With current technology, the world seems much smaller than it used to be. In seconds we can contact, text, or email anyone located almost anywhere on the globe. The world becoming “smaller” has many people choosing to conduct business offshore. A growing percentage of businesses are finding that making their products offshore makes sound business sense. Before you make the move there is much to consider. Many people focus so much on their product that they often neglect or minimize an important component of offshore production: Shipping and logistics.
Research Is Important
Shipping and logistics are not as simple as they seem. A little upfront research could save you from a stressful and unexpected experience.
For instance:
- Which freight forwarder should I use?
- Do I really need a broker? What do they do?
- What is the duty rate on my goods?
- Are my goods classified correctly?
- Do I have the time, expertise, and resources to do this myself or do I need to consider working with an offshore manufacturing expert to manage my complete offshore supply chain?
- How much will shipping rates increase my total cost?
- How often do I need to receive shipments compared with my warehouse space and my sales volume?
- What is the factory’s flexibility on shipping schedules? How will that impact my price?
- How can my product be packaged as efficiently as possible to keep shipping costs to a minimum?
- How can I be sure I’m routing my shipments in the most economical way?
- Can I save money by doing some of the logistics work myself? If so, what can I do? Who do I contact?
Knowing the answers to these questions and others is important to your overall offshore business strategy. While manufacturing offshore has many benefits, it is something that you will need to explore fully before making the move. Working with experts in the business can make a big difference.
Look and Use Helpful Tools
In addition to working with experts to guide you through the process, you may want to look into utilizing a shipping calculator. These load calculators can help you determine your costs, but also suggest the most efficient way to pack your shipping containers to get the most value for your money. Having a calculator at your disposal can give you some insight into one aspect of the shipping and logistics costs associated with offshore manufacturing.
ITI Manufacturing Can Help With a Smooth Transition into Offshore Manufacturing
If you are seriously considering offshore manufacturing our OEM service will be right for you. If you are currently manufacturing offshore and things are not going as smoothly as you think they should, you should consider our Offshore Management Services (OMS). Either way, contact us, and let’s discuss where you are right now.
We have been helping people make the safest, reasonable, logical, and most profitable decisions for more than 45 years. We would appreciate the opportunity to help you succeed as well. We offer both contract manufacturing and offshore management services. We have our own dedicated, full-time staff on the ground in China so you never have to leave the States if you choose not to. We will help you choose the right factory, protect your intellectual property, and guarantee no manufacturing defects.
If you are curious about how many of your products will fit into a container, try our easy-to-use shipping load calculator.
