PERFORMING MANUFACTURING SET UP FOR PRODUCT MANUFACTURING IN CHINA
If you choose to develop your product using a Chinese manufacturer instead of developing it with a product development company like us, the supplier will provide you a one stop finished product whom they will handle procurement and the assembly of the parts. In this case you don’t have to manage with procurement of parts and raw materials since the manufacturer is doing it by himself.
It may look simplifying your process because you finally deal with a single company, however it make you loose control of the supply chain on the material and the parts used to manufacture your product because in 99% of the case very few manufacturer accept to give access to their own supplier to their client.
It doesn’t sounds a big problem at the beginning and you will probably not care about having access the part source because you will feel comfortable that your product is perfect since it had passed a Final Quality Control. Yet, products have several opportunity to become defective a few months after manufacturing is over even with a passed Final Quality Control: components with shortened lifecycle which become unstable, plastic material not adapted to environment change starting getting cracking, metal parts getting oxidized, etc…
This is as much elements which are directly related to material and component selection during the procurement phase and which indicate why control over the supply chain is essential.
Why most of principal prefer to delegate this task to their Chinese manufacturer instead of handling it? Because logistic and sourcing doesn’t look easy to them.
WHY WE HANDLE PROCUREMENT FOR PARTS IN CHINA
We know how important it is to keep hand on the supply chain and the source because in China playing cost down to optimize profit by substituting materials by others is a national sport. In the same time we understand that it can be complex for an overseas company to manage (contracting, payment, transportation and transit of the goods, quality control) and coordinate several suppliers of materials based in China who don’t speak English and who require to be paid in local currency.
For this reason our local established structure can handle the procurement function that a manufacturer would usually do. We have the capability to pay in local currency via our Chinese structure, we are working on the same time zone than Chinese suppliers so we can coordinate easily transits and logistics, and our staff is bilingual Chinese English so we can contract in both language.
Having control on the procurement allow us to have a complete view of the product, being able to analyze and masterize necessary parameters of your product production and to make sure that decided raw materials are used and not substituted one.
WHAT DO WE DO DURING PARTS PROCUREMENT
Our technical sourcer and procurement manager will handle the procurement function for you in order to supervise and coordinate the purchasing or raw materials, components and parts.
They will particularly be in charge of :
– sourcing reliable supplier of raw materials and components
– perform negotiation and contract with those suppliers
– anticipate potential issue and misunderstanding
– verify authenticity of the materials and components used
– hold accounting and booking keeping
– perform payment in local currency one by one
– coordinate and manage with transit and logistic between supplier and processor
WHY YOU WILL ENJOY OUR PROCUREMENT SERVICE IN CHINA
Your main benefit is we work like an asian manufacturer would do : they perform procurement and we do so too. The main difference is you keep control fully on the source and raw material used to manufacture your product whereas a chinese manufacturer will probably not show you who are the supplier of raw materials, so you know exactly what your product is made and in case of issue analyzing the cause is much faster because the transparence is here.