Benefits of using a local company to manage your overseas manufacturing

Benefits of using a local company to manage your overseas manufacturing

Driven by the requirement for cheaper manufacturing costs, outsourcing to China has become popular. In reality “cheaper” is not always the case, particularly for businesses who have no experience in managing this process.

If you are new to  overseas manufacturing you have to be aware of some incidental costs you may incur and issues that may need managing.

  • Time and travel taken to source a quality manufacturer
  • Incidental costs – time and money for email/telephone communications
  • Transport and logistics – land/sea
  • Turnaround times
  • Quality control
  • Guarantees/warranties (cost of returning sub-standard products)
  • Currency variations and payment terms
  • Different business processes

That being said, for products that have a high labour component or for bulk orders there are opportunities for considerable savings in China.

So how do you make a success of manufacturing overseas?

The key is to use an experienced local manufacturer to manage this process, that has existing overseas relationships and has the project and quality assurance management systems to ensure products are manufactured to the agreed standards.

For example at Unique Engineering Group our offshore builds carry the same level of quality that our customers have come to expect from our domestic built tooling.

  • We supervise and sign off on all tooling designs
  • We often send Australian personnel overseas to supervise the mould sampling before the tool ships
  • We stand behind our offshore builds 100%. This means we warranty and service the tools the same as if we’d built them ourselves
  • We arrange our approved T1 samples to you for your approval prior to the tool shipping.
  • We can even arrange for product to be produced and then shipped prior to tools if urgent production is required

So if you are considering manufacturing in China to cut costs – do your homework and compare the costs and labour of managing the process yourself vs using a local manufacturer to organise and oversee the process.

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About Graham Dickson

Graham Dickson has been involved in the design and manufacture of tooling for the plastics industry for the past 35 years. He has extensive experience in the design, manufacture, and purchase of tooling for the plastics industry from local and overseas markets.