How China Manufacturing Enhances Supply Chain

There are three factors critical to China manufacturing and the role it plays in reliable, global supply chains. These factors are consistent quality, transparency, and accurate communication.

  Overcoming the differences between American and Chinese culture, language, and historically (Western) evolved business practices have been, and continue to be, the source of various challenges.  It is also a fact that Chinese factories have come a long way in the quality of goods they can produce.  Multi-national companies rely on Chinese manufacturing as the source of many of their goods today, that a few years ago were outsourced to other countries.

Ease of Communication

The ease of communication, the understanding of cultural differences, and the access to the factories with the capability and experience to produce those goods are improving.  Just a few short years ago a company wanting to take advantage of Chinese manufacturing services meant accepting some real and potentially devastating risks.   Currently, the Chinese manufacturing industry, when managed properly, has the capacity to enhance supply chain reliability and responsiveness, while keeping costs low.  The promise of lower price will always lure some companies to look to other Asian countries.  Most, however, still find a well-managed China manufacturing environment to be the right mix of value, quality, expertise, and reliability they need.

Increased Transparency Improves Decision Making

The ability to plan and make the right decisions depends on accurate and timely information.  Having accurate and current details for the shipment in question has been one of the number-one issues in working with China manufacturers for many years.  The language barrier, China being half-way around the world, and the differences in culture – especially the business culture – all contributed to the mismatch between reality, reported reality, and expectation.

One of the most recent efforts to improve overall standards is ‘Made in China 2025’.  This strategy has as its goal, the implementation of smart technologies, strengthening of the foundations of manufacturing, and the overall upgrading of China from a quantity manufacturer to one of quality.

Steadily Rising Quality

China’s manufacturing initiatives are improving quality.  Chinese manufacturers have, over the course of the last decade, become more capable of turning out increasingly complex, sophisticated parts and products. As a result, it has become much more practical for many foreign businesses to focus on China as a sole manufacturing landscape, instead of needing to split such duties among partners spread among different countries.

While it is a good business practice to study whether a relatively simple manufacturing requirement might be satisfied at a lower price in India, Malaysia, or elsewhere, many businesses today are finding analyses of these kinds can prove to be short-sighted if enough perspective is not provided. With the ability to manufacture low-cost, high volume parts, as well as sophisticated automotive components, China makes for a uniform environment of wide-ranging capability and value.

Increased Domestic Demand in China

The planned, internal improvement to China manufacturing also addresses the rising domestic demand.  While there will no doubt be new challenges as China strives to cultivate an increased domestic demand and industries ready to serve it, few observers suppose that these will undermine the country’s attractiveness to outsiders seeking well-rounded, value-packed manufacturing prowess.

How USA Companies Can Continue to Benefit

Changes taking place in the China manufacturing arena are a welcome trend.  It’s a big job and there is still a long way to go.  And it’s no surprise that with change there is an element of confusion.  That is why now, more than ever, working with a skilled and experienced partner like ITI Manufacturing, can ensure your product has the attention and the very best these new initiatives have to offer.  ITI Manufacturing understands the changes and how those changes may affect certain industries, as well as specific manufacturing facilities.  ITI Manufacturing’s China staff regularly meets face to face with factory owners and management to stay current on the changes being implemented.

Call us today to learn how ITI Manufacturing takes the worry out of China manufacturing.

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