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
187 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 products 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 produces 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 using OEM 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 QC company 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 Do You Need a Reliable China Buying Agent?
Benefits and Challenges of Manufacturing Products in China
Factors Influencing China Sourcing Agent Fees
A Comprehensive Guide on Budgeting for China Sourcing Agent Fees
Benefits of Pre-Shipment Inspections for Importing from China
Tips about Finding a Suitable Procurement Agent in China
How to Find Reliable Prototype Manufacturers in China?
Reasons to Hire a Chinese Buying Agent for Your Business
How to Do China Company Verification for Electronic Products
Revolutionizing Global Supply Chains: The Impact of China Direct Sourcing
All You Need Know about How to Find Manufacturers in China
Effective Strategies for China Sourcing Process Control
Things You Should Know about Shenzhen Sourcing Agents
Importance of Product Quality Assurance in China
How to Effectively Manufacture Outdoor Products in China?
Tips about Global Product Sourcing from China Suppliers
Why Is Procurement Outsourcing in China Important?
Main Benefits of Directly Sourcing Products from China
How to Effectively Verify Chinese Companies?
Wholesale Quality Products by Using a Reliable 1688 Agent
Everything to Know about Sourcing China Metal Products
How to Assure Quality for Manufacturing Products in China?
Why Is China Sourcing Agency Helpful for Amazon Sellers?
Knowledge about Calculating Import Duty from China to USA
How to Find Suppliers for Importing Chinese Products?
Advantages of In Process Quality Inspections in China
Guide for Procurement Outsourcing to China
Efficiency Unleashed: The Power of Smart Order Monitoring
Tips on Negotiating Price with Suppliers in China
Ways to Hire Verified Sourcing Companies in China
How to Effectively Manage Your Quality Control in China?
How Can You Buy Consumer Goods in China?
How to Build Your China Purchasing Strategies?
How to Choose Factories in China for Consumer Products?
How to Assure Quality for Products Made in China?
Buying Bulk Items from China - Mistakes to Avoid
Key Things to Know about Direct Sourcing in China
Advantages of Sourcing Promotional Products from China
Risk Mitigation Excellence: The Role of Factory Audit in China
Importance of Incoming Quality Control in China
How to Start Product Importing from China to the UK?
How Can China Product Sourcing Benefit Your Business?
Practical Ways to Find Reliable Suppliers in China
Things to Consider for Importing Chinese Products
Hiring a Buying Agent to Help Your Manufacturing in China
How Can a Sourcing Agency Help Your Procurement in China?
Tips about Sea Shipping from China to the US
All You Need to Know about Quality Inspections
Things You Need to Know about Direct Sourcing from China
What You Need to Know about Product Sourcing for Amazon?
A Comprehensive Guide to Hardware Import from China
How to Successfully Negotiate Prices with China Suppliers?
Why is Shenzhen the Best Place for Sourcing Consumer Electronics?
A Guide for New Importers about China Shipping
Why Are QC Inspectors Important for Your China Sourcing?
11 Reasons to Hire a Sourcing Agent in China
Things to Know About Bulk Importing from China
How to Work with Metal Fabrication Factories in Shenzhen?
Why Do You Need Product Sourcing Services in China?
How to Ship Products from China to Amazon FBA?
Tips for Sourcing Products for Amazon Sellers
Challenges in Sourcing Products from China to Europe
How to Find and Hire a Buying Agent in Guangzhou?
Tips for Maintaining High Quality Supply Chain in China
How to Understand and Save International Freight Costs?
How to Choose Items and Buy in Bulk from China?
A Guide for Choosing Quality Inspection Services in China
Good Practices for Importing Products from China
How to Utilize 1688 Sourcing to Boost Your Product Purchasing?
Why China Factory Audits Are Key to Your Success?
How to Create Mockups in China Successfully?
Important Steps Involved in Global Sourcing from China
Things You Need to Know About LCL Shipment
Key Advantages of Global Sourcing from China
A Guide for Importers on Quality Inspections in China
Everything You Need to Know about China Sourcing Agent
How to Source Custom Products Made in China?
Why Factory Audits Are Important for Importers?
Valuable Tips for Sourcing Consumer Products from China
What You Need to Know about Shipping from China?
Facts about Making Rapid Prototypes in China
Key Factors to Find a Reliable Sourcing Company
How to Negotiate Lower MOQ with China Suppliers?
Read More
Our Features
Custom Products
Turn concept to reality
Quick Response
Within 24 hours
Detail Oriented
Strive for perfection
Assured Quality
100% Guarantee