Not only is outsourcing manufacturing a matter of convenience for small and mid-size companies; it is a pre-requisite for survival. Without the ability to farm out their manufacturing to more profitable territories, companies simply lack the economies of scale that allow them to effectively compete with their competitors. Few companies have the ability to keep its labor-intensive production costs at right levels without outsourcing its manufacturing capacity to low income geographies. Corporations or the original equipment manufacturer (OEM), has to make the right choice on geography selection, establish robust business processes, negotiate win/win pricing and contract terms, and invest time and resources in the outsourcing effort.
The objective of DVG GROUP CORP is to identify outsourcing issues and risks that are unique to bigger companies, offer you insights on how to address them, and ultimately help companies establish long-term success in emerging territories. We identified key areas in which the unique challenges facing bigger companies are most apparent.
The term outsourcing denotes the process of transferring manufacturing and related support functions to outside companies or territories, whether those companies are onshore or offshore. (While for some OEMs this may mean transferring manufacturing to a low-cost region like Hungary, Romania, Moldova or Ukraine.)
Manufacturing outsourcing industry is providing a wider variety of services to a wider variety of companies. That is why it is important for them to be even more knowledgeable and sophisticated in their approach to get the performance, motivation, and mindshare that they need from their outsourced manufacturing partners or integrating in new territories.
We have identified some of the key challenges and potential solutions that you, as a smaller or bigger OEM, must address proactively when outsourcing the manufacture of your products to another territory. By addressing these challenges through preparation, planning, and upfront analysis, as well as the deployment of the right personnel and tools, you can make manufacturing outsourcing a competitive advantage for your company.
DVG GROUP CORP. helps corporations and companies of all sizes create and execute successful manufacturing outsourcing strategies focused on increasing revenues, mitigating inventory risk.