Understanding the Value of American Made GoodsAmway’s biggest market isn’t in the United States, where the company is based, but in Asia. The company has a unique understanding of the mindset of these customers. In Asia, the “Made in America” label puts a premium on many products. Overall, products command a 25% premium there when made in America. This is particularly true for food grade products, such as nutrition bars. Consumers in Asia understand and value the requirements and restrictions that apply for edible products manufactured in the USA. Thus, they’re willing to pay more for Amway’s nutrition bars when they’re made in America. Cosmetics are another area where the “Made in America” label carries more weight. Buyers typically shy away from cosmetics and toiletries that are produced in developing countries. Meanwhile, those that are produced in America have a strong appeal to consumers around the globe. Only a small percentage of Amway’s products are sold in the USA. They’re sold primarily abroad where American manufacturing carries high appeal.
Utilizing a Long Supply ChainAmway strives to follow its items as far as
possible along the path from raw ingredient to finished product. Though the climate necessitates some farms in Brazil and Mexico, Amway also has farms in the state of Washington. Among Amway’s produce selection, you’ll find spinach, watercress, and cherries. Some of these items are then processed for byproducts, such as Vitamin C from the cherries.
By following its products as far as possible along the supply chain, Amway can ensure a high level of quality. It is this attention to detail that makes its nutritional supplements, edibles, and cosmetics so highly sought after. Amway keeps a close eye on everything in the production process, holding it to the highest possible standards. Much of this is possible only by keeping manufacturing plants, farms, and other facilities inside the United States.
Keeping Diverse Departments Under One UmbrellaMost companies keep their manufacturing and supply chain management separate from R&D. In a traditional environment, these two areas are managed on their own. However, Amway lumps them together. Procurement, the trade group, R&D, and manufacturing all fall under the same umbrella. This allows for more comprehensive oversight of products. Keeping most of the work in these areas inside the United States keeps them close to home for the Michigan-based company. When one person is overseeing research and development and later manufacturing, it is possible to bypass some hiccups in the process that might occur if research was not aware of the latest procurement strategies or if manufacturing was not prepared for what’s in the development pipeline.
Investing in Knowledgeable Manufacturing ProcessesIn 2015, Amway expanded its manufacturing facilities to include four new locations in the United States. This includes a massive $81 million warehouse and manufacturing facility near company headquarters in Ada, Michigan. Spanning 317,000 square feet, this facility focuses primarily on dietary supplements, vitamins, and minerals. Much of Amway’s reasoning for keeping so much manufacturing in the United States is that it allows them to keep their most important activities within the company rather than outsourcing them. The ingredients and methods used for supplements, nutrition bars, and other similar products should be closely monitored for quality, safety, and reliability. By refusing to outsource in these areas, Amway can do exactly that. Keeping America first is second nature for Amway. The company's processes emphasize keeping important activities within the country, and the enterprise has adopted a successful and highly lucrative sales strategies to capitalize on that. Leveraging the valuable “Made in America” sticker to its advantage, Amway is coming out on top.
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