Useful Tools: Hints and Tips

While the financial benefits of outsourcing your product to China can be large, as many as 50% of most Chinese outsourcing projects fail to get going. By following some basic guidelines you can maximise the chances of your manufacturing project being a success.

So what can you do to get it right?

• Never select a factory because they are the cheapest – you get what you pay for and China is no different. Of course price is important, but don’t forget about service, capability and overall commitment to quality
• Assume nothing! - don't take anything for granted, take measures to protect your IP, define everything in full and do not expect the factory to develop your product for you. Provide detailed drawings and all your requirements at the earliest practical stage
• Be honest about your volumes and target price – set the manufacturer’s expectations from the start. Asking for prices for 100,000 units per week and then ordering 1,000 units will not put you on the manufacturer’s priority list
• Respond! - Allocate people or work with an agent who has the time to do the job. Requiring fast action from the factory and then not responding in a timely fashion kills the manufacturer’s interest very quickly
• Send reference samples that agree with your drawings – the manufacturer will match the quality of the sample they’re given. If there’s scratches on the sample you send, your order may come back with scratches on!
• Leave your tactics at home and focus on long term partnerships – trying to negotiate price on the promise of ‘big orders to come’ will not succeed. Tell your factory your long term plans and back it up with an order
• Your lead time cannot be shortened – don’t encourage your factory to speed up lead times or quality will suffer. Instead find ways to build new lead times into your own delivery schedules
• Use protection – ensure you agree clear T&Cs with the factory that specify the issue resolution process and leave nothing to chance
• Work with your factory to keep your prices constant and reduce lead times – many factors can push your unit price up in China. Commit to longer term orders, to give them a chance to keep prices stable and shorten lead times
• Don’t treat packaging as an afterthought – specify your packaging requirements right from the beginning. Your order will travel from one side of the world to the other, so make sure it’s protected
• Prepare for a learning curve – something will often go wrong to begin with. Expect the unexpected, deal with it proactively and work closely with your factory to ensure it doesn’t happen again
• Take ownership for the quality - prepare your own quality check lists and unless you can afford the time to go to China for every order be prepared to use a local QA agency

So the message is clear. Treat your factory how you expect to be treated, build the relationship through regular visits or an agent, work with your factory as a partner, and most of all be prepared for a few bumps along the way before you get there.

To find out how China Works can help you make your outsourcing project a succes from the start, please contact us today.