FAQ- Frequently Asked Questions
China outsourcing and manufacturing: competitive advantage or a myth?
Yes, 20 to 30% cost savings can be achieved! Chinese labor rates are low compared to North America, BUT …need to be well managed, eg. localisation of design and specifications, constant quality, constant production, volume, protection of copyrights....
Non-Disclosure Agreements – What are they and do I need one?
Before entering into any negotiations or submitting your product idea for review we will sign with you a Non-Disclosure Agreement (NDA), this warrants that that we will not discuss your product to any third party and protects both of us.
What about copyright infringement in China?
Copyright infringement in China is still a problem, even if the Chinese government is trying to prevent it. We protect your IPR by having an NDA signed with all our suppliers and contractors, your specifications and technical plans are stored on secured servers, with password protected access only on a need to know basis. We also keep track of all our suppliers and contractors who had access or knowledge of your specifications.
What types of products are better to be manufactured in China?
Most advantages come from the competitive Chinese labor rate, their skill set and quality in casting and machining. Products that require a high level of manual labor, precise machining and/or precision casting and that will be used or incorporated into high value systems will reap the most benefits. In summary, stringent specifications, high quality, high precision, labor intensive products will have the most benefit.
Am I the right company to be manufacturing in China?
If you are facing competitive cost pressure, the answer is YES. But in general, Small and Medium Enterprises (SMEs) do not have the time, money, expertise nor resources to take advantage of outsourcing or manufacturing in China. With us, you do not need to be a large corporation to benefit from the cost competitiveness that China provides. You focus your valuable resources on R&D and design of new products, customer care and support. We take care of your manufacturing headaches and ensure that quality and source of supply are constant at the best cost.
How are the manufacturing costs ?
Overall loaded labor rate in China across all skill sets is about 4 - 5 times lower than in N.A., so you do the math.
How do you ensure quality control?
Quality control in China is the most critical element. We follow all Western QC processes, ensure traceability and perform in-house and independent quality tests.
Is there a minimal quantity I must order?
We know you are a SME with great products and are growing. We want to be part of your growth, so minimal quantity only to the extent of economical viability.