Outsourcing to overseas vendors can be a great way to access specialized expertise and reduce labour costs, but it also comes with its own set of challenges. In order to ensure that your experience working with foreign suppliers is positive and productive, it's important to follow some best practices when selecting and managing them.
Do your research. When choosing a vendor, it's important to do your due diligence to ensure that they have the necessary experience and skills to handle your project. Look at their portfolio of work. Consider their location and time zone, as well as any cultural differences that may affect communication and collaboration.
Communicate clearly. Clear communication is essential for any successful vendor relationship. Be sure to provide clear instructions and guidelines for the work to be done and to be available to answer questions and provide feedback. The more effort upfront to properly specify the technical and commercial aspects of your project, the better the final result.
Set clear milestones and deadlines. To keep the project on track and ensure that the vendor is meeting your requirements, it's important to set clear milestones and deadlines for the work to be done. Make sure to include these in the contract, and hold the vendor accountable for meeting them. Insist that you and your representatives have full access to production facilities for onsite quality management.
Protect your intellectual property. Take steps to protect your intellectual property, including any confidential information or proprietary processes. Be sure to have an airtight non-disclosure agreement (NDA) in place before sharing any sensitive information with the vendor.
Stay involved. Even after the supplier has been selected and the project is underway, stay involved in the process. Regularly check in with your supplier to monitor progress, provide feedback, and address any issues that arise.
By following these best practices, you can improve your chances of success when working with overseas vendors and build strong, long-term relationships with them. It is important to remember that the main goal is to achieve a successful and mutually beneficial relationship, where the vendor, you and your company all come out of the process as a winner.
Manufacturing offshore can be a great way to access specialized expertise and reduce costs, but it's important to approach it with care and attention to detail. By following the best practices outlined above, you can help ensure that your experience working with overseas vendors is positive and productive.
Dominion House establishes and maintains resilient supply chains out of Asia by managing price, service, quality and reliability. Our clients cut costs and reduce risk by purchasing factory-direct from a well-managed supplier network.
Call our Australian office on +61 408 785 086 for a no-obligation consultation or email enquiries(at)dominionhouse.com