Outsourcing to China in today’s economy can certainly improve profits for your manufacturing if carried out correctly. The benefits of outsourcing to China include gaining access to an inexpensive yet high quality labour force, an abundance of low cost natural resources and innovative ideas and progression provided by the fastest growing country of the millennium. I have listed some of the common mistakes companies make when moving their production to the global manufacturing powerhouse to give you the best chance of successfully outsourcing to China.
Choosing the wrong suppliers
When contacting suppliers on sites such as Alibaba.com. it is essential that you are aware of the potential problems you will face. Likely issues involve suppliers not responding, shipments not coming on time, being overcharged for goods and inconsistent product quality. To mitigate these problems you must diversify your supplier portfolio and clearly identify suppliers with the most experience and reliability. This will require experience from your part, high quality inspections and thorough communication at all stages between all parties involved.
Not frequently assessing production progress
You should receive production status updates consistently when expecting a delivery and get full details on quality control issues to minimise problems with your orders. These assessments should be carried out by a professional body with the correct certifications and experience at good value.
Attempting to micromanage your own manufacturing
Attempting to negotiate with Chinese suppliers and carrying out your own quality control checks when you have little experience of operating in China can be a huge mistake and is almost guaranteed to waste your time and money. To gain access to optimal long-term Chinese business deals and partnerships you will better placed if you utilise the expertise of an experienced company that specialises in manufacturing and outsourcing in China.
Assuming sufficient inspections have been carried out
Lastly and most importantly, never assume that your supplier has carried out sufficient quality checks regardless of how experienced you think they are. It is essential to combat this issue by receiving up-to-date reports on their factory inspections in addition to quality control checklists and reports. Organisation and consistency is key to good quality control checks.
Outsourcing to China using a third party quality control inspector agent could save you lots of money, time and stress. Using a specialist company like C2W will ensure you avoid all common mistakes which can be difficult to tackle alone. China is a very difficult country to do business in but if approached correctly it can open up a world of opportunity for your company.
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