Manufacturing firm MERI China has released a step-by-step guide to help eliminate the risk of outsourcing manufacturing overseas which help companies save time and money.
— Spokane Washington - Dec 1, 2012 - Because of its unbeatable low production and labor costs, many companies are turning to China for their manufacturing needs. To prevent potential problems from occurring in these off-shore relationships, MERI China, a U.S.-based manufacturing firm, has released a tip sheet for avoiding risks when outsourcing manufacturing to China.
Many companies have a less-than-ideal experience when choosing to outsource manufacturing needs to China. Often, they will receive an incorrect or low-quality product that doesn’t meet their specifications, or they may find that their contract was not honored to the letter.
MERI China’s tip sheet aims to help companies prevent these and other mistakes from happening. By following MERI China’s tips, a business can expect to have a much better, risk-free experience when outsourcing manufacturing to China.
A few of MERI China’s tips for eliminating risks when outsourcing manufacturing needs to China include:
• Be very specific. Outline the exact specifications of every piece of every product, including any parts or materials that must be used. Additionally, be specific about the working conditions and wages that should be employed when manufacturing products. This helps prevent any unsavory practices from tainting the company or its reputation.
• Use a letter of credit system. Don’t pay up front. Chinese companies are notorious for not honoring contracts to the letter. Have the company’s bank issue a letter of credit to the manufacturer, outlining what the payment terms, as well as what conditions must be met before payment is released.
• Hire experienced management. Dealing with outsourced Chinese businesses can be very difficult. Hiring a manager who has experience and skills in this arena can greatly increase the effectiveness and productivity of an outsourced relationship.
Hong Huang, vice president of marketing at MERI China , says he hopes these tips will help local companies find outsourcing a more viable option for their business needs.
"There are risks associated with outsourcing to China," Huang says, "but being knowledgeable and aware of the possible hazards can greatly increase your chances for success and foster a relationship that can be beneficial to both you and your manufacturer."
For more tips on outsourcing manufacturing needs to China, see MERI China’s article, "How to Eliminate the Risk of Outsourcing Manufacturing to China." Learn more about MERI China at http://www.merichina.com.
Organization: MERI China
Phone: (509) 774-3960
Release ID: 845