If you are looking for a good place to outsource some of your manufacturing work, China could well be that place. You want to make sure that your needs will be handled responsibly and well, however, and that is where China factory verification comes in. Whether you have already decided to move some of your operations to a specific factory (or factories), or you are still scouting ahead, here are a few key points to keep in mind.
Made in China 2025
Not so many years ago, the phrase “Made in China” was a familiar sight on all manner of manufactured goods. One might turn over anything from a cup to an expensive electronic device and expect to find a sticker there reading “Made in China.” Over time, those manufacturing jobs have shifted. On May 19, 2015, the Chinese government unveiled Made in China 2025, a plan to revitalize the manufacturing industry in China. If you are looking for good place to manufacture your goods, now is a good time to buy in to what is looking to be an exciting decade in China.
Reduce Costs, Not Value
It costs less to manufacture products abroad, but you want to make sure those products will be marketable in the global market. You don’t just want to be able to sell your goods; you want them to be high quality, everything your customers expect. It’s no good to pay less for a product you either cannot sell at all, or which will leave your customers dissatisfied in the long term. Fortunately, China has a long reputation for being able to do the work quickly, cheaply, and well. (That is why you still see those stickers everywhere, often on surprisingly well-put-together items.)
The Problem of Overseas Certification
A few terms of which you may be aware, but with which you should be familiar going forward. ISO is the International Standards Organization, which develops and promulgates the official standards to which countries throughout the world agree to adhere. SAC, the Standardization Administration of the People’s Republic of China, is a member of the ISO. The working arm of China’s government-mandated SAC is called CNCA, the Certification and Accreditation Administration of the People’s Republic of China. By way of comparison, the corresponding group in Australia is SA, Standards Australia, founded in 1922.
A fairly new entrant on the scene of international standardization, China has only been involved since 2001. It has come a long way, but there is still a long way to go, toward a centralized system of oversight. Perhaps, and rightly, you are thinking something like this: I would like to buy in if – and only if – China really is about to make strides in its manufacturing work, but I don’t want to place my profit margins on the line as part of some experiment.
While ISO certifications are a reality in China, factory verification, like many things in the scientific world, can still fall prey to the old adage that “garbage in, garbage out.” The compliance checkers are only as good as the data they collect, only as good as the data they know how to collect given the rules as they understand them. In far too many cases these procedures are still very much in development.
Local Eyes Working For You
What you need, therefore, is someone you can trust, someone on the ground, someone who can lay eyes ahead of you and save you time and money, someone who knows what is really going on – but also someone reputable, who can be trusted to perform your China factory verification honestly and well.
If you would like to know more, you can download a free report “8 Problems Businesses face when sourcing from China here.
This blog was written by Carsten Primdal, an independent consultant who helps businesses that have manufacturing done overseas – especially in China – to minimise supply chain risk. Drawing on years of on-the-ground experience and a strong understanding of the cultural and commercial context, Carsten is passionate about helping his clients to gain greater control over the risks most companies face knowingly or unknowingly.
Questions? Concerns? If you are considering buying from Chinese factories and would like more information, please feel free to contact us see what Vantage Compliance can do for you. I can be reached at firstname.lastname@example.org or on (+61) 413 089 020