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OutsourcingWhy would You consider outsourcing some of your manufacturing or services?
Let's look at an example: XYZ corporation, based in Ohio had been implementing Lean manufacturing and six sigma tools for a number of years and had become recognized in their industry as being "World Class". Their processes were slick and efficient, their quality was excellent and their people were dedicated to continuous improvement and to the goals of the company. Life was good, XYZ had been the most profitable company in their sector, per capita for the last five years. The long term future of the company and the job security of the employees was assured, they were, after all, the best in their field............ Until Now ! ABC Corporation from Florida were the new kids on the block. A recently formed company who had just entered the same market as XYZ, making "Super widgets", but they were producing them and getting them to market 30% less than XYZ at the same quality. The CEO of XYZ was worried, he couldn't understand how Anyone could undercut them on price and maintain the quality standards they kept. They were the market leaders in the industry, they were the masters of Lean Manufacturing and six sigma. They were frequently benchmarked by other companies who wished to emulate their success. "They must be running at a loss" he thought, "That's the ONLY way they could sell them for that price"............ Suddenly the future looked bleak
How ABC Did itABC used an outsourcing consultant in SE Asia to find a manufacturer who could make "Super widgets" to the same quality levels as XYZ.Even with the consultants fees and ongoing umbilical support, the product was produced at around 60% of the cost of XYZ's product and they didn't even need to set foot outside Florida. Beyond Lean OutsourcingDifferent countries across Asia offer different core competencies in manufacturing, which is why we look at a variety of factors before deciding where would best fit your needs.
Some of the countries we operate in are listed here: - South East Asia
- China
- Vietnam
- Laos
- Cambodia
- Malaysia
- Indonesia A structured, step by step approach is taken throughout the process: Assess Customer requirements - - Product Information - Required Quality Standard - Volumes - Lead Times - Cost
Source Provisional Supply - - Locate Potential Suppliers - Confirm Ability to supply - Confirm Cost Window fits - Check Reliability - Check Integrity Present to Customer - - Arrange Viewings if Required - Handle concerns - Obtain Customer Preference - Present full Details of Findings
Full Assessment - - Business Assessment - Lean Assessment - Procedure Audit - Quality Audit - Social Audit - Import/Export Confirmation Set Up Supply - - Initiate First off Order - Monitor Delivery - Monitor Quality - Provide Contacts Umbilical Support - - Provide Support as Requested - Training - Lean Training - Quality Problem Solving - Monitor Performance
Globalisation and the emerging markets of Asia can mean one of two things to you - either a risk or an opportunity. To make it an opportunity simply fill in the "Outsourcing Enquiry" form below
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