2018年10月16日星期二

2018 CeMAT digital age intelligent logistics


Digitalization or tradition? This is the key problem facing today's factories, logistics centers and power stations. Industry 4 is rapidly becoming the new standard, which means change. The fourth industry is rapidly becoming the new standard, which means change.

The intellectualization of manufacturing industry has become a topic of common concern all over the world. "Made in China 2025" has always been the focus of attention of the State Council, "Tenth Five-Year Plan" also highlights the development of manufacturing and logistics industry. With the rapid growth of China's economy, especially in the B2C e-commerce field, logistics is becoming more and more important. Developing enterprises will include digital intelligent manufacturing and logistics technology on the agenda of the enterprise.

CEMAT -- the world's leading trade fair for intra firm trade and supply chain management



CETAT will introduce solutions from leading manufacturers of automation, energy and logistics technologies, renowned robotics manufacturers, and global IT and software vendors.

Rapid progress towards more intelligent and integrated production processes is entering the logistics sector in the form of intelligent, connectivity technologies such as robots, UAVs and voice assistants.

The German CeMAT ASIA Trade show is recognized as the most important global conference venue for the entire material handling/internal logistics and logistics Trade Show technology sector.

Every autumn, CeMAT (Asia Logistics Exhibition) is held in Shanghai, with 650 exhibitors exhibiting more than 65000 square meters. These technologies and their impact on logistics will be explored in depth. CEMAT is by far the largest and most important logistics trade exhibition in Asia.

If this year's world's leading industrial technology exhibition is following a central trend, it's the rise of factory artificial intelligence -- and its benefits for workers and production. Add AI to factory machines and robots, and you'll get smart, versatile tools that make life easier for people.



Welcome to the CeMAT-Asia Logistics Trade Show almost everything in this field, such as architecture, systems, accessories, robotic logistics, automotive ID systems, packaging technology, software and so on.




Cemat Asia(Asia Logistics Exhibition) is a 4 day event being held from 6th to 9th November 2018 at the Shanghai New International Expo Centre (SNIEC) in Shanghai, China. This event showcases product from Plant, Machinery & Equipment industry. This event showcases products like Mechanical Handling, Accessories and components for materials handling technology, Entire systems for materials handling technology, warehouse technology, logistics, Warehousing technology and workshop equipment, Material flow control and software etc. in the Plant, Machinery & Equipment industry.

 CeMAT ASIA will be held in Shanghai from 6 to 9 November 2018,the CeMat will start parallel with the Hannover fair.

Asia Logistics Exhibition http://www.cemat-asia.com/index.php?lang=en

2018年9月26日星期三

Made in China 2025 focus on Shanghai 2018PTC ASIA

http://www.ptc-asia.com/index.php?lang=en

PTC ASIA, as the world's largest international professional transmission exhibition, is the most important display window of transmission and control technology. It attracts and brings together international well-known enterprises, innovative small and medium-sized enterprises and entrepreneurial enterprises, focusing on the theme of the industry and expounding the importance of power transmission and control technology for future production and application. PTC hydraulic exhibition aims to build intelligent upgrading platform for global exhibitors and buyers.



Industrial 4.0 technology brings new product development cycles, improves manufacturing efficiency and productivity, and reduces company costs. Given its capital-intensive nature, more and more advanced manufacturing economies are shifting their production resources from cheap labor-intensive countries. This is a paradigm shift that will lead to high-paying, high-value-added manufacturing jobs in the United States, provided we have the talent and skills to support it. Germany is not the only industrial country dedicated to the implementation of industrial 4. China is now implementing the "China 2025" plan based on the "industrial 4" model.

“As the core of a new round of industrial revolution, intelligent manufacturing is the main direction to realize ‘Made in China 2025’ and transform the nation from a big manufacturing country to a powerful one.” Gary Liu, Managing Director of Hannover Milano Fairs China Ltd. said, “Following the pace of the national strategy, our seven industrial shows focus on intelligent manufacturing and display smart applications, providing ideal platforms for global enterprises to improve quality, enhance efficiency, transform and upgrade.”



Human-robot collaboration is the wave of the future: Humans and robots working seamlessly alongside each other are still a ways off, but development is well underway on these so-called “cobots.” "Technology is not about competing with us humans, it's about assisting us. That is the core message conveyed by this trade fair, which has again underscored Hannover's reputation as a global hotspot for the digital transformation of industry," said Dr. Jochen Köckler, chairman of the managing board at Deutsche Messe, at the close of Hannover Messe. "The focus here has clearly been on the human element: We're the ones making the decisions and setting the course. The interaction of humans with machines and IT adds up to a huge competitive gain across manufacturing, logistics and the energy industry."

Taking place at the Shanghai New International Expo Centre (SNIEC) It ranks as the most important showcase for Hydraulic Exhibitionn and Electric drive Exhibition in Asia and, every year, is a magnet for international market leaders, innovative SMEs, start-ups, as well as for more than 80,000 visitors. After over 20 years of successful performance, The yearly growth in both Transmission Exhibition numbers and show space has proved PTC ASIA the key platform for basic parts trading of Asian markets. At a time of economic globalization, in which China’s booming demands in industry import and export have already got strong impetus, global purchasing is also taking the high road to more efficient trading. PTC ASIA is what you CANNOT afford to miss!



As China promotes the "one belt and one way" construction, it has brought a broad overseas market for the powertrain industry. Enterprises actively expand international business, strengthen the layout of the countries along the route, and achieve remarkable results. Organizers said that the exhibition also through various market channels to organize overseas buyers to purchase, when more than 80 countries and regions from the world's audience and buyers are expected to attend. Among them, the number of buyers of large domestic manufacturing enterprises will continue to grow. In 2017, the Asian International Power Transmission Exhibition was highly praised by many visiting delegations, such as Shanghai Electric, Weichai Power, Baosteel Project, Frank, Lanshi, Atlas Copco, Kaiquan Pump Industry, Shanghai Port Machinery, Jianghuai Yinlian, Hangzhou Giant Star, Zhengtai Electric, Shanghai Baosong and Shanghai BYD.

In 2016, more than 1,000 leading companies from home and abroad gathered in a display area of 70,000 sqm. 78,443 trade visitors have visited the show. In 2017, 9 Halls, continuing with the “big-industry platform”, Speed up the pace in 2018,Launch the vision of "made in China 2025"

PTC ASIA Focuses on the mega issues in industry and illustrates the enormous importance of power transmission and control technology for future production applications.



2018 CEMAT Shanghai Asia Logistics Exhibition China

CeMAT in Hannover is the world's leading trade fair for the intralogistics industry logistics exhibition, logistics trade show which takes place since 2014 every two years in Hanover and covers the areas of hoists, cranes, forklifts, warehouse equipment, logistics systems and software. It has established itself internationally as the most important industry gathering and has created successful logistics exhibition in China, India, Russia and South America. No other sector has such great savings and rationalization potentials and is constantly striving to offer more effective solutions. Asia Logistics Trade Show An integral part of the exhibition is a complete network of different processes, jobs, charge carriers, packing units and products. In this context, the Internet and intelligent software is becoming more and more important, because it is needed in order to achieve an efficient linkage and networking of all systems.
The key is safe and reliable technique which is main exhibition focus particularly at CeMAT, ranging from complete systems and intralogistical products on processors and operating elements to software and control systems. The exhibition is divided into five sections: Pick & Pack, Move & Lift, Store & Load, Logistics IT, Manage & Service and pays special attention to the latest innovations and technologies of the industry. Internationally, it is considered as the information and communication platform with global expertise.



On the whole the organisers welcomed on the 5 days of the fair, from 19. May to 23. May 2014, about 1025 exhibitors and 53000 visitors from 65 countries on the CeMAT in Hanover.The CeMAT will take place on 5 days from Monday, 20. April to Friday, 24. April 2020 in Hanover.

Cemat ASIA — Messe largest and best-known industrial logistics trade show. Located in Pavilion 32, Toyota Material Handling will be focusing on lean business practices, derived from the acclaimed Toyota Production System.
Visitors will be able to gain an insight into Toyota’s approach to eliminate waste and maximise efficiency throughout manufacturing and logistic processes. Toyota is the source of lean thinking, and CeMAT 2018 will highlight how this is translated into today’s products and services.



COLLABORATION FOR THE FUTURE
Toyota’s booth at CeMAT 2018 will provide visitors with the opportunity to explore and learn about the company’s lean way of thinking. There will be a special ‘Logiconomi Forum’, where you’re welcome to come and listen to internal and external speakers who share our passion for logistics 4.0, big data, autonomous systems, safety, new energy solutions, robotics and artificial intelligence.

LOGICAL AUTOMATION
CeMAT(Asia Logistics Exhibition) will provide visitors with an insight to how Toyota uses automation in its own manufacturing and distribution processes, to streamline logistic flow. With a complete range of automated machines, Toyota can provide a simple step-by-step approach to automation, with fast commercial payback. Toyota will also be presenting an advanced new control system that seamlessly adapts operations to optimise the utilisation of available machines, avoiding traffic and increasing flow rate.






To promote global trade liberalization, Hannover Cemat Logistics Fair will be held at Shanghai   Along with the booming of logistics industry in China, CeMAT ASIA has become the biggest international material handling and logistics technology trade fair.New International Expo Center, China. Asia Logistics Trade Show- International Conference on material handling, automation, transportation system and logistics.Asia Logistics Exhibition welcomes you to China!




Made in China 2025 focus on Shanghai 2018PTC ASIA

http://www.ptc-asia.com/index.php?lang=en

PTC ASIA, as the world's largest international professional transmission exhibition, is the most important display window of transmission and control technology. It attracts and brings together international well-known enterprises, innovative small and medium-sized enterprises and entrepreneurial enterprises, focusing on the theme of the industry and expounding the importance of power transmission and control technology for future production and application. PTC hydraulic exhibition aims to build intelligent upgrading platform for global exhibitors and buyers.



Industrial 4.0 technology brings new product development cycles, improves manufacturing efficiency and productivity, and reduces company costs. Given its capital-intensive nature, more and more advanced manufacturing economies are shifting their production resources from cheap labor-intensive countries. This is a paradigm shift that will lead to high-paying, high-value-added manufacturing jobs in the United States, provided we have the talent and skills to support it. Germany is not the only industrial country dedicated to the implementation of industrial 4. China is now implementing the "China 2025" plan based on the "industrial 4" model.

“As the core of a new round of industrial revolution, intelligent manufacturing is the main direction to realize ‘Made in China 2025’ and transform the nation from a big manufacturing country to a powerful one.” Gary Liu, Managing Director of Hannover Milano Fairs China Ltd. said, “Following the pace of the national strategy, our seven industrial shows focus on intelligent manufacturing and display smart applications, providing ideal platforms for global enterprises to improve quality, enhance efficiency, transform and upgrade.”



Human-robot collaboration is the wave of the future: Humans and robots working seamlessly alongside each other are still a ways off, but development is well underway on these so-called “cobots.” "Technology is not about competing with us humans, it's about assisting us. That is the core message conveyed by this trade fair, which has again underscored Hannover's reputation as a global hotspot for the digital transformation of industry," said Dr. Jochen Köckler, chairman of the managing board at Deutsche Messe, at the close of Hannover Messe. "The focus here has clearly been on the human element: We're the ones making the decisions and setting the course. The interaction of humans with machines and IT adds up to a huge competitive gain across manufacturing, logistics and the energy industry."

Taking place at the Shanghai New International Expo Centre (SNIEC) It ranks as the most important showcase for Hydraulic Exhibitionn and Electric drive Exhibition in Asia and, every year, is a magnet for international market leaders, innovative SMEs, start-ups, as well as for more than 80,000 visitors. After over 20 years of successful performance, The yearly growth in both Transmission Exhibition numbers and show space has proved PTC ASIA the key platform for basic parts trading of Asian markets. At a time of economic globalization, in which China’s booming demands in industry import and export have already got strong impetus, global purchasing is also taking the high road to more efficient trading. PTC ASIA is what you CANNOT afford to miss!



As China promotes the "one belt and one way" construction, it has brought a broad overseas market for the powertrain industry. Enterprises actively expand international business, strengthen the layout of the countries along the route, and achieve remarkable results. Organizers said that the exhibition also through various market channels to organize overseas buyers to purchase, when more than 80 countries and regions from the world's audience and buyers are expected to attend. Among them, the number of buyers of large domestic manufacturing enterprises will continue to grow. In 2017, the Asian International Power Transmission Exhibition was highly praised by many visiting delegations, such as Shanghai Electric, Weichai Power, Baosteel Project, Frank, Lanshi, Atlas Copco, Kaiquan Pump Industry, Shanghai Port Machinery, Jianghuai Yinlian, Hangzhou Giant Star, Zhengtai Electric, Shanghai Baosong and Shanghai BYD.

In 2016, more than 1,000 leading companies from home and abroad gathered in a display area of 70,000 sqm. 78,443 trade visitors have visited the show. In 2017, 9 Halls, continuing with the “big-industry platform”, Speed up the pace in 2018,Launch the vision of "made in China 2025"

PTC ASIA Focuses on the mega issues in industry and illustrates the enormous importance of power transmission and control technology for future production applications.



Made in China 2025 focus on Shanghai 2018PTC ASIA

http://www.ptc-asia.com/index.php?lang=en

PTC ASIA, as the world's largest international professional transmission exhibition, is the most important display window of transmission and control technology. It attracts and brings together international well-known enterprises, innovative small and medium-sized enterprises and entrepreneurial enterprises, focusing on the theme of the industry and expounding the importance of power transmission and control technology for future production and application. PTC hydraulic exhibition aims to build intelligent upgrading platform for global exhibitors and buyers.



Industrial 4.0 technology brings new product development cycles, improves manufacturing efficiency and productivity, and reduces company costs. Given its capital-intensive nature, more and more advanced manufacturing economies are shifting their production resources from cheap labor-intensive countries. This is a paradigm shift that will lead to high-paying, high-value-added manufacturing jobs in the United States, provided we have the talent and skills to support it. Germany is not the only industrial country dedicated to the implementation of industrial 4. China is now implementing the "China 2025" plan based on the "industrial 4" model.

“As the core of a new round of industrial revolution, intelligent manufacturing is the main direction to realize ‘Made in China 2025’ and transform the nation from a big manufacturing country to a powerful one.” Gary Liu, Managing Director of Hannover Milano Fairs China Ltd. said, “Following the pace of the national strategy, our seven industrial shows focus on intelligent manufacturing and display smart applications, providing ideal platforms for global enterprises to improve quality, enhance efficiency, transform and upgrade.”



Human-robot collaboration is the wave of the future: Humans and robots working seamlessly alongside each other are still a ways off, but development is well underway on these so-called “cobots.” "Technology is not about competing with us humans, it's about assisting us. That is the core message conveyed by this trade fair, which has again underscored Hannover's reputation as a global hotspot for the digital transformation of industry," said Dr. Jochen Köckler, chairman of the managing board at Deutsche Messe, at the close of Hannover Messe. "The focus here has clearly been on the human element: We're the ones making the decisions and setting the course. The interaction of humans with machines and IT adds up to a huge competitive gain across manufacturing, logistics and the energy industry."

Taking place at the Shanghai New International Expo Centre (SNIEC) It ranks as the most important showcase for Hydraulic Exhibitionn and Electric drive Exhibition in Asia and, every year, is a magnet for international market leaders, innovative SMEs, start-ups, as well as for more than 80,000 visitors. After over 20 years of successful performance, The yearly growth in both Transmission Exhibition numbers and show space has proved PTC ASIA the key platform for basic parts trading of Asian markets. At a time of economic globalization, in which China’s booming demands in industry import and export have already got strong impetus, global purchasing is also taking the high road to more efficient trading. PTC ASIA is what you CANNOT afford to miss!



As China promotes the "one belt and one way" construction, it has brought a broad overseas market for the powertrain industry. Enterprises actively expand international business, strengthen the layout of the countries along the route, and achieve remarkable results. Organizers said that the exhibition also through various market channels to organize overseas buyers to purchase, when more than 80 countries and regions from the world's audience and buyers are expected to attend. Among them, the number of buyers of large domestic manufacturing enterprises will continue to grow. In 2017, the Asian International Power Transmission Exhibition was highly praised by many visiting delegations, such as Shanghai Electric, Weichai Power, Baosteel Project, Frank, Lanshi, Atlas Copco, Kaiquan Pump Industry, Shanghai Port Machinery, Jianghuai Yinlian, Hangzhou Giant Star, Zhengtai Electric, Shanghai Baosong and Shanghai BYD.

In 2016, more than 1,000 leading companies from home and abroad gathered in a display area of 70,000 sqm. 78,443 trade visitors have visited the show. In 2017, 9 Halls, continuing with the “big-industry platform”, Speed up the pace in 2018,Launch the vision of "made in China 2025"

PTC ASIA Focuses on the mega issues in industry and illustrates the enormous importance of power transmission and control technology for future production applications.



2018年7月25日星期三

quality inspector

We are Sunchine Inspection
Founded in 2005, Sunchine Inspection is one branch of Sunchine International; a Hong Kong based multinational company specializing in export-import consulting and quality management. Today, with two offices in China mainland and one office in Europe, Sunchine Inspection has become one of the best third party inspection companies in China, serving over 1,500 regular clients in various fields from all the Continents in the world.

Today, the inspection team of Sunchine Inspection is composed by around 120 fully qualified and accredited inspectors, more than 50 experienced account managers, and one very dynamic managing and marketing team. Our network is already present in more than 50 mains cities in China, which covers almost every important industrial region in China.
To delivery optimum inspections results, Sunchine Inspection arranges the inspector according to your product classification. All our inspectors are very knowledgeable and experts in their field.
 
We don’t produce goods, but we create Values;
 
We don’t sell products, but we build up Confidence;
 
We don’t export cargos, but we are the symbol of Insurance;
 
The clients choose us, because we know better their Needs.

China Office
Room 2203, 22/F, Building 03, Zhongtai
International Plaza, 311, Middle Jiangdong
Road, 210019 - Nanjing - R.P.China
Tel: 0086-25-6809 3658
Fax: 0086-25- 8609 3678
E-mail: francois.shi@sunchineconsulting.com
Contact: Mr. Francois SHI
Managing Director in China Office
Mob: 0086-18951633559
Website: http://saiinspection.com.cn
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Is Factory Consolidation Accelerating in China?

BY RENAUD ANJORAN
I had an interesting discussion last week about one of the mega-trends I see happening in the Chinese Manufacturing sector — the consolidation of the manufacturing sector, from many players of all sizes to a few large players.
Several factors, most of which act in an inter-related manner, are driving this trend. Let’s look at the major factors.

1. Competitive forces

Competition drives inefficient players out of the market. With Alibaba.com, 1688.com, and other directories, sending an RFQ and comparing prices is a child’s game.
The average Chinese factory is so inefficient in its use of labor (no training and low productivity) and capital (bloated inventory, failed automation projects…), I expect only half of them to survive in the next 10 years.
I might be wrong if the general economic climate remains rosy. But, as soon as a recession hits, many companies close.

2. Compliance requirements, from export customers’ sides

The European Union, the USA, Canada, and other advanced economies have been setting stricter standards. And it represents a cost that the importer ‘pushes up the supply chain’ to the manufacturer.
Here is what an executive of Hasbro recently said at a conference:
“It takes 1 million USD in sales just to pay for compliance, let alone for the fees themselves.”

3. Compliance requirements, from Beijing’s side

Air and water pollution have reached a level that is no longer tolerable to the general Chinese population. The central government has set up inspection teams that go into factories, area by area, and catches highly-polluting operations. Some get warned and fined, and others are immediately closed.
These inspections, coupled with ever-higher environmental standards, have forced many small operators to withdraw from the market. For example, in surface treatment processes (plating, anodizing, etc.), a typical small factory can’t justify the investment in the necessary water treatment equipment.
Who stays open? Larger facilities that can make that type of investment.

4. The race to over-capacity

As Jack Perkowsky wrote, “it’s a fact of life: economic forces within China tend to create overcapacity in every industry.”
This is not a new problem. The New York Times wrote this in 2012 about the steel industry:
An obsession with size and technological advances has saddled Chinese steel mills with a surfeit of high-end capacity and the equivalent of $400 billion in debt, leading to a drain on profits.
and
Excess capacity is projected at 110 million tons this year, about 14 percent of total capacity. That will mean that margins, which were already thin in 2011 at 3 percent, will continue to be squeezed.
It has happened, or is going to happen, in most industrial sectors in China. And what is Beijing’s typical response, in order to prevent bankruptcies and mass layoffs? Push the players to mergers & acquisitions. Which leads us to the next point…

5. Government policy

have at least one national champion in each promising industry – for example, massive consolidation was forced upon the solar panel industry, as this article from 2015 relates:
China’s Ministry of Industry and Information Technology (MIIT) has issued further government guidelines on the need for a major consolidation of PV manufacturing companies.
MIIT has issued guidance over the last few years on the need for restructuring the sector due to overcapacity notably in the number of polysilicon producers, leading to instructions over wafer, cell and module production consolidation.
The same New York Times article from 2012 analyzed this issue in the steel industry:
Beijing has tried to address problems in the steel sector — which accounts for 3 percent to 4 percent of gross domestic product — by forcing state-owned mills to consolidate or to migrate toward more complex, higher-value goods.
If there is one solution the country has not pushed, it is allowing the worst performers in the steel sector to go out of business.

Or will there always be an influx of new entrants??

Will this happen in every sector? Probably not. A new manufacturer can appear and start making a relatively simple product that does not cause much safety- or environment-related concerns. This will probably always be true.
Jack Perkowsky points to this as a China specificity:
Outside of China, rising quality and technology requirements and the forces of competition have reduced the numbers of companies making most products to a handful of global players. Yet, hundreds of companies may be making the same or similar products in China.
What do you think?
Article Source: qualityinspection

quality inspection service shanghai

We are Sunchine Inspection
Founded in 2005, Sunchine Inspection is one branch of Sunchine International; a Hong Kong based multinational company specializing in export-import consulting and quality management. Today, with two offices in China mainland and one office in Europe, Sunchine Inspection has become one of the best third party inspection companies in China, serving over 1,500 regular clients in various fields from all the Continents in the world.

Today, the inspection team of Sunchine Inspection is composed by around 120 fully qualified and accredited inspectors, more than 50 experienced account managers, and one very dynamic managing and marketing team. Our network is already present in more than 50 mains cities in China, which covers almost every important industrial region in China.
To delivery optimum inspections results, Sunchine Inspection arranges the inspector according to your product classification. All our inspectors are very knowledgeable and experts in their field.
 
We don’t produce goods, but we create Values;
 
We don’t sell products, but we build up Confidence;
 
We don’t export cargos, but we are the symbol of Insurance;
 
The clients choose us, because we know better their Needs.

China Office
Room 2203, 22/F, Building 03, Zhongtai
International Plaza, 311, Middle Jiangdong
Road, 210019 - Nanjing - R.P.China
Tel: 0086-25-6809 3658
Fax: 0086-25- 8609 3678
E-mail: francois.shi@sunchineconsulting.com
Contact: Mr. Francois SHI
Managing Director in China Office
Mob: 0086-18951633559
Website: http://saiinspection.com.cn
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Investing in an Injection Mold: What Is Best Practice in China?

BY RENAUD ANJORAN
Many importers are puzzled. They ask quotations for a plastic part, and Chinese suppliers quote wildly different amounts for the injection mold.
One reason, obviously, is the nature of the mold:
  • Is it in hard metal (e.g. H13 steel), ready to make hundreds of thousands of pieces? Or in soft metal (e.g. aluminium), for making a few prototypes only?
  • Is it a single cavity mold (requiring more machine time and more labor)? Or multi cavity (more expensive, but more efficient for large production runs)?
  • There are other considerations, of course, but these are just 2 examples of things to specify. See a list of design mistakes and a list of common defects to have an idea of what can go wrong…
And another reason is the business approach of the supplier. What game do they want to play? I listed the main 3 options:
  1. You let the supplier make the mold at their cost, the mold is theirs. They include it in the price of the finished product, but you don’t know by how much. This is more expensive in the long run, and you have no control over the supplier (they own the molds you need for your production).
  2. The supplier partially subsidizes the mold, the mold is theirs, and again they plan to amortize over time in the price of the plastic parts. This is also expensive in the long run, and you also have no control over the supplier.
  3. You pay the full price of the mold, you have a contract (enforceable in China) that says all the tooling is yours and you can get it back, and then you can use the forces of competition to keep the injection molding job affordable over the long term. This is also the safest option when it comes to IP protection.
If you plan to make small production runs and you don’t mind if your competitors get access to the same mold, then all the best if a Chinese manufacturer is ready to subsidize it!
In, on the other hand, you plan to make relatively large series of that plastic part, and if you want to keep control over who uses the tooling, go for option 3.
There are a few things most buyers don’t think of.
First, you need to have an agreement with the supplier that they maintain the mold. They should not store it in a dusty or humid place. They should re-make it if they damage it. And so forth.
Second, what happens when the tooling gets to the end of its useful life?
There are two options:
  1. Let’s say your order volume is very high. Supplier might accept to make new tooling for free in order to continue production, without raising the unit cost of the plastic parts.
  2. Supplier makes the new tooling in order to continue production, and the full price is paid by the customer (same as option 3 as outlined above).
Overall, in the long run, investing to own and control the tooling is usually the cheapest proposition. One notable exception is the prototyping stage, where having a supplier make cheap tooling on their own can make good sense.
Article Source: qualityinspection