International Business – 2 Tips in Outsourcing

• Train your production management.
If your production management knows how to make lounge chairs in the United States, train them properly about how to manage Malaysian (or wherever you’re doing business) factories, workers and processes. Be prepared to send a good production manager overseas for at least a year. This is a good way to validate manufacturing abroad. Are you spending enough to justify the costs of an expatriate worker? Is your employee well versed in international business?

• Don’t rush into a deal.
Many U.S. firms meet a factory or a representative and quickly turn their production over to them. Beyond checking references, doing background checks and finding out all you can about the manufacturer, allow for plenty of relationship-building time. Malaysians (as well as many other cultures) will know you are versed in how they do business if you speak in the long term.

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