On 12/6/12, “Newsday” posted on its website an article entitled, “Manufacturing Firm Offers Tips for Eliminating Risks when Outsourcing to China”. http://markets.financialcontent.com/newsday/news/read/22925155/Manufacturing_Firm_Offers_Tips_for_Eliminating_Risks_when_Outsourcing_to_China
MERI China is a U.S. based and U.S. owned global OEM company for small to medium-sized companies whose market share is typically confined by their infrastructure. MERI’s U.S. office is in Spokane, Washington, and its office in China is located Xiamen.
In their on-line posting, “Newsday” excerpts portions of an article from MERI China entitled, “HowTo Eliminate the Risks of Outsourcing Manufacturing to China” posted by Marketer’s Media on 12/01/12. “Newsday” prefaces their excerpts from the MERI article by saying:
“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.”
The excerpts from the MERI China article are very informative and useful. Those excerpts in their entirety from the Newsday posting follow below:
“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”
For more practical and potentially money, time, and frustration saving tips on avoiding risks inherent with outsourcing manufacturing to China I suggest it would be worth the time to visit the MERI China website and read the article in its entirety. Go to:
http://merichina.com/index.php/blog/a-guide-to-outsource-manufacturing-to-china/
Hawkeye in China
– LEX SMITH