Whether you have an existing product or an idea for a new one and are looking for sources to get it made, there are many factors to weigh and consider. Finding the right partner to manufacture your product can be overwhelming. Should you work directly with a factory in China or elsewhere in Asia? How do you find one? Or do you work with a partner in the US who can manufacture the product here? Or do you find some hybrid of the two solutions?
A lot of companies prefer the third option, choosing to work with a half-domestic manufacturing partner, a company with a US-based office and manufacturing facilities but that also operates factories in China. There are good reasons for this choice, from preserving your bottom line to protecting your intellectual property. Here are the top five reasons to consider a half-domestic manufacturing partner.
Why Use Half-Domestic Partners for Global Contract Manufacturing
1. US-Based Sales Reps
One of the biggest benefits of working with a half-domestic manufacturing partner is that you have a US-based sales rep to call and speak with about anything related to your project.
If an issue arises, you can easily call to discuss it, no international dialing necessary. And if you have any questions about the process, there is someone you can reach out to for answers. This isn’t always easy to do if you are working directly with a Chinese factory due to time zone differences and language barriers.
Many of our clients came to RSP because they tried to work directly with a partner in China but found navigating these issues challenging. Having a US-based company also means you can meet in person if you’re willing to travel to visit your US-based manufacturing partner.
2. Offshore Pricing
With a half-domestic manufacturing partner, you can get offshore pricing on products but still experience the high customer service level of a US-based company.
Obviously, many people look to Chinese factories for manufacturing needs because costs are generally lower. But there are difficulties working directly with China that sometimes outweigh the cost savings of using a China partner. With a half-domestic manufacturing partner, you get the best of both worlds since the company has Chinese factory pricing plus the benefit of a local rep.
Working with a company like RSP means that we deal directly with our Chinese counterparts while you get to be in contact with RSP’s domestic sales reps, with the option to communicate directly with our talented engineering staff in our China facilities.
Working with a half-domestic manufacturing partner like RSP assures quality.
Your US contract with RSP means that we are committed to making the product to an agreed-upon standard.
If there are quality issues, RSP will work with RSP-controlled facilities or our partner facilities to ensure the product is made to the expected quality, even if that means reworking or scrapping suboptimal products at our cost. Working with an American based manufacturing company gives you a layer of comfort knowing that you will receive the quality product you expect.
With offshore and domestic manufacturing and logistics capabilities, RSP offers US-based warehousing and the possibility of US assembly. For certain products, you may want to have a quantity stored in the US for release to your customers or as a safety stock.
Working directly with a factory in China typically doesn’t offer this benefit. Once your order is complete, the factory in China will want to ship it out and on to you. RSP has a large facility where we can warehouse our customers’ products for a given period, drop-shipping to clients as needed. RSP also has manufacturing and assembly staff in the USA that can quote on ramp-up quantities, final assembly work and packaging.
5. IP Protection
One major concern customers have is ensuring the protection of their intellectual property. When you work with a half-domestic manufacturing partner like RSP, you have a higher level of IP protection and the potential for legal recourse in China.
When contracting with a Chinese company directly, you really have very little to no legal recourse if something goes wrong. If a factory makes a product below the expected quality level, it is not legally obligated to provide replacement products, as American laws and contracts are not enforceable in China.
In the case of intellectual property issues, RSP has strict noncompetes and assignment agreements with all employees and vendors that are enforceable in Chinese courts if needed. Fortunately, RSP has never had to pursue this, but you can be assured that we have the ability to do so if required.
Want to learn more about how RSP can improve your international manufacturing needs with the benefits of a domestic partner? Contact RSP today.