Manufacturing a product in China can be a complex process that requires careful planning and execution. While there is no magic formula to follow, there are steps that can be taken to increase the likelihood of success. By doing their homework, providing the right information, and collecting the necessary data, a business can find the right supplier and get their product manufactured in China.
Before getting a prototype made in China, it is important to know what to expect and how to navigate the process. This includes understanding how to manufacture a product in China, as well as making a contractual supply agreement with a Chinese manufacturer. By following these steps, a business can increase their chances of success and ensure that their China manufacturing products meet their expectations.
Key Takeaways
- Manufacturing a product in China requires careful planning and execution.
- Knowing what to expect and how to navigate the process is key to success.
- Steps such as making a contractual supply agreement can increase the likelihood of success.
Know Before Get a Prototype Made in China
Before getting a prototype made in China, it is important to understand the following key points:
Provide Clear Quality Standards to Suppliers
To ensure that the final product meets your expectations, it is essential to provide the supplier with clear quality standards early in the process. This includes specifications such as the correct type of finish and precise dimensions. By doing so, you improve the chances of getting the desired product.
Understand the Supplier’s Current Customer Base
It is crucial to understand the supplier’s current customer base, especially their number one customer. This information can be obtained during a factory tour. By knowing their customer base, you can assess the supplier’s ability to optimize their organization’s standards, even if they are paid handsomely.
Explore What Quality Systems, Process Controls, etc. They Have
It is important to explore the quality systems, process controls, and other factors that the supplier has in place to ensure consistent high-quality product delivery. Suppliers who lack proper systems and processes may struggle to deliver high-quality products consistently.
Understand How Price Affects the Quality
It is vital to understand that the lower the price, the less profit the supplier makes. As a result, they may not be willing to go the extra mile to provide you with a perfect product. Additionally, in most Chinese manufacturers, a buyer paying a particularly low price should not expect high quality, even if it is clearly stated.
Demonstrate Stable Potential Business
Suppliers are more likely to invest time and effort in a project if they see a clear benefit. Factors that can influence this include buy-side communication vision, external sources of trust, experience, and business convenience. By demonstrating stable potential business, the supplier is more likely to work hard on the project and provide high-quality products.
By keeping these points in mind, you can have a productive relationship with potential Chinese suppliers and increase the chances of getting the desired product.
How to Manufacture a Product in China?
When it comes to manufacturing a new product in China, foreign sellers often wonder about the issues and steps involved in managing the production process. The following steps can help you have a product manufactured in China.
1. Find the Right Suppliers
The first step is to find the right suppliers. After contacting some suppliers, you may wonder if you have found a perfect factory. The differences in quotations of Chinese factories can be attributed to various reasons. To understand why prices differ between different manufacturers, you need to evaluate the supplier’s background.
2. Check the Supplier Background
To verify the supplier’s legitimacy, you can ask for references and verify the business license. By understanding most of the factory’s customer companies’ geographic location, you can have a good idea of the factory’s quality standards.
3. Negotiate the MOQ
Most factories prefer to produce more products because large orders can bring them more profits. However, if factories trust your brands enough, they are usually willing to start with a lower MOQ. Providing enough order quantity is important because large factories often reject small orders. Small orders aren’t worth doing much engineering upfront, so typical Chinese factories tend to jump right into production, let problems arise, and (hopefully) find and fix them. In many cases, low-volume work tends to be done in a more manual way and with less consistent quality.
4. Discuss the Payment Method
Most factories’ payment method is 30% before production and the remaining 70% before shipment. To better control the product’s quality before shipment, you may visit the factory by yourself or send a quality control team. For large orders, wise foreign sellers usually hire a quality inspection company to inspect before paying 70% of the balance.
5. Carry Out a Factory Audit
To verify the supplier’s legitimacy, you can pretend to be checking the manufacturers’ audit reports and check his behavior or reaction. You can mention to the Chinese manufacturer that you will conduct an audit before buying their products through an email address. If the supplier gives you lame excuses, you should take it as a red flag. The best tool to verify a supplier’s legitimacy is through a factory audit.
6. Request A Sample
Whenever you are sourcing for products, especially from online Chinese manufacturers, ensure that you have seen a sample before buying. Many disappointments come after sourcing for suppliers, and they deliver poor quality goods. For instance, when you buy clothes in bulk, you need to ask for a sample because the fabric of a garment posted online may have a different color or texture when you physically see the fabric.
7. Explain Product Details
When you start discussing with the factory, you can discover the richness of product choices. You may want to customize the logo or other design details. Knowing the specific specifications of the products you want to produce, including colors, materials, and logos, can save a lot of time and cost for the factory.
8. Follow Up the Production
Once the seller confirms the sample, the next step is the production process. To stay ahead in production, you need to keep in touch with factories and build relationships with them. You need to deal with the sales representatives and start to pay attention to things other than production. In the next step, you generally ask the factory to send photos to update the production progress. You want to know the schedule for the factory to produce each part.
Make Contractual Supply Agreement with Chinese Manufacturer
When manufacturing a product in China, it is crucial to enter into a legal, contractual agreement to avoid any legal repercussions. Here are some tips to help you create a valid Chinese manufacturing contract.
1. Ensure that You Entered in a Contractual Agreement with the Right Party
Before signing any business contract, it is essential to carefully read and check all the financial requirements and resources in the contract. It is crucial to contract with a company that has sufficient financial resources to avoid any complications in case of defects found in the goods. When signing the contract, it is also important to ensure that the Chinese manufacturer’s legal name is identified in both Chinese and English.
2. Ensure that All Pricing Provisions and the BOM are included in the Agreement
The Bill of Materials (BOM) should be included in the agreement as it contains all the necessary information about the product’s fabrication process. It is also important to know the unit prices, inflation matters, and labor costs, as well as transfer rules and regulations and VAT impacts before signing the contract.
3. State Your Quality Specifications, Requirements, Packaging, and Warranty
It is crucial to include details of your quality expectations, packaging requirements, and warranty in the supplier agreement. Inspecting the products upon delivery and sampling them is necessary to ensure quality control. It is also important to ensure that the products come with a warranty to avoid any defective products.
4. Check on Clarification of Ownership Rights of Molds
When creating a new product in China, it is important to check the ownership rights of molds. It is important to consider all the information on tooling lists and prices included in the transfer agreements and have liquidated damage provisions for your safety.
5. Be cautious About Dispute Resolution Matters
Disputes may arise between contractors and buyers, especially when sourcing goods from Chinese manufacturers. When resolving disputes, it is essential to be careful as the resolutions depend on the dispute type. It is important to look out for any disputes that may arise and be cautious when signing the contractual agreements to avoid any legal complications.
In conclusion, following these tips will help you create a valid Chinese manufacturing contract and avoid any legal repercussions. It is important to be cautious and ensure that all necessary details are included in the supplier agreement to ensure quality control and avoid any defective products.
China Manufacturing Products Conclusion:
Manufacturing products in China can be a daunting process, especially for first-time buyers. However, taking precautions and verifying the reliability of Chinese manufacturers can help mitigate any potential risks. It is essential to ensure that all necessary steps are taken to manufacture a new product in China correctly. A product sourcing company can provide valuable assistance to buyers who need help with the process. Ultimately, by being knowledgeable and taking the necessary steps, buyers can successfully manufacture their products in China and benefit from the country’s competitive pricing and quality manufacturing capabilities.