Business owners who are involved in every step of the production,
marketing, sales and shipping process know that it doesn't just cut
costs to outsource production; it saves a lot of stress and time as
well. China is famous worldwide as a source of expert, affordable and
efficient factory production teams, and for many Western businesses, it
makes good sense to move product manufacturing away from company
headquarters. This may seem like a daunting challenge to the
uninitiated; however, the process of outsourcing production to a skilled
Chinese team is simpler than many small business owners -- and CEOs of
large companies -- realize. For startups, outsourcing from the outset is
even simpler.
1. Assess Key Elements of the Product
Not every idea will be interpreted the same way by other people, so
the most important step in outsourcing is the first: assessing those
elements that are absolutely necessary to the product and drawing up
professional, detailed designs. The more detailed the designs, the more
closely the finished product will resemble the original idea.
Outsourcers should consider trying two or three different manufacturers
at the initial stage in the process, simply to evaluate the skills of
each and the differences in the finished products.
2. Evaluate the Available Manufacturing Companies
Interested parties may find Chinese manufacturing companies via a simple Internet search or by visiting
AliBaba,
Made-In-China or
Global Sources.
The China Synergy Group is
another great place to start the search, as it outlines each step in
the production process and relates to specific manufacturers with regard
to plastics, metals and other materials. Before committing to any
manufacturer, due diligence must be given. Business owners need to see
product mock-ups and final phase products, and discuss pricing and
long-term services. In some cases, it is advantageous to visit the
factory in question.
3. Hire a Knowledgeable Consultant
It is rare that a western business owner speaks fluent Mandarin or
Cantonese, which means that any business interested in outsourcing to
China would benefit greatly from an experienced bilingual consultant.
This person can help clear up misunderstandings and issues before they
cause trouble and let CEOs in on any legal implications of hiring and
shipping within China. This person will ideally not be directly employed
by the manufacturer and can often come from a legal firm or group of
experienced trade intermediaries.
4. Consider the Logistics
Shipping, tariffs and the number of products per shipment can all
affect the final profit margins, and furthermore, one method of shipping
is not always as reliable as the next. It is best to evaluate many
different options before making a decision about a shipment company,
methods of transportation and other logistic issues. It may even be
better to ship the product in several pieces rather than fully
assembled, both to save on time and ensure that the product arrives at
its destination without breaking. The final decision may affect how the
product is manufactured, as well as how it is shipped, so all parties
must be in on the conversation.
5. Do a Short-Term Trial Run
Once all the details are in place, it can be tempting to sign up for
the long haul, but a trial run will let CEOs know whether they have
missed any details or perhaps made a wrong decision along the way. If
the trial run is smooth and any mishaps are easily fixed, the company is
ready to move to full-on outsourcing, leaving employees in the office
to concentrate on marketing.
