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Contract manufacturing in China: Frequently Asked Questions Time To Market We use 4 criteria: Quantity: volume is king in China, and lot size is the first thing we will need to know. In general outsourcing makes only sense when the order size is at least a container, order amount at least US$ 5,000, below that transport and management overheads are too high. Labor Intensity: the more labor involved in assembling and packaging the product the more money we can save you. Electronic components: 70% of the world’s electronics are now made in Asia, due to its extremely rich cluster of suppliers of electronic components. If your product currently is built with lots of branded western components we can save you a lot of money using local equivalents. Tooling intensity: we can save you a significant amount of money on tooling, so if tooling amortization is high because you make only 1500 units a year you should talk to us. We always advise our client to analyze the Total Cost of production, being unit costs, management costs, cost of delayed shipments, cost of non-conforming units etc. Some people delude themselves thinking that they are saving 50% buying in China, forgetting to account the cost and time they incur invest every time they have fly over to sort out some problem. In general the quantity / dollar value has to be high enough to make it worth the extra management time and attention that is invariably required. Yes. We add a small percentage to the cost, depending on volume. But the reason clients go via us is that they save on the Total Cost, as explained above. If you have the scale of IBM it makes sense to set up your own sourcing center in China, but companies of a slightly smaller stature will realize significant savings using Titoma’s complete team of Western experts, with a combined 80 years of experience developing and manufacturing in Asia. Being within half an hour drive of the manufacturer 365 days a year does make a difference.
Is it possible to sign a Non-Disclosure Agreement with Titoma? Yes, protection of the confidentiality of your project is very important to us. With most clients we sign an NDA prior to receiving any confidential information. Please click here to download a copy of our standard NDA. Please fill out your information and sign, then fax it to us at 886 2 - 87 80 38 28. We will counter sign and fax back as soon as possible.
Technical, manufacturing & shipping terms acronyms : BB -
Barebones
CIF
- Cost, Insurance & Freight (Link
to Glossary of shipping terms) CNC -
Computer Numerical Control
FOB
– Free on Board (Link
to Glossary of shipping terms)
L/C
– Letter of Credit. It’s a
bank's promise that a shipment of goods will be paid for on arrival.
(Link
to Glossary of shipping terms). MB - Motherboards
T/T
- Telegraphic Transfer
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