{"id":1384,"date":"2016-10-29T04:40:35","date_gmt":"2016-10-29T04:40:35","guid":{"rendered":"https:\/\/productcrew.com\/?p=1384"},"modified":"2016-11-18T16:20:39","modified_gmt":"2016-11-18T16:20:39","slug":"trouble-free-offshore-manufacturing-really","status":"publish","type":"post","link":"https:\/\/productcrew.com\/?p=1384","title":{"rendered":"Trouble-free Offshore Manufacturing. Really?"},"content":{"rendered":"

\"offshore-manufacturing-1\"<\/p>\n

Trouble-free Offshore Manufacturing. Really?<\/em><\/strong><\/h4>\n
Adding 10%, 20% or 30% to your bottom line margin is a pretty big motivator to consider manufacturing in Asia. However, based on scary Internet posts, or your entrepreneur friend\u2019s failed attempt ordering product offshore through a gigantic Web portal, you might be wondering if it\u2019s possible to engage in manufacturing overseas without major complications.<\/span><\/strong><\/span><\/h6>\n

Here are five keys to help you take advantage of trouble-free offshore manufacturing in China. <\/strong><\/h3>\n

Key #1:\u00a0 Chinese Holidays Matter<\/strong><\/h4>\n

China has distinct advantages over outsourcing your manufacturing to other Asian markets, mostly because they have a longer history of maintaining the higher standards set by their Western business partners.<\/p>\n

So why are Chinese National Holidays such a big factor to emphasize?<\/p>\n

In the West, texting under the Thanksgiving dinner table, or slipping away to confirm a looming January product delivery while the kids open their Christmas presents is no longer a big deal. You may have done this yourself.<\/p>\n

In China, everyone from chief executives to factory line workers, closely observe all national holidays. Work and business communication cease almost completely to allow for travel and focus on family. According to China\u2019s National Development & Reform Commission, approximately 3.6 billion trips were made during the 40-day period surrounding the Spring Festival 2014, making it the largest human migration in the world.<\/p>\n

The two main \u201cGolden Weeks\u201d celebrations likely to impact your production are Chinese New Year (CNY), which takes place in January or February, and the National Day Golden Week that occurs near the beginning of October.<\/p>\n

Workers receive three days of paid holidays plus the adjacent weekends to give them a full seven days of time off. One to two weeks before each celebration, all suppliers start to wind down operations in advance; no new orders accepted; mass production and sample development are halted. As the migration returns, getting operations back up to full speed takes time, creating trickle-down disruptions across supply chains depending on the industry.<\/p>\n

Ignoring these important cultural differences and timeframes can cost you valuable go-to-market time. In fact, not planning around them could bump product development or shipments into the following calendar year buying cycle in the West.<\/p>\n

To help negate any issues, one of the best things you can do is establish a strong relationship with your manufacturing partner or supplier early on. Develop your schedules for lead times, tradeshow samples, shipping, and product rollouts accounting for potential productivity gaps stemming from the major Chinese holidays. Once you reverse engineer key dates from your desired product ship dates it\u2019s easy to reduce potential interruptions.<\/p>\n

Here is a sample CNY schedule to help you plan. (Apply the same time spread for National Day Golden Week in October.):<\/p>\n

\"chinese_holiday_timeline-1\"<\/p>\n

Key #2: A napkin sketch won\u2019t do.<\/strong><\/h4>\n

Good design is key to any successful product. It\u2019s especially important when those design details need to be executed by people which are continents, cultures, and languages away.<\/p>\n

To preserve your design integrity, it\u2019s best to develop your own innovation and brand aesthetic as far down the pathway as possible before handing it off to an offshore manufacturer.<\/p>\n

Put simply, you need to be crystal clear about your product expectations.<\/p>\n

For you, that may mean delivering computer-assisted design (CAD) drawings complete with Bill Of Materials (BOM).<\/p>\n

Others may need more research understanding compliance or regulatory requirements for an electronic, toy, or FDA controlled product before engaging in product development.<\/p>\n

If you\u2019re at the concept, sketch-only stage, steer clear of online sourcing or manufacturing brokers. Instead, research a manufacturer that has full-service product development capability in-house, or one that offers a manufacture readiness program. They can walk you through all the steps required to create a viable prototype. (Or, get your prototype built stateside first.)<\/p>\n

Spend the time up front to ensure your product is ready for manufacturing. The extra effort refining the specifics of your design early will save you time and money down road \u2014 and aid in your search for a prospective manufacturing partner. Then you can move forward with the least amount of risk to successfully build your vision.<\/p>\n

Key #3: Look beyond price. <\/strong><\/h4>\n

It\u2019s no secret when it comes to offshore manufacturing, Alibaba Express probably comes to mind first. In the U.S. there are maybe half a dozen factory choices (or even less) for your product, with upfront capital requirements as the main selection criteria. In Asia, there will likely be dozens of possible factories to choose from, each differentiated by size, production capability, experience, and more.<\/p>\n

This means you will be able to find multiple factories that could<\/em> produce your product. However, this multitude of choices also raises the obvious question: Which one will be the perfect fit? <\/em><\/p>\n

The key is to look beyond basic production capability to find a factory and team with the following attributes:<\/p>\n