Manufacturing or producing your own components or products can be costly and time-consuming. This is why even the biggest brands in the world use contract manufacturing in China, and you should, too. Through contract manufacturing, you can quickly bring new products to the market without wasting money and time!
Why outsource to China?
China is a known source for manufacturing services because of its low-cost labor. With many manufacturers are competing for customers, they are likely to provide reasonably priced services, too. These days, many businesses are outsourcing their contract manufacturing in China for a lower cost and with better quality design.
You need the right contract manufacturing partner to make everything work. Otherwise, your business could be at risk of getting its reputation, goodwill, and financial health damaged. Thinking of outsourcing? Here are some of the things you need to know to make an informed decision.
Benefits of outsourcing to China
Outsourcing to China offers cost efficiency, high-quality manufacturing, and scalability, helping businesses thrive in a competitive global market.
Shorter time to market
One of the advantages of contract manufacturing in China is it shortens the duration of getting your product to the market. This can give your business a competitive edge, especially when you can bring it to the market before your competitors do.
More flexibility
Contract manufacturing provides more flexibility in reducing orders to suit periods when demand for your product is low. So, you do not have to worry about paying for the same amount of expenses (i.e., overhead costs and maintenance of machinery), which is usually the case when you manufacture products yourself. Moreover, contract manufacturers are able to scale production to suit the increase or decrease of demand for your product. Just remember to consider their minimum order quantity.
Protect your intellectual property
Before you even consider contract manufacturing in China, take the step to register your Intellectual Property (IP) there, including your copyrights, trademarks, and design patents. This is especially important to avoid infringing on the IP rights of another company, especially if that other company has registered their trademark and you have the same products. It also makes sense to get the manufacturer to sign a non-disclosure, non-use, non-circumvention agreement.
Get the manufacturer checked out
You have a potential contract manufacturer, but are you sure that they can be trusted? In this case, you have to get help from a third-party quality control and inspection service to verify the company. They will check if the factory is legitimate and if the manufacturer is true to its claims. It may be an extra expense, but it is good practice to avoid wasting time and money on the wrong contract manufacturer. You can also rely on them to conduct audits on the manufacturer.
Regular quality control inspections are necessary
It’s important to have a quality control inspection partner for contract manufacturing in China. That way, you can be sure that regular inspections can be conducted throughout the manufacturing process, defects can be sorted, and a pre-shipment inspection can be conducted. Service providers can also make sure that the goods are properly loaded in containers for shipment. They can inspect the vehicle, driver documentation, and the container.
