China is a manufacturing powerhouse, producing an astonishing array of goods that make their way into our daily lives.
From smartphones and laptops to clothing and furniture, China's factories churn out an incredible range of products.
The country's vast manufacturing capabilities are fueled by its massive workforce, with over 100 million people employed in the sector.
China's manufacturing sector is also driven by its highly developed infrastructure, including extensive transportation networks and state-of-the-art logistics systems.
Manufacturing in China
Manufacturing in China is a complex process that involves several steps, taking anywhere from three to six months to complete. ITI Manufacturing can assist you in understanding what to expect.
The Chinese manufacturing process typically begins with sourcing and negotiations, which can take around three weeks on average. Tooling, which involves creating the necessary molds and equipment, can take about 45 days on average.
The production process itself can vary depending on the product's complexity and quantity, but it can take anywhere from 15 to 60 days. Quality control, which is crucial to ensuring the product meets the required standards, can take a few days to weeks.
A realistic time frame for receiving an outsourced product shipment from China can range from three to six months, and planning ahead and working with a reliable partner like ITI is advisable to ensure a smooth and successful process.
Additional reading: Discrete vs Process Manufacturing
The Manufacturing Process
Manufacturing in China involves a series of steps that can be complex, but understanding them can help you navigate the process.
If you want to manufacture your products in China, you'll need to prepare for the fact that ITI Manufacturing can also assist you so you know what to expect.
The manufacturing process in China typically starts with design and prototyping, where companies refine their product ideas and create a working prototype.
To manufacture your products in China, you'll need to work with a supplier or manufacturer who can handle the process, such as ITI Manufacturing.
The manufacturing process in China can take several weeks or even months to complete, depending on the complexity of the product and the manufacturer's workload.
Manufacturing in China often involves a high level of quality control to ensure that products meet international standards.
A different take: Manufacturing Process Automation
Shipping
Shipping from China can be a complex process, but understanding the basics can help you navigate the logistics.
The two main types of shipments are full container load (FCL) and less than container load (LCL). FCL means you pay for the entire container, regardless of how much space you use, while LCL means sharing container space with other shippers and paying only for the space your goods occupy.
You should consider your cargo volume, budget, delivery time, and risk tolerance factors when choosing between FCL and LCL shipments. Freight routing options also play a crucial role, with different options having different advantages and disadvantages depending on the shipment's destination, cost, time, and reliability.
The three main freight routing options are West Coast Delivery, Midwest Delivery, and East Coast Delivery. West Coast Delivery transports goods from Shanghai or other ports in China to the West Coast of the United States, while Midwest Delivery lands the goods on the West Coast and loads them on rail to Chicago or other points across the country. East Coast Delivery is an all-water route from China to the East Coast of the United States.
Shipping times from China can range from 10 to 40 days, depending on the mode of transportation, customs clearance, and destination location. A realistic time frame for receiving an outsourced product shipment from China can range from three to six months.
Broaden your view: Manufacturing Lead Time
It's essential to plan ahead and work with a reliable partner to ensure a smooth and successful process. Factoring in longer lead times for the logistics portion of your supply chain is also crucial, as shipping from China can incur higher costs due to tariffs, customs fees, and transportation expenses.
Suitability for Manufacturing
China is often considered a popular destination for overseas manufacturing, but it's essential to consider the suitability of your product for Chinese manufacturing.
One of the key factors to consider is the complexity of your product. If your product is simple and has a low level of components, Chinese manufacturing might be a good option.
Chinese manufacturers often have a high level of expertise in producing simple products with low component counts.
However, if your product is complex or has a high level of components, Chinese manufacturing might not be the best choice.
You should also consider the regulatory environment in China, which can be complex and challenging to navigate.
China has a unique regulatory framework that can be difficult for foreign companies to understand and comply with.
Household Items
Face masks are already in short supply globally, so be careful when ordering masks online because price-gouging is in full effect.
All citizens of Wuhan, China are required by law to wear masks in public right now, which could lead to a prolonged shortage.
You might be surprised to learn that a lot of our office, household, and patio furniture comes from China. This includes bedding and other textile items.
Those cargo ships full of inventory coming from China are now floating empty off the coast of China, which is a big deal for furniture stores.
If you're in the market for new furniture, you might want to consider shopping from American-made furniture cabinet makers, but be prepared to pay higher prices.
Home decor items like those found in HomeGoods or Hobby Lobby are often made in China, so it might be a good idea to shop vintage or thrift stores for unique items instead.
Expand your knowledge: Packaging Ideas for Handmade Items
Medicines
Medicines made in China are a common sight on store shelves. Many of our over-the-counter and prescription medicines are manufactured in China. A quick Google search will reveal just how many. We can stock up on certain medicines like Ibuprofen and acetaminophen (aka Tylenol) without a doctor's note, but not on prescription medications. OTC medicines like Cold, flu, and allergy meds are also made in China. Infant and kid's versions of these medicines are also widely available.
Sourcing and Communication
Doing extensive research to compare different options and find the best factory to make your products is crucial. You can't rely solely on internet research, as social media and company websites can be very misleading.
Partnering with manufacturing experts with significant experience working with Chinese companies is a good idea, especially those with in-country employees who understand specific manufacturing companies' different manufacturing regions and capabilities.
Communicating and negotiating with your chosen factory is also essential, but it can be challenging due to language and cultural barriers. Taking advantage of a company specialized in dealing with overseas manufacturers can benefit both you and the factory.
Intriguing read: Manufacturing Company Tips
Sourcing
Sourcing is a crucial step in finding a reliable factory to make your products. Extensive research and investigation are necessary to compare different options and find the best factory.
Simply doing internet research can be extremely risky, as social media and company websites can be very misleading. Partnering with manufacturing experts with significant experience working with Chinese companies is recommended.
You can use online platforms and directories to search for manufacturers, such as Alibaba.com, Global Sources, Made-in-China.com, DHgate.com, and SaleHoo. These websites allow you to search for manufacturers by product category, keyword, or location.
Comparing manufacturers' prices, reviews, ratings, and certifications is a good way to evaluate potential suppliers. Partnering with a reputable and experienced American company with sourcing expertise in the product type you want to manufacture is highly recommended.
Finding trustworthy suppliers requires time and patience. Requesting samples and taking note if suppliers are unwilling or unable to answer questions can help you vet potential suppliers.
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Communication and Negotiation
Communication and negotiation with your chosen factory are crucial steps in the sourcing process. You'll want to communicate and negotiate with the factory to agree on a fair contract for both parties.
Much can be lost in translation and across cultures, even with translation resources available today. This is why it's essential to take advantage of a company specialized in dealing with overseas manufacturers.
Partnering with a company that has employees both domestically and in China can be the ideal scenario. This benefits both you and the factory, allowing you to communicate in your native language and time zone.
Common Buying Mistakes
Making mistakes in the buying process can be costly and time-consuming.
One common mistake is not doing thorough research on the supplier, which can lead to unreliable communication and poor quality products.
According to the article, a supplier with a low credit rating is 30% more likely to default on payments.
Not clearly defining the scope of work can cause misunderstandings and miscommunication between the buyer and supplier.
A case study in the article found that a project was delayed by six weeks due to a misunderstanding of the project's requirements.
Not having a clear payment schedule can lead to cash flow problems for both the buyer and supplier.
The article mentions that 25% of buyers experienced cash flow problems due to unclear payment terms.
Not having a contingency plan in place can leave the buyer vulnerable to supply chain disruptions.
In the article, a supplier experienced a 50% reduction in production capacity due to a natural disaster, which had a ripple effect on the entire supply chain.
Additional reading: Project Management for Manufacturing
Quality and Cost
China's manufacturing quality standards have improved, but consistency and reliability still vary across industries.
Low labor costs in China can significantly lower production costs, but other expenses like shipping, tariffs, and quality control should also be considered.
Partnering with an outsourced manufacturing specialist can help mitigate risks associated with poor quality and inconsistent standards.
Lower production costs, labor costs, and assembly costs in China can make buying from there a unique opportunity to decrease expenses while scaling.
A fresh viewpoint: Manufacturing Quality Control
Quality
Quality is a major concern for any business looking to manufacture products overseas. It's essential to research your potential manufacturers' reputation and track record to avoid unexpected issues. Conducting regular inspections and audits can also help mitigate these risks.
China has improved its manufacturing quality standards, but it still needs to catch up with other countries. Defective products, delayed deliveries, or poor supplier communication can be major problems if you don't vet the right partner. Partnering with an outsourced manufacturing specialist can help alleviate these issues.
A physical presence at the factory is the only way to guarantee quality control. However, if you can't physically be at the factory, ask your supplier for regular photos and videos of the production process. They should show you finished products, whether or not products are palletized and properly stored, and evidence that your manufacturing instructions are being followed.
Poor quality, defective products, and inconsistent standards can plague your overseas manufacturing efforts if you don't put explicit measures and controls in place. Subpar materials, faulty equipment, unreliable testing, and inadequate inspection can all lead to customer dissatisfaction, recalls, legal liabilities, and damage to brand reputation.
Cost
China has a large and relatively inexpensive labor force, which can lower production costs significantly.
However, you should also consider other expenses, such as shipping, tariffs, and quality control, which can outweigh the benefits of low labor costs.
Buying from China can offer a unique opportunity to decrease expenses while scaling, but partnering with a reliable supplier is crucial to make it easy and highly profitable.
Budget manufacturers often lack professionalism and have longer lead times, which can be a huge mistake for businesses looking to save costs.
In fact, budget factories may be located in a region that dramatically increases shipping costs, washing away any savings without adding any benefits.
Finding a Manufacturer
Finding a manufacturer in China can be a daunting task, but there are resources available to help. ITI Manufacturing is a trusted expert with over 50 years of experience in sourcing, negotiating, and producing high-quality products in China and other countries.
Most companies don't have the time or expertise to find and manage a Chinese manufacturer, so hiring an experienced sourcing company like ITI can be a great option. They'll find qualified manufacturers, negotiate prices and terms, and handle logistics and customs clearance.
Finding the right Chinese manufacturer requires considering factors such as product quality, price, lead time, communication, reliability, and reputation.
Finding a Manufacturer
Finding a Manufacturer can be a daunting task, especially if you're new to the process. It's essential to consider multiple factors, such as product quality, price, lead time, communication, reliability, and reputation.
There are many Chinese manufacturers to choose from, and it's crucial to find one that meets your specific needs. ITI Manufacturing has over 50 years of experience in sourcing, negotiating, sampling, production, quality, shipping, and delivery of high-quality products made in China.
Most companies don't have the time, resources, or expertise to find and manage a Chinese manufacturer, making it a good idea to hire an experienced sourcing company like ITI. A great sourcing company will find qualified manufacturers, negotiate prices and terms, conduct quality inspections, arrange shipping and logistics, and handle customs clearance and documentation.
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You can also consider hiring a partner like ITI to help you navigate the process. They will quote production in multiple countries for you, allowing you to compare prices with countries such as Vietnam, Korea, Mexico, and the United States.
The manufacturing industry in China is well-developed and equipped to help businesses quickly and easily scale. However, it's essential to determine if Chinese manufacturing is the best option for your product, considering factors such as costs, lead time, and product quality.
Verify Manufacturer
Verifying a manufacturer is a crucial step in finding the right partner for your product. You can request samples or prototypes of your product to see their quality and workmanship.
Requesting samples or prototypes can give you a firsthand look at the manufacturer's capabilities. This can also help you identify potential issues with their production process.
Visiting their factory or office in person or virtually can give you a better understanding of their operations and facilities. This can be a great opportunity to ask questions and get a feel for their company culture.
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Checking their business license and certificates can ensure they are a legitimate and registered business. This can also give you an idea of their compliance with local regulations.
Asking for references from previous customers can provide valuable insights into their reputation and reliability. You can also ask about their communication style and responsiveness to issues.
Conducting a background check on their financial status and legal history can give you an idea of their stability and credibility. This can also help you identify any potential red flags or concerns.
Attend Trade Shows
Attending trade shows is an excellent way to meet potential manufacturers face-to-face and establish business relationships.
You can attend trade shows in China or the U.S. that are relevant to your industry or product niche.
Some popular trade shows in China include the Canton Fair, the China International Import Expo, the China Import and Export Fair, and the Global Sources Trade Show.
Starting an Order
Starting an order with a manufacturer can be a daunting task, but it's essential to get it right. Starting mass production before receiving samples is a common mistake that can be costly.
Your product could have design flaws or problems, and your manufacturer may make mistakes in following your parameters. This can lead to wasted time and resources.
Receiving samples before starting mass production offers proof that your design works and that the factory understands your specifications. This helps prevent costly mistakes and ensures a smooth production process.
Kanary can expedite the sampling process to make sure the factory is ready for mass production without wasting unnecessary time with communication issues or shipping delays around your samples.
Frequently Asked Questions
What foods sold in the US are Made in China?
Only a small percentage of US food supply comes from China, but major suppliers include apple juice, garlic, canned mandarin oranges, fish, and shrimp
How many products in the US are Made in China?
About 55% of products in the US with the label "Made in China" actually contain some US content. This is largely due to higher margins on consumer electronics and clothing.
Sources
- reveals (qz.com)
- declines in China’s dominance (cnbc.com)
- Everything You Need to Know About Manufacturing in China (itimanufacturing.com)
- these masks (amzn.to)
- this list of makeup made in China (medium.com)
- How To Buy Direct From China: Beginners Guide 2024 (kanarysolutions.com)
- harmonized tariff system codes (usitc.gov)
- AIC (Industrial and Commercial Administration Bureau) (saic.gov.cn)
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