You can choose to collaborate with either a local manufacturer or an international one, but in many cases, outsourcing the manufacturing aspect of your business will be cheaper. However, there are also benefits in using local manufacturers that can't be underestimated. Here's why you should give local manufacturers a chance.
1. Familiarity With Existing Policies
Each country in the world has its own unique set of policies and guidelines that are used to regulate the manufacturing sector. Getting to know such regulations in detail is time-consuming. It will be even more complicated if you have a language barrier to contend with. For that reason, even though the production costs in some countries will be lower than in your own country, the operational aspect of the manufacturing process may end up being very costly.
The fact that your local policies are already familiar to you is reason enough for you to opt for local product manufacturing. It will be much easier for you to overcome the red tape and get your business up and running. If complications arise, you will be in a much better position to sort them out easily since you already know how things work in your locale.
2. Greater Control Over The Production Process
In order for you to get your products manufactured overseas, you will need a very comprehensive contract in place. Unfortunately, the binding contract will not necessarily assure you of high quality products at the end of the day. There are ethical considerations as well. What will you do if you find out that the workers in the manufacturing plant that you work with are being abused? Do you even have the power to influence change in the required sector?
On the other hand, you have a greater amount of control over what happens in a local product manufacturing plant. If the workers’ rights are not taken care of, you will have the legal means to ensure that your products are manufactured ethically. In addition, you can visit the local manufacturing plant periodically to ensure that high production standards are maintained. If you want greater control over how your products are manufactured, local production is the way to go.
3. Local Economic Boost
If you want to contribute positively to the community, you need to empower others around you. Giving people dignity by employing them and letting them work for a living is one of the best ways to go about it.
By keeping your products local through collaboration with local manufacturers, you help create jobs. This in turn will boost the local economy and help lower local problems like crime.
You will also enable people to take pride in using products that are fully their own. Many people would be willing to pay slightly more, just to help local businesses. That should negate the need to enhance your profit margins by outsourcing your manufacturing jobs.
When you look at the larger picture and into the long term, you will begin to appreciate the benefits of using local product manufacturers. For that reason, you should think seriously about not outsourcing the manufacturing aspect of your business, even if the rewards are a long time coming. Think about it!