Did you know that there are about 600,000 new businesses in the United States each year? However, many of these businesses fail within the first few years. As you might expect, part of operating a successful company includes investing in effective business strategies.
This is especially true when it comes to manufacturing. If you’re thinking of outsourcing your manufacturing processes to China, working with the proper China manufacturer is essential.
Chinese product development is something every entrepreneur should prioritize, but not everyone knows where to start. So we’ve created a brief guide outlining all the key factors you need to know.
Let’s dive into everything you need to know about choosing Chinese manufacturing.
1. How Is Their Reputation?
When looking for manufacturer options, finding one with a good reputation is essential. You can look for online reviews or ask for recommendations from other businesses.
Key reputation factors include:
- Product design (including mold-making)
- Product quality
- Delivery times
- Customer service
2. Do They Have Experience With Your Type of Product?
It’s also essential to make sure the China manufacturer you’re considering has experience with the type of product you want to produce.
This will help ensure that they can meet your specific needs and requirements. To find out, you can ask for samples of their work or request references from previous clients.
3. What Is Their Production Capacity?
Another critical factor to consider is the China manufacturer’s production capacity.
This will determine how many products they’re able to produce and whether or not they’ll be able to meet your future needs. To get an idea of their production capacity, you can ask for a tour of their facilities or request information about their product assembly process.
4. What Are Their Quality Control Procedures?
When working with a China manufacturer, it’s crucial to ensure they have robust quality control procedures in place.
This will help ensure that the products they produce meet your high standards. It’s in your best interest to contact a representative from the manufacturer to learn more about their quality control procedures.
5. What Is Their Lead Time?
The lead time refers to how long the China manufacturer takes to produce your product from start to finish.
This is an essential factor because it will impact your production schedule. Don’t neglect this metric, or you might be waiting weeks or months for your products.
6. Do They Have a Minimum Order Quantity?
Many China manufacturers require a minimum order quantity (MOQ).
In some cases, a company won’t accept your order if you don’t meet the MOQ (number of products ordered) they specify. In other situations, you must order this minimum number of products to receive a discount.
If you’re working with a limited budget, it’s essential to find a manufacturer that doesn’t have an MOQ. Otherwise, you might have to spend more money than you wanted on your order.
You might also find yourself with a surplus of products you need to find a way to offload quickly to make your money back.
7. What Is Their Pricing Structure?
When you’re considering working with a China manufacturer, it’s essential to understand their pricing structure.
This refers to the way they charge for their products and services.
Some manufacturers charge by the piece, while others charge by the hour. The pricing structure will significantly impact your overall costs, so it’s essential to choose a 3PL service with a pricing structure that works for you.
8. What Are Their Payment Terms?
Another vital factor to consider is the China manufacturer’s payment terms. This refers to when you have to pay for your products or services.
Many manufacturers require payment upfront, while others offer financing options. Finding the best option for you will allow you to manage payments comfortably.
9. What Is Their Shipping Policy?
IT should come as no surprise that the shipping policy is another crucial factor to consider when working with a Chinese manufacturer.
This refers to how your products will be shipped from the factory to your door. Many manufacturers offer free shipping, but it’s essential to make sure you understand the terms and conditions associated with this offer. Otherwise, you might be paying more than you expected in shipping fees.
International shipping can often be complicated, so prioritize working with a company that will help make it as easy as possible.
10. Do They Offer Any Discounts?
If you’re working with a tight budget, finding a manufacturer that offers discounts is essential.
Many China manufacturers offer quantity discounts, which means you’ll pay less per unit if you order more products. Other manufacturers offer seasonal or holiday deals, so it’s also worth asking about these options.
11. What Is Their Customer Service Like?
Last but not least, you must consider the manufacturer’s customer service quality.
This refers to the way they treat you and your inquiries. Many manufacturers have excellent customer service, but it’s still worth asking around to see what other people think.
After all, you’ll likely be working with this company for a long time, so choosing one you’re comfortable with is essential.
Finding a China Manufacturer Doesn’t Have to Be Complicated
At first, finding a China manufacturer you want to work with might seem challenging. But the process is almost always more straightforward than you expect. Stick to the guidelines we outline above, and you’ll avoid the most common problems overseas companies sourcing from China encounter.
Alternatively, reach out to our experienced team today to learn more about how we can help.
