Terms & Conditions

Terms & Conditions

In accordance with issuing out Privacy Policy, we have also added our Terms & Conditions to our Website, www.chinacnc.co.uk/terms-conditions/ 

Feedback is important to us, so if you have any comments please contact us on info@chinacnc.co.uk 

Privacy Policy

EU Legislation

We have today, in accordance with EU legislation, added our Privacy Policy to our Website.  To read it go to www.chinacnc.co.uk/privacy-policy/

For feedback on our Privacy Policy, contact us on info@chinacnc.co.uk with your comments.

 

China Outsourcing – Things you need to Know

UK - China BallIn today’s busy business world, outsourcing is still in vogue, and China Outsourcing & Manufacturing in particular.  At present, China’s outsourcing market is still growing at around 20% – 30%, year on year, even with increasing costs, and this market still creates good opportunities for manufacturing new and existing products as well as innovations, and more recently, product development.

Previously, UK companies benefited from high volume products being produced at low cost, with sometimes also low quality.  In recent times, this has changed, and now more UK companies are moving new products to China, utilising the benefits of highly technical personnel, english speaking, with the benefit of Chinese companies having new machines and equipment in the development of their product.  There are still opportunities to maintain reduced costs, which on new products allows big cost advantages at their market introduction.

When considering China Outsourcing & Manufacturing, the company needs to fully understand the product they are looking to outsource and the pros and cons of outsourcing.  Without a good understanding of China Outsourcing, then you may not succeed.

Assembly in China

Electronic Assembly in China

Some things to know about China Outsourcing are listed below:

  • China Outsourcing is not for every company.  To go down this route, companies need to fully understand their industry and business model.
  • China Outsourcing demands a lot of changes and normally requires dedicated resources to make it a success.  This is where Source in Asia can help UK Companies in the resources required.  Communication methods are different to European methods, especially with the language, and therefore companies may need specialist translators.
  • Manufacturing contracts need to be agreed with your Chinese Partners, especially the legal requirements.
  • Work out an Outsourcing strategy that is best for your company, and not go the whole hog and outsource everything, as this will be doomed to failure.  China Outsourcing & Manufacturing must be taken seriously and companies need to take time in their decision making.
  • Choose your suppliers, visit them, build up a relationship with them, carry out audits and fully understand what a supplier is going to provide.  Never Assume.  IF YOUR COMPANY REQUIRE HELP IN DOING THIS, CONTACT SOURCE IN ASIA LIMITEDwho can offer independent advice to a company.
  • If a company is simply looking at cutting costs, then China Outsourcing is not for you.
  • Costs are also a key item in the Outsourcing decision.  Investing money in a strategy up front will generate savings later.  When obtaining costs from suppliers, obtain detailed cost breakdowns, and ensure that at a later date your are not going to incur extra’s not budgeted for.
  • Be aware, you never get the best cost.
  • Also be aware of the payment terms when dealing with a Chinese Supplier.  For production parts, it is normally 50% deposit and 50% prior to shipment, so you have paid for the parts before you see them, and if you have not visited the supplier to inspect the parts, then potentially, the first time you see them as rejects is when they arrive at your factory.  Not good for you or your customer.

If managed properly, China Outsourcing can give you a large increase in your investment, but if not managed properly, can be a large drain on money and resources.

 

If you company are considering China Outsourcing, and you feel you need help to make your decision, visit our website www.sourceinasia.global or www.chinacnc.co.uk to look at us further, send a mail to information@chinacnc.co.uk or telephone us at our Preston Office on +44 1772 460104.  We will be only too happy to help and give advice.

China Trivia 2 | Trivia about China

Welcome to China Trivia 2, a light hearted look at trivia and facts about China.

China Trivia 2

 

  • Twenty percent of China’s plants are used in medicine.
  • According to insurance statistics: the most dangerous cars are green, and driven by Chinese.
  • 35 Children are born every minute in China.
  • There are about 42,000 characters in the Chinese language. An adult is only expected to know 5,000 of them.
  • China has more English-speaking inhabitants than England.
  • Did you know that it is considered quite rude to blow your nose in public.
  • It is considered good luck for the gate to a house to face south.
  • The most common surname in Beijing is Wang.
  • 400 million Chinese people are under 18 years of age.
  • There are 14 countries share a border with China, and they are Vietnam, Laos, Myanmar, Bhutan, Nepal, India, Pakistan, Afghanistan, Tajikistan, Kyrgyzstan, Mongolia, Russia and North Korea.
  • China is the worlds largest producer of Apples.
  • China manufactures 60% of the world’s bicycles.
  • Fingerprinting was used in China as early as 700AD.
  • Twenty million trees are cut every year to make chopsticks in China.
  • One in every 5 peoples in the world is Chinese.
  • China produces 66% of the worlds garlic, 15 billion pounds in 2009.  Next are South Korea 6%, India 5% and the USA 2.5%.
  • In China, there is a type of tea called white tea which is actually simply boiled water.
  • Facebook has been banned in China since 2009.
  • 1 out of every 2 pigs are located in China.  Pork is a huge food staple to the Chinese diet with a person eating on average 86lbs (39Kg) of pork per year.
  • A 57 floor skyscraper in China that has 800 apartments and office space for 4000 was built in just 19 day.

Hope you enjoyed China Trivia 2 and look forward to further pages.  For more information about the trivia or Manufacturing in China, visit our website www.sourceinasia.global,  contact us by mail at information@chinacnc.co.uk or telephone us on +44 1772 460104.

Happy New Year, 2018

Source in Asia Limited and China CNC Precision Machining would like to convey a Happy New Year for 2018 to our UK customers and our Chinese Partners.  We wish all our manufacturing friends a successful and prosperous  year for 2018.

New Year Card

Happy New Year to all our customers and partners

China Outsourcing

OUTSOURCING YOUR MANUFACTURING TO CHINA.

This post is to give UK Companies considering China Outsourcing of their Component Manufacturing away for the UK some detailed information on what may be required.

China Outsourcing

The main reason for outsourcing manufacturing to China are the low labour costs which allow components/products to be manufactured competetively.  Many companies, world wide, manufacture goods competetively in China and other low cost areas.  Below are some of the things to consider when outsourcing.

  1. Ensure that all product can be manufactured easily, and it is essential that a cost reduction exercise is carried out to investigate improvements for manufacture.
  2. Re-assess the strategies of your Company to ensure the benefits of China Outsourcing and offshore manufacturing achieve the goals your company requires.
  3. Research your prospective China Outsourcing requirements and process.
  4. Costs which need to be considered, and are normally overlooked, are the costs of Project Management and Travel.  Doing outsourcing yourself, may eventually cost your savings generated in your manufacture.
  5. Use a recognised outsourcing company like Source in Asia Limited to generate prospective suppliers in China to carry out your work.
  6. Ensure, that through your Outsourcing Company, dedicated lines of communication are available, especially in English.
  7. Give as much information relating to the product, including any previously encountered difficulties and concerns, as these need to be included in the setting up of the product, to maintain a like for like situation.  REMEMBER, you cannot expect the product to be improved by outsourcing.
  8. Using a UK Outsourcing company will allow you to pass all the required information to the Chinese supplier, as the company should visit the supplier to discuss the project in detail, and go through the project requirements face to face, as Source in Asia Limited would do.
  9. Get your Outsourcing company to give you as much information as possible on the supplier who will carry out your manufacturing.  Information to these items like a process audit for your project, Company Information, Accreditations of Quality Requirements.
  10. Before placing large orders, place a sample order, obtaining as much manufacturing information as possible.  This will allow a customer to go through a samples batch in detail and understand the quality and whether they meet the expectations of the product.  This will also allow a customer to carry out possible changes prior to volume production.
  11. Make sure that your outsourcing company is using suppliers which conform to the Environmental/Ethical policy for companies in China.
  12. Transportation is also a cost which sometimes gets overlooked when China Outsourcing, and again, these costs can be large.  Using an Outsourcing Company will ensure that the goods are transported by a reputable company, at the most economical solution, air freight or sea freight, or a combination of both.  All costs should include door to door carriage, insurance, duty and taxes.

China Shipping

For further information on this or any other post, visit our website www.chinacnc.co.uk or www.sourceinasia.global, contact us by mail at information@chinacnc.co.uk or telephone us at our Preston office +44 1772 460104.

 

 

Doing Business in China.

This post is to give UK Companies the basic’s of Doing Business in China with Chinese Suppliers and highlights some of the differences in Culture.

DOING BUSINESS IN CHINA.

FLEXIBILITY.

China has become the place to outsource to over the last decade, and although costs have increased in recent years, there is still a large opportunity for UK Companies to gain the benefit of lower costs, but there are still ricks in doing so.  In the present climate, some Chinese Suppliers have gone out of business, creating disruption for a customer when this occurs.  It is therefore important, that companies considering doing business in China, that they remain flexible, not putting all their eggs in one basket, and therefore multi-source their components and goods.

SUPPLIER NETWORKS.

It is important that companies utilise established UK companies to source and set up production with Supplier Networks in China, to achieve the best cost advantages they seek.  To go on your own can be a difficult and costly exercise.  By using established UK companies like Source in Asia Limitedor China CNC Precision Machining, relationships with the Chinese Suppliers are already in place, especially in terms of honesty and integrity, and therefore a large part of a companies risk of “going on their own” strategy is removed.

Chinese Factory

One of our Chinese Suppliers.

ARE LOWEST COSTS BEST?

When sourcing in China, customers must look at whether they wish to go down the “lowest cost route” or down “a low cost route”.  The “lowest cost route” normally gives risk, as the suppliers are in the lowest quality bracket, cutting corners, have poor facilities, using poor chinese materials, facilities of which the customer would not use back in the UK and effectively get what you pay for.  If the customer wishes to go down this route, then China may not be the offshore country he should be using.  The better option would be “lowest cost route” where suppliers are of a standard which ensures that suppliers have quality accreditation’s, (ISO 9001 or TS 16949), that follow a Quality Management System which can be audited, operate to audited proceedure’s, and have facilities which a customer would feel was their own company.  The costs will not be the cheapest, but over time, as relationships build, opportunities to achieve cost downs on goods become available.  These are the types of Chinese Suppliers Source in Asia Limited offer.

CNC Precision Machining

CNC Precision Machining

SUPPLIER LOCATIONS.

Part of the selection criteria for a supplier must be the location of its facilities, as things like a proper infrastructure, allowing goods to be quickly moved from the factory to the port.  Government incentives are available to use companies in special development areas, new equipment and machines, excellent transport locations with major motorway facilities, ease of entering and exiting China on business trips.  In addition, there are certain cities which are noted for the manufacturing of a specific type of product, which means it will be difficult to achieve competitive elsewhere in China.   This is where Source in Asia Limited can help.

Map of Manufacture

Areas of Manufacture

CULTURAL DIFFERENCES.

Cultural differences are the most important changes from the west.  When doing business in China, you will find that discussing technical points, will involve a full team of people, and discussions on a single point will take time, something the west are not used to. One of the other main points is the breaking off for lunch which may take 11/2 – 2 hours duration, again something the west are not prepared for and find difficult to understand.  Be polite, as to be abrupt may send out the wrong message to the Chinese Supplier.  Also remember, a large amount of business and discussion is carried out during the evening meal, so also be prepared for this.

I hope that this post gives you a small insight into doing business in China has been helpful to anyone considering Manufacturing in China, and should you require any further information, visit either of our websites www.chinacnc.co.uk or www.sourceinasia.global  contact us by mail on information@chinacnc.co.uk or telephone us at our Preston Office on +44 1772 460104, where we will be pleased to help or discuss any points this post raised.

Social Compliance Audit in China

How to conduct a Social Compliance Audit of a China factory.

Social Audit

Corporate Social Compliance Audits, also commonly referred to as Ethical Sourcing audits should be an integral part of every global supply chain. These audits are often conducted in such a way that Chinese suppliers are evaluated in their compliance with local laws. Some brands and retailers have additional standards and requirements that must be met by the Chinese Suppliers who wish to manufacture their products.

It is important to ensure that each participant in your supply chain (possibly even subcontractors) is evaluated to determine the conditions that their employees work under. Besides the obvious damage to individuals and communities that unethical manufacturing practices can lead to, they can also cause significant damage to your brand when they are publicised.

Social Compliant Audit Recommendations.

When conducting a Social Compliant Audit (CSR), auditors will need to address three key aspects of the supplier’s operation:

  1. The physical facilities of the factory
  2. Employment policies and other documentation on file
  3. Employee interviews

Below, I have described each aspect, and the types of common issues that are found during Social Compliant Audits throughout mainland China.

  1. Complete facility walk-through
    A walk through of the entire facility – production area, warehouse, dormitories, canteen, etc – will give auditors an insight into the physical conditions the employees work in every day.

Local Chinese law requires that basic amenities be upheld at all factories: Enough space to move around and work in production areas, adequate ventilation, clearly marked and unobstructed emergency exits, sanitary, cafeterias and restrooms, and easy access to portable water.

The majority of a Chinese supplier’s compliance issues are usually discovered during this walkthrough. Common issues include machines lacking proper safety equipment and guarding, exposed or unmarked electrical wiring, chemicals that lack warning and information labels, and a lack of adequate personal protective equipment (PPE).

  1. Thorough documentation review
    Complimenting the facility walk-through, a documentation review will illustrate the kinds of policies and atmosphere employees are surrounded by. These are less tangible aspects of their employment situations (at least for observers) that have a huge impact on their daily lives.

Complimenting the facility walk-through, a documentation review will illustrate the kinds of policies and atmosphere employees are surrounded by. These are less tangible aspects of their employment situations (at least for observers) that have a huge impact on their daily lives.

Employee attendance records and payroll records are heavily scrutinized during this phase of the audit. Thorough auditors will request the previous 6 to 12 months of records for review. By comparing these records, auditors will be able to determine if the factory is adhering to labour regulations related to minimum wages, over time wages, and maximum working hours. Not surprisingly, non-compliance with those exact regulations are the most commonly reported issues from this stage of the audit.

Additionally, auditors will request all documentation regarding hiring practices and conditions of employment. Auditors will try to establish what the factory’s official policies are regarding discrimination, disciplinary action, retention of employee identification, termination conditions, and many important factors. These can be a good barometer for the attitude of employees towards management.

  1. Employee interviews
    A walk-through of the facility and documentation reviews yield valuable information, but there is no substitute for talking to the employees themselves. CSR is inherently a human-centric issue, so the people that work (and sometimes live) at the factory must be made a focal point of any investigation of working conditions.

Interviews with randomly selected workers will serve to gauge the employees understanding of the policies they work under and their feelings on the physical conditions as well, putting the information gathered in the steps above into much-needed context.

Flow Chart

 

If employees report discrimination, or do not understand how their wages are calculated, feel that they are obligated to work excessive overtime, or bring up grievances about the state of their dormitories, these should all be considered red flags. Such claims will warrant further investigation, and suppliers should be counselled on how to resolve these issues as soon as possible.

For more information, please contact us at China CNC Precision Machining, on mail: information@chinacnc.co.uk or telephone us at our Preston Office on +44 1772 460104.  We can help or advise you on this topic.

 

China Trivia 1


Thursday Trivia

Welcome to China Trivia 1, a light hearted look at trivia and facts about China.

 

  • The modern word “China” most likely derives from the name of the Qin (pronounced “chin”) dynasty.  First Emperor Qin Shi Huang (260 – 210 B.C.) if the Qin dynasty first unified China in 221 B.C., beginning on Imperial period which would last until A.D. 1912.
  • Toilet paper was invented in China in the late 1300’s. It was for emperors only.
  • Despite its size, all of China is in one time zone.
  • Chinese is spoken by 92% of China’s population.  There are at least seven major families of the Chinese language, including Mandarin, Cantonese, Wu, Hakka, Gan, Xiang, and Min.
  • Suspension bridges were invented in China in 25 B.C., 1800 years before such bridges were known in the West.
  • The bicycle was introduced into China around 1891 by two American travellers named Allen and Sachtleben.  The bicycle is now the primary transportation for millions of Chinese.  The last Qing emperor (Puyl) rode a bicycle around the Forbidden City in Beijing.  China is currently the leading bicycle manufacturer.
  • If the population of China walked past you in single file, the line would never end because of the rate of reproduction.
  • About 700,000 engineers graduate annually from schools in China.
  • China has more English-speaking inhabitants than England.
  • China’s money is called renminbi, the “peoples currency”.
  • China is now the worlds largest apple producer, followed by USA in second place.
  • 30% of Chinese Adults live with their parents.
  • 20% of the worlds population lives in China.
  • The Great Wall of China stretches for about 4,500 miles across Northern China.
  • Ketchup originated in China as a pickled fish sauce called “ketsaip”.
  • Chopsticks originated in China approximately 4,000 years ago.
  • Finger printing was used in China as early as 700AD.
  • Approximately 200 million people in China live on less than $1 a day.
  • There are 120 million internet users in China; but not everyone can contact all websites.

Hope you enjoyed China Trivia 1 and look forward to further pages.  For more information about the trivia or Manufacturing in China, contact us by mail at information@chinacnc.co.uk or telephone us on +44 1772 460104.

Component Manufacturing in China, is it right for your Company?

Over the last few years, Component Manufacturing in China has become uncertain, with many companies considering or deciding to return their outsourced manufacturing back to the UK.  Over this period, it has become more apparent that the potential benefits of low cost labour, in some circumstances, are not as great an advantage, and along with complaints of poor quality, companies have had to seriously consider whether outsourcing was the correct solution.

Made in China

Made in China

5 – 10 years ago, Made in China, was the sign of poor quality goods, but this has now been improved.  Chinese Suppliers are now more aware of the requirements and expectations of their customers in both quality and cost.

Companies considering outsourcing their production from the UK need to consider the following:

  • What type of product do they require outsourcing?
  • Are there any regulatory requirements on the product?  Remember, if the products are toys or electrical goods, then there will be  substantial and costly testing carried to verify that the product is acceptable, and this would have to be certified.
  • Has the customer enough resources to ensure a smooth transition to an outsourced product.  This will be a time consuming and costly part of any outsourcing project.

Despite the problems highlighted, and the slowdown of companies outsourcing manufacturing to Chinese Suppliers, if done properly, China still remains a good location for Contract Manufacturing.  As Technology moves on, both the Aerospace and Automotive Industries have chosen China as a major manufacturing base recently.

So is Component Manufacturing in China still a realistic prospect in 2018.

If your Company is Considering whether or not to outsource in 2018 some of your manufacturing output, then consider some of the following points:

Plan a Strategy.

There is no less reason to consider Component Manufacturing in China now, than there was 2 – 3 years ago.

Are you going to mange the outsourcing yourself and probably meet some of the pitfalls on Manufacturing in China, or use a Specialised Outsourcing Company?

This is where Source in Asia Limited can help.  China CNC Precision Machining is part of our group and we can manage your potential new project for you.

Interested, then check our websites www.sourceinasia.global or www.chinacnc.co.uk , alternatively, to see how we maybe able to help you, contact us by mail on enquiries@chinacnc.co.uk or telephone our Preston office +44 1772 460104.