Maple Sourcing Ltd.
Maple Sourcing Ltd.
We Make Your Sourcing Easy!
Need help? sales@maplesourcing.com
English
Maple Sourcing Ltd.
Maple Sourcing Ltd.

Everything About Using OEM Factories in China

2024-01-10
1618 Views

89_brand.jpeg

Because of the economic boom in the last two decades, China has become a leader in the manufacturing industry. And because of its rich workforce, China is the world's manufacturing hub now. 

These days most companies prefer to have their product made in China while working with OEM factories, as those factories can offer various benefits for your product manufacturing businesses. To get the most out of it, you need to understand their value and work with them in the right way. 

What does OEM stand for?

OEM means Original Equipment Manufacturing and refers to those factories that produce products for another company which uses these items with its own brand names, and sell the products to customers.

An OEM factory has developed a certain product, after that, this product is bought by a brand owner and then branded as the buyer’s own product before they are sold to users.

Let's take an example of Nike shoes, literally, Nike does not own any factories, the production of all shoes is outsourced to those OEM factories (mainly in Southeast Asia) which are specialized in production. 

Another example is iPhone. Huge quantity of iPhones is assembled by Foxconn, but all the phones are branded as “iPhone” which is owned by Apple Inc. Herein, Foxconn is an OEM factory.

Why do companies go for OEM factories?

Many companies may not have the necessary resources or expertise to manufacture high-volume or highly specialized products. So, better to outsource manufacturing and avoid the complexities of maintaining production in-house.

An OEM factory is able to make your products. All that you must provide is the design specifications for the item and the OEM factory will produce that for you. You will get the finished products by using your trademark.

The OEM factory has got the experience to make those products as they have well-set production lines with an established supply chain.

Advantages of using OEM factories

1. Low prices

Listening or reading the word "low," we tend to think we have to compromise something. It is a common perception that you have to compromise on the quality when you get your products manufactured at low cost.

But this is not the case when you have hired an OEM factory in China. Here, you can get your products at a lower price to beat the domestic production cost. You can't ignore the price of packaging and shipment, but still, the overall cost will be reasonable and affordable to your company.

China OEM factories are very efficient to compete globally. So, it allows you to get a cheaper price. You don't need to spend a lot of money to set up your production line as you can find reliable China OEM factories to do it for you. It is a good alternative for businesses to reduce costs.

2. Fast turnaround time

Chinese OEM factories are famous for their fast turnaround time. These companies have lots of professionals and have excellent setups for production fields. Most of OEM factories in China are flexible to work overtime at night or on weekends in peak production seasons. So, usually the lead time is shorter than the counterparts in other areas such as Mexico and Southeast Asia.

3. Easy replication and improvement

Suppose you liked a feature in someone else's product, and it is not present in your product, you can ask your Chinese OEM factory to add your product. This can be easily done by clearly indicating your demands.

Furthermore, if you do not like something in your product or get a bad customer's feedback about a feature in your product, you can replace it with a better version. A good OEM factory is willing to improve their products.

4. Custom products

The OEM factories produce the products under your brand label. You will keep the intellectual property marks associated with your products or designs. The factories assure you of the customization of your products.

If a company can design an excellent product but cannot manufacture the product, it can easily outsource the products to an OEM factory. It will be more timesaving and will give you more assurance in quality.

5. Professional service

Most of Chinese OEM factories are very professional in their dealings. The survival of an OEM factory mainly depends on the quality they offer.

Dealing with good Chinese OEM factories, you will get excellent customer service. You can directly talk to the manufacturer team anytime for your satisfaction. Their first and foremost consideration for these companies is to fulfill their customers' demands.

Steps included in using OEM factories

Following are some steps you should go through when getting the benefits from OEM products from China factories.

1. Detailed study

You can't immediately start working on it when you plan to start a new business and only have an idea. Similar is the case with OEM outsourcing. Before placing an order to the OEM factories, a detailed study of your business idea is important. It will tell you whether your idea is going to work or not.

2. Cost idea

Moreover, a keen analysis will clarify how much OEM will cost you. The production cost will help you determine your final product's cost price.

You should consider whether the production cost benefits you. For this reason, you can check out different OEM manufacturers according to your demand. A thorough study of the market will assure you a cost-effective product without compromising the quality.

3. Contract signing

The contract signing step comes when you have completed all the necessary prerequisites. At this level, you contact the OEM factory you have selected for your product manufacturing.

You must be specific about your product demand and specifications while placing the order. Furthermore, legal documentation is important when you are doing OEM outsourcing.

4. Time assessment

Production manufacturing takes time, and it is always a good idea to ask your OEM factories about the time of production. Time management will also help you to determine the exact product launching time.

5. Sampling

It is very important to ask for samples prior to production. Prototyping is a process in OEM in which you can practically check your products' samples. At this step, you can also work on design and verification of product packaging.

According to specific product categories, you may need to send samples to a lab to get all necessary certification.

6. Quality inspection

The final step in OEM is quality inspection of your products. A reputable third-party China inspection agency can work for the quality inspections for your finished products. These companies will assure you good quality for shipment of your final products.

Things to consider when selecting OEM factories in China

Different factors influence your business deal with the manufacturers. Before signing a contract, you should consider these factors to get the most suitable factory according to your needs. These factors will determine your relationship with the factories and your customers.

1. Experience

When selecting an OEM factory in China, the first thing you should consider is the company's experience in the field. The more experience the company is, the more confidence you will get. Furthermore, the experienced company will ensure quality products at a reasonable price between the promised time.

2. Ethical values

Ethics are very important in any business, especially when laborers work under you. When studying different companies to outsource the production work, you should consider the company paying special attention to the working class.

3. Warranty

It is important to ask Chinese OEM factories to offer you a warranty for a certain period, which means you have more confidence about the product. You can ask for the replacement within the warranty time if any issue arises.

4. Quality control

You need to pay much attention to quality control, if you are trying to get a product manufactured by an OEM factory in China. You will want to ensure that you find one that will provide you with a product worth the money you are paying for them.

Quality control is the process of analyzing, testing, and evaluating a product for defects, non-conformities, or deviations from specifications. It includes the physical examination, test, measurement, visual inspection, and documentation of any item during, and after production to verify that the item conforms to specified requirements.

Conclusion

Using a China OEM factory is an excellent choice to get your product to market as soon as possible. The OEM factories have the necessary tools and experience to get your product manufactured, and they typically have the best price point. The only thing to watch out for is that you must work with an OEM factory with the best quality reputation.



All Articles
Why Choose China for Sourcing Products to Sell Online?
Increase Your Retail Profits with Wholesale Sourcing from Asia
Navigating the Complexities of Global Supplier Management
Increase Your Profit with Products Imported from China
Things to Know about Successful Purchasing from China
Steps for Sourcing Procurement and Purchasing from China
Tips for Choosing the Best Chinese Prototype Manufacturers
Is Direct Sourcing from China Worth It for E-commerce Business?
Top 5 Reasons Small Businesses Need an Alibaba Sourcing Agent
International Product Sourcing is Key to E-Commerce Business
Strategies to Manage Global Sourcing Supply Chain
Why Importers Need an Inspection Company in China?
How to Streamline the Supplier Sourcing Process in China?
Guide for Importing Electronics Wholesale from China
Tips to Buy Directly from China Product Suppliers
Hot Selling Innovative Products from China - 2024
How to Order from 1688 in China from a Western Country?
How to Contact Chinese Manufacturers for Importing?
Shipment Order Monitoring to Avoid Delays and Defects
Effective Procurement Roadmap by China Purchasing Agency
How to Find Original Source of Products Made in China?
Strategies for China Procurement and Sourcing Management
Tips to Negotiate When you Purchase Products from China
The Multiple Roles of Global Sourcing Service in China
Process Guide of Pre-Shipment Inspection in China
Reduce the Risks with Final Quality Inspection in China
Performance Management of China Product Manufacturers
Steps to Develop and Import China Innovative Products
Process of Plastic Injection Mould Making in China
Top 5 Benefits of Partnering with a Reliable Sourcing Company
Why You Need a 1688 Sourcing Agent for Product Procurement
How to Source Products in China: A Comprehensive Guide
Key Challenges of Global Sourcing and How to Overcome Them
What Are the Different Quality Inspection Types in China?
Understanding Product Development Types in China
All about Rapid Prototype Manufacturers in China
Best Practices of Quality and Inspection Process in China
Challenges of Direct Manufacturer Sourcing in China
Challenges of Quality Management in Production in China
Intricacies of Sourcing Manufacturers in China
How to Buy Products from China Online at Factory Prices?
Different Ways How a Chinese Sourcing Agent Helps Importers
Tips to Deal with Chinese Consumer Products Manufacturers
Product Sourcing Company to Ease China Import Process
Insights and Trends of Sunglasses Manufacturers in China
Mistakes to Avoid When you Purchase Goods from China
Ensure Quality When You Order Products from China
Global Sourcing Solutions to Manage Import Challenges
The Importance of Pre-Production Inspection in China
The Role of Procurement Service Provider in China
Read More
Our Features
Custom Products
Turn concept to reality
Quick Response
Within 24 hours
Detail Oriented
Strive for perfection
Assured Quality
100% Guarantee