Offshore Outsourcing
Since more and more publishers are being forced to turn to overseas vendors and printers, whether for full-service or just for specific services, I thought it worth sharing with you Jen Butenschoen's article, based on her session at the Publishing Business Conference given in March of this year.
Jen Butenschoen has spent the past 13 years with Harvest House Publishers, a Christian book publisher headquartered in Eugene, Ore., where she is director of production. She has extensive experience working with offshore manufacturers, and so she led the “Tips for Healthy and Profitable Global Sourcing Partnerships” session at the 2008 Publishing Business Conference this past March in New York. During her session, she presented dozens of tips on how to make the most of your relationships with offshore manufacturers. Here are nine of them.
1. Be sure offshore manufacturing is right for your products.
Offshore manufacturers have different capabilities and technologies than many of their U.S. counterparts. Some are behind on technology, so know what their capabilities are before giving them work.
2. Don’t hesitate to ask your printer’s input on anything on which you’re unsure.
Ask your printer for their suggestions on such issues as file prep, best manufacturing methods, special treatments, etc.
3. Make sure that all costs are accounted for.
Overseas partners do tend to price things out differently than what you may be used to with domestic partners. And be careful, because sometimes you get what you pay for. “Often, there’s a reason for that low price tag,” said Butenschoen.
Don’t forget about additional costs like freight and shipping, and customs’ import and export taxes. For example, there is a significant import tax in Italy on items a publisher would supply to their printer for the work.
4. Request a variety of samples.
Examine them closely. See what they’ve done for other publishers and take a close look at the quality. Would you be happy with the work? If you’re considering placing a job with the manufacturer, request dummies that are made out of the materials you plan to use. That way you can be sure you’re getting exactly the product you want and precisely the product that was quoted.
5. Keep an eye on fluctuating currency.
With the U.S. dollar constantly on the move, quotes can wind up being quite inaccurate by the time the work is done.
6. Pay attention to payment terms.
Strive to get equivalent payment terms with offshore manufacturers as you have with your domestic partners. Often you can negotiate 60-day terms, especially once you’ve built a relationship with the partner.
7. Specifically request not only manufacturing time but also lead time.
Partners will usually offer you a manufacturing schedule with the quote, based on the date of final file approval. You’ll want to consider the full picture, however.
8. Be aware of peak seasons and holidays.
“If you’ve worked with Asia [partners], you know they take a lot of holidays. And it’s not just a few people that take vacation, but the entire plant shuts down,” said Butenschoen.
Printing during peak seasons mean schedules will run longer. Plan your own schedules accordingly.
9. Plan shipping time accordingly.
“I allow up to six weeks … not because it takes that long, but because you never know when one of your shipments is going to be flagged for customs exam. They do that at random periodically and can hold your shipments up to two weeks,” said Butenschoen.
If you’re doing regular overseas work, you’ll probably begin to get a sense for how long it takes to receive your product.
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