FAQ

Over the years we have been asked a number of question which help customers understand the value DFM brings. Hopefully this will provide a good starting point for our discussions.

1. What products are best suited to take advantage of DFM’s capabilities?
• The products have some complexity (high part content, multiple processes, variety of component types). Usually this is a mix of plastics, sheet metal, electronics/electrical components, etc.
• High volume competitively priced products demanding high quality, aggressive cost reduction, and superior delivery performance.
• Low to medium volume, high cost/mix products that have unique performance requirements and/or supply line challenges.
• Customer designed products, DFM helps customer implement production offshore to increase competitiveness in the market by cost saving.

2. Is DFM a contract manufacturer or manufacturing consulting company?
DFM has both capabilities to enable clients to select only the services required to fulfill their business objectives. As China experts, we have the unique ability to utilize these capabilities to assist customers with the numerous challenges associated with controlling manufacturing performance and entering into the lucrative China Market.

3. Why not hire people to perform the functions DFM offers?
If your company has the resources and functional expertise to effectively operate in China and manage all the activities and problems that can be encountered, you will be successful; but we have learned from some of the best companies in the world that having the appropriate resources at the right time can be extremely difficult. Normally, it takes a long term commitment and exceptional experience and expertise to achieve such an objective. Does your company want to invest (time and money) and take the risks associated with such an endeavor? Does it make sense to develop these capabilities for every product and accessory? DFM has over 10 years of experience handling these challenges for many companies. Clients have frequently told us that our cost for managing their manufacturing needs is less or comparable to what they can achieve internally.

4. What is the process for engaging with DFM?
It couldn’t be simpler. We begin with a detailed conversation to understand your needs and establish mutual interest. DFM then proposes a solution (manufacturing consulting, contract manufacturing, or China market development) that will best address these requirements, which includes initial pricing, timing, and deliverables. If our proposal is accepted, then we just do it.

5. Our company already sources products in China, why do we need DFM?
Many of our clients have experience sourcing in China, but choose to work with DFM for the following reasons:
• Customers don’t have the requisite support personnel in China to manage their product launches and manufacturing and supply line activities effectively. This often leads to mistakes, misunderstandings, and the inability to fully address product or factory issues.
• DFM can manage product and factory process changes, reducing last minute surprises.
• The client’s current manufacturing partner doesn’t meet its cost, quality, delivery, or service performance goals.
• Some clients lack the resources or expertise to launch and manage certain new products or accessories. This is especially true for client non-core products.
• Dealing with Chinese suppliers can be challenging due to language, cultural, legal/regulatory, and time zone differences.

6. What are the largest barriers to being successful doing business in China?
• Cultural barriers to communication
• Language barriers to communication
• Time zone barriers to communication
• Fragmentation of the market into regional idiosyncrasies
• Overcoming barriers to mutual trust
• Understanding the interwoven relationship between government and business
• Finding the right sourcing, regulatory and distribution partners
• Managing product launches, costs, quality, and delivery
• Standard operating procedures vs. best practices
• Lack of adequate “boots on the ground”