Is production in China of interest to you?

Is production in China of interest to you?

Is Production in China of interest to you?

Production in low wage countries are very relevant. Saving on labour improves your competitive position and increases your profits.
But this is not always the case. You can find some concerns on this page.

In general: If the amount of labour required for a production process increased, it is gets more and more interesting to produce in China. Of course, there are more relevant manners. Such as complexity, lot size, flexibility, etc.

 

Lot size
There are a variety of problems for smaller lot sizes. The Chinese culture ensures that a supplier will not say "No".  This means that the first lot will often be made without concerns. People in China will start new negotiations about the lot size or price at the second lot. This causes annoying situations if there has already been an investment for a mould.

The benefits of manufacturing a lot in China depends on, among others, manufacturing method, materials and the surface treatment. You can find more information about this in the menu manufacturing methods or in the product menu. You can always contact us using the contact information below. LKL Staal would love to give you advice!

 

Complexity
You have a very complex product. Is it safe to order this product from China? There is no factory that will say that they are unable to manufacture it. Reality shows different though. Besides the lack of technical knowledge, and the different perceptions of quality, a good sample might be made. Processes are often long since trial and error is often used: if a sample is not up to expectations, a new sample is simply made based on the experience of the personnel of the factory. If the result is still not up to expectation after the sample rounds, the price is increased or the product is no longer produced.

Of course, there are factories that can meet the expected quality level. In reality, these factories can hardly compete with European factories, where work is done a lot more efficiently.

Over the past few years, LKL Staal has specialised itself in more complex projects. Instead of being dependent on the production knowledge of the factories, we have decided to gain the knowledge ourselves, and work together with the factories to gain the best results. It is a win-win-win situation! The factory has less rejects, works more efficiently, and earns more money. LKL keeps the customers satisfied and achieves long-term relations, and you as a customer profit from the best price-quality ratio and a stable delivery of your products.

The Quality Engineering department has, among others, the opportunity to make casting simulations, CNC processing simulations and collaborate with our customers to optimise your production process. Do you wonder how LKL Staal can arrange this for you? Contact us!

 

Flexibility
Production occurs on the other side of the world. Production processes take between 8 to 12 weeks. The products then need to be transported. LKL Staal solves this by storing the product in China or the Netherlands, on request, and using advanced logistical planning to guarantee a reliable delivery.

Short turnover might mean that production in China is not feasible, however. From design to the first delivery might take half a year. If this is not worthwhile for the process, it might be smarter to initialise a production process in Europe, and transfer everything to China once the product has been fully developed.

Any remarks or questions? Contact us!

 

Hoofdkantoor LKL Staal BV Uden