Pros and Cons of Outsourcing your Manufacturing:
Services in China
Outsourcing can be one of the best things you do for your business. Outsourcing gives you time to tackle other tasks in your business. Outsourcing also allows you to use experts to get your product created. Outsourcing manufacturing to China is not new. It is something that companies around the world rely on to keep their products in stock and their businesses running successfully. Even with so many benefits to outsourcing your manufacturing needs, there are still some pertinent things to keep in mind. One argument could be that shipping your products from China to the US could diminish the cost savings. On the contrary, businesses find that the opposite is true.
Pros
Lower Cost and Higher Margins
One of the main attractions to manufacturing in China is the lower cost of doing business. China can offer cheaper labor and a larger available workforce. This means that businesses can get their goods produced in large quantities for less. When profitability is at risk, taking the business to China becomes more appealing.
Small business-friendly
With lower costs and the attraction of higher profit margins, small business owners turn to China for manufacturing. Stateside, large businesses like to work with large manufacturers and large manufacturers like to work with large businesses. Manufacturers in China are more concerned with making sure minimum order quantities are met. They are less worried about the size or the popularity of the brand.
Cons
Time and Communication
China is approximately 12 hours ahead of the US. The time difference could be difficult. It could be hard to contact the China manufacturing facility. If there is an emergency the communication back the US business will be delayed. This could cause delays in responses. If the China manufacturing facility needs an answer to continue the project, delays will happen. The time difference could cause problems for brands with a tight timeline.
Language barrier communication
The China manufacturing facility will be staffed by people in China. This means that English will not be the primary language. If the native language is not spoken by either party, it will be hard to communicate requirements. A translator is one way to work around this problem. There are two considerations when collaborating with a translator:
- You will have to pay them. If this added overhead is not in your budget, you risk cutting into profits. Exact wording or inflections may be lost with a translator.
- English words do not always have a translation into other languages like Chinese. Chinese languages do not always have an English translation either.
When weighing your manufacturing options, it is important to consider everything. It is also important to know what is most vital to your particular brand. Global Manufacturing and Sales can help in the decision-making process. We specialize in sourcing, manufacturing, and quality assurance for all brands and businesses.
To get more information on how we can meet your needs, contact us at Info@GlobalManufacturingSales.com or (732) 970-7800.
