Many businesses around the world prefer to source in China to manage product development and production costs. As a mature sourcing region, a large number of Chinese suppliers and factories operate in compliance with international standards. Here are eight tips for professionals, companies and online sellers seeking to maximize profits and maintain quality by sourcing in China.
1. Use an Established Service for Sourcing in China
A sourcing service that has a long track record of operating in China can help a business relocate manufacturing. Overseeing of the production of thousands of products leads to long-standing relationships with verified suppliers and factories. Services with less experience may not have the presence in China necessary to successfully manage supply chains.
China 2 West has provided sourcing services in China since 2005. During this time, the service has built a network of more than 550 approved suppliers and improved numerous factories. Over 10,000 completed products demonstrate a proven aptitude for world-class supply chain management.
2. Maintain Recognized International Standards
Internationally recognized quality control and social compliance standards can ensure that high standards are maintained when sourcing in China. These standards are significant for quality control purposes and confirm that products sourced from China meet all of the standards for sale in global markets.
China 2 West adheres to the International Quality Control standard ISO 2859-1 (ANSI/ASQC Z1.4-2003), also referred to as Acceptance Quality Limit tables, during product quality control inspections. Meeting SA8000 social compliance standards guarantees that products manufactured in China satisfy international ethical labor standards.
3. Acknowledge the Ongoing Global Situation
The ongoing global pandemic has had an impact on trends in international sourcing. A recent survey by Qima, a supply chain compliance firm based in Hong Kong, found that China remains the top sourcing location in the world. During the first year of the new coronavirus pandemic, some production shifted to other sourcing destinations in Asia, such as Vietnam.
One of the main advantages of working with China 2 West is the ability to pursue low-cost supply chain opportunities across Asia. The headquarters of this service is located in China and China 2 West also maintains regional offices in Ho Chi Minh, Vietnam, and Bangkok, Thailand. Clients can rest assured that the British directors of this service, who are based in Asia, can provide current insights into sourcing locations.
4. Protect Intellectual Property When Sourcing in China
Manufacturing products in China without a sourcing service can pose significant risks for intellectual property theft. Working with a service that provides IP guidance and protection is crucial to avoid risking the introduction of identical products to the market. This protection may be extended to products produced at external factories, but is guaranteed for products manufactured in-house.
China 2 West offers clients the option to produce products in the Shield Works Precision Manufacturing factory. This service provides customized OEM manufacturing with IPR protective production zones. Regardless of the factory clients choose to produce products, it is important to factor in IP control when sourcing products in China.
5. Pursue Factory Audits Prior to Production
Factory audits are an important part of preparing to source products in China. These audits may be basic or extensive. A basic audit accounts for factory trading history as well as the scale of the facility, number of workers, level of worker training, condition of machinery and quality system. More extensive audits extend to supply chain management and logistics.
Auditing a factory can be helpful for determining whether a production facility is the right choice for sourcing in China. Clients around the world depend on China 2 West to meet international standards and provide local knowledge about factories. In addition to the in-house Shield Works facility, this service also improves processes at external factories.
6. Communicate Throughout Supply Chain Management
Communication is essential for manufacturing products in any location. This practice can pose a challenge given the differences in cultures and languages between clients’ home countries and Chinese product design, development and manufacturing service providers.
China 2 West excels at translating international client requirements to engineers and factory owners in China. An awareness of Chinese business practices, such as the use of official company chops on legally binding documents, is also helpful. It is important to maintain open lines of communication throughout the product development process and across supply chains.
7. Source Through a Service That Provides Third-Party Logistics
It can be easier for clients to bring products to market by partnering with a service that combines resources for sourcing in China with global 3PL services. China 2 West provides 3PL services in China and the United States for managing inventory and ensuring that product shipments are cost-effective and safe.
A few of the most important 3PL services include warehouse management, quality control and shipping. Shipping container loading and sea freight are also important logistical considerations for products that originate in China. Once items reach the intended destination for sale, other services, such as repackaging and online order fulfillment, can facilitate bringing products to market.
8. Maximize the Advantages of Sourcing in China
Most companies source products from China in order to save money on manufacturing. It may be possible to increase return on investment even more by also designing and developing products in the same location. The costs associated with developing product prototypes tend to be lower in China than in many other locations.
Once products have been developed, low mass production costs are preserved through ongoing oversight by China 2 West. Pre-production and in-process quality control services lead to supply chain management and logistics measures. Relying on a sole provider for all of these services can simplify the process of manufacturing products for the international market in China.
These eight tips cover a few basic guidelines for professionals, businesses and sellers considering sourcing in China. Learn more about all of the advantages of designing, developing and manufacturing products in China by contacting an international sourcing service that can recommend verified suppliers and facilities to achieve production goals.
Sources:
https://www.scmp.com/economy/china-economy/article/3131785/global-supply-chain-continues-shift-away-china-it-remains-top
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