Are you ready for round TWO of “6 Benefits of Offshore Manufacturing”? If you missed part one of this post, don’t panic! You can find it right HERE.
- Transfer of risk – Working with a supplier overseas allows you to transfer risk during the most critical phase of business. Risks you can avoid include the purchase of sophisticated and expensive equipment, labor costs (including workers compensation) and other overhead costs. However, it is extremely important to create a set of guidelines for auditing and qualifying each supplier and to grade the supplier against these criteria in person before launching production. Let’s not forget Nike. Too soon?
- Sourcing close to raw materials - Procuring raw materials closer to the source provides tremendous savings. For example, in the case of raw materials, like rubber, it makes sense to source and manufacture rubber components where rubber is most prolific (SE Asia). Check out how China has made increasing raw material availability its checkmate strategy in the global manufacturing game.
- Enter new, international markets – Moving your manufacturing offshore opens your business up to new opportunities, including insight into the latest and most efficient manufacturing techniques and potential exposure for your product on an international level. Commerce is increasingly global – especially in this digital age – and being able to hold your own on an international platform is a must. Creating and effectively managing a global supply chain increases your company’s resources, competitive edge and reach.
Hopefully you have gained better insight into the substantial benefits of taking your production offshore. East West has found success offshore, and we hope you do too! Reach out to us with any questions you may have. And while you’re at it, check out this white paper to learn more tips for success: