Over the past few decades, China has become a major economic power in the world. Especially after coronavirus shock, China may become one of many hubs as companies diversify manufacturing. These days is undeniable that China is the biggest manufacturing power.
If you have never explored opportunities in Asia before, you should consider outsourcing your production line to China.
What is Production Outsourcing?
Production outsourcing means that a company outsources the production process to whom specialized in manufacturing product instead of manufacturing itself.
Benefits of Production Outsourcing to China
Nowadays, improving efficiency and shorter delivery times are important for a business due to the hypercompetitive market and complex customer requirements, especially for small and medium size business.
Cost reduction
Working with a manufacturing facility in China means you can reduce production cost without reducing volume output. Even though the costs related to manufacturing in China are no longer as low as in previous years, the competitive prices remain attractive. It mainly due increase in wages in the manufacturing industry. So it still one of the ideal manufacturing destinations for many businesses. This is by far the primary reason why overseas firms and entrepreneurs put up with the disadvantages of manufacturing on the other side of the world.
Shorter delivery times
In the recent years, the development of transport in China is dramatic. China’s railway system carries 24% of the world’s railway transport volume on only 6% of the world’s railways. The significant railway network improves transportation, helping the supply chain to be more effective and cost-saving, reducing the shipment delivery times, and ensuring smooth state border crossing procedures.
High-quality results
With the steady and robust development of China’s technology in many aspects through the decades, there is no doubt that low-quality products will be less frequent. The rise in technological capability showcases the ability to produce higher-quality items. It will help with the long-term growth of business. However, there are still some misunderstandings on quality standards, so make sure that the manufacturer can meet your desired expectations.
Flexibility
By far, more and more manufacturing facilities in China are expanding. It means that they have more production capacity so they can respond to the increased production requirements faster than before. Moreover, they provide value-added services to keep the overseas customers such as, providing quality control services, warehousing services and logistics services. In this way, if you are doing a fast-grown business, working with this kind of manufacturer is an irresistible option.
It’s inevitable that more and more companies, will continue to outsource their production to China, aiming to cut costs, reduce lead times and focus on other core parts of their businesses, such as marketing and customer service. If you want to know more about outsourcing your production to China, contact us today!
