It is well known that sourcing just about anything from Asia comes with a large cost advantage; however, what about the risks? Let’s take a quick look at some of the well-known and lesser-known risks of offshore manufacturing.

Quality:
The first and more well-known tradeoff when it comes to outsourcing is quality. We have all experienced the less than stellar quality of cheaply manufactured imported products. Magnetics are not isolated from this either. Poor connections, lack of testing, and faulty materials are not uncommon.

Inconsistent:
One of the lesser-known facts about overseas manufacturers is the factory you contract with is not always the factory that fulfills your order. Foreign manufacturers have been known to outsource orders to other factories of lesser quality. This can mean the quality of one order to the next can be vastly different in terms of quality consistency based on who actually fulfills your order.

Turn-Around Times:
Aside from production time, shipping from Asia can take 4-5 times longer than domestic shipping. The cargo ship trip alone can take 35 days from somewhere like Shanghai to New York. This doesn’t take into consideration freight forwarding from the factory to the originating port nor the logistics between the destination port to your final destination. If there is a problem with the order, the whole cycle will start over again unless you opt for air freight (which isn’t cheap for something made of copper and steel).

True Cost:
As we mentioned above, many purchasers neglect the additional time and cost of freight forwarding. The cost of the forwarding for even a short distance can often be as much as the ocean freight. You will also need to consider the cost of customs. Today, transformers manufactured in China are subject to tariffs. Don’t forget about dock fees, the freight forwarder administration fee, security fee, and customs clearance fee. This all adds to the overall cost of the project. This may work at quantities of scale but not in smaller production runs.

The Unforeseen:
Overseas logistics can be tricky, and getting it wrong can be extremely costly. A misstep in the process can result in your product getting held up at the docks for weeks, and yes, there will be fees involved. Time at the port is costly, and like the post office, they won’t hold your products forever (aka “return to sender”). The Bill of Landing, customs, and proof of payment of the supplier and freight company are just some of the hoops you will be required to jump through. Assuming you get this right, your product can still be subject to costly delays from weather, customs, or even labor strikes.

The Best of Both Worlds:
At Pacific Transformer, we have developed a tried and true hybrid manufacturing approach that solves all of the discussed offshore sourcing problems while still providing you with overseas pricing. Want to learn more? Check out this page on our website:
https://www.pactran.com/about/locations/

When it comes to quality, some come close to our high standards but no one can beat us. We have spent decades devising a quality management system that ensures the highest standards possible. These quality standards have been independently audited and certified by the most demanding auditors and agencies. Organizations such as ISO, the International Aerospace Group and NSF International. We are also qualified by UL, CSA, ETL and TUV. We have over one million of our products on various military apparatuses. Medical equipment, satellites, railroad safety and traffic control all require the highest level of quality because there simply can be no failure.

Learn More about our Quality Standards and Certifications

There can be several agency markings on any given electronic product. Some markings indicate an approval given directly from a government, while others indicate a certification from an independent third-party. UL, CSA, TUV, and ETL (also known as Intertek) are all third-parties known as “Nationally Recognized Testing Laboratories” (NRTLs). Many people often confuse NRTL certifications with direct government approvals, which are actually different. There is a common misconception that UL markings indicate that the US government has reviewed, tested, and approved the product for sale within the states. Similarly, there is also a common belief that CSA markings suggest the Canadian government has approved the electronic device for sale. This is incorrect.

Put simply, NRTL’s are independent testing labs that verify that products meet safety standards set forth by various “standards development organizations” (SDOs) such as the American National Standards Institute. A government, local municipality, your liability insurance provider, product distributor, and/or retailer may require a certification from an NRTL to underwrite a policy, reduce liability, or as a prerequisite to receiving a licence to sell. In many cases, the widely known NRTL certifications are often interchangeable, but not always. For instance, OSHA could require a certification from TUV or UL, but your distributor may require a certification from ETL. Likewise, if you’re planning on selling in a different country such as Canada, the Canadian government could require CSA approval or a particular type of UL approval. This explains why you can often see many NRTL markings on the same product.

The bottom line is that each product is entirely different, and what works for one company may not work for another. In-fact your needs can change from product to product. Regardless of your circumstances, our engineers have decades of experience getting products through all the major NRTLs and can help get your product through whichever fits your product best.

For more information regarding federal government approvals, check out this document from the National Institute of Standards and Technology:
https://nvlpubs.nist.gov/nistpubs/ir/2017/NIST.IR.8118r1.pdf

When it comes to quality, some come close to our high standards but no one can beat us. We have spent decades devising a quality management system that ensures the highest standards possible. These quality standards have been independently audited and certified by the most demanding auditors and agencies. Organizations such as ISO, the International Aerospace Group and NSF International. We are also qualified by UL, CSA, ETL and TUV. We have over one million of our products on various military apparatuses. Medical equipment, satellites, railroad safety and traffic control all require the highest level of quality because there simply can be no failure.

Learn More about our Quality Standards and Certifications