Outsourcing Injection Molding in China: A complete guide
Our goal is to provide you with the best information about outsourcing injection moulding manufacturing in China as a manufacturing company, what tools you can use to make it work, and where to find the best information.
Another terror struck you.
An angry mob has gathered outside your workshop, and you have to hide in your workshop because you failed to fulfil their injection moulding orders on time.
When your plastic business outgrows you so quickly, it seems impossible to leave every customer happy when you are just one person. As a result, the negative feedback from your customers breaks open the windows and doors of your company, causing your injection moulding business to crumble.
You don't have to live this nightmare.
Outsourcing injection moulding manufacturing can be easy if you know how to do it right.
Manufacturers should consider outsourcing manufacturing for several reasons:
- Time must be freed up by redistribution of resources;
- Design is your thing, but you don't actually know how to build it; or
- An important component of your product isn't something you can build.
- You might be unable to control a reason to outsource.
The talent pool for many places is currently suffering from a lack of skilled workers. Most importantly, this is a problem that won't go away any time soon.
Those challenges don't even touch on anything else your business might face!
Now, you can handle injection moulding and running your business all on your own, but eventually, you'll have to find additional resources somewhere else if you want to grow.
Outsourcing China injection moulding manufacturing can help with this!
Learn what outsourcing manufacturing entails, what the risks are, and what you can do to make the most of it!
The following tip can help:
If you use outsourced manufacturing, you retain full control over the injection moulding production process. To get better control over production time, you can order and schedule deliveries of raw materials for your contracts.
The challenge will be calculating plastic raw materials, but fortunately, there is software on the market that can assist.
With that in mind, let's move on to outsource manufacturing.
How Does Outsourcing Injection Moulding Work?
Costs for outsourcing injection moulding manufacturing in China vary depending on the tooling company you choose, the political climate, the manufacturing company's demand, and transportation costs.
Generally speaking, outsourcing manufacturing means that a business hires a third-party company to perform services that it would normally perform in-house.
A large percentage of outsourcing injection moulding parts occurs in China as a means to reduce costs, especially labour costs, which is the primary reason for outsourcing.
Most of the time, a business can find it more affordable to hire a third-party service than to hire its own employees.
Outsourcing injection moulding manufacturing costs should also be considered when assessing how much it costs.
The most common reason for companies using outsourced manufacturing is to cut costs; however, if your company is considering outsourcing manufacturing, you need to determine what your goals are:
- Are you interested in reducing costs;
- Resources can be reallocated; or
- Production should be increased.
Those who support outsourcing manufacturing believe that the tactic encourages businesses to allocate resources where they will be most productive, as well as helping maintain free markets on a global scale.
Those who oppose it, however, believe it destroys local job opportunities, particularly in industries like manufacturing and textiles. As we discuss manufacturing companies that outsource, we'll dig deeper into this.
As a starting point, let's look at how manufacturing can be outsourced.
Outsourcing injection moulding: how to do it
Dr Hart-Smith advises companies considering outsourcing manufacturing to avoid the mistakes already made by Apple and Boeing. Click here to read more.
Boeing took huge risks when it subcontracted 30% of the manufacturing on the Boeing 787 Dreamliner in a 2001 conference presented by aerospace engineer Dr L. J. Hart-Smith.
After being plagued with embarrassing safety issues, the plane would later be grounded by governments around the world.
Hart-Smith's warnings were not heeded by Boeing. Unfortunately, we cannot learn from their mistakes. However, Dr Hart-Smith has compiled a list of ten rules that companies looking to outsource their manufacturing should follow.
When deciding how to outsource injection moulding services, what exactly is he suggesting someone be on the lookout for?
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1. Keep track of injection moulding
Be vigilant over the injection moulding you outsource. You need a hawk's eye. A reasonable way to minimize costs is to consider the entire workflow of a product, not just one part of it (especially when dealing with sub-assemblies). The bottom line is that strategically outsourcing production can be more cost-effective if the overall workflow has been taken into account rather than trying to minimize costs in one area.
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2. There Is No Perfect injection moulding
Outsourcing manufacturing won't guarantee perfect efficiency. It is not worth the time.
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3. Stay focused but do not take on too much
Calculate the minimum production volume that can be retained in-house so you can generate enough cash for future product development. You should not just focus on reducing costs. Outsourcing injection moulding can certainly be viewed as a goal, but the primary reason you should do it is that the contractor has a better facility than yours.
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4. Keep stock
Keeping some injection moulding production in-house is a good idea. It would be better if you outsourced some production, but brought in people with expertise, or people you can train, to make your products, so you have the expertise to solve any problems that might arise.
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5. Cost increases elsewhere
You should always keep in mind that outsourcing plastic injection moulding will result in longer manufacturing lead times and increased transport costs. Take note when you outsource manufacturing.
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6. Early tasks require precision
Find ways to reduce the size of the tasks in the initial stages of injection moulding production.
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7. Do not copy other businesses
You may not be able to save money using the same cost-saving techniques employed by other manufacturers that outsource. Create a business model that suits your needs.
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8. Outsourcing injection moulding is not the solution for everything
You should not outsource 100% of your manufacturing to save money or scale your business down. Your company will be dependent on manufacturing companies that outsource and you will be forced to give up irreplaceable skills.
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9. Become a better listener and learner
Don't hesitate to take advice on how to reduce costs from your employees or from other manufacturers in your market! An internal consultant will have a better understanding of how your business will function than an external consultant.
You might think, "Well, that's all fine and dandy."However, how do I find an injection moulding manufacturer I can trust?”
Before outsourcing manufacturing, you must do your research since choosing the wrong company can be very costly.
It will be beneficial to you if you join one of the many companies that outsource manufacturing if you know these 9 commandments. To be on the safe side, always follow these rules:
1. Go there
It is up to you to determine if a China injection moulding company is reliable enough to handle your product. In order to do this, you should assess their employees' skill sets and verify the quality of their equipment with your own eyes.
2. Verify the credentials and experience
You should not be the first contract for a newly-formed company. Be self-sufficient and keep moving forward. They may make costly errors that are your responsibility, and not theirs.
3. Research where they’re located
The tax rate for different industries varies across different regions of China, so it's cheaper for tech companies to outsource to the south while manufacturing companies are more favoured to outsource to the north. Additionally, you may be affected by tariffs on another country if you do not check the rules in your home country.
Obviously, depending on where your business is in its development, you might not have to follow most of these rules.
Is everything going well? Outsourcing manufacturing can be risky, but if you follow Hart-Smith's advice you will be okay.
Manufacturers Who Outsource Face Risks
Outsourcing injection moulding can carry some risks for manufacturing companies, including the possibility that your partner may cut corners.
How much does outsourcing manufacturing cost might not just be easy to answer as to how much will it cost in the capital, but how will it change your brand's image? We mentioned it earlier in the article and even gave an example.
Consumer trends and predictions reveal people are more inclined to buy injection moulding goods produced by themselves if they know exactly where and how their products are produced.
In the event that a contractor mistreats their employees, you should get to know them before outsourcing manufacturing.
If you have a contract with a foreign company, be sure to keep up with world politics. For example, right now America and China are in the middle of a tariff war; would this affect your business?
Consider limiting the amount of production going to contractors if you must outsource manufacturing. Performing quality control before you sell your products becomes increasingly difficult the more production you outsource.
There is also the question of trust, as there have been cases of espionage, where outsource manufacturing companies have stolen product designs and ideas, to manufacture them on their own.
When you're a small manufacturer struggling to meet orders on your own, you're probably yelling at this article: "This isn't for me, it's for big corporations!" !””
It would be wrong of you to shout that. It isn't necessary to look for large outsourcers. Honestly, it doesn't even matter where you live! If you decide to outsource manufacturing, it all depends on the goals you have.
If you're an injection moulding designer, but unable to manufacture your products, you might need to outsource injection moulding. You can still control production even when outsourcing manufacturing. This means partnering with an injection moulding manufacturer, acquiring materials, and setting up a supply chain.
If you want to pull off this type of outsourced manufacturing, you'll need a tool that manages supplies for makers. Finding the right tool to make outsourcing manufacturing a breeze can simplify the process. Choosing the right tool can make the process of outsourcing manufacturing much easier. It's also possible for you to manufacture some of your injection moulding products in-house and outsource manufacturing to make sure orders are fulfilled on time.
Outsource injection moulding manufacturing is certainly a smart tactic to implement, especially if you follow Dr Hart-Smith’s advice and find a production scheduling software that can support a business that uses outsourced manufacturing.
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