Outsourcing Overseas - Anyone else done it?

[cymbeline]

Well, our little manufacturing shop has gone three years without outsourcing, but we are running out of options. I get why businesses do it now. Our profit margins are razor-thin because we simply can't find the resources we need here in the US for resalable prices, and with the recession, many of our suppliers (who are just getting their stuff from overseas anyway) are going out of business or changing their inventory and don't carry what we need consistently. And then there is the lack of consistent quality... oof.

We have proven that we have a market and that we know how to bring in customers, we simply need less expensive sources. We have started looking at using a procurement liason to help us find an appropriate overseas manufacturer/distributor, but I am a TOTAL newbie and realize that the chances of getting scammed are high.

Can anyone recommend a book or website that might suggest best practices in outsourcing for the small business owner or patent-holder? The Alibaba forums have so many horror stories that it makes me want to hide my head in the sand and just say forget it! But I know other small biz owners have done this successfully... Help!

[CawMama]

Why don't you contact the Fair Trade Federation?

[cymbeline]

Thanks! But... I have They currently focus on crafts, items like clothes, jewelry, pottery, etc. Our products are industrial goods that must be fabricated in a factory setting whether here or abroad in order to meet strict US building codes.

They had some good suggestions, but the issues are the same -- I still need advice on how to conduct due diligence (including fair trade/fair wage/human rights practices) on overseas sources.

Anyone BTDT?

[Woolly Meredith]

I have worked in overseas product development for +15 years. I currently work in Ecuador but have also worked in China, Hungry, Poland and Ireland.


I don't know of any books, but you may try contacting your local SBA or library. Also, a call to SCORE may be of some help.

[katiemfree]

I kinda hate to recommend it since the author has some (I think) mis-placed priorities as far as balancing kids and business but the book "Mommy Millionaire" has information about how she invented a product and eventually had it manufactured. It's not very in-depth, but an intro at least and she does list other resources. She created a fabric and shell corn hot-pack, so it's not a industrial product but there might be some helpful info there.