The Right Fit: Is Global Outsourcing The Best Option For Your Growing Business?
Unfamiliar territory? Does the term “International Outsourcing” intimidate you? Negative connotation gives global outsourcing a poor reputation. We completely understand your fear, as HBI has been around since 2002.
Global outsourcing isn’t for every business, which is why we want to bring you the highlights of global outsourcing to see if your business is the right fit. Global outsourcing benefits many companies worldwide, bringing them international products from suppliers faster, better quality, and cost-effective. There are many advantages to incorporating the services of a global outsourcing company into your business structure.
October 12, 2021
Do you have an excellent idea for a product? Are you looking to have your product mass-produced? Global outsourcing companies offer the unique capabilities of providing support from product ideation through to completion. Teams are fully equipped to provide insight at the beginning stages of product development, all the way through to your product’s final production and distribution. In addition to product development, global outsourcing companies support businesses with quicker logistic scheduling and delivery, a larger production capacity, and increased access to technology and talent.
Allow us to share some insight as to why people are choosing global outsourcing companies:
Is HB International The Right Fit For Your Business?
Cost-Efficiency & Increase Profits
Let’s discuss financials. If you choose to operate domestically, you’ll need to create space to produce and hire an operating team. While domestic hiring is a great way to contribute to your economy, you may not have the financials to invest in training programs and recruitment. Rather than creating a space domestically to mass produce your product and employing staff to operate your site, by partnering with a global outsourcing company, businesses can focus solely on their responsibilities and eliminate the need for additional hiring and production costs.
Many companies are choosing to outsource due to lower operating costs and their access to raw materials. HB International’s team works closely with our selected suppliers to monitor operating and labor efficiency through routine audits and inspections. We expect our supplier’s performance to continue being productive and cost-effective.
Greater Quality & Production Capacity
Just because the product is less expensive to produce doesn’t equate to poor quality. Many of the countries that HB International does business with have invested significant portions of their economies into manufacturing, increasing opportunities for labor and talent to meet these production capacities.
What does that mean for your business? These suppliers have been explicitly designed for the sole purpose of mass-producing high quantities with a talented workforce to support them. In addition, if demand and capacity do become too much for one supplier, outsourcing is unique because it empowers you to select another supplier for your order.
Increased Access to Talent, Research & Technology
Global outsourcing provides companies with heightened opportunities to access new products before their competition, tap into new resources, and access world-class talent. Technology is ever-changing, and the world of automated machinery is more prevalent than ever. Having access to both the world’s production experts and advanced technology increases opportunities for your business to take a competitive advantage over your company’s competition.
Stay relevant. HB International works alongside our suppliers researching and developing cutting-edge machinery and packaging solutions to ensure we all stay one step ahead of our competition. Our team and suppliers are continuously educating ourselves through high-quality programs and certifications to ensure we provide our customers with the best team of experts and products.
Accessibility to Raw Materials
Are you currently producing products in the US and importing raw materials? Access to raw materials outside of the US can be incredibly expensive. Your business could be paying more to have your materials domestically imported than it is to produce and ship your product to the US. Now, also you need to consider the cost of raw materials if there is a shortage, as the scarcity of supplies in the US can threaten any business.
With suppliers located throughout SE Asia, HBI has the ability to maximize our access to raw materials, which in turn permits us to offer a wide range of products and packaging solutions to our customers. What does this mean for you as a customer? Lower production costs with increased access to even more valuable opportunities.
What If You Choose to Outsource Independently?
Of course, this is always an option. Your business has access to incredible databases that will provide you with high-quality global suppliers that are equipped with everything your business needs; however, does it make the most sense for your business to go at it alone?
Is It Time Well Spent?
Consider the amount of time you or your employees will need to research suppliers, investigate, and vet thoroughly (albeit not in person because you’re located on the other side of the world.) Through a third party, HB International has established relationships with suppliers since 2002. Our team is located throughout SE Asia. What sets us apart from other global outsourcing companies is our ability to provide in-person inspections, quality checks, and routine audits. We know that our customers rely on us to ensure supplier efficiency and quality, which is why we believe that vetting suppliers and routine quality assurance checks should be done face-to-face, and we have the team to do this.
How Well Do You Know International Rules, Shipping Regulations, & Laws?
Perhaps you’ve been referred to an incredible supplier with admirable quality, the most innovative technology, and the best location for shipping; however, how familiar are you with international importing laws? Shipping rules? Tariffs? Duties? Freight?
In that case, you’re going to need to understand the governing requirements of international logistics, what documents are required at the port, and how to maneuver through two different countries’ international trade laws. Is your team willing to learn? Or, should you allow a third-party company specializing in freight and global logistics to assist you in getting your product here on time and legally?
Do You Speak the Same Language As Your Supplier(s)?
Are you able to communicate with your suppliers fully? How well do you understand your payment terms? What happens if your supplier needs to discuss your product’s technical development? Can you understand? Is hiring a translator to read all of your documents and speak to suppliers worth the investment? While some suppliers have multilingual teams and might be able to communicate with you, others do not, requiring a translator.
HB International’s team has an international presence, allowing us to interact and communicate naturally with our suppliers in person. Our project managers and quality assurance team not only bridge the communication gap, but are educated and certified to understand the development of products, offer high-quality packaging solutions, understand and communicate production regulations and requirements, and provide high-quality customer service to our domestic customers. Our team works incredibly hard to ensure communication is done effectively and efficiently through various mediums such as face-to-face, phone, and the digital space, leaving no details to question.
Interested in Learning More?
HB International has been working with companies since 2002. Our team continues to build strong relationships with suppliers, monitor and produce high-quality products, work to eliminate risk, and maximize supply chain efficiency. In partnering with HB International, we consider ourselves an extension of your business. We work to provide you with highly competitive, cost-efficient products while you continue to focus on the aspects of your business that need you most.
Let us know how we can get you started on your next sourcing project!
