5 Questions to Ask Yourself When Selecting an OEM ...

17 Jun.,2024

 

5 Questions to Ask Yourself When Selecting an OEM ...

Making products by outsourcing manufacturing to China can be an incredibly rewarding experience. Not only does it enable you to develop the item exactly how you want, but it also allows you to create high-quality products in much larger quantities than you would otherwise be able to make on your own. For these reasons, more and more entrepreneurs are choosing to manufacture their products in China by enlisting the help of an OEM manufacturing company.

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However, with all the options currently available, selecting the right OEM company can seem like a daunting task.

Asking yourself the right questions before you begin production with a new partner can save you time and money in the long run, ensuring that you have an efficient manufacturing experience from start to finish. Let&#;s get started!

Question #1: What Are My Requirements & Standards?

The first question to ask yourself before approaching an OEM company is to develop an exhaustive understanding of your product. Not only should you have a general idea of the product, but also write down the product specifications in detail like:

  • Colors
  • Materials
  • Dimensions
  • Components
  • Manufacturing techniques
  • Manufacturing process
  • Quality standards
  • Packing requirements
  • Import and export requirements

When you manufacture a product, the outcome can be drastically different based on what type of raw materials or techniques are used. It&#;s important to establish your criteria beforehand so that you know which company will create the best result for you.

Question #2: What Is My Budget Limit?

It&#;s important to define the upper limit of your budget when outsourcing your production to any supplier, because a more affordable company may not be able to provide you with the same quality and efficiency as a more expensive option. And you may not want to sacrifice the product quality just for saving a bit of money. That being said, while the price is certainly something you should consider when shopping for an OEM supplier, it shouldn&#;t be the only deciding factor.

However, it&#;s not a good idea to set an exact budget number right off the bat before all other factors are not considered.

In this case, you can estimate the price range for this manufacturing project based on what you think would work best for your company. Then you can also compare various service providers to have a better understanding of the perfect investment for your business.

Question #3: What Should I Do to Conduct Due Diligence?

After fully considering your needs, then you can conduct due diligence to know whether the manufacturing company is knowledgeable about your specific product type, or if it has worked with similar products before.

The best way to find this information out is by researching the company website to know their background, qualifications, service category, past work, etc.

You can also ask for references from a supplier you trust or reach out to other businesses that are manufacturing a similar product.

Doing detailed due diligence is not an easy task, check out our blog to know how to spot a real factory or a trading company in China.

Once you have all the relevant information, compare different manufacturers&#; strengths and weaknesses against your needs and make a decision based on what will work best for your business.

Question #4: A One-Stop Shop Factory VS. Different Suppliers

Then you also need to think about do you want to use a one-stop shop factory that can fulfill all your needs or different suppliers who can specialize in different areas.

A one-stop shop factory is a model whereby one company manufactures, assembles, and distributes the product that they have been commissioned for. This factory can potentially increase efficiency and reduce production costs as a result of having all production processes under one roof. However, this could also limit your options for product customization if their manufacturing capabilities are limited.  

If you need to make products with different materials or designs than what they produce, then you will need to find a different supplier. Furthermore, there may be certain materials or suppliers that are hard or expensive to acquire domestically in China so it may be necessary to find another supplier.

If time is not a concern and cost savings are your main priority, then finding one supplier might be the best option for you. However, if flexibility is more important for you, then working with multiple suppliers would be recommended.

Question #5: How to Guarantee My Product is Perfectly Working?

One way that a manufacturing factory can prove its commitment to quality assurance is by providing a sample of your product for inspection. In this case, requesting a product sample before placing your first order can be a good idea.

With competitive price and timely delivery, Touch-China sincerely hope to be your supplier and partner.

If there are any flaws, you have the opportunity to give feedback before mass production. In other words, if the manufacturer has nothing to hide, then there should be no problem with sending out a sample or a finished product for testing. This eliminates the risk of encountering problems and ensures your customers get what they pay for!

In addition, it&#;s imperative to look at whether your potential manufacturing supplier has an in-house quality inspection team or not. You want someone who will stand by you when things go wrong because inevitably something will go wrong at some point. If they assure you of having quality inspections available, ensure that the inspection report specifies what exactly is being inspected and which parts aren&#;t included.

Final Thoughts

Ultimately, your choice of manufacturer in China should be determined by what matters most to you and how much involvement you want with the production process.

Keep in mind that there is no perfect way of choosing a manufacturer but it&#;s worth taking some time to think about what&#;s important and how much you want to be involved in the process.

If you need any help, look no further than Shield Works. Founded in , we are an offshoot of the British-owned and managed C2W Group located in the South China Greater Bay Area offering high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements.

We focus on the provision of a tailor-made solution based on your situation to meet your standards and requirements. Start your journey by reaching out today to discuss your product and learn how we can help.

China - Cultural Etiquette

The People

Deeply rooted in Chinese society is the need to belong and conform to a unit, whether the family, a political party or an organization. The family is the focus of life for most Chinese. Age and rank are highly respected. However, to the dismay of older people, today's young people are rapidly modernizing, wearing blue jeans and sunglasses, drinking Coke and driving motorbikes.

Meeting and Greeting

  • Shake hands upon meeting. Chinese may nod or bow instead of shaking hands, although shaking hands has become increasingly common.
  • When introduced to a Chinese group, they may greet you with applause. Applaud back.
  • Senior persons begin greetings. Greet the oldest, most senior person before others. During group introductions, line up according to seniority with the senior person at the head of the line.

Names and Titles

  • Use family names and appropriate titles until specifically invited by your Chinese host or colleagues to use their given names.
  • Address the Chinese by Mr., Mrs., Miss plus family name. Note: married women always retain their maiden name.
  • Chinese are often addressed by their government or professional titles. For example, address Li Pang using his title: Mayor Li or Director Li.
  • Names may have two parts; for example: Wang Chien. Traditional Chinese family names are placed first with the given name (which has one or two syllables) coming last (family name: Wang; given: Chien).
  • Chinese generally introduce their guests using their full titles and company names. You should do the same. Example: Doctor John Smith, CEO of American Data Corporation.

Body Language

  • The Chinese dislike being touched by strangers. Do not touch, hug, lock arms, back slap or make any body contact.
  • Clicking fingers or whistling is considered very rude.
  • Never put your feet on a desk or a chair. Never gesture or pass an object with your feet.
  • Blowing one's nose in a handkerchief and returning it to one's pocket is considered vulgar by the Chinese.
  • To beckon a Chinese person, face the palm of your hand downward and move your fingers in a scratching motion. Never use your index finger to beckon anyone.
  • Sucking air in quickly and loudly through lips and teeth expresses distress or surprise at a proposed request. Attempt to change your request, allowing the Chinese to save face.
  • Chinese point with an open hand. Never point with your index finger.

Corporate Culture

The Chinese are practical in business and realize they need Western investment, but dislike dependency on foreigners. They are suspicious and fearful of being cheated or pushed around by foreigners, who are perceived as culturally and economically corrupt. It is very difficult to break through the "them vs. us" philosophy (foreign partner vs. Chinese). In personal relationships, the Chinese will offer friendship and warm hospitality without conflict, but in business they are astute negotiators.

  • Punctuality is important for foreign businesspeople. Being late is rude. Meetings always begin on time.
  • Business cards are exchanged upon meeting. Business cards should be printed in English on one side and Chinese on the other. Make sure the Chinese side uses "simplified" characters and not "classical" characters, which are used in Taiwan and Hong Kong.
  • English is not spoken in business meetings, although some Chinese may understand English without making it known. Hire an interpreter or ask for one to be provided.
  • Be prepared for long meetings and lengthy negotiations (often ten days straight) with many delays.
  • The Chinese will enter a meeting with the highest-ranking person entering first. They will assume the first member of your group to enter the room is the leader of your delegation. The senior Chinese person welcomes everyone. The foreign leader introduces his/her team, and each member distributes his/her card. The leader invites the Chinese to do the same.
  • Seating is very important at a meeting. The host sits to the left of the most important guest.
  • There may be periods of silence at a business meeting; do not interrupt these.
  • A contract is considered a draft subject to change. Chinese may agree on a deal and then change their minds. A signed contract is not binding and does not mean negotiations will end.
  • Observing seniority and rank are extremely important in business.
  • The status of the people who make the initial contact with the Chinese is very important. Don't insult the Chinese by sending someone with a low rank.
  • Chinese negotiators may try to make foreign negotiators feel guilty about setbacks; they may then manipulate this sense of guilt to achieve certain concessions.
  • Two Chinese negotiating tricks designed to make you agree to concessions are staged temper tantrums and a feigned sense of urgency.
  • If the Chinese side no longer wishes to pursue the deal, they may not tell you. To save their own face, they may become increasingly inflexible and hard-nosed, forcing you to break off negotiations. In this way, they may avoid blame for the failure.

Dining and Entertainment

  • Dining is used to probe positions without any formal commitment. Business is generally not discussed during meals. Meals are a vehicle for indirect business references.
  • The Chinese are superb hosts. Twelve-course banquets with frequent toasts are a Chinese trademark.
  • The Chinese sponsoring organization generally hosts a welcoming banquet. Foreign guests should reciprocate toward the end of their visits. Invite everyone with whom you have dealt.
  • Always arrive exactly on time for a banquet. Never arrive early for dinner. This implies that you are hungry and might cause you to lose face.
  • Spouses are not usually included in business entertaining, however, businesspeople may bring their secretaries.
  • Be prepared to make a small toast for all occasions.
  • The first toast normally occurs during or after the first course, not before. After the next course, the guest should reciprocate.
  • Three glasses -- a large one for beer, soda or mineral water, a small wine glass and a stemmed shot glass -- are at each place setting. The shot glass is the one used for toasting.
  • It is not necessary to always drain your glass after a ganbei (bottoms up), although a host should encourage it.
  • Do not drink until you toast others at the table. Chinese consider drinking alone to be rude. Simply raising your glass and making eye contact is sufficient. If you are toasted, sip your drink in reply.
  • A toast to friendship among companies will help cement a business relationship.
  • Unless you are totally drunk, it is not advised to refuse a drink. Sipping your drink is perfectly acceptable.
  • Leave some food on your plate during each course of a meal to honor the generosity of your host. It is bad manners for a Chinese host not to keep refilling guests' plates or teacups.
  • Seating is very important. The guest of honor is always placed at the head of the room, facing the door. Allow the host to begin eating before joining in.
  • Do not discuss business at dinner unless your Chinese counterpart initiates it.
  • Slurping soup and belching are acceptable. Cover your mouth with your hand when using a toothpick. Put bones, seeds, etc. on the table, never in your rice bowl.
  • Chopsticks are used for all meals. Tapping your chopsticks on the table is considered very rude.
  • When finished eating, place your chopsticks neatly on the table or on the chopstick rest.
  • When hosting, order one dish for every person present and one extra. In addition, order rice, noodles and buns. Soup usually comes at some point during the meal. The host should tell his/her guests to begin eating a new dish before he digs in himself.
  • The host (the one who invites) pays the bill for everyone.
  • If you are the guest of honor at a dinner, leave shortly after the meal is finished, as no one will leave before the guest of honor.
  • Breakfast meetings are rare, but you may request one.
  • Guests are rarely invited to a Chinese home. It is an honor to be a guest. Be on time or a little early for an invitation, and take a small gift.
  • Bedrooms and kitchens are private. Don't enter these rooms unless you are invited to do so.
  • All dishes are served at once in a home. The host will place portions of each dish on guests' plates. Sample each dish.
  • Rare beef is considered barbaric by the Chinese.

Dress

  • Conservative, simple, unpretentious, modest clothing should be worn -- nothing flashy or overly fashionable.
  • Women should avoid bare backs, shorts, low-cut tops and excessive jewelry.
  • For business, men should wear sport coats and ties. Slacks and open-necked shirts are generally suitable in the summer for business meetings; jackets and ties are not necessary.
  • Women should wear dresses or pantsuits for business and should avoid heavy make-up and dangling, gaudy jewelry.

Gifts

  • Present a gift with both hands. Gifts are generally not opened upon receiving. Always give a gift to everyone present or don't give gifts at all.
  • Older Chinese usually refuse a gift at first to be polite. Offer a second time.
  • Never give a gift of great value until a clear relationship is established. This would cause embarrassment and may not be accepted. Never give gifts in sets (i.e., dishes), but never in sets of four (a number associated with death).
  • Avoid white, which is symbolic of death, especially of parents, and black, which symbolizes tragedy or death.
  • When invited to someone's home, always bring a small gift for the hostess, such as brandy, chocolates or cakes.
  • Be prepared to exchange a modest gift with your business colleagues at the first meeting. Not giving a gift could start a business meeting off on the wrong foot.
  • Always give gifts to each member of the Chinese delegation that meets you in the order in which they were introduced. Suggested gifts: cigarettes (especially Marlboro and Kent), French brandy, whiskey, pens, lighters, desk attire, cognac, books, framed paintings. Give more valuable gifts &#; like cellular phones or small CD players &#; to senior level people.
  • Give a group gift from your company to the host company. Present this gift to the leader of the delegation.

Helpful Hints

  • Chinese find "no" difficult to say. They may say "maybe" or "we'll see" in order to save face.
  • Always refer to China as "China" or "People's Republic of China," never as "Red China," "Communist China" or "Mainland China."
  • Always refer to Taiwan as "Taiwan" or "Province of Taiwan," never "China," "Republic of China" (the name adapted by the Nationalist forces after they fled to Taiwan) or "Free China."
  • Do not in any way suggest that Taiwan is not part of China.
  • Show respect for older people. Offer a seat or right of way through the door to a colleague or older person as a polite gesture.
  • Return applause when applauded.
  • Refrain from being loud, boisterous or showy.
  • Do not be insulted if the Chinese ask personal questions such as "How much money do you make?" "How many children do you have?" or "Are you married?" Just change the subject if you do not want to answer.
  • Asking about divorce would cause a Chinese person to lose face.
  • Forcing the Chinese to say "no" will quickly end a relationship.
  • Never say or act like you are starving and don&#;t ask for a doggy bag.
  • Most Chinese women don't wear wedding rings. Don't assume marital status.

Especially for Women

For more information, please visit Touch-China.

  • China is a difficult place for anyone to conduct business. A woman may gain acceptance, but it will take time and will not be easy.
  • China is a male-dominated society. However, there are many women in business in China and some occupy high-ranking positions and important managerial jobs. One of the principles of the Chinese communist system is to work toward sexual equality.
  • Negotiating teams may have women members. Women may be used to decline unpopular proposals.
  • Businesswomen attend business dinners, but rarely bring their spouses.
  • Chinese women rarely smoke or drink. However, it is acceptable for Western women to do so moderately.