EP4. OVERSEAS VS. LOCAL MANUFACTURERS
CHOOSING THE RIGHT MANUFACTURER FOR YOU AND YOUR PRODUCT.
WITH OUR ADVANTAGES & DISADVANTAGES OF LOCAL VS. OVERSEAS
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Intro please..
Hello, and welcome to episode number four of the product founders podcast!
If you are wondering where to start on your hunt for a manufacturer, then this episode is for YOU!. It’s about Choosing the right manufacturer for you and your products.
We will go through:
The basics on what a manufacturer is and the different types.
The advantages and disadvantages of overseas and local production.
Choosing the right type of manufacturer for you.
Why you need both local and overseas manufacturer options.
Talking about overseas manufacturers in China, India, Vietnam and Europe
Talking about Domestic or local suppliers in Australia.
How to approach a manufacturer when you are ready
WILL YOU EVER FIND THE BEST MANUFACTURER FOR YOUR PRODUCT?
yes! And we’re going to do it right here and right now. Don’t worry, we got you!
DIFFERENT TYPES OF MANUFACTURERS:
Manufacturer or Factory: will work with you to produce a custom or original product
Supplier, Wholesaler or Distributor (can sometimes be the direct manufacturer): but are more often than not, a middle man who purchases already existing products and brands (without much development) and on-sell them to retailers or brands. These suppliers may be involved in the latest trends for fast moving products for ecommerce without having to design and develop too much. However they would have already marked up the price directly from the manufacturer.
Drop Shipping Companies or Manufacturers: that make items for direct shipment from factory to customer, usually through third party brands or online retailers.
Advantages of overseas manufacturers:
Wide range of manufacturing techniques
Innovation in machinery and materials - insight into global markets and trends
specialized suppliers / Focused expertise
Sometimes more affordable costings based on volume and labor costs
More capacity for volume and larger units
Long term Relationships bring power
Transfer of Risk - No need to buy your own specialized equipment or premises for larger operations.
DISADVANTAGES OF OVERSEAS MANUFACTURERS:
Communication barriers
Longer production and development timelines
Expensive freight
Slower delivery times
Duty and customs fees
Set up a process to audit suppliers before and during your relationship
Quality control and auditing
ADVANTAGES OF LOCAL MANUFACTURERS:
Quicker turnaround times
No communication barriers
Shorter delivery times
Freight cost reductions
In person meetings
Use of the “Made local” marketing messaging
DISADVANTAGES OF LOCAL MANUFACTURERS:
Limited manufacturing capabilities
Higher costs per item
Middle men or added mark-ups
Limited colour or material options, due pre-decision making
Possible loss of control over every detail
WHAT DO YOU NEED TO APPROACH A MANUFACTURER?
What do you need to approach an overseas manufacturer:
Company or Business Information
Idea of MOQs
Timeline expectations for production
Audit and regulation questions ready
Ideas around the materials and features of your product
Design Packs of products and packaging
Communication is done online or by email or video conferencing
Request samples and swatches
What do you need to approach a local manufacturer or wholesaler:
The same information
Create a meeting in person to see samples
LINKS AND RESOURCES
Our Facebook Community - The Product Founders Inner Circle
More about Overseas Benefits - The Key Benefits of Offshore Manufacturing
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