How Vaistek Works
How Vaistek Works
A successful strategic sourcing program is to do it in a way that keeps your risk at a minimum and makes any production transition as seamless as possible.
How to Begin a Successful International Sourcing Program
The answer to setting up a successful strategic sourcing program is to do it in a way that keeps your risk at a minimum and makes any production transition as seamless as possible. Below are the steps we suggest to start manufacturing in China as quickly and efficiently as possible.
1. Pick one of your existing products (or a new design) that require a lot of labor, assembly work and/or has very high packaging costs. Remember, commodity prices (of plastic, metal, etc.) are about the same anywhere in the world. So, the best items for offshore manufacturing are those involve the most labor and/or multiple processes to make. The item must also be easily containerized so you don’t wind up shipping a lot of air.
2. Send us a RFQ for a partial run of that product so we become your “second source” until your China manufacturing program is up and running. We will get you a quote so you will know the savings you will achieve by moving the product offshore. Please Include the RFQ, detailed electronic drawings, material specifications, quality and testing requirements and 4-5 samples of the product so our Far East factory will know the exact quality standards you expect. Include the yearly volume you will be ordering once the initial test runs prove successful so we can get you a better quote.
3. We will then send the electronic drawings and pictures to our manufacturing facilities in China so they will work out an accurate quote based on your requirements. This process would take 1- 2 weeks.
4. Once you get the quote, you can decide whether you wish to proceed with the next step. If you do, we will send the samples to our factory so they have a sample of the quality you require.
5. If tooling is required, you must then give us a 50% tooling deposit and we have the necessary tooling and 1st Article Samples made. You will find our tooling prices very competitive.
6. Once the 1st Article Samples are approved, you pay the balance of the tooling and a down payment on the first production run. The Chinese company will them make a limited first run of your product.
7. As soon as you are comfortable with the manufacturing process, you can increase the quantity of each subsequent run until it is completely made through offshore manufacturing thereby maximizing your cost savings.
8. Once we are successfully producing one of your products, we could visit your office and assist you in determining any other potential candidates for global sourcing. We will advise you on the products that will make the most sense to outsource
By using this manufacturing strategy, you keep your risks at an absolute minimum. You also don’t risk disturbing your production schedule because you will start by only sourcing a portion of your initial product.
If you have questions, call us for a free project evaluation at (416) 855-9856 or send us an Email to get more information on how Vaistek Manufacturing can help you obtain the highest quality at the best price by outsourcing your manufacturing to China. Let us help you start your international contract manufacturing program today.