Question: What is one major challenge I should be aware of before manufacturing my product abroad?
Quality Assurance
"Quality assurance is a popular topic when it comes to manufacturing abroad for good reason. It is very easy to lose product quality while manufacturing elsewhere. Things usually start off OK, yet as time goes on, the quality can fade without your awareness. To better prevent this from happening, ensure you have quality clauses in your contract and you are always testing devices on your own."
@apthomas
Managing Cash
"Fixed costs of producing overseas are lower, often by 10 times! But you still need to manage your cash. Production takes longer (you're not there to push the team); and of course you need to transport the products across an ocean. At first you'll pay 100 percent upfront, which means you might pay for product you can't sell for 90+ days. And if your client doesn't pay you on time, you're in serious risk."
@MosesOfWatches
Large Quantities
"You're going to have to order LARGE quantities if you're going to make it worth it to your business. It's going to cause a bit of a cash crunch. When I used to own Organize.com, we'd sometimes have to order 10,000 units to get a price break. This can be hard for a business as most products take 2-3 months to reach the U.S."
@johnrampton
Understanding the Host Nation’s Culture
"Corporate giants often take advantage of developing counties. Before moving, you need to understand how the company will influence the new community by acknowledging the host nation’s business climate and culture. To make this easier, choose a foreign partner that shares the company’s values. However, the adjustment period will be demanding, so your team must be ready to learn."
@MinaChang
Relationships Oversees
"Relationships can be more important than profits. The best advice is this: go to your factory and spend a lot of time there. Eat with them, meet their families, get to know them. This establishes respect and a shared sense of responsibility. The factory is less likely to be afraid to bring you potential problems if they feel like your business is built on a partnership as opposed to a transaction."
@jeffdenby
Protecting Your Brand
"Manufacturing abroad, especially in Asia, could be detrimental to the integrity of your brand. So much of what we buy comes from China and, while people are generally accepting of items like electronics being made there, there's a trend towards domestic manufacturing for personal care items. If your product goes in someone's mouth or on their body, think twice before producing it abroad."
@DerekLuxe
Time Zone Differences
"One of the biggest challenges manufacturing products abroad is time zone differences. Most, if not all, of your most important calls with manufacturing specialists will occur based on the availability of the manufacturer. This means if you are on the East Coast you'll likely be doing calls very late in the evening or during the wee hours of the morning. China is 12 hours ahead of Eastern time!"
@krisjonescom
