. Failing to do so can result in lost customers and a loss in sales.
What do you do if you need a part or product replaced? OEMs offer replacements that are identical, if not better, than the original part. OEMs craft their parts to meet the original part’s specifications and compatibilities.
Warranties
Parts and products manufactured by an OEM company come with a manufacturer’s warranty. This is also true for replacement parts—an advantage you can’t always get with any aftermarket company or distributor. Many OEMs will happily replace parts and offer a warranty on the replacement parts as well.
If you find a component or product has flaws, you can contact the source and request a new one. Again, OEMs value their customers’ satisfaction and are happy to help your business with any issues you may run into.
Added Value and a Longer Lifespan
OEM manufacturers like Shield Works, craft parts that are identical to the parts before. New and improved pieces meet the same specifications ensuring they offer the same performance as before.
Any spare parts offered by an OEM manufacturer will outlast and outperform any aftermarket product. OEMs use high-quality materials and regularly test all of their products for durability and reliability.
Opting for an aftermarket part or product may have cheaper upfront costs but the cost of installation and running the part will cost you more. These parts are likelier to fail and possibly damage your equipment. An aftermarket part won’t have the same specifications, warranties, and lifespan as OEM products.
A Greater Return on Investment
Partnering with an OEM manufacturing company will offer you a greater return on investment. You can order custom manufactured parts better suited for your products and equipment. Since OEM parts must meet specific requirements and specifications for your products, they’ll improve the longevity of your equipment. This level of reliability and longer lifespan will save you money and time.
OEM manufacturers look to and prepare for tomorrow meaning they’re continuously looking for ways to improve their products to better fit their clients’ needs. Working with an OEM manufacturing company will give your company and equipment an edge over the competition.
OEMs can make more accurate improvements to their parts as they already have the knowledge, design plans, molds, and testing of their current products. OEM clients can enjoy newer technology and upgrades to parts faster.
Shield Works OEM Manufacturing Is Right For You
OEM manufacturing companies believe in crafting strong business-customer relationships by offering unparalleled expertise and high-quality products. OEMs take the time to understand your business and your needs to ensure you receive the best service and products for your company.
Do you have a project you want to share? Let us know. We have the experience, knowledge, and skills to make your next big project a success!
The Gist of Shield Works
When it comes to advanced manufacturing solutions, Shield Works stands out as a premier destination for precision assembly and intellectual property rights (IPR) protection. As a proud extension of China 2 West, Shield Works leverages 14 years of industry experience to offer unparalleled services in its state-of-the-art facility. This blog post delves into what makes Shield Works a trusted name in manufacturing and why your business could benefit from its expertise.
Who are Shield Works?
To put it in simple terms, Shield Works is a precision assembly and IPR protective, manufacturing, and warehouse facility. Shield Works is the child company of China 2 West, with 14 years of experience. The gist of Shield Works is that after 14 years of experience and have developed many specialties, Shield Works is our very own in-house manufacturing warehouse facility open for clients.
Who is China 2 West?
China 2 West is a western-owned and managed manufacturing consultancy. We provide supply chain management, quality control, and production development services in Asia. Due to our vast experience in 3PL (Third Part Logistics), we have been able to create a company offering customised OEM manufacturing, assembly and warehousing solutions. The advantage of this is that China 2 West really know what we’re doing. Besides, we are able to provide customers with the best services developed across 14 years of experience.
What is the advantage of this partnership?
The advantage of using Shield Works is that you can get the RISK-FREE manufacturing solutions due to China 2 West’s well-established success. Your production will also be done according to internationally recognised quality standards.
Shield Works is based in the heart of Zhuhai City, China. We offer all the usual cost benefits of manufacturing in China. But with the added benefits of having a trusted and mature parent company to over-see manufacturing and all other areas of business.
Being just at thirty-five minute commute from the China 2 West company building, Shield Works can undergo extensive inspection and will have efficient and cooperative communications with China 2 West.
Business at Shield Works will also experience inspections in line with China 2 West’s internationally recognised inspection standards. What’s more, the Quality Engineers will work separately from Shield Works to report to you directly. It means you can avoid any middle men slowing down the progress of your project.
We hope this blog has helped with explaining the general gist of Shield Works. For further information, visit our website and don’t hesitate to get in touch with any specific questions or requests.