5 Reasons Why China Should Be in Your Supply Chain

5 Reasons Why China Should Be in Your Supply Chain

When it comes to China manufacturing, there are both benefits and drawbacks. Here we explore some of the potential pitfalls and how they can be avoided, as well as the benefits of China being a key location in your supply chain

1. Communication is key

Previous concerns with manufacturing in China are now greatly improved due to projects such as made in China campaign. Often a language barrier can make the partnership not as strong as it should be. Communication is key in ensuring your supplier fully understands your needs. Cultural differences may also be apparent, choosing a supplier who understands these differences and can minimize any complications is beneficial. Some preconceptions pertain to concerns surrounding potential intellectual property infringements when using a Chinese supplier. IP protection in recent years has greatly improved. Most suppliers now will use strict non-disclosure agreements which are signed by both parties prior to sending initial designs.

2. Quality parts

Quality Parts – In the past, quality control was not as standardized as today, so there was a risk of choosing a supplier whose quality control practices were not up to standard. The option was to physically go there to check the quality, or hope that each full production batch was at the same standard as the prototypes. In the last few years, due to projects like Made in China 2025, quality standards across the board have been raised considerably. China manufacturers have had to raise the bar to compete with international manufacturers, and ensure their products are the same if not better quality

3. Low manufacturing costs

Low manufacturing cost – often moving production to China can lower your overall production cost by securing a lower cost per unit. This enables profit margins to increase. Several factories in China will now accommodate orders no matter their size, without high MOQs. There are factories that focus on small orders as well as mass production.

4. High output in less time

High output in less time – Manufacturer’s in China have the capability to manufacture large volumes at speed. With large factories and cutting edge technology, mass production manufacturing of products is commonplace and can be executed with ease.

5. Variety of supply base

Wide variety of suppliers available: When manufacturing domestically, there may be limited options, however in China, there are limitless options to choose from. You are able to match with the right supplier that fits with your requirements and has the right capabilities.

Conclusion

At the crux of these points, is choosing the right suppler, one that understands your requirement and shares your vision, communication is key. Choosing China as your main manufacturing location can mitigate supply chain risk, and enable you to build a safer and more stable supply.

Haizol is China’s leading professional online sourcing service platform for OEM, custom parts and components in Asia. Haizol’s marketplace has a huge database of suppliers with professional matchmaking. As a buyer, simply submit a request for quote onto our website, your RFQ is then precisely matched to factories that fit your requirements and matched according to their capabilities. Our accurate match making and easy search service brings you a huge database on OEM suppliers. The suppliers are categorized based on industry, technology, products and geographic location to help buyers identify suppliers quickly.

 

Written by
Ezra Bisschop
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