Manufacturing Planners in China: 6 Things You Need to Know
As your product-based business grows and expands and your order quantities increase, moving your planner production to China can be a wise decision.
IT’S NO SECRET THAT UNIT COSTS ARE LOWER OUTSIDE OF THE US.
It’s the #1 reason why stationery businesses decide to manufacture and print their products in China.
But before you make the decision to manufacture in China, there are 6 things you need to keep in mind, and I am going to explain each, as concisely as possible, so that you can start your overseas planner production journey on the right foot.
01. GET SAMPLES
Would you hire a caterer for your wedding without tasting their food? Neither would I. It’s one of the most important (and expensive) days of your life, and your reputation is on the line. The same logic can be applied to your business. You are making a huge investment in your product line, and the outcome must be nothing less than perfect. Sample the goods before taking the plunge.
Too often I get a frantic email from someone who is midway through the process of manufacturing in China for the first time. It’s usually because they need advice on shipping. We talk through the process and then they drop the bomb: “I cannot wait to see my products in real life! I hope the quality is good.”
CRINGE!
I ask if they received samples from this manufacturer before placing their order. They always say yes, but it turns out that the samples they received were not of their product.
Manufacturers will happily send you multiple samples of products they have already produced to prove their level of quality and clientele. But you have no way of knowing how your specific product will look. Your product is unique and you need to see exactly what it is going to look like—before placing your full order. So, go ahead and accept those other samples first. And if they look good to you, ask for a custom sample. While there are different types of samples that you can get, the first one I’d request is called a “dummy” sample.
A dummy sample is a blank white sample (white paper with no printing) created to your exact product specifications on paper you have chosen. Dummies will allow you to view the dimensions and determine if the quality and craftsmanship of the construction is up to your standards. Is that extra thick, luxury paper you wanted really worth the extra cost? Or does it make your planner weigh a ton? Better you find out now than have to explain to your customers why your perfect on-the-go planner feels like carrying around a college textbook in your purse. (Do they even have textbooks in college anymore?)
Please note that you will most likely have to pay for samples. Don’t be shocked when you’re asked to pay a few hundred dollars for a sample planner, or even more for a custom desk accessory that involves creating a one-of-a-kind mold. It’s worth every penny and I highly recommend it. Spare yourself a costly mistake.
For more information about sampling, click here.
02. PLAN AHEAD
Based on geography alone, we know that manufacturing overseas is going to take longer. Shipping from China to the US via ocean freight takes about 4–6 weeks, and then your goods need a few days to clear customs. Plus, with the 8 to 12 hour time difference between the US and China (depending on your time zone), it can often take a whole day before you receive a reply to your email. Don’t expect real-time conversations here, unless you work after-hours.
Fun fact: China does not observe daylight saving time, so the time difference between countries fluctuates by one hour depending on the time of year.
Remember to build in time for sampling too (as discussed above). It typically takes 2-3 rounds of sampling to get your product perfect, so I build in an extra 2 months for this all-important step.
To give you an idea of how far ahead you should plan, here is a basic production timeline for a day planner:
Quoting and sampling stage: 8 weeks
Purchase Order to proof approval: 2 weeks
Printing and production time: 8 weeks
Packing and preparing to ship: 1 week
Shipping via ocean and clearing customs: 6 weeks
Ground shipping from port to your final destination: 1 week or less
TOTAL TIME: 26 weeks (or about 6 months)
I did not even factor in the design of your product, which I would allot around 3 or 4 months for. It all adds up. Plan ahead and pad your schedules with extra time so you are not left stressing and scrambling before your target release date.
03. VET THE MANUFACTURER
When you decide to work with an overseas manufacturer, you want to be certain that they adhere to the same ethical practices and guidelines as we do here in the US. Rest assured, this is simple to accomplish — ask for either a SMETA audit report or an SA8000 Standard certificate.
Pro Tip: Asking for this documentation also demonstrates your commitment towards social responsibility, therefore strengthening your brand and opening your business to more opportunities.
SMETA Audit Report
SMETA stands for Sedex Members Ethical Trade Audit and was created by the Sedex Organization in the UK.
According to their website, “SMETA is an audit which helps you to understand standards of labor, health and safety, environmental performance, and ethics at a supplier site.” They go on to say that these audits are designed to help protect workers from unsafe conditions, overwork, discrimination, low pay, and forced labor.
SMETA is an audit report that does not indicate a “Passed” or “Failed” result, but provides an assessment of various standards that are scored. A SMETA report does not have an expiration date and there is no rule on how often sites should accept social audits. However, Sedex members conduct an audit cycle depending on the risk factors involved.
High risk > subject to yearly audit
Medium risk > subject to audits every 3 years
Low risk > The number of audits depends on how often customers request them.
SA8000 Standard Certificate
SA stands for Social Accountability and the certificate is provided by SAI (Social Accountability International.
SAI’s site reads, “SA8000 Standard is based on internationally recognized standards of decent work, including the Universal Declaration of Human Rights, ILO conventions, and national laws. SA8000 applies a management-systems approach to social performance and emphasizes continual improvement—not checklist-style auditing.” Elements of their standard include: child labor, forced or compulsory labor, health and safety, freedom of association + right to collective bargaining, discrimination, disciplinary practices, working hours, compensation, and management systems.
The SA8000 Standard Certificate will illustrate that the factory meets internationally recognized standards of decent work. The certificates are valid for 3 years and are subject to on-site monitoring twice each year in a combination of both announced and unannounced visits.
Both SMETA and SA8000 cover two of the most important areas in social compliance where risks are high for human rights: labors standards and health & safety standards.
At Copper Bottom, we won’t work with any manufacturer who isn’t able to supply us with an SA8000 Standard certificate, and if they have a SMETA report as well, all the better! My production manager keeps these records on file, and follows up on them accordingly to be sure everyone is keeping compliant with our standards.
04. EXPECT TO PAY CASH
For small transactions, like ordering samples, you can usually use PayPal — and it’s typical for factories to add a transaction fee to cover their PayPal costs. But for purchases over $500 (give or take), most factories request that you pay cash via wire transfer from your bank. Half will be due when you submit your purchase order, and the other half will be due when the goods ship.
Keep this in mind when gathering quotes. Manufacturing 5,000 planners for $6 each may seem like a bargain, and it is. But can you afford to pay $30,000 in cash for them?
05. MINIMUM ORDER QUANTITIES (MOQS) ARE HIGH
While unit costs are lower, MOQs are higher. Depending on what you are making and which manufacturer you choose, MOQs can range from 500–5,000.
Don’t get caught in the price-break game. Ordering a higher quantity will lower your unit cost — but do you have the space to store 10,000 planners or coffee mugs in your studio apartment?
06. INSPECT YOUR SHIPMENTS UPON ARRIVAL
Actually, this is great advice no matter where your orders come from.
Your shipment of planners, or other stationery products, have arrived. Feel free to sing and dance a jig around those palettes, piled high, but before you excitedly begin filling orders, be sure to inspect your inventory. Whether you ordered 500 or 5,000, I recommend that you follow these steps to the best of your ability:
Inspection
Walk around each palette and inspect the outside boxes for any damage—those that look like they were dropped, crushed, water damaged, etc. If any of them look damaged, ask the delivery driver about filing a claim.
Remove 3-5 few boxes from each palette, taking them from different places on the palette—one from the top, one from the bottom, one from the middle, etc.
Open the boxes and remove one product from each. Thoroughly inspect them, flipping through each one page-by-page to ensure everything looks as expected.
For more detailed instructions on inspecting your shipments, click here.
TL;DR
Getting your products manufactured overseas doesn’t have to be a “whole thing.”
Our expertise spans the entire process from paper selection to import tariffs, and we’ve built a network of contacts known for their ethics and quality work.
Let us take you from dream to day planner.
Click here to learn more about our Overseas Production Management service.
Feeling ready to move production overseas?
I created a streamlined checklist so you know exactly what you need to do before making the leap to overseas manufacturing . . . and it’s available now at the link below.