Begin at the Beginning
Doing business with the Far East can seem rather daunting for those new to the task, but taking a strategic approach is the key to making the process manageable.
Companies considering this should conduct research from a reliable source before venturing into business in the Far East. Good research saves costs and improves the efficiency and impact from the start of your project.
As well as understanding what you want from your supplier of factory, you will need to understand your own business and ambitions. We picked out a few questions often raised, check though them and see if you know the answers before you start venturing into the Far East.
Do you know who to talk to, now or if things go wrong?
Are there any legal barriers to your business model?
Where in the Far East would you start?
Do you have sufficient resources (management time, project finance and expenses) to fund your projects in the Far East?
Who will be leading the project?
Do you need to work with a partner in the Far East to succeed and can you communicate with them effectively?
Have you evaluated your business risks (such as protecting your Intellectual Property) and conducted robust due diligence?
Do you know how to secure the right quality products?
Would you know what the best costs are?
Would you know who the best and most trusted suppliers are?
Which lawyers can you trust to handle your interests in the Far East?
The Far East is increasingly becoming a logical source of products and a place to outsource production to and companies wishing to obtain information thorough research can now do so. However reliable information that helps guide your business decisions about which supplier to select and work with can be hard to find in the Far East, especially given the pace and scale of development. Obtaining dependable information can often be more difficult than in Western countries.
In our experience rarely will business owners been able to answer to all of the questions above positively and this “knowledge gap” must form the basis of further investigation.
Over the years companies have had problems getting good quality products from the Far East for many reasons, production quality issues, material problems and difficulties with the chosen factory, or chosen country etc, etc.
Many have asked us about opening a small factory so that they control their product they receive and the quality they need. If you were considering this option then there is a lot to consider and making the right decision would depend on your product requirements and desired location, regardless we would urge caution.
It is of cause possible to open a factory for manufacture of products in almost any country, but unless you are prepared to spend a lot of time and money and take considerable risks, why would you want to just jump straight in!
Whilst we understand the desire and need, we must point out the easiest and safest approach is to work with a good production company who understands your needs. This strategy will cost you far less to set up and you can claim expenses against tax. With a good partner you will remain in total control of your supply chain with all the benefits of knowing all issues will be covered and that you will not have to rely on the factory or its suppliers.
Far East production Services provides a wide range of services, advice and information to companies wishing to explore the Far East for business and we believe that this informed approach is key to success.
One of the key problems that UK businesses face when wanting to approach the Far East is the lack of reliable information. You will encounter a number of business issues, that are unfamiliar and good advice will help you avoid the pitfalls and make the most out of your operations.
Our Free Guide Manufactured Overseas – Getting Your Product Produced is a vital introduction for any company considering conducting business in the Far East but especially for those who wish to investigate outsourcing production to contractors in the Far East. This is a must read publication for any business who wants to avoid any potential problems when embarking on contracting with Far Eastern Manufacturers in China, Taiwan or other places.
To obtain your free copy click here and we will email you a copy of this vital guide.
You will also receive free updates, information and news on a regular basis.