Offshore manufacturing has long been a cornerstone of business success for American companies. By leveraging existing expertise, infrastructure, and less expensive labor, companies in the USA can access technology. They can also access skills to create quality products at a lower cost. However, finding the best fit of skills and technology with an Asian manufacturing partner has its challenges.
If your company is exploring options for investing in the offshore manufacturing process or, if you are manufacturing offshore and are having issues, you may want to consider contacting an experienced OEM contract manufacturer with dedicated staff in that country.
Why Experience Counts: Offshore Manufacturing in Asia
There are many good OEM contract offshore manufacturing companies but not all have the same experience or provide the same guarantees. When considering offshore manufacturing in Asia there are two very specific reasons to look for a company with experience in that particular part of the world:
1. Cultural Differences Matter
Western and Asian cultures are a world apart – companies looking to operate in Asia need a manufacturing partner who understands that. For the past 45 years, ITI Manufacturing has worked specifically with Asian suppliers to facilitate business with American companies. Our expertise helps overcome challenges created by:
- Language barriers. Clear, precise communication is crucial for business success. Look for the company that can communicate with you in your native language; as well as at the producing country in that particular language.
- Cultural events, such as holidays. Both American and Chinese holidays put a strain on supply chains. Look for an OEM offshore contract manufacturer that can council you as well as alert you ahead of time regarding what must be done and when to mitigate delays due to holidays for the country in which you are manufacturing.
- Business etiquette. What is normal to one culture may seem confusing to the other. So, look for an OEM offshore contract manufacturer that has staff resident in the country in which you want to manufacture. Consequently, they will understand the culture, and language, the local dialect, and traditions. They also will meet face to face with factory owners and staff to solve any issues that may arise IN PERSON, ON SITE.
2. Location-Specific Process Expertise
Asia is just one option for companies looking for overseas suppliers. US companies may outsource their manufacturing processes to many parts of the world, such as Central and South America. However, geography influences supply chains and manufacturing processes. An OEM offshore contract manufacturer specializing in outsourcing to Mexico is likely not prepared to handle the planning and execution requirements that come with outsourcing to China. Therefore, some things that may influence operations include:
- Time zone differences. Beijing, for instance, is 12 hours ahead of New York City, which can disrupt communication.
- Transportation challenges. Moving supplies around the world is “multi-modal”; therefore, it requires multiple forms of transportation.
- Special economic zones. Countries and regions may have free trade zones or other specific differences that companies should be aware of. Furthermore, they could positively or negatively impact the way a US-based company does business in that country.
- Tariffs, laws or customs requirements. A detailed understanding of the ins and outs of exporting from a particular country is crucial to offshore manufacturing success.
- Material availability. Different materials are more readily available in certain parts of the world.
Get Set for Offshore Manufacturing Success with ITI
Offshore manufacturing opens a whole world of possibilities for US businesses. By working with an experienced OEM offshore contract manufacturer with specialized expertise in the region or country of your choosing, you give yourself and your company the best chance for success.
Considering outsourcing? Call ITI Manufacturing and discuss your business goals with one of our experts. 888-574-6823