There are many benefits to manufacturing components or products offshore. In today’s global economy the barriers to overseas manufacturing have been significantly reduced and can result in significant cost reductions.
Today many companies reduce manufacturing costs by outsourcing expensive assemblies and other processes offshore to reduce their costs and pass the savings on to their customers to remain competitive. China manufacturers in particular have a growing reputation for producing quality components and products that can be delivered through an efficient global supply chain.
When considering overseas manufacturing there are several considerations that are important to ensure a successful outcome. First of all ensure that the manufacturer has experience in the type of process you want to outsource; for example, creating components with plastics, metal, rubber or with specific assembly processes (such as for electronics) related to your product.
You should ask to see samples of their previous work and for the names of other firms that have used their services in the past. Check their reputation for fulfilling contracts and, if possible, speak to representatives of other companies that have had dealings with them. It’s important that they have a completely transparent supply chain and you should research this to find any unforeseen pitfalls.
Quality control is paramount and you should ensure that your cost benefits do not come as a result of an inferior process or product. One of the best ways to ensure this is to have your own representative at the manufacturing facility either at the start of the contract or throughout the life of the contract. Inspections should be carried out regularly, preferably before products are shipped overseas, to make sure quality is maintained.
Overseas manufacturing has almost become a necessity in today’s competitive, global environment. China manufacturers, with their low cost workforce and materials combined with a well established supply chain, have almost become a necessity in a highly price sensitive manufacturing environment.
Look no further than ITI for facilitating your custom manufacturing needs with offshore partners you can rely on. Contact us today.