Manufacturing in Asia

Utilizing an offshore manufacturer in Asia can bring with it numerous benefits… and maybe a few headaches if done the wrong way.

 
 
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The Advantages of Manufacturing in Asia

  • High Volume Production

  • Lower Manufacturing Cost

  • Production Efficiencies

  • Manufacturing Knowledge

Working with the right manufacturer can help you optimize your product manufacturing process, help you control costs, and quickly bring your product to market.

 

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The Headaches of Manufacturing in Asia

  • Finding the right Manufacturer

  • Cultural Differences

  • Language Difficulties

  • Quality Inconsistencies

Working with the right manufacturer can help you optimize your product manufacturing process, help you control costs, and quickly bring your product to market.

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STAK helps you experience the benefits… without the headache

We have been with Asian manufacturers for over 25 years and help companies navigate the complexities of doing business in Asia.

  • Product Analysis based of best manufacturing practices

  • Connecting with the right vendors

  • Communicating your priorities and quality expectations

  • Navigating cultural and communication difficulties.

  • With our offices in Asia, we represent you at the factories

6 Roadblocks to avoid when doing business in Asia

There are numerous benefits for doing business in China. Don’t let unforeseen roadblocks derail your success.

Download this free resource to discover the 6 Roadblocks you need to avoid while doing business in China.

 
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Our Process

 

Step 1: Free Product Analysis

Discover how your product can be optimized, producted efficiently, have the quality improved, or if you product is right for high-volume production

Step 2: Vendor Selection

We obtain preliminary pricing from factories and identify the ideal manufacturing processes to use based on the project needs. This might involve using a flexible process for smaller quantities to minimize tooling and mold costs- such as laser cutting. Or, it may be determining tool and mold prices to reduce unit costs with a process such as injection molding.

At this stage you will know how much engineering time will be required, an estimate on unit costs, and any mold or tooling costs that might be required for the project.


Step 3: Product Optimization

This is where we execute our game plan and where the real fun begins. Many projects will require several iterations of prototypes and samples before and after an tooling begins. Occasionally we create samples that are used for photo shoots and marketing purposes before production begins.

Getting this step right is vital to the process. Each refinement of the product has a lasting impact on the ease of production and the lifelong quality of the product.


Step 4: Delivery

As soon as the design and samples have been validated, production can begin. Our team is there every step of the way to ensure consistent quality in production. We also help you navigate the complexities of importing your products into your original country.

Within a few weeks, you will have your products in your warehouse… produced exactly as you would expect them to be.

What is your new product development process?

Typically, a customer initially submits a product concept to the STAK engineering team in the United States for evaluation. We want be certain that the specifications and materials fit within our strict high-quality, low-cost parameters. If not, we will suggest alternatives. We can typically provide feedback to the customer within HOW MANY days as to likelihood of success.

That evaluation process includes thorough analysis of every detail of each product. We want to ensure that every cost-cutting possibility has been addressed. We then communicate directly with our Asian production facilities to determine which of them is best suited to produce the item(s) in a timely manner and most efficiently. Once we are certain the design and production processes are viable, we notify the customer of the cost to produce each item based upon the quantities requested and time required for manufacture and delivery

What is your new product development strategy?

The key to a successful product launch is to be absolutely certain there is no redundancy or other waste within the design itself. Every detail of each part is analyzed and assessed. Our engineering team is constantly searching for breakthroughs in source material for production that might improve quality, lower cost, or both.

STAK’s experience enables us to eliminate repetitive steps and other sources of wasted time so that our initial design recommendation is typically identical to the final packaged product. These steps save our customers tens of thousands of dollars and significantly shorten the time span between product design and launch

Why have a manufacturing agent in China?

There is no question that the least expensive way to manufacture most products today is by dealing directly with Chinese facilities. However, due to unique cultural and behavioral differences, it is virtually impossible for inexperienced U.S. firms to effectively negotiate optimum terms. The horror stories of Americans who feel they were somehow cheated or that the factory substituted materials and changed specifications at the last minute are never-ending. Experience tells us that these issues most likely stem from poor communication.

For example, a single product may have in excess of 50 specifications, such as a defined plastic resin to be used in an enclosure. We know that unless each of these specifications is clearly defined and communicated, the factory management tends to authorize substitutions that they genuinely feel will be advantageous.

The language barrier creates additional complications. Our experience and established presence in Asia enables us to effectively sidestep these issues. Our agents are experienced in these negotiations and will spend the required “Face Time” to ensure effective communications.

STAK maintains connections with both supplier and manufacturer to eliminate delays. The bottom line is that products are manufactured on time, at or under budget, every time.

Additional considerations include:

safety and product compliance freight and shipping coordination import and export documentation product evaluation and testing prior to shipping, and more…

Which product designing factors are more crucial?

Product designing techniques are at the forefront of all GVI activities. Design is the single most influential aspect affecting a successful product launch. It is also the costliest mistake to rectify.

The product design team absolutely must communicate thoroughly and frequently. When one of our engineers becomes aware of new regulatory updates, which occur constantly, he or she immediately notifies the entire team. In turn, the design team immediately connects with the production facilities to coordinate modifications.

What is global outsourcing?

Global outsourcing refers to the practice of a company contracting work to a disconnected firm, regardless of physical location. The company can outsource work to either another company or to an individual. They may be located around the corner or on the other side of the globe.

STAK specializes in connecting companies searching for manufacturing sources with companies that provide those services.

Done effectively, global outsourcing accomplishes functions that are beyond the ability or capacity of the company requiring those services. Typically, the quality is better and production is far less expensive than would be possible locally. It allows businesses to concentrate on the services they perform best. The trick is to be certain that you work with a capable intermediary to oversee the exchange. One which provides a physical presence in both places. Otherwise, the benefits of global outsourcing can easily be overcome by unforeseeable complications.

What is offshore outsourcing?

Offshore outsourcing refers to a situation where a firm located in one country contracts work to an unaffiliated company in a different country. Even though Mexico, for example, shares the same shores as the United States, the company is technically offshore for purposes of this discussion.

Obviously, offshore outsourcing makes a great deal of sense when the cost of production can be up to 90% less than it would be in the United States. Additional benefits include the ability of the source company to concentrate on product and service innovation while STAK handles:

design issues production schedules packaging delivery and more… Another benefit is the enormous manufacturing capacity available from Chinese firms. As an example, one GVI client developed a product with a component made of fabric. After searching multiple suppliers in the U.S., they only had a handful of color options. They were shocked to learn that our suppliers in China could produce the fabric in any color of their choosing.

Beyond the greater number of choices with materials, companies that wish to scale up production often find that American manufacturers simply do not have the necessary capacity.