Why You Need “Boots on the Ground” When Manufacturing a Product Internationally

In today’s always-connected, technology-driven business landscape, it would seem as though a company in the U.S. could do business with a company anywhere else in the world – without ever even sending a representative to the other country. Videoconferences, email, and the global internet mean that facetime is no longer necessary – right?

While that may be true in some – maybe even most – industries, manufacturing is not one of them.

This is especially true in global manufacturing, which is why my company, Pivot International, maintains a steady presence overseas at the Asian manufacturing facilities that we own. Here are a few reasons why you need to expect to have “boots on the ground” if you’re manufacturing a product globally.

In many Asian countries, face-to-face relationships are essential in business.

Business customs differ from country to country and region to region. In the U.S., building face-to-face, personal relationships isn’t absolutely necessary – it’s preferred, perhaps, but plenty of business collaborations, deals, and transactions are completed without the primary actors ever meeting face-to-face.

That’s not the case in Asia. In Manila, the Philippines, and in China, where many of my company’s clients choose to manufacture their products, it’s expected that a company will have a consistent physical presence in the country in which they’re manufacturing.

That might mean setting up a full satellite office, or sending one or two representatives to the country for a few months. Whatever you do, it’s something you have to be prepared for – otherwise, you could find that the cost-savings you were hoping to achieve by manufacturing overseas in the first place are canceled out.

Manufacturing a physical product requires physical inspections.

When manufacturing a physical product, the last thing you want is to have a thousand units that all have some tiny, but noticeable flaw.

While any reputable manufacturer will have good quality control systems in place, it’s still a good idea for someone from your company to be available to physically inspect a prototype. This is especially important when you’re just beginning a relationship with your manufacturer.

Managing problems is much harder when you’re halfway across the world.

In any business relationship, challenges, misunderstandings, and problems are bound to occur at some point.

When these happen during a manufacturing process, time is literally money. You need to be able to address any issues as quickly as possible, so your products can get out of the factory and into the hands of your customers.

Flying from the U.S. or the U.K. to Manila means at least a day of lost time before you can be there to see what’s going on and help create a solution.

Now, sometimes this is simply unavoidable. Maybe the person who needs to approve or fix a problem is not the person with the presence in-country. However, having a representative on the ground in your manufacturer’s country can, in many cases, mean saving a good deal of time and making it more likely that you’ll meet your production timeline.

Global manufacturing is most likely to be successful when your company has a physical presence near your manufacturer – or when you’re working with a product development firm that can offer the presence you need. For more on this topic, read my post “6 Common Manufacturing Mistakes to Avoid.”

Choosing the Right Electronics Manufacturer

With so many options available today in the electronics manufacturing industry, it’s hard to know how to go about choosing the right manufacturer for your project. In order to ensure the successful and efficient development of your product, you’re going to need to choose the right electronics manufacturer. But how do you know when you’ve found the right one? Here are a few tips to help you decide.

Interview more than one manufacturer.

You can start your search for the right electronics manufacturer by checking out their website and gleaning as many details as you can. From there, you’ll want to narrow your list to at least three different manufacturers that you plan to interview. This can be a telephone interview if face-to-face isn’t possible, but often when you meet face-to-face with someone, you get a better sense of what it would be like to work with them, and you are able to better tell if they would be a good fit or not.

Don’t be afraid to ask questions.

In choosing the right electronics manufacturer, you want to ask as many relevant questions as possible. Make a list of all your questions before you interview manufacturers so you can ask them all the same questions – and so you don’t forget what you wanted to ask. For example, how much experience do they have in manufacturing the component you need? Have they worked on projects similar to yours in the past? What kind of guarantees do they offer? How much do they charge?

Price is important, but so is value.

Of course you’ll want to find out how much the electronics manufacturer will charge to create your parts, but you’ll also want to be very clear on what you’re getting for that price. The companies you talk to will likely take some time to provide you with a very detailed quote, which will make it easier for you to compare what each one is offering for the price. Make sure you know what will happen if any of the parts are faulty. You’ll want to choose a company that stands behind their product or service and will work with you to make sure you are 100% satisfied with the results.

Check up on credentials.

As part of the interview process, you likely discovered whether or not the electronics manufacturer is properly certified to handle your request. If that didn’t come up, then make sure you ask. Quality accreditations are important and so is the manufacturer’s on-time-in-full performance. How often do they deliver the full order on time to their customers? This will also give you insight into what the company’s customer service is like.

At Pivot International, we provide electronic manufacturing services to meet all your needs. We manufacture and ship electrical components around the world. Our electronic engineering and manufacturing technicians follow IPC standards, ensuring your components are dependable. We also provide standard RoHS-compliant assembly processes with each assembly. To learn more about our world-class electronics manufacturing, contact us today.

3 Things Most Product Companies Don’t Know About Global Manufacturing

The manufacturing industry used to be a symbol of stability, solidity, and steady employment.

Today, that’s somewhat different. Although global manufacturing companies will see substantial growth opportunities in the future, the environment that they’re developing in is much more uncertain. Globalization, for all the opportunities it’s brought to manufacturing, has also disrupted many of the processes and standards that the industry relied on in the past.

Because of this, companies manufacturing products today need to be aware of certain things about global manufacturing and the global supply chain. Here are three things most product companies don’t know about global manufacturing.

1. Products must be able to compete on a global scale.

Product competition on a global scale has the benefits of reducing costs and pricing. For certain types of products, especially consumer products, moving manufacturing overseas can often result in lower costs for required materials without reducing product quality. The ability to save costs allows companies to adjust pricing as required to meet the market demand.

Product companies are also able to pull resources from around the world in order to develop products that are more specialized for each market they serve. Common cost challenges can be overcome by outsourcing manufacturing internationally.

2. Supply chains are far more sophisticated.

Supply chain management and globalization are interconnected. Although many companies may outsource their supply chain management, they still need to remain actively engaged in the process. Pivot International can help with the management of your supply chain so you can spend your time in other areas of your business. Pivot uses Enterprise Resource Planning and Manufacturing Resource Planning Systems to ensure your supply chain is managed efficiently and actively.

3. Emerging markets require a greater supply of goods.

Managing a supply to match the demand in emerging markets is one of the biggest challenges product development companies are facing today.

Although these emerging markets in developing countries are requiring more goods, many multinational companies are still failing to deliver. Many North American companies shy away from emerging markets because they don’t know what the product demand is like and there is a lack of end-to-end logistics companies able to deliver the required products.

Market infrastructure also varies greatly from country to country and product companies need to keep that in mind when developing their emerging market strategy. The same strategies used at home won’t work in developing countries. Working with a company that has global manufacturing resources can play a big part in emerging market strategy.

Global manufacturing allows companies to meet the demand of international markets through the use of more sophisticated supply chains, helping their products to compete on a global scale. If your company is having trouble competing internationally, you may want towork with a business development or manufacturing specialist at Pivot.

For more, read “5 Developments in the Manufacturing Sector Every Product Developer Should Know About.”

Three Ways the Internet of Things is Transforming Manufacturing

The Industrial Revolution brought with it new ways of manufacturing things that had never been done before which contributed to a much better quality of life. Today The Internet of Things (IoT) brings with it new ways of connecting things we’ve never seen before. The IoT is a network of various physical objects like cell phones, computers, and vehicles that are all connected through a network that allows them to communicate with each other. The IoT is what allows you to change the temperature in your house using your smart phone. Experts predict that by 2020, the IoT will consist of 30 billion objects.

The manufacturing industry hasn’t been unaffected by the IoT, which has impacted nearly all aspects of everyday life. Many experts argue that the manufacturing industry will be the most drastically changed by the IoT in years to come. New technologies enable manufacturers to have a deeper understanding of processes that simply wasn’t possible before the IoT. As computers and other devices become more sophisticated, production processes will become more efficient, allowing manufacturers to be more productive and more cost effective.

Efficient manufacturing processes are key when it comes to scaling your product based business. Here are three ways the IoT is transforming manufacturing.

Better Quality Control

When manufacturing on a large scale, product defects become a problem very quickly. The IoT has and will continue to provide tools that will allow manufacturers to anticipate quality control problems even before they arise. Tools like smart machines will alert you to problems with machines much earlier than a human could. There will also be devices to monitor worker performance so you know exactly what’s happening on the production floor.

Inventory Optimisation

Optimal inventory levels achieve a fine balance between not having the stock demanded by your customers and having too much stock taking up precious space. Manufacturers will be able to achieve complete integration between physical stock and technology allowing them to know exactly what their inventory levels are at any given moment. Better inventory management means improved control further along the supply chain as well.

Premium Customer Service

Mobile apps, wearable devices and sophisticated product monitoring all make it possible to respond to problems in a timely fashion. If you show up on a customer’s door step to fix a machine they bought from you before they even know it’s not working properly, they will be more than impressed. Product monitoring also helps the product last longer and the development of mobile apps means customers can provide feedback and request service at their convenience. As with any type of business, happy customers are key to growing a product based business.

The IoT is constantly evolving as technology advances and engineers discover new ways to connect things. One thing is certain, the IoT doesn’t work without things to connect. Pivot International offers many services to help with your production needs. Our manufacturing capabilities range from small, complex runs to high volume electrical manufacturing assemblies. Pivot International specializes in helping companies develop and manufacture new products. Contact us today to learn more about our manufacturing services.

5 Developments in the Manufacturing Sector Every Product Designer Should Know About

For decades, it seemed like the only predictable changes in the landscape of modern manufacturing was that jobs were leaving the U.S. and heading overseas, or that automation seemed destined to take over for human workers all over the world. There wasn’t much good news, or so it appeared, for those looking to get into the manufacturing industry.

But there have been more positive changes over the last 10 years that seem to have revitalized this business, and they’ve given a new face to the industry. Trends come and go, but if one takes a broad look at the manufacturing business in 2017, there are many different areas where things seem to be going better than ever. Here are a few examples.

The New Los Angeles

What do you think of when you think of L.A., or even California in general. Probably the American film industry right?

But it turns out that over the last few years, Los Angeles has become the biggest industrial hub in the country, chiefly due to the large amount of available space for manufacturing facilities and the favorable weather conditions that make large-scale product testing (airplanes, for example) easier for companies to undertake.

The ports of L.A. are also an important part of the story, allowing manufacturers to easily ship products all over the world.

The High-Tech Job Sector

Even though there are less blue-collar jobs in manufacturing than before, there’s a new and growing need for more tech-savvy workers in the industry.

While there are certainly still businesses in this country that make things the old-fashioned way with more out-moded machines, the trend is towards more high-tech and advanced processes than ever before, making a worker who has knowledge of these new devices a highly-valued commodity on the job market.

The blend of technology and manufacturing demands a new kind of worker, who can be richly rewarded for his or her abilities.

Apprenticeships

It might sound like an outdated concept, but the idea of apprenticing with a manufacturing company is not as antiquated as it might sound, particularly in the automotive industry, and specifically in the American South.

Companies like the sealing manufacturers Cooper Standard are taking advantage of a program in South Carolina called Apprenticeship Carolina, which provides young people with the opportunity to serve in experience-building positions at various manufacturers around the state.

Programs like these are creating the experienced workforce of the future and bringing a new wave of youth into the industry.

Niche Manufacturing

When it comes to the fashion industry, small may be the new big. Companies like California’s Cal-Mart are becoming increasingly specialized, making items like pocket linings for jeans in an effort to focus on a specific need that other companies might not be filling.

This also puts these companies in a position to provide services to larger clothing designers and manufacturers, creating a B2B model that’s effective and profitable for both sides.

It might seem like an insignificant trend to the naked eye, but these companies are providing the small bits and pieces that our clothing needs, and thriving in the process.

The Little Guy Is Hanging In There

It might be easy to get caught up in the sweeping changes in technology in manufacturing, but across the country, there are still businesses that make their products their own way, and although they might not be growing quickly, they’re sustaining themselves just fine.

Companies like Mansfield, OH’s Carousel Works (which manufactures hand-carved carousel horses) and Newell, WV’s Fiesta company (which makes one of the most popular lines of dinnerware in the country) continue to take a personal, craftsmanlike approach, and remain successful businesses in the process.

Manufacturing is indeed an ever-changing industry. To learn more about how manufacturing developments are affecting product design, read our post “The Many Benefits of Rapid Prototyping.”

What is 5S, and How Does it Affect Manufacturing?

Though its origins date back to before the automobile was even created, the idea of “lean manufacturing,” or minimizing waste within a manufacturing process without sacrificing productivity, was generally brought into a modern business context by Toyota.

By breaking down the lean manufacturing process into a system called the “5S System,” Toyota brought a revolutionary concept to the manufacturing world as the 20th century progressed.

Briefly, the 5S method incorporates the following principles, translated from the original Japanese:

Seiri – Tidiness
Seiton – Orderliness
Seiso – Cleanliness
Seiketsu – Standardization
Shitsuke- Discipline

By keeping all of these ideas in mind during the automobile manufacturing process, Toyota showed that there is was a huge benefit in examining not just the amount of a product that can be manufactured, but HOW that product is manufactured.

Here are some ways that the 5S system can help a company’s manufacturing process.

Less waste means more efficiency

One of the key ideas behind 5S is getting rid of the things within a manufacturing process that are not used, and streamlining the ways a company uses materials, so they can better determine the things they DO need.

By adhering to a system of “waste not, want not,” a business can get rid of superfluous items around their manufacturing areas, focusing only on the ones they need for their respective processes. This translates to more efficiency in several areas, particularly time spent searching for the necessary items

There’s also an emphasis on positioning within the 5S system. Tools, machines and material are placed in carefully planned locations that promote easy access and reduce fatigue, again increasing efficiency.

Finally, the 5S system places a heavy emphasis on standardization. The least time-consuming and most productive work methods are determined and made the standard operating procedure, eliminating more wasteful procedures.

In short: If it doesn’t have clear, essential use, it’s not part of 5S.

Less space means reduced cost

There’s an emphasis on streamlined spacing in the 5S model, making sure that everything is in the most optimal place possible and there is little or no clutter in a manufacturing space.

It might seem like a minor concern, but it’s all part of a larger concept that focuses every single aspect of the manufacturing process on getting the best possible result in terms of both time and productivity.

The better laid-out and cleanly kept a manufacturing space is, the less storage it requires, and the less unused material there is in the process.

Cleaner equipment means better maintenance and less employee downtime

The cleaner and more well-kept a piece of machinery is, the less likely it is to break down. The less a piece of machinery breaks down or requires repair, the more products it can help to build.

Also, the cleaner a machine is, the easier it is to spot potential issues, from a fluid leak of some kind to a worn-out part. The more quickly a problem can be spotlighted and repaired, the more time your employees can put in working on that machine to manufacture your product.

The 5S System as a whole fosters more reliable employee safety

And here’s how:

A system that is fueled by cleanliness means that spills or potentially hazardous situations are cleaned up more quickly, drastically reducing the chance of an accident or injury.

In a manufacturing process with little or no clutter, any chemical, electrical or mechanical issues can be spotted quickly.

When an employee has materials, supplies and tools in the right place, close by, they have to travel a lot less. This reduces the chance of a fall or accident on the way to get what they need.

Standardization often eliminates processes that are patently unsafe in the process of discovering methods that are more efficient. This isn’t a coincidence.

The 5S system encourages employees to be on the lookout for ways to improve efficiency; the more aware an employee is of their surroundings, the more likely they are to avoid injury.

Manufacturing is a massive, global industry that every product designer will interact with at some point. To learn more about how to get your product made accurately and efficiently, read our post “The Advantages of Choosing a Single-Source Product Development Firm.”

The Benefits of Sustainable Manufacturing

Manufacturing is going through a major transition period. The introduction of robotics and cobotics, 3D printing, and a changing global economy have wrought huge changes in the industry, and these changes show no sign of slowing down.

There’s another area in which manufacturing is experiencing changes, too – sustainability.

While sustainability in manufacturing has been a topic of interest in the sector for decades, in recent years manufacturers have begun looking far more seriously at how to manufacture in a more efficient, environmentally-friendly manner.

Doing so can have a positive impact on not only the environment, but on your bottom line as well. Here are just a few of the potential benefits.

Building a sustainable future for your company, your industry, and the environment

Sustainability means working with an eye toward the future. Obviously, manufacturing in a sustainable manner means that less environmental damage results from your manufacturing process, and that’s always a good thing.

Sustainability is really quite simple: If you use fewer resources today, you’ll have more for tomorrow – even if “tomorrow” means 20 years from now.

It’s easy for many of us to think of “the environment” as an abstract construct, but manufacturers know better, dealing as they do in raw materials. As resources become scarce, costs go up. Sometimes, manufacturers have to start using replacement materials.

These issues can create logistical problems, not to mention an increase in costs – and these problems can quickly balloon into major issues for your company.

Commitment to sustainability encourages innovation

Working toward a more sustainable future is one of the greatest ways to encourage innovation at your company or in the industry at large.

The quest for more sustainable materials, manufacturing processes, or distribution methods spurs critical thinking, encouraging managers and workers to question things are done. This is the only way positive disruption can occur.

In addition, as the Harvard Business Review reports, companies that commit to sustainability early will find themselves ahead of the pack. Adhering to the very strictest environmental compliance regulations rather than the most lenient, for example, can allow a company to release sustainable products two or three product cycles ahead of their competitors. This creates a very real competitive advantage, setting the manufacturer up to stay ahead of those competitors for years to come.

Sustainable products are more attractive to consumers

A significant percentage of customers will choose a sustainable version of a product over a less sustainable one.

In fact, according to Nielsen, 72% of respondents in Generation Z, the post-Millennial generation, are willing to pay more for products coming from companies that are committed to sustainability.

So in addition to being ahead of the game on innovation, manufacturers that embrace sustainability can become much more desirable partners for product development companies.

Costs can decrease, while efficiency increases

If sustainability is done right – that is, if planning and research are carried out and implemented – a manufacturer can actually begin to see costs go down and efficiency go up.

This is the opposite of what many executives believe happens when companies decide to “go green.” While initial costs to source alternative materials, use more eco-friendly processes, etc. may be higher, over time those costs tend to go way down. This is because a sustainable factory uses fewer inputs than a non-sustainable one, and produces less waste.

In addition, if the consumer price for a sustainable product is higher, that will be reflected all the way up the chain to the manufacturer. The manufacturer can therefore stand to make a healthier profit off of these sorts of items.

Sustainability in manufacturing is becoming more and more important with each passing year. In fact, it’s one of the biggest trends in the industry that we’ve identified for 2017. Read more in our blog post “6 Manufacturing Trends to Watch for in 2017

6 Manufacturing Trends to Watch for in 2017

As the year draws to a close, those of us involved in product development – designers, developers, and engineers, for example – are looking to 2017, considering what trends and changes will affect our work in the coming year.

Manufacturing, of course, is a huge part of the product development process. It’s also poised to undergo some changes in the next year, especially due to the results of the U.S. presidential election.

What are those changes? Here are a few that we think are on the way next year.

Sustainable manufacturing will grow.

Manufacturing responds to the market like any other industry, and the market for green or sustainable products is only growing. As Millennials, who as a group demand sustainable products, start making a larger and larger percentage of purchasing decisions, manufacturers will have to speed up and expand their adoption of sustainable processes.

The use of “cobotics” grows.

Robotics and automation are already in use at countless factories around the world, but not every manufacturing robot is designed to replace its human counterpart. Instead, lots of robotic machines are designed to complement a human. This is where the term “cobotics” comes from – from the cooperation or collaboration between a human and a robot to do a particular task.

This approach is especially popular right now in the U.S., particularly in the aerospace and automotive industries.

Embrace of new technologies will mark the differences between success and failure.

Manufacturing has changed drastically over the past decades, and there’s no going back. For better or worse – or, more realistically, for better and worse – technology has made an indelible imprint on the industry. That means certain jobs are gone for good, but it also means that there are new, exciting opportunities to make products faster, more safely, and more efficiently.

Manufacturers must embrace these technologies if they want to compete in the global economy. That will require investment in multiple areas: equipment, workers, and business operations, among others.

Manufacturers will need to focus on recruitment and training to fill highly skilled, technical positions.

As the use of robotics, cobotics, and technology continues to grow, manufacturers will need more people who are trained to operate these complex systems.

Currently, there’s a real shortage of workers who have the skills needed for tomorrow’s manufacturing industry. Deloitte released a report stating that there will be an estimated 2 million unfulfilled factory jobs by 2025. If manufacturers are going to be able to operate, they must invest in training and recruitment. This means offering educational opportunities for current workers as well as future potential workers.

Consumer demand will emerge – and change – more and more quickly.

Social media and the internet have had a huge impact on the consumer product industry, and part of that involves the speed at which demand emerges and shifts. Thanks to websites like Pinterest, for example, products can reach hundreds of thousands of consumers in a matter of minutes, and demand can explode.

Of course, since there are thousands of products exploding on the marketplace all at once, this also means that Product A can be completely eclipsed by Product B faster than you can fulfill the outstanding orders for A. This means manufacturers need to be as efficient as possible when it comes to making their products so that they can get into the marketplace quickly.

Same-day delivery will transform operations and logistics.

Amazon’s same-day delivery service is where the consumer shipping industry is headed, and it’s going to have ramifications all the way up the supply chain – including for manufacturers. Operations and logistics will have to completely transform, and manufacturers will have to become more nimble if they want to fit into the new landscape.

Manufacturing is in the midst of a great deal of changes, but forward-thinking companies will be able to turn these changes to their advantage. If you’re planning to manufacture a product in 2017, Pivot can help – take a look at our Manufacturing Services here.

Importance of Global and Regional Manufacturing Resources

There are quite a few important decisions that you have to make when you’re trying to take a new product to market.You need to make a timeline, you need to develop a strong marketing plan, and you also need to decide if you’re bringing in an outside firm for product development and production. If you do, it’s important that you find a firm that has a good balance of both global and regional manufacturing resources at its disposal.

Here’s a fun fact—demand for manufactured goods from emerging economies is set to nearly double by 2025 from its demand in 2010. That’s a huge leap forward, and it means that whatever firm you choose to work with needs to have solid manufacturing resources that aren’t only based in their backyard. This demand in countries with emerging economies will also be for a wider variety of products that are being designed for specific locations.

That means it’s important to work with a manufacturing firm that can help you design or re-design your product to meet the demands of the market you’re selling to.

At Pivot, we know that we live in a global economy, and that it’s important to have manufacturing resources in all over the world. We’re committed to enhancing our global manufacturing assets abroad, so that you can be confident that you’ll be able to access those markets.

But even as we’ve grown internationally, we’ve never forgotten about the importance of local manufacturing in our own country. We love our community and our country, and we’re committed to generating jobs, growth, and products here in the United States.

That’s why we recently acquired two local engineering and manufacturing companies—DigitTron and MCC Electronics.

DigitTron is based in Shawnee, KS and MCC Electronics is based in Independence, MO. We feel very strongly that these new additions will enhance our local resources for electronics engineering and manufacturing.

As we just said, while the demand for manufactured goods is exploding around the world, the solutions that are required are becoming more localized. And the same is happening here at home, as well. The acquisition of DigitTron and MCC Electronics helps us expand our facilities here at home—while we continue to expand overseas.

Having a global and local strategy in place is essential for any product design and manufacturing firm. So when you begin making the decision about who you want to work with, keep in mind that not everyone is taking the necessary steps to stay ahead of the curve.

At Pivot, we have more than 40 years of expertise in the field of product development and manufacturing. Positioned as a world leader in outsourced product development and manufacturing, we offer the seamless convenience of working with a U.S. company and the financial advantages of utilizing its own in-house, offshore, tooling procurement and manufacturing capabilities.

Contact us today if you’d like to hear more about how working with Pivot can drive your product’s success.