Verifying Chinese Factory Capabilities and Readiness

Any business owner wants the best for their business. There is a great desire and necessity to gain good products which will convert to profits in the long run. To get high-quality goods, people mainly rely on factory production and capacity as a basis.

However, the question of how you can check for factory readiness still exists, especially for goods coming from an overseas country such as China. In this article, we will take a look at important tips and steps to help check whether a manufacturer is ready to produce your goods. We will also present a guide on how to avoid incapable factories so that you may get the most profit out of your deals.

What is Factory Capability?

Factory capability refers to a manufacturer’s capacity in delivering goods or services to a client. A good rating in this characteristic also means additional earnings to a business owner, since he or she will have high-quality products that can be sold. Simply put, a factory with a capacity of 700 units per day can make 700 products or goods on a 24-hour basis. For other industries, this can be measured in various units such as watts, liters, or tons.

What affects Factory Capability?

Here are some important factors that affect factory capability. More often, these events or circumstances cause a decrease in capability, resulting in a weaker number of goods produced per day.

Natural Events

Natural events refer to any environmental phenomenon such as floods, storms, earthquakes, or tornados. When such cataclysmic events hit a certain manufacturer’s location, it can signal a great reduction in the units that are produced every day. This is due to the damages incurred that cannot be compensated quickly. However, good companies or factories always have a backup plan to ensure continuous production and operation even after a harsh calamity.

One major natural event in history is the CoVID 19. The pandemic has closed several establishments and businesses, causing a halt to the manufacturing of many goods. While some of those factories have recovered, others are still trying to rise from the losses. Thus, it is very important to check a Chinese factory’s capability to ensure that you receive goods that are worthy of what you paid for.

Workforce

Workforce refers to the people working behind the production system. They can be factory workers, managers, company drivers, or even quality checkers who collectively form the backbone of the generation line. Generally, the workforce is referred to as a number or quantity. Everyone must know that a factory with a large workforce has a higher capacity to produce more products than those who have a smaller one.

Aside from quantity, the quality of workers also affects the overall factory capacity. For example, if factory A has lesser workers than factory B but has better training and skill provision, the number of people can be compensated by their abilities. In such cases, factory B may have equal or greater capacity than factory B.

Machinery

Machinery refers to the objects or assembly systems that are automated to optimize factory workload. Similar to the workforce, great amounts of machinery also result in higher factory capacity. if a manufacturer has multiple machines that help in production, the number of units that will be produced per day will exponentially increase. Aside from the number of machines, the age or newness of the items must also be considered. It is not a hidden fact that newer equipment is better suited for product generation since they are upgraded versions of older ones.

Maintenance is a very important part of dealing with machinery. Thus, if a Chinese manufacturer has good maintenance systems, it is not a surprise that they will also have fully functional assembly zones that can deliver products at a faster rate without destroying quality.

Internal Problems

Internal problems are identified as issues that are faced by the higher-ups of an organization. As with any other business, if the people assigned to govern meet negativities that can not be resolved, the whole umbrella will be affected. It is better to go for factories that have reliable staff, managers, and owners backing them since it is less likely to fail in giving out deliverables.

Once management fails, the status of the production line is also sure to follow. Fact-checking on this site is a must since a good investment can quickly turn into a loss because of it.

Signs of Incapability

Incapable systems have a pattern that recurs within them. If these pain points can be observed in the company that you are conversing with, there is a great need to think twice.

1. Asking for immediate financial deposits without assurances.

One telltale sign that a company is unable to produce the amounts of goods that they should is if they ask for instant deposits when you try to place an order.

Usually, these types of companies are unable to create enough profit to cover previous expenses, so they try to get some funds to offset what they are going to. If they do not offer assurances regarding their deliveries, then it is better to find another supplier or manufacturer.

2. Unable to provide sample products.

Sample products, especially those that are customized and delivered on time, are a positive sign of a company or factory’s capabilities. It only means that they are committed to proving that they are legitimate and that they want to build connections and relationships with you for the long term.

If your chosen factory does not provide sample products, then it is much better to bail as early as now since they are most likely just looking for someone to trick or scam. Remember, good factories always try their hard to please clients with the products that they offer.

3. No signs of new protocols despite the pandemic.

With the continued existence of the Coronavirus, it is a clear fact that we are far from returning to our normal, mask-free, and no distancing lives. Thus, a company that hides the fact that the Coronavirus has not affected their production can be a red flag since everyone is bound to follow protocols set by the government.

Once you discover the faults in their statements, you should quickly end conversing with that manufacturer to avoid potential losses in income.

Steps to avoid

Here are some great tips to avoid incapable factories that can not give high-quality goods on time.

Relevant Research

Research and background checking should be the priority of anyone who wants to engage with Chinese factories or companies. This entails in-depth learning on their history, owners, system, platform, as well as their main products. This task can be especially hard for people who do not have much knowledge of the Chinese industry’s landscape, as well as those people who have limited information that they can access. Despite such challenges, this step must not be skipped.

Check for regulations

A good way to confirm the veracity of the factory you’re talking to is to know their address, and then discover government protocols that are announced in their area. By cross-checking authority regulations and their claims, you will have a general idea regarding their honesty. Even if a factory has a lesser capacity, it is better to stick to manufacturers that are transparent with their clients since this builds a culture of trust between both parties.

COVID-19 Compliant

With the existence of the virus in today’s world, it is always good to check for a company’s compliance regarding disinfection and distancing. There have been many instances of people contracting the disease just because of receiving packages that are infected. Thus, it never hurts to look whether they were Proper Protective Equipment such as masks or gloves in their production line.

Fact-checking team

One last thing that can greatly help you in your search for capable Chinese factories is a great and trusted fact-checking team. These people will aid in tackling important facets that aid in backtracking the legitimacy of a certain company. Furthermore, these are experts that have verified dozens of manufacturers in the past, and this adds more value to your search/checks.

What we do at Verifyfull

Verifyfull is an expert solutions provider when it comes to verifying and checking Chinese Factories and Companies’ information. We partner with numerous brands, companies, and importers around the globe to bring them truthful and honest data that can help their businesses in especially when dealing with Chinese companies.

The reports we give are imbued with integrity and passion, and we reveal everything in a very easy-to-learn manner. People consider us as their own set of surveillance in the Chinese industry since we know the ups and downs of the landscape. We can help you avoid red flags that can harm your profits if left unchecked.

For any concerns and questions regarding our service, you can contact us on this site or our email. We will provide adequate information regarding our process and pricing.