All the steps you need to take if you want to produce in China
In this guide, we explain what are the steps you must take to be able to manufacture wholesale customized products in China to be resold in the European or Italian market. This process, in fact, consists of several phases and all very important.
Suppose, for example, that you have already identified a supplier: to start the production cycle you must enter into a sales agreement with him. Specifically, this agreement will allow you to:
- establish the design, quality of the product and its functions in order to avoid any misunderstanding that could lead to quality problems and to ensure that the supplier does everything you expect him to do;
- increase the efficiency of the first production phases by creating a structure or a scheme to be followed.
In the contract that you will sign, remember to include all the product specifications and go into detail, without leaving anything to chance: this will protect you in your relations with the manufacturer who will have to make your products following your guidelines and without the possibility of acting independently.
If you do not want to negotiate the terms of the sales agreement again every time you buy products, we therefore recommend that you specify in the contract:
- what do you mean by “defective product” listing the possible defects;
- how many defects do you consider acceptable;
- what are the payment terms and the compensation terms;
- what is the minimum order quantity;
- what are the safety and technical regulations to be complied with;
- graphic files and labels;
- tests to assess compliance;
- the shipping method.
- the type of packaging required for export;
- the production plan that includes a first order and subsequent orders
- the details of the bank;
- a clause to protect you in case of delivery delays
Once the negotiation has been carried out, the contract must be signed by the legal representative of the company that is indicated in the commercial license and its signature must be associated with the company stamp. We recommend that you ask to receive the contract in original and in paper format even if you will be offered a copy in digital format.
Produce in China after signing the agreement
Before starting production, the supplier may ask you to pay a deposit: to avoid the risk of fraud, we advise you to pay only the amount set out in black and white to the current account specified in the agreement. Make sure your bank details are correct unless your bank sends your payment back. It will therefore be good to carefully check:
- the name: Chinese companies are longer than the space available to make the transfer, but you can’t cut it. If it continues in the message space;
- the address: it must be faithfully reported otherwise the bank will refuse the transfer;
- the current account: it must include the swift code and address of the bank;
- the currency: it is usually in dollars.
As soon as the payment has been made, send proof of payment to verify that the bank has registered the transaction. Check that the supplier has received the deposit within 2-3 working days and inform him that the production starts from the moment of receipt of the money, that you expect the goods to be ready to be inspected within the term written in the agreement.
Manufacture mass-produced goods in China
Although the production process of the goods varies according to the type of product, we can generalize the phases and timing in the following steps:
- between 10 and 20 days to purchase components and materials from subcontractors;
- between 10 and 15 days to work in the company materials and components;
- between 5 and 8 days to assemble the pieces;
- between 1 and 2 days to pack everything.
In addition, even if you have been sent a prototype, you can ask the supplier to make a total number of samples before going ahead with the work and if everything is okay give the ok for mass production. This could delay production, but also avoid problems related to the quality of the products. You can also ask to receive periodic updates on the progress of the production and when the batch is almost completed, set the inspection of your quality control officer.
Wholesale Customized Products: the quality control phase
Quality control is used to verify that the products meet the specifications required, comply with safety regulations, and are labeled in accordance with the regulations. Tests are performed to verify the correspondence of the products with the specifications included in the sales agreement.
If you cannot go to China yourself, you can hire a Chinese company to carry out this check on your behalf based on a clear and precise checklist that you will have provided to them yourself. We recommend that you contact the company a couple of weeks before the products are completed to confirm the price and address to which the samples should be delivered; in addition, you will need to tell the agent who will carry out the check to collect samples and send them from the factory to the company that must carry out the tests. The quality control inspector must collect specific samples that you must indicate. Then contact the company that carried out the tests to verify the conformity of the products.
Most of those who decide to produce wholesale customized products in China, send the inspector when the products are assembled and some parts are already packed. The check is carried out according to a protocol, and in 24 hours you should receive the results, which contain:
- the report with the results of the tests with measurements and conclusions based on the result that was requested;
- videos and photos that testify to activities, any defects and test procedures.
You will also receive samples of the batch from which the compliance tests were performed: After receiving the material, you will have to contact the company that performed the tests for the final cost.
At this point, you can decide whether to approve the batch of products or not.
Producing in China: what happens after the balance is paid
Once paid, the balance is never refunded, so we advise you not to pay until any changes have been made to the products. Almost all suppliers wait to receive payment before shipping the goods, but in the agreement you may also have negotiated differently.
The shipment is managed according to the Incoterms established in the sales agreement, namely:
- Ex Works (EXW) – You must send a freight forwarder to pick up the goods at the supplier’s factory to take them to the port of embarkation in China. You also need to think about customs clearance;
- Free on Board (FOB) – the supplier delivers the goods to the port of embarkation and takes care of customs, but you have to think about transport from the port of loading to the port of destination;
- Cost, insurance and transport to the port of destination (CIF) – included in the free on board, but excluding port taxes and the cost of transport to the country of arrival;
- Delivery to the terminal (DAT) – all that is in the CIF, plus port taxes, but excluding internal transport;
- Delivery to the place of destination (DAP) – everything in the DAT, plus transport to your warehouse.
Obviously the supplier or the shipper will have to provide you with all the transport documents including commercial invoice, bill of lading, and packing slip.
How to manufacture Wholesale Customized Products in China without problems
If you have read so far, you will have understood that the process of producing in China is complex and full of pitfalls, and if you do not control exactly every step and every detail, you can risk receiving unsaleable goods and losing money.
Producing in China without problems, however, is possible if you turn to Yakkyofy, the only online platform that allows you with a few clicks to order wholesale customized products in China.
We can assist you in:
- Identifying reputable and accredited vendors;
- Inspecting quality assurance before shipping;
- ObtainingGet expertly taken images, videos, 360-degree renderings, or augmented reality files of your articles;
- Shipping bulk shipments to Amazon’s location, warehouse, or Amazon Logistics;
- Arranging the production of custom packaging;
-and a lot more!!
Using Yakkyofy is easy, check the catalog, choose your product, and we’ll take care of the rest. Control of the supplier, control of the goods, realization of customizations.
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