Tips to use China manufacturing services

Tips for using Manufacturing Services in China

By http://www.dragonsourcing.com

What is China Sourcing ?

 China has gained a place of prominence in global trading.

 China sourcing has some advantages in product manufacturing.  It is also the centre of attraction for buyers and sellers.  The country also has a vast experience in manufacturing products.

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Rules for using manufacturing services in China

China’s business background is completely different from other countries. Therefore some rules must be followed for using manufacturing services in China .

 Build a sound relationship with your Chinese counterparts .  Understand the logistics.  Understand the rule of thumb for manufacturing costs.

Build a sound relationship with your Chinese counterparts

 Absolute trust must be established.  Chinese have a limited faith in the legal counter system.  It takes time to develop trust.

 You must need to establish a right business structure for your relationship in China.

Understand the Logistics

 It may take 6-8 weeks time for delivery of product if shipment is done by sea.

 Therefore just in time inventory system may not work.  Therefore it is required to maintain higher level of inventory to give support to your customers.

Understand the rule of thumb for manufacturing costs

 In China labor costs are typically $50 per hour.  Labor content of manufacturing costs is typically 5%.  Therefore your manufacturing cost can be reduced by 30% to 50%.

 Also the cost of raw materials are low in china.

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