There are hundreds and thousands of retailers that are
selling goods made in China and making huge profits due to low costs. However,
it may not always be feasible to work with an Overseas Manufacturing company until you require large quantities
and running a consumer product based business. Since the volumes are high in a
consumer oriented model, the buyer can save a lot of money by reducing their
cost of final product by outsourcing manufacturing to China.
Since every other business in China is now into manufacturing
sector, it is very hard to find a reliable suppler that will be able to meet
your requirements and commit to timely delivery, always maintaining the quality
at the same time. Here are some points to consider when hiring a Chinese
company to overtake your manufacturing sector and deliver high quality products
in the stipulated time.
Effective pricing
The whole business model of Chinese manufacturing services
will fall apart if they are not able to meet the pricing standards they set for
themselves. If the buyer has demand for huge quantities, then they can benefit
greatly by using International Manufacturing units to produce their goods. It is always cheaper to import
than to set up a manufacturing unit from the scratch.
Quality
The international market is driven by high quality products
and the manufacture should be able to meet those standards. Although cost
saving is a very high objective of any company, but not at the cost of quality.
As a buyer, it is your job to look for a combination of competitive pricing and
good quality as is required by your market.
Manufacturing ability
Ever since China has been regarded as the hub of
manufacturing services, they have improved their manufacturing facilities by
leaps and bounds. Their factory is now much more sophisticated and have much
greater logistics capability than what it was years ago. They are also in most
cases complaint with the rules and regulation of the government. However, it is
your job to make sure that they are when they say they are. A buyer should not
work with a manufacturer unless they have all the quality standards in place.
Reliable and
Trustworthy
This is one of the most important factors for the companies
to sustain the competition in the international market. In order to assess the
trustworthiness of the company, as a buyer you should request for past company
records and referrals, if any to get a deeper insight. If the manufacturer you
chose does not have a history that can account for its background, then it is
time to rethink the alliance.
Ability to meet the
demands
The manufacturing company should be able to communicate with
buyers from any country and should be proficient in a common language like
English so that there is no gap in understanding. They should also be able to meet
the deadlines and deliver the goods within the stipulated time frame. Look for
a manufacturer with a stable payment terms and is reasonable with it.
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