The modern globalized market creates many challenges along with rich opportunities for U.S. companies willing to invest in having their products manufactured overseas. Unfortunately without careful research and experienced leadership issues can and often do arise as a result of unrecognized concerns or unmanaged expectations. These situations can rapidly create a significant and negative impact on manufacturing costs, timing, and the overall success of the project. It matters little whether a company has many or few resources. Without a careful, experienced-based assessment of overseas manufacturing options and facilities, as well as how they line up with the company’s current and future growth projections, the chances for ensured success are slim.
#1 Understand Logistics
Take logistics as an example. There are many questions regarding a company’s logistics and how current operating procedures will be affected when going overseas. How much of the supply chain does the firm wish to control? How much can be realistically controlled? Are there unique manufacturing export challenges in the region? Can these challenges be successfully addressed based upon this company’s unique needs? Are there additional, hidden costs that will push the delivered cost above an acceptable threshold? What is the correct paperwork flow to ensure China or US Customs will not hold the shipment unnecessarily? What should we expect in the event the container carrying our product is randomly selected for inspection? Who can be trusted when venturing into this new territory? What could go wrong and what guarantees and safeguards are in place to mitigate those challenges? What additional resources will be necessary to manage overseas manufacturing? Will the company need to hire expertise that is not currently in-house? How can we know what we don’t know?
#2 Understand Regulations
Additional challenges to overseas manufacturing, logistics, and exporting can be managed by understanding the laws and the related costs involved for safe, secure, and timely transport. Unfortunately, many newcomers are unaware of situations that are considered “common” domestically that can slow or even halt production during the year. For example, in China, the holidays invariably lead to a total shut down of production and shipping during the Chinese New Year and the Mid-Autumn Festival, when workers often return to their rural homes to visit and celebrate with family for days. These delays can cost a firm a huge portion of their profits if their product cannot reach their customers in time. Another example that frequently comes into play is the minimum order quantity (MOQ) for components, packaging, and the finished item.
#3 Understand the Value of Partnership
Unless a company has considerable overseas manufacturing experience, an effective way to ensure fast-start success is to partner with a full service offshore manufacturing and sourcing company like ITI Manufacturing. ITI can navigate the complex waters of international logistics, culture, laws, and offers a no manufacturing defects guarantee. At ITI Manufacturing, our experience and history of success enables us to create value for our clients. We are much more than a “middle man”. We act as an extension of our client’s company. We become our client’s China sourcing office, keeping them informed all along the way while providing flexible but virtually unlimited manufacturing capacity that keeps pace with their needs. Our clients appreciate our China staff being onsite at the factories resolving issues that arise face to face.
Contact ITI Manufacturing today. Speak with one of our overseas manufacturing experts and learn how it feels to know your project is in the hands of professionals with over four decades of experience. Call (281) 242-7030.