IndexBad public relationsCultural and linguistic barriersFinancial lossesTheft or misuse of intellectual propertyCultural and linguistic barrierLonger order cyclesThe option of producing overseas is mainly adopted to reduce component costs while maintaining the research, development and design in New Zealand. The idea behind manufacturing abroad is to outsource the work or create a partnership with a foreign manufacturer while still maintaining control over the product. The company can also move to another option, which is factory ownership as it grows. For this report the raw material chosen was wool. The process of wool shearing, import and processing in Mauritius and export in New Zealand have been described with the help of a flow chart. The top ten risks have been identified along with their justifications. Treatment options to reduce these risks were also considered. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Wool is normally sheared from sheep once or twice a year. This equates to approximately 220,000 tonnes of wool per year. Wool is then classified based on its properties such as fiber diameter, length, tensile strength, color, volume, fiber medullation (whether hollow or centered) and presence of vegetal substances. This will determine whether the wool is suitable for making soft fabrics, rugs, blankets, upholstery or curtains. The best quality wool comes from the shoulders and flanks of the sheep, while the lowest quality comes from the legs (How the products are made, n.d.). The wool must then be washed to remove all sand, dirt, plant matter, manure, grease and dried sweat in a process called scouring. The wool should also be tested for any insecticides that may still be present due to spraying the sheep. These should meet minimum internationally acceptable levels (Te Ara, n.d.). Around 70% of the wool is then packaged and transported to the relevant port to be shipped overseas via container. Some relevant documents while exporting to Mauritius are the invoice to prove the transaction between the importer and the exporter, the packing slip to declare the inventory, the bill of entry which is a formal declaration of the goods entering the country and a certificate of origin certifying the origin of the goods (Mauritius Chamber of Commerce and Industry, 2018). If these are satisfactory, only the goods can be cleared through customs and transported to the factory (Mauritius Trade Easy, n.d.)In the factory, the wool will be processed by combing to separate the threads. This process also helps remove small particles of plant matter, seeds and leaves. It then undergoes spinning where the wool thread is taken, twisted and stretched into a thinner entity then wound onto a package at high speed to form a thread which is collected onto wooden spools. Weaving is used to make clothing, rugs, or upholstery, while knitting is used to make garments (Wood, n.d.). After these processes, the fabric will need to be immersed in water to ensure fabric weaving, followed by fixings to secure the weaving and then processed to prevent shrinkage and finally dyeing (Blackberry Ridge, n.d.). Quality control is then carried out by sight, touch and measurement. Any loose threads are removed and the knots are reinserted into the fabric. All minor defects are resolved before undergoing finishing procedures (As isproducts made, n.d.). All clothing should have care labels in accordance with AS/NZS 1957:1998 Textiles – Care Labeling, regardless of whether the product was made in New Zealand or overseas. It should state care instructions, country of origin, fiber content and children's sleepwear should have a fire hazard label (Commerce Commission New Zealand, 2018). The clothing items are then individually packaged and sealed and transported to the port where it will be shipped to New Zealand via container ship. After analyzing the processes and their description, some main risks were identified, reported in the following table. The risks were identified from the perspective of the Manufacturer (based in Mauritius) and the Distributor (brand owner based in New Zealand) and some risks were found to be relevant to both the Manufacturer and the Distributor. The impacts of these risks have also been described. These risks were deemed Major due to their consequences and likelihood scores in Section 4 – Risk Assessment. Loss of control regarding the manufacturing of the products. Control over production processes is not at the same level as when dealing with domestic facilities. Quality control of final products – Fabrics and clothing Consistency of product quality can be difficult to achieve, especially if products are made in locations where the workforce is made up of unskilled or migrant workers (Coakley, 2013). Theft or misuse of intellectual property Since the wool will be made into fabrics and clothing overseas, there is a risk that designs will be stolen if disclosed without authorization (New Zealand Trade & Enterprise, n.d.). Bad public relations The company may receive a negative public image rating for sending raw materials to be processed in a foreign country instead of employing domestic workers. This can lead to a negative public image (Hamel, n.d.). Failure to comply with environmental regulations It is primarily the brand owner's responsibility to ensure that all environmental regulations are complied with. Failure to do so reflects negatively on the company for not conducting due diligence on supply chain partners. This can result in lost business opportunities (Arena, 2008). Exchange Rate Fluctuations Changes in conversion may affect your gains or losses. Cultural and language barrier Being in an offshore partnership means overcoming cultural gaps. In order to transact business, it is necessary to understand the preferences of both countries (Coakley, 2013). Language can be problematic especially if you need to discuss technical issues. There may be confusion regarding quantities and deadlines. This can affect negotiations and create delays in communication. Relational difficulties with the commercial partner. Disputes between supplier, manufacturer and distributor. Loss or damage to goods in transit Products can be at risk of theft at all stages of the export process, including during shipping and transport to market (New Zealand Trade & Enterprise, n.d.). Financial lossesLonger order cycles Due to the fact that the manufacturer is far away, more time is needed for transportation. Lead times of several months are required (Coakley, 2013). In this case, Mauritius is a cyclone-prone country which can also play a major role in delays if all ports are closed. Loss of control regarding the manufacturing of products Quality requirements, delivery expectations and the.