Production in China
More and more companies in the western world choose to outsource, thus delegating their production, in whole or in part, to China. There may be several reasons for either the high wages in those countries, opposite the low wages in China or lower prices for materials and premises. A production in China solves many of the problems a western company meets daily, for example, the cost of employee maternity leave.
On the other hand, there are of course also pitfalls and possible problems, by outsourcing to China, because of the different culture, rules and laws. You will need to get stuck with your container in customs, lose it all because of an error in the insurance papers or a misunderstanding with the Chinese supplier.
Therefore, many people choose to hire an outsourcing company to stand for it all. There are many outsourcing companies in China, both international and local, so you can easily communicate what you want. With a large production it is incredibly important to have a clear communication and clear lines for who does what and when. Therefore, be sure to choose a partner that you can talk to and who understand what you want.
Y0u can find out more at SourcingBro.
Here are some benefits from SourcingBro for outsourcing production to China:
- Output
A key issue your company will likely want to consider when manufacturing goods is the output. This is especially true for large orders. In that case it’s especially important for a company to deliver the products your company needs.
This is easily one of the most important issues to take up when looking for a manufacturing company. That’s because it will help to ensure your items can get produced regardless of the number of items you’re making.
- Service
If you’re looking for good service then you should certainly consider manufacturing your products in China as an alternative to domestically. The reason is there’s often many reasons local companies won’t do business with you. For example, they might tell you your company’s orders are too small or they might not return your calls. There are exceptions but these are common experiences companies have when dealing with local businesses.
On the other hand, when you work with Chinese factories in many situations they’re more willing to deal with smaller companies. You’ll still have to meet the minimum requirements of the company. However, this is usually a rare situation. In many cases Chinese companies are willing to work with your business and deal with any logistical issues that have to be ironed out. This makes it a good option if you want to produce items in China.
- Speed
Chinese factories tend to be good at meeting the deadlines they’ve agreed to. For example, if they promise to complete an order within X weeks they’ll often good at meeting the deadline. This is important for your company’s operations since it means when deadlines are met it won’t cause any negative effects on your business.
There are many factors that affect this situation. For example, if factories in your home country often don’t have the manufacturing capacity to fill orders it can affect other issues like deadlines. That’s certainly a situation you’ll want to avoid when you want to get items to market on time.
- Duplication
Chinese factories are excellent at tweaking existing products to meet your company’s version with certain dimensions. This is important to make sure the product has the form and function you want.
- Costs
The lower costs of outsourcing production to China are one of the top benefits of this option. The key is to factor in extra costs like shipping and duties. However, in many situations the manufacturing costs will still be lower. The key is to do the match so you’ll know whether or not the costs of production in China would be cheaper. If it is then it’s certainly an option you should consider.
Why is it such a big issue? One of the main ones is it can help to boost your profits and margins. When you can reduce manufacturing costs it’s definitely one of the most important factors for helping to boost your company’s bottom line. There are other factors but this is definitely one of the top ones to consider.
