Metal Stamping in China: Things to Consider

China is the world's factor. Nearly a third of all global manufacturing takes place in China, substantially more than any other country. Businesses in China offer high quality, competitive rates, and fast service. This status is the result of China's decades-long efforts to support a robust export economy. Chinese manufacturers have developed expertise in clothing, plastics, electronics, and metal pressing over the years.

Even so, outsourcing production can be challenging. It is important for business owners to have control over their products, especially in metal pressing, where poor workmanship can lead to costly supply chain problems. It is best to choose a partner who you can trust.

If you are considering metal pressing in China, there are a few things to consider before you take advantage of this great opportunity. Here are five topics to consider before Metal Stamping in China.

Capacity and expertise

You have to know your requirements before you start looking for an outsourcing partner. How many parts do you need? When do you need them? These questions may seem obvious, but some companies will attempt to identify a manufacturer before making all the relevant product decisions.

There are several advantages to partially answering these questions, even if you don't have a complete and final answer.

The number of companies doing metal pressing is enormous. If you understand your needs, you can focus on manufacturers that specialize in your area, thereby eliminating companies that cannot produce your part. It can be a massive undertaking to sort through all the potential companies to work with.

It is important to ask better questions when discussing your part with a potential manufacturer about the process, equipment, and experience. Understanding your needs allows you to ask more effective questions during your initial meeting. Obviously, you can ask more questions later, but it is best to work out as much as possible right away.

Getting a clear understanding of your requirements when negotiating a contract will give you a better negotiating position. Do you want to relax the specifications in exchange for a price cut? What production schedule do you want versus what production schedule do you need?

The production capacity of the factory should also be discussed. Just because they can make your part, doesn't mean they can right now. You don't want to be surprised by an overbooked factory.

Government relations

Many of the norms that are well-established in North America and Europe are not followed in China. Partially, this is due to the country's culture, but it is also due to the country's economic history.

The Chinese economy has only been open for a few decades. Most companies used to be state-owned. Over the years, the rules surrounding business ownership and government involvement have changed. It is still common for Chinese companies to maintain close ties with the government or to be partly owned by it. The government takes an active role in Chinese companies' day-to-day operations, much like we are used to in the West.

There is nothing wrong with government ownership, but your company should be aware of this connection. It is important for your company to maintain a strong relationship with government officials. However, developing a solid relationship with your client may generate business opportunities with the government.

Location of Suppliers and Downstream Manufacturing

Most companies are not looking for individual pieces, but rather manufactured products that contain many components. These articles are often assembled in China, along with any fabrics, plastics, or electronics. In order to save money and effort in the long run, you should locate your factories close to one another. Shipping between different sites can be expensive and logistically complex. Cars and electronics are complex products, so this becomes increasingly important.

The Chinese have regions with a high level of industrial activity. Guangzhou is one of these areas. It is not only home to many manufacturing companies with extensive experience, but also one of China's largest ports.

You can also lower your costs by manufacturing multiple parts at the same location, which will reduce your shipping costs and audit expenses. Click here

Inspections and audits

It is a massive problem for your company if your product breaks or stops working because of quality issues. It is necessary to audit your overseas partner to ensure their plant operates according to best practices and that your parts are up to specifications. In order to verify this, you must conduct an audit. Your employees can conduct the audit or you can hire a third party to do it.

Your audit schedule should take into account the complexity of the part you are having manufactured. Auditing can be a huge undertaking, so you need to be strategic about how you implement them. Do you have a small part that plays an important role in an electronic device? Or do you have a crucial part in the steering or braking system of your car? The specifications for such parts are much tighter, so you should schedule more frequent inspections.

There should be both a schedule and a plan for how your audits will be conducted in your auditing strategy. Would you like to send a representative or hire an outside firm to conduct these audits? You cannot effectively inspect a company without expertise in the area if you don't have it in-house. Expenses are also a concern, as auditing can become costly if you use a large team. Get more info about metal stamping.

It's important to know that audits are not just a cost to you, but also a stressor to your business partner. Make sure you have an audit agreement in place ahead of time, and make sure you're communicating clearly and openly with them.