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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