Many small businesses and even one-man entrepreneurs are now turning to overseas sourcing and manufacturing sourcing as a way of cutting costs.
For a good price they can get their products designed, manufactured or developed by highly qualified companies who are skilled at what they do. Manufacturing sourcing is definitely the way to go if you want to remain competitive with the larger players in your niche. However, there are certain steps you should take to make sure your interests are protected.
Overseas manufacturing firms, just like those stateside come in all shapes and sizes. And like our domestic companies, there are also good, medium, and not so good ones as well. The key when overseas sourcing for a custom manufacturer is to find one that is good but at the same time reasonably priced compared to others in the field. That said, there are plenty of factors to consider when looking at costs associated with overseas manufacturing and pricing is just one element of a successful outsource manufacturing project.
For example, you must make sure that when you receive pricing that you know exactly what level of quality is factored in. Some outsource manufacturing companies may give you an on the surface low quote but may not mention what additional costs will be or that the price quoted is for a very low quality of manufacturing.
Another thing to be on alert for is the unforeseen screw-up. Sometimes the lowest bid outsource manufacturing companies will have a poor working system and lax production process. Just one failure in the overseas manufacturer’s process can mess everything up and cause huge delay’s for your project.
Another thing to consider is if the outsource manufacturing company is stable financially and not at risk of going bankrupt (and taking your inventory with them). Finally, and perhaps most importantly, what is the political situation like in the country of your overseas manufacturer? Is the political and economic situation stable enough that you can expect a reliable supply line?
Any one of these pitfalls can send your overseas manufacturing sourcing into a tailspin.
Don’t forget to also keep in mind the reputation and reliability of your overseas partner. Are they an established firm with plenty of clientele who have provided testimonials? Can those testimonials and any reviews be verified? Do they have a solid reputation of putting out quality products and more importantly, can they manufacture or produce your goods at a standard that meets your requirements?
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For more info on how to successfully setup an outsource manufacturing project, download our free ebook that will teach you everything you need to know to get your product developed and manufactured properly, and for the best possible price!