Working with overseas manufacturers

Outsourcing your manufacturing can cut costs, but it can be a danger to your company as well. Overseas outsourcing can cause a lot of frustration to your customers as many of the call centers overseas have very thick accents, making it hard for your customers to get the support and help they need. However the cost of having toys and other things manufactured overseas may be significantly less due to salaries of the workers. In overseas countries the value of the dollar may be much higher, causing you to pay less per unit that you will in the States.

Most companies outsource at least one thing whether that is the actual production of your products or payroll services; you are most likely going to outsource at least one thing. One common rule people follow is leasing what depreciates, which is why so many companies outsource a lot of things.

One of the biggest reasons to use outsourcing is because of the ability to avoid the cost of purchasing manufacturing equipment along with the raw goods you need to create the products. When you do so, you are able save yourself money on these costs and also on the maintenance of these machines. This is a great way to strengthen your cash reserves and to put the responsibility of your manufacturing processes on another company that will need to deal with the liability issues.

Staffing is another cost you can avoid when you are dealing with overseas manufacturers. Since it takes a lot of people to run a manufacturing plant, you don't have to worry about finding these employees to run the machines and to run the company. This cost savings is huge for your business as you also reduce your liability issues that are common for manufacturing plants and employee injuries.

Product defects and recalls must be paid out of the pocket from your manufacturing plant. This is another big cost savings to your company bit you still risk dealing with the customer fall out that may come as a result of your inability to provide your customers with solid products that are free of defects and other problems.

It can be stressful and frustrating for businesses to deal with the employees that work at the manufacturing plant, especially if they are interacting with your customers. If you are outsourcing your call center, you need to be extremely picky and consider the needs of your customers. A lot of companies have switched to automated call service centers. These automated services allow many of your customers to have their simple needs met but you will be responsible for providing some customer service agents that can handle additional needs that cannot be handled with the automated system.

Overseas manufacturers are not right for everyone. Always consider the type of industry you are in and the customers you are working with. Having a complex industry may lead you to seriously consider using overseas manufacturers that are industry specific. Outsourcing to companies that are not industry specific can cause problems for you and your customers. Many times the people manufacturing your products or talking to your customers will have no knowledge about your company and your industry whatsoever, leaving both them and the employee frustrated.

Many companies consider using overseas manufacturers and outsourcing when they are expecting an influx of orders. If you are in a growth spurt, you need to consider outsourcing your production even if it is only for a few weeks or months. This way you can manage the changes in a timely manner and you will be able to manner your business while you are adjusting to the changes of growth.