Reliable Offshore Manufacturing Information
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Additional Details about Offshore Manufacturing
Below are a few questions and answers we thought you need to know. If you still have questions or need more information call and speak with one of our experts today.
First, we need to know the details of your unique product. The following list illustrates the basic detail we need:
- Engineering drawings (or cutting patterns), material specifications, and a bill of materials
- Annual as well as per shipment quantities
- Target landed pricing
- Delivery location
- Unique standards, certifications, regulations, or testing requirements
- Packaging details
After we review these details (and others) we move on to the next step – sourcing reliable factories.
We can quote “FOB foreign port” for customers that have their own freight forwarding; land at the nearest US Customs warehouse for customers who have their own bonded trucking services, or to a physical address anywhere in the United States. Internationally, ITI ships to any foreign port around the world with only the local duty left to be paid by the receiving party.
ITI has an attorney on retainer in China. All contracts are written in Chinese and adhere to Chinese law. Also, the factories we do business with do not manufacture their own products, they only manufacture on an OEM basis. Their success depends on your success. The last place your product will be “knocked off” is at the factory. Based on what we have observed and heard in the 45 years we have been in business is that trade shows and, more currently, selling products on the web are the typical ways products are copied. We highly recommend getting your product patented and your trademark registered through a reputable IP attorney.
Quality is established by you. You provide the specifications. It is ITI’s responsibility to source a reliable factory to manufacture your product to your specifications. Our staff in our US headquarters as well as in offices offshore are dedicated to maintaining the integrity of your product and design. We even guarantee it.
Offshore manufacturers are no different than domestic makers in that they want the largest quantities possible. ITI matches the quantities our customers need to the size of factory we source. If this balance is not treated seriously we run the risk of not being important because the quantity is too small, or production being delayed because the order is too large for the factory. In monetary terms, as a general rule of thumb, $20,000-$25,000 total landed cost per shipment is the minimum dollar amount a reliable factory likes to see to be interested in a project. There are exceptions. Products new to the market are a good example. It’s always best to consult with an ITI specialist.
No, there are actually three. First, completely define your product. No one knows your product better than you do. Second, find the right factory. The third and arguably the most important key to success is to work with a company highly experienced in manufacturing offshore. Unless you are with a multi-national company with offshore manufacturing experience and experienced manufacturing personnel on the ground in the country where you want to manufacture this is the single most important key.
Our quoted, landed price includes our commission, the product, and all related costs. We make it very easy for you to know your exact landed cost. When you receive a quote from ITI Manufacturing that quote is the actual per piece price you will pay.
Absolutely. Visiting the China factory can be beneficial and interesting but it is by no means required. We have customers that visit the factories annually. We have other customers that have never been to the factory.
We do a large majority of our manufacturing in China. We also manufacture in South Korea, Taiwan and increasingly in Vietnam. We are constantly evaluating different countries.
From the time we initially receive the detail we need the total time frame to receive the first shipment is 5-9 months. The average is closer to 5-6 months. That is fairly quick considering tooling takes about 45 days and the sample approval process could take a full month or more. One thing that never changes is the first order takes the longest. Typically reorders take 30 days to produce and another 35 days in transit average for landing anywhere in the USA. West cost transit times are, of course, shorter, about 16 days.
Forecasting is a collaborative effort. ITI manages the timing and the expectations on both sides of the water and keeps both sides moving to the goal. The key is to plan ahead. The sooner in advance we know about a critical timeframe the more likely it is we can meet it.