FAQ- Frequently Asked Questions
Asian outsourcing and manufacturing: competitive advantage or a myth?
Yes, 20 to 40% cost savings can be achieved! Asian labor rates are low compared to North America, BUT …need to be well managed, eg. localisation of design and specifications, consistent quality, on-time delivery, protection of copyrights.... Further- we are continuously working on higher levels of automation to improve costs and consistency.
Not all countries are the same, and the future doesn't look equally bright. We are happy to discuss with you how your strategic directions might be best aligned.
Non-Disclosure Agreements – What are they and do I need one?
Even an NDA has limits- especially when the country's legal system is not effective- but without one you have little hope of protecting your secrets. Always insist on NDAs for anything that is not standard. Also check how confidential documents are secured, controlled by password protected access and encrypted backups as well as staff confidentiality procedures.
Asia without China tarrifs?
The China- USA relationship continues to become more complex. Many Chinese manufactured goods are subjected to US tariffs on import, as well China has been adjusting the import tariffs on many imported components used to manufacture key materials resulting in significant annual cost increases. We believe the answer is to diversify your sourcing to achieve the best of both China and SE Asia and leveraging the regions generous free trade agreements.
Our Malaysian factory is not China, and not subject to the USA's China tarrifs!
What about copyright infringement in China?
Copyright infringement in China is still a problem, even if the Chinese government is seen to be trying to prevent it. We protect your IPR by having an NDA signed with all our suppliers and contractors, your specifications and technical plans are stored on secured servers, with password protected access only on a need to know basis. We also keep track of all our suppliers and contractors who had access or knowledge of your specifications.
What types of products are better to be manufactured in Asia?
Most advantages come from the competitive Asian labor rates and supply chains; from our over 15 years of experience in Asia we are amazed at the huge range of materials and specialised processing that is available. If your requirements are very large volume, lower quality or single product type, there may be cheaper options. We offer our highly customisable inspection and assembly services to offer a low cost, high quality product capability to our customers.
Am I the right company to be sending manufacturing to Asia?
If you are facing competitive cost pressure, the answer is probably YES. But in general, Small and Medium Enterprises (SMEs) do not have the time, money, expertise nor resources to take advantage of outsourcing or manufacturing in Asia. With us, you do not need to be a large corporation to benefit from the cost competitiveness that Asia provides. You focus your valuable resources on making and selling the best products, including customer care and support. We take care of your manufacturing headaches and ensure that quality and source of supply are constant at the best cost.
We also provide manufacturing services to Fortune 500 and equivalent companies, largely due to our flexibility and lower overhead costs while maintaining strict process and quality control. This also provides us with economies of scale in our purchasing relationships.
How are the manufacturing costs ?
Overall loaded labor rate in Asia across all skill sets is about 3- 4 times lower than in North America. And Asia's supply chain offers further savings. Customers are typically experiencing savings between 20%- 50%.
How do you ensure quality control?
Quality control in Asia is the most critical element. We follow all Western QC processes, ensure traceability and perform in-house and independent quality tests. Since you are the expert on your product, we like to partner with you to prepare a customised plan that meets your requirements. We are certified to the latest ISO 13485, audited by famous international notified bodies.
Is there a minimal quantity I must order?
We know that it takes time for products to grow and changes to happen, and we respect customers who do careful testing to detect and resolve all possible problems during changes; we look forward to partnering with you to ensure success. We generally assume that an annual relationship value of $150k or more within a couple years likely offers substantial value and savings to the customer.