Many companies have produced through Asian factories because of lower labor cost and fast production. That is most important reason, but at present Asian factories have advanced producing technology and quality control by long time experience in companies itself and environment.
That is big change, so if any company use this producing power, business would be much easier and more smooth. Big companies like Apple don’t have their factory, but produce through contract manufacturers in Asia considering quality, on time and cost.
But finding best factory to be suitable for item is more difficult than we are thinking even in this fluent internet environment, and many Asian companies are normally still weak for management system, and it can be called “coordinating” for entire system.
We, therefore, has our role for this part as we manage factories instead of clients. Client can use factories as their own ones without difficulty and anxiety.
Please look at features of manufacturing environment for countries we have factories. ▼
China is biggest country of manufacturing resources have tremendous factories no country can compete with the volume. At present, some companies have done U turn to their countries or moved to South-East Asia for increasing materials and labor costs, but Chinese factories have been also trying to move to inland areas where labor cost is lower, and still has steady powerful strength for manufacture outsourcing.
Specially, Chinese government has tried to consolidate the position of manufacturing powerful nation by smart factory system and reorganization of labor productivity not only for practical powerful manufacturing nation in not only quantity, but also quality aspect, so manufacturingcompetiveness of factories for OEM, ODM will be exceeded to the increasing cost.
Korea is No. 5 powerful manufacturing nation in world and highest IT technology country and has a lot of high skilled engineers with strength in field of telecommunication, home appliance manufacturing,
and has global brands like Samsung.
Korea companies has high export competiveness for smaller local market, and has a lot of factories in China using geographical benefit, and also highest importing country of China for electronics, electrics and automobile components usually. Korea is highest importing country of India for mold and has world class competiveness for core elements of manufacturing such as semiconductor, display, electronics products, ship building and automobile.
Taiwan is powerful manufacturing nation and positioned on high rank of manufacturing competiveness every year. This country has small area, but has about 200,000 manufacturing companies and has increased tendency to produce in China in basis on local R&D and manufacturing management, and has global strength and reliance in field of R&D and export of semiconductor, display and electronics components.
Specially, Taiwan has cooperative production among small and medium sized companies is well organized and also has big EMS ( Electronics manufacturing service ) and OEM / ODM service companies like Foxcon technology produces Apply smartphone.
Vietnam has fluent labor and representative newly rising manufacturing country of about 6% growth every year. Specially, it has over 90 millions population with over 50% of below 30s young peoples educated highly, and also has benefit to use manufacturing resources like supply materials of China where is close, so a lot of companies have established on site factories by full support of Vietnam government and effort to improve manufacturing environment such as high technical electronics and electrics, components and materials, and eco-friendly products.
Philippine is positioned on center of Asian countries and has strength of logistics as island, so several countries like Japan have established manufacturing facilities. This country also has 100 millions population and labor cost is stable and lower than China, even if it is higher than Vietnam. Normally electronics and electrics ( Semiconductor ), automobile and ship building manufactures are advanced, and multinational companies and related companies are launched here.
Thailand has 70 millions population and fluent natural resources, so has benefit to supply materials with opened business environment. This country is 10th automobile manufacturing nation in world, and auto components are No. 1 exporting product in Thailand.
Electronics industry is slightly 2nd major, but almost multinational companies are launched in this country, and specially No 1 HDD ( Hard disk driver ) manufacturing country in world, and manufacture of electronics components like IC, PCB are advanced.
Industrial Outsourcing Definition
EMS - Outsourcing
on in-house design.
Final assembly in-house
CMS - Outsourcing
for complete products
based on an in-house
OD+CMS - Outsourcing
og design service, and
manufacturing on a CMS
JDM - (Concurrent ODM)
but distinctive parts
design + manufactured
ODM - Outsourcing of
based on an in-house
OEM - Purchasing of
based on a supplier
Complicated and speedy changes of modern environment makes less competiveness for self undertaking of all manufacturing process.
If you can do business well by yourselves for all, that’s good and fortunate. But it is normally more cost, and inefficient, so more companies have tried to have more partners to run business better.
Production is most important part of outsourcing because of high cost and control of workers, quality, procurement, and also facilities. That’s why big companies like Apple don’t have their own factories, but produce through contract manufacturers considering quality, lead time and cost.
If anybody can manage all matters of production, it will be very happy, and if your customers are satisfied of your products and business management, your business would be prosperous.
What is your role ? Involving in production for many times or involving your core strength like creativity and sales. Business guru Peter Drucker said "All except innovation and marketing are cost." Consigning product development and customer’s relationship to outside companies is run with loosing core competiveness, but consigning to reliable partner make you concentrating on what you have to do, so lead company growing.
Involving in innovative products and relationship with customers make your business grow continuously. Just select reliable partners to work for you.