OEM (Original Equipment Manufacture) is to manufacture products according to your specifications and under your brand. Manufacture of such goods today is mainly carried out in the territory of China on a contractual basis.
The presented business model allows to save the budget considerably, as there is no need to invest money for purchase of production facilities, hiring of personnel, organization of production process and investment of working capital. All this already exists on a factory in China, therefore start of a batch production occurs in short terms.
Who should use OEM manufacturing?
This question is most often addressed to specialists of UGL Corporation, therefore we have identified several industries in which this service will be most relevant.
OEM production in China will be interesting for small and medium sized business owners, as it does not require large costs to implement the idea. Today, every industry in China offers OEM cooperation, which allows organizing virtually any production.
Features of OEM production
Based on many years of experience and knowledge, UGL Corporation specialists identify the following features of OEM production.
There are hundreds of “ready-made” solutions on the Chinese market, which is the main reason for cooperation. Also on the condition of the customer changes the color of things, material, processing and any other features of the goods. An additional advantage is the flexibility of work and the ability to personalize their products
2. Value of goods
Production starts with the purchase of equipment and additional tools. In the case of OEM, all costs at this stage are borne by the manufacturer. The customer does not invest in the development or creation of additional options for production. This approach saves from 10 thousand dollars.
The customer has the possibility to adjust the cost of goods, for example, the material of the goods is changed at his own discretion.
3. Minimum order
This indicator is noticeably lower than in the production of special project goods. It is explained by the fact that during the manufacturing process standard materials and other additional standard components are used. The products are produced as standardized. Risks for the manufacturer and the customer are minimized in this case.
4. Beginning of work
The launch does not take long time: everything necessary for product production is already in the factory. The customer has to discuss the type of packaging, where the logo is applied and other working nuances.
The mass of production forces the manufacturer to cooperate with competitors of clients. This approach allows to compensate the amount spent on production. This problem can be solved if you create a recognizable brand with strong market positions.
OEM Manufacturing Advantages
Having worked in this area for more than 12 years, we believe that the following indicators can be attributed to the main advantages of contract production:
- affordable price for labor;
- The developed infrastructure allows producing high quality goods even at mini-mills;
- the cost of goods is reduced;
- the customer is not involved in the workflow organization. Buying equipment, tools, starting production, finding employees – these issues are handled by the manufacturer;
- in the event of unforeseen circumstances, the amount spent on stopping production will be insignificant.
At the beginning of cooperation, the entrepreneur faces the main question: “How to avoid fraud on the part of the manufacturer and to insure the invested funds”.
You can order the selection of OEM manufacturer and tracking the quality of goods sent to the company UGL Corporation. Verification of the manufacturer in the People’s Republic of China takes place before cooperation. We allocate three stages of verification, the first stage begins before the transfer of prepayment – quality control of materials and raw materials, then there is the approval of the control sample of products, the result obtained and spot checks of goods, and the final stage – the control of loading the goods into the container with the seal of the lot before shipment to the port.
Why will it be beneficial for you to use the services of our company?
- Protection of interests and rights of more than 1000 customers.
- Document flow control and legal support in China.
- Personal control over the production process and the quality of the finished product.
- Experience of contract production for over 11 years.
If you have decided to work with OEM production, but are afraid that you will not be able to find a suitable contractor or monitor its work, please contact UGL Corporation for assistance. Our specialists will not only provide you with detailed consultations, but will also take care of all the work related to the search, preparation and signing of documentation, as well as sending goods from China. Call the phones listed on our website or send us an application and expand your business quickly and safely.