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Taiwan Business Travel Guide

5 Reasons to Manufacture in Taiwan

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It’s OK to admit, when you think of outsourcing Taiwan might not be the first country that pops into your mind – but it should be. Taiwan has emerged as global player in mass production and modern technology, providing upgraded opportunities for outsourcing that did not previously exist in other nations. If you’re thinking of outsourcing mass production here are 5 reasons you should be manufacturing in Taiwan:

3 Basics of Outsourcing Manufacturing

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Each day, brilliant designs are scuttled by firms because they lack means for production.  If you have a part or component design but not the machinery, factory space, or staff to produce it, your design will never enter the marketplace.  The solution for inventors, designers, and creators who face this challenge is to outsource their production to an overseas manufacturing firm.  Thanks to numerous advances in communications technology, outsourcing manufacturing overseas is easier than ever before.  The ease of outsourcing, along with potentially massive production savings, provides a golden opportunity for firms and start-ups that need a partner they can share the task of production with.

1. Cost

The #1 reason companies outsource is to improve their bottom line.

Outsourcing production to an organization with the skill and capability to mass produce with minimal expense is, simply put, a smart business decision. The international manufacturing marketplace provides an opportunity to explore production options significantly less expensive than those available domestically.  Even once shipping costs have been included, the expense of outsourcing is often just a fraction of the costs associated with domestic production.

2. Choice

Searching online for a manufacturer will yield pages and pages of web results – how do you sort through them all?

When you outsource a project you’re doing more than getting a helping hand – you’re creating a relationship with another company.  Handing over control of a project to someone else can be hard to do, but difficulties will quickly multiply if your phone calls and emails go unanswered. For that reason alone it is wise thinking to immediately eliminate the lowest bidders.  Look for a professional manufacturer who makes the time for you, cares about your success, and understands your company vision beyond your part design.

3. Efficiency

Your company has something that it does very well – it’s important you have the time to focus on it.

A mass producer mass produces, it’s what they do.  Leave the manufacturing and assembly to a dedicated firm while you focus on company growth and resource management.  The right manufacturer will communicate so well you’ll forget they aren’t down the hall.  Delegating projects to teams and organizations most capable of completing them quickly, with minimal expense, are signs of strong leadership and help lay the foundation of smart business practice.

If you’re wondering whether or not you should outsource your manufacturing, get a second opinion.  Our representatives will be happy to explain the ins and outs of outsourcing, help you understand your options, and tell you how we can help.  Contact us today and let’s get started!

Pros and Cons of Outsourcing

ALLJACK Technologies

Outsourcing production is a top consideration for companies who want to reduce overhead, improve their production ability, and increase their profit margins.  Also known as “offshoring”, outsourcing works by assigning projects or tasks to an outside company that may be better suited for mass production.  Relinquishing control of a project to another company is a big decision that can make or break an organization.  Before outsourcing any manufacturing overseas you need to know the biggest pros and cons of outsourcing mass production.  

Pros

Reduce Overhead

Very few companies have the human and material resources to build, equip, and staff an entire factory on-the-spot.  Additionally, the costs to manufacture in other producer countries (like tech-savvy Taiwan for example) can be significantly less than production domestically.  Outsourcing can provide a great opportunity for companies to hand off projects to those best suited for them, reducing overhead in both labor and materials.

Maintain Focus

Your company has a mission and a focus – don’t get bogged down in the details.  Outsourcing mass production can free up time and resources, allowing you to focus your energies on company growth and marketing strategy.  Handing over control of a manufacturing project to a trusted partner can eliminate a multitude of distractions and stressors.

Access Talent

When you outsource production, you’re bringing a team of dedicated and specialized talent into the fold.  Outsourcing provides access to the knowledge and experience amassed by firms with decades of mass production and industry knowledge.  These experts can help you discover alternate production methods, different materials, and other cost-saving measures you may not be exposed to otherwise.

Maximize Time

Outsourcing overseas opens your business up to new working hours – your parts can be made while you sleep.  Additionally, many of the same holidays that force domestic businesses to close are not recognized overseas, opening up more production days per year and improving delivery time.  Domestic holidays like Easter, Thanksgiving, and the 4th of July become full production days and your company never has to slow down.

Cons


Quality Issues

When you send a project offshore you lose direct control over the materials and methods used in production.  Some nations have gained negative reputations for poor manufacturing quality, driving more and more companies to break away from traditional suppliers for alternate, modernized manufacturers.  Updated websites, proper language, and a company history are things to look for when browsing online for a mass producer.  It is good practice to look beyond the cheapest bids you receive, as the savings are often only temporary after wasted production runs and an upset customer base.

Delivery Delays

Once a project is sent overseas the clock starts ticking.  When it doesn’t show up on time, you have a problem.  Poor communication, empty promises, and lack of passion about your project from the manufacturer all contribute to significant delays in delivery, creating worry and costs that could have been avoided.  When choosing an outsourced manufacturer shop for one concerned about more than just the invoice.

Legal Concerns

The same laws that govern your company may not (and likely don’t) apply where your manufacturer is located.  There is very little (aside from successful employee management) to stop an overseas employee from taking your idea, design, or schematic and reproducing it without your consent.   With a little research and investigation you can locate a professional manufacturer you trust and who hires well.  It will make all the difference.

Communication Troubles

Translation errors often result in a direct loss in revenue.  Additionally, language barriers can make it difficult to convey your company message to the manufacturer, resulting in a product that doesn’t completely represent your organization or ideals.  A dedicated translator can overcome this obstacle but the additional cost, along with the lack of direct engagement you’ll have with the manufacturer can be frustrating, undermining the potential benefit.  Beyond troubles finding common language, some overseas firms can be near impossible to contact once they’ve taken on your project causing additional grief, stress, and expense.

When you choose where to outsource you’re doing more than handing off a job – you’re choosing your partner for the production journey. With the right partner the sky is the limit.  We would love to talk about your idea or design and tell you about the stack of advantages that ALLJACK offers.  If you’re ready to take your company to the next level of production and revenue, call us today!

5 Reasons for Outsourcing Production

ALLJACK Technologies

Thanks to advancements in consumer and commercial technologies the international business community is closer than ever.  Ease of access to the international marketplace through consumer electronic devices and commercial software applications grants businesses of all sizes access to larger customer bases than ever thought possible.  These advancements, while potentially very beneficial, present many challenges for businesses and firms that lack the means or resources to mass produce and meet the increased demand while remaining competitive in pricing and lead time.  Thankfully it’s never been as safe, easy, and cost effective to outsource as it is today.  Here are 5 of the top reasons companies choose to outsource mass production to international manufacturers:

Cost Effectiveness

One of the top reasons for outsourcing production is reduction of overhead. International firms, like those based in Taiwan, offer mass production services at a fraction of the cost for local or in-house production.  Labor costs prevent companies from meeting demand and achieving their full potential.  Additionally, the operating costs associated with mass production can be overwhelming for many businesses.  These costs include the purchase, operation, and maintenance of the facilities and equipment necessary to mass produce with precision and speed.

Access to Industry Knowledge

Start-ups and entrepreneurs who outsource production achieve a massive advantage in knowledge and resources gained by partnering with an overseas firm.  Production leaders such as ALLJACK have virtual volumes of industry and production knowledge ready to share.  Guidance on material and production methods provides massive advantages for companies who outsource production to the professionals.  Using the right combination of methods and materials an international manufacturer reduces costs and lead-time while delivering a product exceeding expectation.

Improved Company Focus

Outsourcing production allows companies to focus on what they do best, rather than worry about tasks that are mundane and non-essential.  Outsourcing production eliminates the need to hire a large staff and source more work space.  Companies that can remain focused on their core mission are more efficient and more creative than those with too many moving parts.

Better Distribution of Resources

Businesses that devote human and financial resources to their best function, rather than juggle all the operational tasks involved with production, gain a massive competitive edge in the marketplace and better achieve their true potential.  Partnering with an overseas firm you can trust allows you to focus on company growth and development instead of production and logistics.  Companies that internalize too many processes risk financial and logistical complications that can be difficult or impossible to recover from.

Efficiency

Today’s marketplace demands fast delivery.  Outsourcing manufacturing to an overseas company equipped with the proper resources and personnel gives businesses of all sizes the opportunity to compete at the international level.  This approach allows smaller companies the chance to partner up with multi-million dollar production powerhouses, removing limitations on their potential.

To find out more about how outsourcing can help your company reduce costs and increase profit contact an ALLJACK sales representative today!

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