False. Outsourcing your manufacturing shouldn´t feel like kissing away your supervision rights. And if it does, you are either working with the wrong CM, or lacking internal strategies for outsource operations. A communication protocol should be put into place to obtain weekly updates and reports on contingencies affecting deadlines. At Outsourzia, we become the communication agent, making sure there is a fluid and constant information flow between parties. Moreover, most manufacturers in our network are located a short drive South of San Diego Border, which makes it easy for clients to visit as often as they wish. You can choose how involved –or detached to be, since we will be responsible of oversight and quality control.
4) Vertical integration will be problematic if I choose a Mexican Contract Manufacturer to outsource my production.
False. Again, this element depends on the implementation strategy. Granted, when outsourcing to Mexico it may seem like we have too many moving pieces: customs, transportation, workforce, raw material supply… Most brokerage services will perform basic services like finding you a facility and hiring workers. But setting up and then leaving just leaves too much to chance. And if you wanted to gamble, you'd be in Vegas, right? A way to decrease risks is to hire an outsourcing broker that goes above and beyond the basic real estate and HR tasks. The most comprehensive broker services include manufacture strategy planning, material sourcing and quoting, manufacture supervision and quality control, product design, sample production, and even final product delivery in the U.S., seamlessly integrating all parts.
A final word:
Remember that lack of planning is usually the source of problems at any manufacture endeavor, be it outsourced or in-home. So be clear on your expectations, goals and strategies. Moreover, consult with a Contract Manufacturing expert before making any commitment. Instead of paying credence to myths, become your own success story.