Why China’s is world’s best Manufacturer
I choose topic to discuss here that ‘Why China’s is successful in manufacturing and about 60% of total manufacturing from China’. China is a centre of Supply Chain.
1st I am started from a manufacturer of Saudi Arabia who is in trading business, OEM of ‘HITACHI’ , producing A/C of Split unit,Window A/C, Dessert Cooler,Free standing unit,Washing M/C, Refrigerator...
Actually Saudi Arabia hasn’t enough worker from Saudi who can work hard.Engineer & Manager can easily find from there that’s why cheap worker hired from India,Bangladesh,Patna,Philipine and Nepal
Raw materials and Machines is imported from overseas most of them from China . Importing raw materials from overseas took one month by sea to Saudi Arabia
Some times in emergencies import by flight.Most important Sales & marketing is very important to sell goods what quantities Factory is manufacturing. No doubt quality is perfect and price isn’t high.Factory sells good in Egypt,Oman,Qatar,UAE and Bahrain.Those countries was main market of that Factory.Because of overseas employees, not all raw materials and Machines are easily available near by factory, not big population in his main market for easily consumption and huge investment for setup a Factory and Asset avoiding to take risk in manufacturing and those above reason is for failure of manufacturing and now is almost closed.Because of trading take place every where. In trading main focus on what’s the requirements of customer, what quality, quantity & price is affordable by customer and specially time to time need to do ‘Marketing research’ after all places order from where need to import. In trading need Warehouses,Sales & marketing team,Account & Finance team,An hr team,Supply Chain team ,Souring and Quality Control team.
Now main point to discuss is that why China isn’t only good but brilliant in mfg.
I have visited more than 100 Factories in China from small to big Factory. When I have plan for inspection from Airport,Railway Station or bus station to Factory there’s 30 mins to 2 hrs I spent time with a representative of Factory during this time I take out all points and they explain that because of all raw materials are easily available near to Factory, workers are also available with good skills and at low wages.Government also supporting and 24 hrs electricity available.
Chinese Factory most of them bought out items use for assembly. They have 2-3 assembly line only for assembling bought out item. One more thing Chinese suppliers or Factory respond quickly at any customer complaints and for spare part delivery.Government time to time arrange ‘Fairs’ in his 1st tier city to attract international customers for Chinese factories.
In 2014 newly elect government of India started campaign for ‘Make in India’ but now 2021 there’s not enough and new Factory started simply this project is failed. Here’s not enough Factory to become OEM.Even raw materials are not easily available near by Factory. Manpower is available but handling them is very tough. Low wag,salary not paying at day one of the month.Not medical insurance for them.Many clients wanted imported raw materials.
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