China’s business ecosystem of networked suppliers, component manufacturers are some of the biggest reasons companies manufacture their products in China. China’s emergence as a manufacturing powerhouse has been astonishing. Although the anti-China mentality is growing stronger all across the globe because of the Corona pandemic, companies simply cannot take their manufacturing units out of this country that easily.
In an environment where global balance sheets are fractured because of the pandemic, relocating entire supply chains from China is easier said than done. From skilled labor to highly advanced logistics, from state-of-the-art ports to ultra-modern transportation system, China provides an integrated infrastructure that is tailor-made to perfectly meet the strict deadlines that international companies operate on.
If you are manufacturing your products in Chinese factories, simply following these tips will help you a lot in successfully maintaining your competitive advantage:
Pay extra attention to quality assurance–
China’s manufacturing sector has matured significantly. Factories have improved their processes, quality control, and worker training over time. Buyers can purchase high quality products made in China. However, all depends on the conditions requested. Regardless, many other factors can affect the quality of the products made in China even at a fair price and reasonable delays. If you are struggling to get the quality you need, it’s important to have an intimate understanding of your product and the manufacturing process so you can prevent problems earlier. Pre-shipment inspection (PSI) is one of the critical elements in your company’s quality control procedures – and an important step to verify the quality of Chinese products. For complex products, quality needs to be assured at each step, not just controlled at the end.
Keep in touch with the China employees
Identify the person who will be your main contact with the factory. It is important to maintain a daily conversation with your production in-charge in China. You will get a daily briefing about how everything is going on and other stages of production. Insist on having a quality control employee – not the boss or the supervisor – perform a dimensional inspection of a product while you watch. Your virtual presence will do wonders for as you will have the complete control and authority.
Make Chinese your employment contract’s governing language
You should clearly state in your employment contract that Chinese is the official language. It should also be in clear English so your foreign management and HR people can make good use of them in making their HR decisions.
We need to accept the fact that global companies should streamline their production units in China rather than trying to ditch this country. The world is dependent on China for manufacturing. Beijing has cemented itself as the heart of global manufacturing, with more advanced internal supply chains than other possible substitutes.