Manufacturers of garments, electronic equipment, heavy machines etc. face a gargantuan task during the winter season. The competition is so stiff that they have to provide products to their clients at lowest possible prices in order to keep their business alive. Due to this, they cannot rely on flights to transport their products, since that entails huge costs. Using freighters is the only viable option for them. However, this is nearly impossible during the winter. The number of frozen freighters is on the increase, despite the coast guard’s attempt to free them by employing all the icebreakers available at their disposal. This thwarts the attempts of manufacturers to transport vital cargo to overseas destinations, leading to loss of goodwill and clients. To compound the problem, these logjams occur during the festive season, when the requirements for products are at their peak. A viable solution lies in outsourcing manufacturing to China.
Advantages of outsourcing manufacturing to China
There are several advantages of using China as a base of manufacturing your goods. This country boasts of several ports, which allows them to transport goods via sea to other countries, specifically those located in Asia and Australia. Most of these sea routes remain ice free throughout the year. Apart from this, the low labor costs of Chinese employees give them an advantage over laborers of countries like America, Canada, and those in the European Union. This allows manufacturers to recover the costs of setting up their manufacturing unit in China in a couple of years. If you do not believe this fact, check products sold in malls and through online stores. The companies of these products have their roots in America, but the products contain a `made in China’ or `assembled in China’ label on them.
Reduced manufacturing costs without compromising in quality
Most US companies that have manufacturing units in China employ American personnel to keep an eye on the quality of the product, but they source the labor to Chinese natives. This reduces manufacturing costs without compromising on the quality of the product. The overseas transportation costs of China being much lower than that of other countries, helps increase the profit margin of manufacturing units located there. However, one needs to have a sound knowledge about the Chinese language and the labor laws of China before setting up their manufacturing unit over there.
ITI helps in making a success of your overseas project
ITI has been collaborating with Chinese manufacturers since 1974. Their excellent knowledge of export rules prevalent in China along with their group of professional translators will help you in setting up your manufacturing unit in China. You can easily increase your profit margin by 20% or more without compromising on quality. Break the shackles of frozen freighters, ensure that your customers receive their consignment on time, and dominate over your competitors by outsourcing manufacturing to China. ITI helps reduce your production costs further by providing you with quality control inspectors who check and verify the standards of your product before it is shipped to your clients. Contact us today for your free quote.