Within the last few decades, there have been major advancements in global supply chain communication, transportation, manufacturing, and business relations. Now, many U.S. companies across all industries have looked to international factories to handle their manufacturing for both competitive pricing and high-end production services, while allowing them to focus their domestic operations on core competencies like sales, R&D, marketing, and customer service.
But managing your manufacturing and supply chain process on a global scale doesn’t come without many real challenges that can be hard to overcome.
If you want to be successful at global manufacturing, these are the top factors to consider to ensure your company comes out on top.
When sourcing from an international factory, your goal is to find one (or several) that can deliver high-quality products that meet your specifications and can be delivered on time. But to do that, you need to understand the risks of working on a global scale (and find ways to compensate for them).
The most common causes of global manufacturing interruptions and delays are:
For your supply chain to run smoothly, you need to choose a manufacturer that minimizes problems and focuses on meeting your service level agreements. It requires either extensive experience with a specific manufacturer, or working with a contract manufacturer like ITI that has vetted factories and formed their own trustworthy relationships you can rely on.
For any successful supply chain, it’s important to have open and honest communication between partners and suppliers. But, many companies dive head first into a new relationship without considering how to overcome cultural differences that make routine communication difficult and wreak havoc on your operations.
Understanding and overcoming cultural differences takes time and patience. At ITI, we’ve worked with suppliers around the world for over 50 years, which means we have plenty of experience bridging the gap between cultures. We’ve seen firsthand that proper communication leads to fewer defects, better products, and an easier time coordinating supply chain operations.
Every business is subject to government laws and regulations. The challenge is that complying with American manufacturing standards is not the same as international regulations. For the most part, there are less regulations for international factories, which is what allows for lower production costs.
Handling government regulations is always tricky, but becomes an even larger problem for protecting American intellectual property. It’s not uncommon for companies to see knock-offs of their products.
It’s always critical to consult with a qualified IP attorney first or a professional manufacturing liaison. They can advise you on how to protect your business and best work within international government regulations.
Quality control in manufacturing is what sets successful businesses apart from average ones.
No one wants an unpleasant surprise when the first shipment of products arrives. Learn more how to ensure quality products every time.
Transportation and shipping logistics, along with inventory management, are often the most costly aspects of any supply chain. There are multiple factors to consider such as:
Looking to calculate your own shipping costs? Use ITI’s Free Cargo Load Calculator.
Many companies have to ask themselves: Do I have the time, expertise, and resources to do this myself? It can be a steep learning curve to learn how to optimize the process and your costs.
If the answer is no, you can turn to a partner like ITI to handle all your shipping and logistics, so you can focus on the rest of your business.
With any number of moving parts and suppliers, companies need visibility into their supply chain at any moment to know:
To make business plans and coordinate operations, companies need to be able to assess what’s happening now and how to plan for the future.
At ITI Manufacturing, our policy is to send you detailed and specific updates every week about the status of your projects, orders, and shipments. You don’t have to guess and can proactively plan for production, inventory management, and shipment scheduling.
Problems are bound to happen during a lengthy supply chain process, whether it’s a problem with a manufacturer, or a shipment getting stuck in customs. You have two options: either resolve the issues yourself or have a partner that handles them for you.
For example, ITI Manufacturing takes issue resolution seriously. We immediately acknowledge problems when they happen and work to resolve them to our customer’s satisfaction.
Global manufacturing should be a rewarding and profitable experience. But the reality is that it can be complicated and cost-prohibitive, if you don’t have the right processes in place.
If you’re overwhelmed handling your own global manufacturing, it might be time to consider working with a partner like ITI manufacturing. We provide unique, turnkey manufacturing services and work primarily in China, South Korea, Taiwan, Vietnam, and other various countries. Our unique approach will ensure visibility, predictability, and accountability.
Getting started with ITI is easy. Schedule a meeting with our team today to discuss your project.
Contact ITI to learn more information.
ITI Manufacturing is an American-owned company with a passion for helping U.S. companies grow their business through global manufacturing. We are headquartered in Texas and are proud to be 100% employee owned. ITI provides unique, turnkey global manufacturing services in The Americas, China, Vietnam, South Korea, Taiwan, India and elsewhere, with proven capabilities in manufacturing products from plastics, metals and more. Through our expertise and long-term relationships, our team partners with U.S. customers to provide reliable manufacturing, accountability for issues, and supply chain visibility.
