Despite intense competition from emerging locations like Vietnam and Mexico, China’s manufacturing industry remains a strong and compelling draw for many international firms, especially when it comes to new product development.
Since China loosened its zero-tolerance approach to Covid at the beginning of December, the country is expected to return to normality in the near future.
Of course, it can be challenging now to outsource your new product development project to China because there are many uncertainties about what might happen over the coming months. However, if you have a detailed plan and get ready right away, it can be done successfully. Before selecting an appropriate supplier for your new product development project, there are a few factors you need to take into consideration.
What’s a Manufacturing Consultancy
Typically, a manufacturing consultancy in China acts as an intermediary between overseas businesses and local manufacturers.
They work closely with overseas businesses to identify what type of factories would be the most beneficial for their needs. An experienced manufacturing consulting firm may also offer valuable advice on improving product quality and overall production performance, which includes operations, techniques, profitability, and strategy.
Choosing the right manufacturing consultancy in China allows overseas businesses to leverage the vast networks of suppliers and unique skillsets and knowledge in manufacturing they may lack while maximizing their bottom line.
3 Important Factors to Consider When Working with a Factory VS. a Manufacturing Consultancy
When looking to develop a new product in China, there are innumerable options available. However, before settling on which company will suit your needs the best between a specific factory and a third-party manufacturing company for your production project, it is imperative that you consider these three factors.
1. Background
Out of so many factors that you need to think about, the first and most important thing is to take your time and investigate the supplier’s background carefully so as to avoid expensive mishaps.
For those who are without experience in working with factories and unable to travel to China themselves at this point, the most expedient way is to do it remotely. Today, international trading website like Alibaba makes it possible for small and mid-size enterprises from other countries to approach Chinese factories easily. As a result, international buyers can purchase what they want with just a few clicks, but as always with these sites, this opens up the potential of being scammed.
Thus, if you want to reach out to a factory online, you have to understand the kind of supplier you will be working with. Whether it is a factory or a third-party manufacturing company, ensure they have the capabilities and credentials necessary for your needs before committing.
When you are looking for a factory to work with directly, it is important to take note of the company’s certifications before making any decision. Alternatively, if you’re looking to hire a one-stop-shop manufacturing consultancy for your project – do some research beforehand so that there are no questions unanswered in terms of cost and reliability of service.
2. Capacities
In the past, many third-party manufacturing consultancies didn’t have the ability to design and customize products for overseas businesses, and it’s easy for overseas companies to make factory tours to check the factory in person, which is why many overseas businesses are more willing to work with a factory directly. But these days that’s no longer the case.
Today, many manufacturing consulting firms have a team of product designers and engineers who are able to assist overseas entrepreneurs of all sizes with the design of their products with 3D modeling. These experts also offer assistance when it comes to fixing the original designs by using CAD software and other skills, making this area of work considerably easier and more convenient for their clients from start to finish.
More importantly, they can act as your local team every step of the way – from conceptualizing new ways to improve on existing ideas, designs, and functions all the way down to communicating with Chinese factories during the whole production process – they make sure everything goes smoothly.
On the other hand, Chinese factories are happy to work with their already established overseas businesses or partner up with other trading companies, which allows them to avoid hiring additional in-house sales staff who would need to find new clients.
3. Total Costs
There is no doubt that you want to save up on total costs when considering moving your new product development project to China. You’ll benefit from this if you are able to negotiate rates directly with the factory. The only problem here is that factories don’t offer service packages so they might not meet all your needs. For example, they can’t help conducting quality control to find defective products.
When you go for a one-stop shop manufacturing consulting firm for your products, it is important to note that many of these firms increase their profit margins by marking up their services. This means that it is important to find out what those services entail and whether or not they offer competitive rates in order to ensure fair pricing before signing anything.
In addition, even though you work with a manufacturing consultancy, it is possible to negotiate with them. In this case, the goal of negotiation is to find the best quality-to-price ratio rather than just lowering the price as low as possible. Although they don’t produce items themselves, they can help to find the most efficient and reasonable suppliers and provide you with a competitive price if they believe you would make an excellent client who has the intention of a long-term relationship.
Work with a Manufacturing Consultancy in China
Working with a factory directly can be beneficial to those who have extensive experience in manufacturing in China while partnering with a reliable manufacturing consultancy can be a great option for every overseas business owner. A manufacturing agency can deliver tangible and measurable results that have an observable impact on cost, quality, delivery, and safety. If they are not doing that then it is best to avoid them as a manufactured consultant because you will be wasting both time and money.
If you are in need of a professional manufacturing consultancy in China for your new product development project, look no further than China 2 West. We have developed to be a renowned one-stop-shop manufacturing consultancy from product sourcing and manufacturing to QC inspection and distribution in the Greater Bay Area in Southern China since 2005. With our manufacturing and product assembly facility, Shield Works, and a team of experts with vast industry experience, we have the confidence to fulfill all your requirements. If you want to know more about how we can help your project, don’t hesitate to contact us today.
