Adding Up the Costs of Offshore Manufacturing

Offshore manufacturing, like any other business decision, must be cost-effective.  Although it may seem like an obvious way to increase profit to many business owners, there’s no way to know without a realistic look at the actual costs involved.

Taking a holistic view of the complete process can help you identify basic and not-so-obvious costs that impact your bottom line.

Costs of Offshore Manufacturing

Viewing the costs of overseas manufacturing holistically is a great way to ensure you have a complete view when considering manufacturing in Asia – or elsewhere offshore. In fact, taking this approach allows you to discover:

  • Basic costs of operation: Material acquisition, MOQs, IP protection, testing, shipping materials, shipping costs, insurance, customs fees, and transportation services from port to the final destination.
  • Potential and hidden costs: Shipping delays, manufacturing errors, materials damaged in transit, additional red tape requirements, unexpected tariffs, material shortages and “long lead time” components.

How ITI Manufacturing Helps Reduce Costs

Offshore manufacturing is prone to hidden costs because products are created and shipped to a business from half a world away. However, working with a skilled manufacturing liaison like ITI Manufacturing helps keep hidden costs to a minimum.  ITI Manufacturing has been manufacturing offshore on behalf of our clients since 1974.  We know where the hidden costs are. In particular, businesses which choose to partner with a liaison enjoy:

1. Total Visibility of the Budget.

You’ll know exactly what you’re paying up front because ITI is aware of all the basic costs as well as the potential hidden costs. A total cost quote will reflect this – there are never surprise fees or unexpected bills.

2. Expert Negotiations.

The ability to negotiate is critical to securing the best possible agreement with an offshore manufacturer. ITI’s domestic staff is multilingual and understands the cultures in which they work to amplify the effectiveness of negotiations.

3. Professionals on the Ground.

Hidden costs occur when no one knows where to look.  ITI Manufacturing has professionals on the ground to keep an eye on quality and adherence to specifications. They know where to look.  Save money and reduce costs.  Have your products manufactured currently the first time.

Start Saving with Overseas Production Today

Offshore manufacturing is an excellent way to reduce a company’s operating costs. By identifying all of your costs, both visible and traditionally hidden, you will have the detail you need to be on schedule and within budget.

ITI Manufacturing has enjoyed assisting companies with savings by moving their product production to qualified offshore manufacturers since 1974. Call ITI Manufacturing to speak with one of our experts today at (281) 242-7030. Let us help you discover if your product or component is right for offshore manufacturing.

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