Overseas manufacturing challenges-Buyer’s perspective.

Designers, Engineers, and Manufacturers around the globe want to enable cost-effective production. Manufacturing one spare-part or a product within the US or EU is expensive than manufacturing it in India or China. Both countries have the human resources and supporting natural resources to make this possible. India and China together account for about 36% of the world’s population. Although these countries function as the manufacturing hub for the world, buyers face challenges while approaching overseas manufacturers. Below are the main challenges faced by buyers with overseas manufacturers:

1.Inconsistency

Quality, Quantity, and Time are three crucial factors that need to be considered while planning out a production process. Bringing in consistency to those factors is the simple recipe for a manufacturer to stay in business and become successful. Inconsistency is a common challenge faced by buyers. Buyers complain that;

“Samples often don’t match production runs”
“Delay in lead times”
“Inconsistent quality”
“Not following quality procedures”

The purpose of standard certifications like ISO9001, AS9100 should bring confidence to the customer. Only a few certified manufacturers follow the quality practices that give out consistent results. Large companies visit and conduct regular audits of their overseas suppliers. However, for small businesses, this is not the case.

Manufacturers in India and China has to spend time on implementing standard processes and should audit and improve the method and process at regular intervals. Investing in practices like 5S, Kaizen, Lean can improve productivity in the long term.

2.Communication

Another great challenge faced by buyers is ‘Communication’. Proper communication builds trust between buyer and manufacturer. Poor or misinformed communication may keep the customer uneasy and distracted. Many buyers complain;

“Not operating as a team with us”
“Sales guys don’t realize the (machining) process”
“Big cultural differences”

Most buyers are inclined to help their suppliers. Even though they face challenges, the suppliers are expected to be transparent about the difficulty. But only a few manufacturers spend time understanding the customer and their expectations.

A good communicator doesn’t need to speak multiple languages but should be ready to convey, explain and elaborate things to the customer so that they will move forward in the right direction.

3.Business relationship

Most manufacturers in India and China are focused more on customer acquisition than relationship. Maintaining an honest customer relationship may be a never-ending process like all other human relationships. Often manufacturers consider businesses as only trading value for money and fail to think long term. Especially, Buyers who are launching their first product might expect more than just a price quotation.

Metalripper is initiated to make a meaningful impact in the machining trade. We work closely with the machine operators to empower them with the necessary skills while providing the customer with peace of mind. Each customer is assigned a dedicated Project Engineer, who will be in touch with the customer as well as oversee the manufacturing process.