Well, as I sit poised at the edge, ready to take the plunge, I contemplate this inaugural blog post and I imagine it feels about the same as the first foray into the world of outsourcing in China, without the devastating financial possibilities, of course. But as calm washes over me I realize that, like outsourcing, blogging is a process. I have my research and many years of outsourcing experience. Besides, what’s the worst that can happen? They can kill me but they can’t eat me -- that’s against the law. So, in the immortal words of Admiral Farragut “Damn the torpedoes -- full speed ahead!”
First a little about us, my partner and I started Pan Pacific Sourcing, Inc. in 1996 and prior to that both of us were in outsourcing for a large multi-national/multi-cultural company with annual sales exceeding $800 million using their wholly owned factories and sub-contractors around the globe. Pan Pacific is an American company that uses its joint ventures and strategic partnerships with Asian manufacturing facilities to assist domestic companies in product development with the emphasis on mass production in Asia. We have a broad range of capabilities including but not limited to mechanical assembly, plastic injection and blow molding, investment and die-casting, stamping, machining, aluminum extrusion, electronics, printed circuit boards and electronic assembly. Pan Pacific possesses the engineering, project management and product development skills required for most outsourcing endeavors.
Over the next several months I will outline and discuss the process of outsourcing, specifically outsourcing to China. I use the term “process” because all outsourcing activities are process driven. There are steps that must be taken and procedures that must be followed to ensure a satisfactory outcome. Failure to follow through with any of the steps will, in most cases, lead to some level of pain, sorrow and monetary loss. This series is by no means meant to be the be all and end all of outsourcing knowledge but if you follow the steps laid out here over the next several posts, you will, at the very least, enter the arena properly armed with an awareness of what can be done to avoid common mistakes.
The process of outsourcing will be broken down into six chapters:
• OUTSOURCING BASICS
What is outsourcing?
• CHOOSING A PRODUCT TO OUTSOURCE
The right product can make or break the project
• FINDING A FACTORY
Finding the right factory is a critical component of the process
• FINANCING OPTIONS/LOGISTICAL CONSIDERATIONS
The cost of money and time
• SECURITY
How do you protect your company’s interests (i.e. time, energy, money and reputation)?
• GUANXI
Personal capital
Some of this information may appear pretty basic to those of you with previous experience, but this discussion is geared toward the buyer who has yet to journey down this road.
I look forward to the opportunity to interact with you regarding this topic and as the Chinese say, “The journey of a thousand miles begins with a single step.”
Pan Pacific Sourcing, Inc.
www.panpactrading.com
