How do I get started?
The key to setting up a successful strategic sourcing service is to do it in a
way that limits risks and makes any transition as seamless as possible. These
are the steps we suggest you take to start manufacturing in China as quickly,
and efficiently as is possible.
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Pick one of your existing products that has a long run and requires the most
labor, assembly work and/or packaging costs. Remember, commodity prices (of
plastic, metal, etc.) are about the same any where in the world. So, the best
items for offshore manufacturing are those that require the most labor and
require a lot steps to make. In addition, the item should be easily
containerized so you don’t wind up having to ship a lot of air.
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Send us a RFQ for a partial run of that product. Send the RFQ to
service@mywintech.com . Include with it, detailed electronic drawings
and 4-5 samples of the product so the companies that are quoting your
manufacturing in China job will know exactly the quality standards you expect.
Also include yearly volume figures you will be ordering once the initial test
runs prove successful.
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Next, we will send the electronic drawings and pictures to two of our offices
in China so they can get relatively accurate offshore manufacturing quotes from
two or three different China manufacturers. This process should take about 2
weeks.
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Once we give you the quote, you can then decide whether you want to proceed to
the next step. If you do, we will send the samples to the manufacturers in
China so they will know the exact quality standards you require.
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If you decide to move to the next step, a sample order is required to
get things started. We usually prefer to have a trail production order
(for a small quantity) go to with the sample order. This will make the project
in a much higher priority level. If tooling is required, you will need to pay
the tooling cost only after the prototype parts are made and been approved
by your QC department. You will find that Chinese tooling prices are very
reasonable.
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Once the first article is approved, you pay the tooling cost and we will
get the Chinese company to make a limited first run of the product per the
trail production order.
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Once all of the manufacturing kinks are worked out, then you can increase the
runs of your product to half of the annual quantity (split order between local
and China supplier). If the product from China proves to be consistently good,
you can then increase the runs again until it is completely made through
offshore manufacturing thereby maximizing your cost savings.
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Once we are successfully making one of your products we will visit your offices
and assess any other potential products for global sourcing. We will advise you
on the products that will make the most sense to outsource with China
manufacturers.
By using this manufacturing strategy, you keep your risks to an absolute
minimum. You also don’t risk disturbing your production schedule because, in
the beginning, you will only be making a portion of the product you use each
year.
Please contact us for more information on how Wintech
International can help your company with your global sourcing needs.
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