Are you looking for a product manufacturer in China?
Do you want a reliable and trustworthy product manufacturing source for your business?
If you’re looking for a comprehensive guide on product manufacturing in China, you are at the right place.
A product is created by a manufacturer or supplier and then sold to customers. Companies use different types of manufacturing production processes to manufacture products like make-to-order (MTO), make to assemble (MTA), and make to stock (MTS).
Manufacturing is a complex task that incorporates a variety of factors such as labor costs, inventory, and raw material costs. If you want to start your own business, then, you can hire a product manufacturer from China.
In this blog, we will provide a complete guide regarding product manufacturing. We will also show you how to find a good manufacturer in China.
Table of Content
Chapter 1: Why Product Manufacturing Strategy is Important For Your Business?
Chapter 2: Step by Step Guide for Product Manufacturing
Chapter 3: 3 Mistakes that You Should Avoid During Product Manufacturing
Chapter 4: How to Avoid Big Mistakes while Doing Product Manufacturing?
Chapter 5: FAQs About Product Manufacturer in China
Table of Contents
Chapter 1: Why Product Manufacturing Strategy is Important For Your Business?
Product manufacturing can be one of the biggest parts of your brand-building business. You need to make sure that what you are manufacturing is according to customer needs and market demand.
The quality of your product and manufacturing strategy has a huge impact on the success of the product later on.
In this chapter, we will show you that what product manufacturing is and why is it important.
1. What is product manufacturing? Types of product manufacturing
The concept of product manufacturing is simple. First, you get raw material, and then, you can use that raw material to create the finished product.
The whole process from raw materials to products is what we called product manufacturing.
The process of product manufacturing is further divided into multiple types. Here are 3 major types of product manufacturing process.
- Make-To-Stock (MTS)
In make-to-stock (MTS), products are usually kept at the stores in stocks. In this type of product manufacturing, it is very important to predict the market needs in advance.
If the product is not according to customer needs and market demand, then, it won’t sell and there will be a loss.
Also, the quality of the product to be produced should be considered carefully. Because if you produce too many products, then, you will have to sell extra stock at a loss.
On the other hand, if you produce less than the demand then the sale cost won’t be covered.
- Make-To-Order (MTO)
In make-to-order (MTO), the factory or manufacturer waits until they get an order from the customer. Production is started after receiving the orders.
This is a much safer option, because in this type of manufacturing, inventory and meeting customer demand is more manageable.
However, after placing an order, customer needs to wait for the product. For the reason that the manufacturing process begins after placing the order.
Manufacturers’ profit also completely depends on the customer’s orders so they require steady orders in order to remain in profit.
- Make-To-Assemble (MTA)
This strategy is similar to the make-to-stock (MTS). In this strategy, manufacturer will make the components or part of the product.
They will assemble them once customer places the order. However, it can result into stock of unwanted parts if there is no customer’s demand for that component.
2. What kinds of costs you need to pay for product manufacturing?
As mentioned above, all these manufacturing types have their own benefits and challenges. If manufacturer produces too much, then it might not sell and it would lead in the loss.
On the other hand, if manufacturer produces too less than customer may buy somewhere else and it would affect the profits.
There are a lot of things that need to be considered during product manufacturing like cost management, sales and stock management, quality control, etc.
The main parts of manufacturing cost include direct materials cost, direct labor cost and manufacturing overhead. And the total cost of product manufacturing will be the sum of them.
How to save as much as manufacturing cost? First, you can replace the raw materials into cheaper ones or find another place where offers cheaper materials.
Then, reducing waste is another way to save your cost. Try to produce enough products but never overproduction.
3. Importance of product manufacturing
You might be wondering about whether you should make or buy your products. You can manufacture your products or you can purchase the final products from an external supplier. You need to do a cost comparison of buying the products or manufacturing.
Exporting the products from external manufacture can also have the cost of shipping and you might not have an option to customize your products.
In that case, it might be better to need to do product manufacturing rather than directly buying the final products.
Product manufacturing plays a major role in business. Product manufacturing does not only provide goods to customers and the marketplace, it also contributes to the overall economy of the country.
4. What are the differences between working with domestic and overseas factories?
If you are looking to start your business, then, you can select either domestic or overseas manufacturing factories to produce your products. Overseas factory is the one that is located on an abroad location.
Both domestic factories and overseas factories have advantages and disadvantages. For example, it is easier for you to find good domestic manufacturers, but the production cost might be high.
And if you are working with overseas factories, they can provide you better price, but the communication barrier will be higher.
For solving parts of your questions, you can also hire a manufacturing manager to manage the factories. They help in running the production smoothly for your business. Also, most of the manufacturing managers speak the local language which helps in smooth communication.
Chapter 2: Step by Step Guide for Product Manufacturing
If you want to manufacture your own product instead of sourcing the product, then, you can refer to the following step-by-step product manufacturing guide.
1. Do research for having a product manufacturing idea
Everything starts from an idea, every successful business was once just an idea. First of all, it is important to do thorough research for your product manufacturing idea.
If you want to introduce a certain product in the market, make sure to do detailed research on the product.
You can also check the current demand of the market, then, do some researches on your competitors and their offered products. According the results, you will verify how your product is better than your competitor’s product.
Also, make a marketing strategy to help your product stand out. If you have an idea about your target audience and their demands, you can easily touch their heart.
2. Develop your product design and finalize a good one
Once you have finalized a product idea, start developing the product design. There are a lot of factors that you need to be considered while creating the design, user-friendly is one of the most important factors.
And you should keep the customer demand in consideration while creating the design.
Design should also cover how the product will be used, what the product looks like, the material of the product, and the packaging of the product. After making the designs, finalize the best design for your product.
3. Start testing after creating basic sample
You can also make a 3D product design by using 3D modeling software. Design helps in giving your idea a visual reference and figuring out all the information that is needed for product manufacturing.
Once you have finalized a basic sample for your product you need to test the sample. Make sure to properly test your product sample, because the actual product will be manufactured based on the initial design.
4. Manufacture the product or find a suitable factory
Once you have finalized and tested your product design and sample, you can move to the manufacturing step. You can either manufacture the product on your own or you can find a suitable factory to manufacture your product.
If you want to find a manufacturer, you can take the help of online marketplaces, google searches or you can find a local manufacturer.
It is also possible to visit China where called “World’s Factory”, you can find OEM factories to help you in product manufacturing.
5. Arrange for a test of the sample before massive production
Whether you are producing the product on your own or taking the services of a manufacturer, make sure to test the sample product before massive production.
Testing product sample ensures that product matches your need and design.
Also, at this stage, it is possible to give your feedback. And you can recommend changes in the product if there is something that needs to be changed.
If the product sample is according to your requirement and design, you can start the product manufacturing.
6. Officially release the product and start marketing
The official release of the product is the final step of product manufacturing. After product manufacturing, you can officially release the product and start selling the product.
Proper marketing is a must in order to make the business successful. It will help to create awareness among customers about your product.
You can use multiple platforms for the marketing of the product like social media, local advertisement, etc. After the official release, the product will be accessible in the market for the customers.
Chapter 3: 3 Mistakes that You Should Avoid During Product Manufacturing
Companies tend to make some common mistakes when they are manufacturing their products. These issues are usually caused due to some mistakes that are made earlier in the process.
In this chapter, we have provided some mistakes that should be avoided during products manufacturing.
1. Not making an appropriate strategy and plan beforehand
If you don’t make the plan and strategy beforehand, then, you can end up in the hand of the wrong supplier. An incompetent supplier can also highly impact the manufacturing process.
Another major mistake can be a lack of proper communication with suppliers and not making a proper strategy beforehand.
It is always a good idea to have a backup supplier instead of entirely relying upon one supplier. It can save you from an unpleasant situation.
If you have to work with an overseas manufacturer, it is better for you to hire a reliable agent, they will be able to keep looking at the manufacturer there. Then there will be fewer issues happened.
2. Not signing a proper agreement at the start of the contract with the supplier or manufacturer
A proper agreement is important to sign before starting the contract. However, it is often neglected until buyers start to have doubts. Make sure to make a contract with the supplier beforehand.
It is important to clarify in the contract that all intellectual property belongs to you.
You need to have some leverage in case the supplier behaves improperly. It is also a better idea to make the contract with the supplier at the very beginning of the project.
All the conditions related to pricing and product quality can be mentioned in the contract.
3. Excessive reliance on the supplier
The buyer usually starts trusting the manufacturer with everything. You might not take the necessary precaution due to relying on your supplier entirely.
If you don’t have any knowledge of critical components and aspects, it gets harder to switch the supplier. Because your current supplier has all the knowledge of critical aspects of the project.
If you switch suppliers in that case, then the new supplier has to do everything from scratch which can take a lot of time and effort.
Chapter 4: How to Avoid Big Mistakes while Doing Product Manufacturing?
There are a few things that buyers can do to avoid the mistakes that are mentioned in chapter 3. In this chapter, we have provided a guide to avoiding mistakes while doing product manufacturing.
1. Make an informed plan and strategy
Make a detailed plan before starting the project. Include everything in the plan, for example, finding a manufacturer, contracting with the factory, and clarifying cost of the manufacturing, marketing strategy, and your target customer base, etc.
Your plan and strategy should be realistic and easy to implement. Avoid making unrealistic plans in the hurry and do proper research before finalizing the plan.
Also, make sure to critically review the plan, so you can see the loopholes in the plan and fix those issues in time.
2. Keep all the design aspects and implications in mind
Consider all the design aspects of the product in consideration from the very beginning. It is always better to find the defects in the product design on time rather than finding them when it’s too late.
If issues are found during production, then, they are way more costly as compared to finding them during the initial design phase.
Make sure to review product design, packaging design, and other design-related aspects at the start to avoid such situations.
3. Setup your supply chain on solid grounds
Some suppliers can be critical. For example, if you are manufacturing the supplements, food, baby food or any products that are critical and proper regulations are needed, then, make sure you have selected a supplier that is qualified to deal with such products.
You need to make sure that all the legal aspects and quality standards are taken care of, and the manufacturer is up to the mark to make such products.
If something does not go as planned, then, it can have an impact on your whole supply chain. Make sure you take all these aspects into the consideration before making the contract.
4. Set realistic expectations and prepare the accurate design
It is crucial to communicate your needs and product designs in the beginning. If your expectations are not communicated at the early stage, the end product may not be as you anticipate.
You need to communicate your product details and customer needs thoroughly with your manufacturer.
You can also make a product specification sheet. It would be helpful for prototype creators and manufacturing staff. If everything is well-documented and organized, it would be helpful in maintaining standards.
Share the design with the respective manufacturing staff, so that everyone has the clarity regarding design.
Chapter 5: FAQs About Product Manufacturer in China
1. What is product manufacturing?
Product manufacturing is the process of making and assembling the product. It is a process that converts raw material to finished products. It may or may not involve the use of machinery. It involves tools, the use of machinery, and human resources.
2. How can I find a product manufacturer in China?
There are many ways to find a suitable product manufacturer in China. You can visit online marketplaces like Alibaba, DH gate and made-in-china.com, etc.
You can also use Google searches to find product manufacture that is suitable according to your needs.
Make sure to check online reviews of the supplier before finalizing your decision.
3. What is the process of product manufacturing?
Product manufacturing is a very important aspect of the industry. There are major steps in the manufacturing process.
These steps include product concept, research, design, testing, manufacturing and assembly, feedback and testing and official release.
4. Where can I find sources for product manufacturing in a foreign country?
You may find that it is cheaper to work with overseas manufacturers. For example, in China, it is easier to find a clothing factory that offers a lower price for product manufacturing.
However, many people don’t have experience working with Chinese factories.
Then, a local sourcing expert can help you a lot. There are many outstanding sourcing experts in EJET, and we can provide you with a worry-free sourcing experience in China. Just send us a message, we will answer all of your questions.
Conclusion
In order to deliver quality products to the marketplace, it is important to give primary importance to product manufacturing. Many people found that making a product from scratch and bringing it to market can seem like an overwhelming task.
However, with the help of this blog, it will be easier for you to break it down into small tasks. Then you can take your product from an idea to an actual manufactured product. If you have any
