Outsourcing is a great way to reduce a company’s overhead costs as well as increase productivity. Whether you seek custom motor manufacturers or specialty parts abroad, it’s important to know how to set your business up for success.
Michael Bloom, president of Sinotech, is certified by the U.S. Small Business Administration as a Global Trade Counselor and by NASBITE International as a Certified Global Business Professional (CGBP). He has published more than 50 magazine articles and conference papers and has been quoted often in various media outlets on issues concerning outsourcing. Below, he offers five tips to help a business ensure success when outsourcing.
- Consider trade trends and economic growth. The country that you wish to outsource to should make the trade process simple. The best countries from which to outsource are generally those that have a steady increase in per capita income and imports.
- Examine the transportation infrastructure. Don’t stop your search for a factory when you find labor costs and tariffs that fit your budget. Have a good understanding of the country’s ports and ground transportation issues to make sure your product can make it from the factory to the shipping company without any delays.
- Verify the workforce. When you have a deadline, a factory’s workforce can help or hinder your goals. Make sure the workers fulfill your company’s needs and are sufficient in number to get the project done in time.
- Inspect the factory. You can’t always rely on a person’s word or pictures that you see online to vet a factory’s size, workforce and capacity. Always audit a factory in person, or send a representative to do so, to make sure it meets your standards before making any deals.
- Conduct ongoing audits. It’s not enough to inspect a factory before starting a project. You or a representative should periodically visit the factory to ensure the continued quality of the product ordered.
Having an experienced outsourcing partner at your side is the first step toward having a successful and profitable outsourcing experience. If you seek custom motor manufacturers to make BLDC motors or other custom parts, the experts at Sinotech are ready to help you with your endeavor.
Contact Sinotech today to learn more about its full-service operation and quality control practices. Curious as to how full-service custom motor manufacturers like Sinotech can reduce your offshore production risks? View our infographic to learn more!