Production in the East - How to start producing a new product in China or other countries in the East
In the last two decades, China has become one of the major manufacturing countries in the world. Cheap labor in China used to be able to save on production costs, but today the level of production in China is almost equal if not completely equal to the level of production plants in Europe and the United States. Today, quite a few international giant companies concentrate their production in China, including Apple and LENOVO, and many other companies that are considered leaders in their field. However, it is important to emphasize that in China you can find a huge selection of quality levels, very low and extremely high.
What is the difference between manufacturing in China and importing from China?
The secret to success lies in the ability to locate a quality factory at convenient costs. First, the differences between imports from China and production in China must be noted. Importation, as is well known, means the purchase of an existing product on behalf of the supplier, while production, as its name implies, refers to the production of a new product in the supplier's factory or manufacturer. However, there are quite a few cases where the border blurs. Take for example the production of a special umbrella for which it is necessary to work with an umbrella manufacturer. If the desired change is essentially simple, then it is not a matter of manufacturing but of adapting an existing product to the customer's needs.
The process of starting production of a new product in China
In cases of the above type, the need for factory supervision decreases significantly. Manufacturing in China in other words deals with the production of a new product after being based on diagrams, plans, computer model or prototype. These specifications must be sent to the manufacturer. Production of a product that matches the desired plans and quality. There are several steps in the manufacturing process in China as follows: Accurate definition of the product by the customer including drawings and materials, definition of the quantity required for production and target price.
Steps in the production process
In the next step, a discussion was held with the manufacturers through clarifications about the product to allow the manufacturers to provide a quote for it. The manufacturer must then be selected through reference to the following factors: the size of the plant, the standards with which the plant meets, the quality control system and of course the price. Negotiate with the chosen manufacturer regarding the costs, payment terms, schedules and warranties. In the following steps, care must be taken to handle a standard mark and logistical issues such as shipping to Israel, customs fees and more.