Are you an OEM that has already taken the decision that outsourcing is right for you?
If so, what could PP potentially offer you that your current supplier cannot?
Some important points worth considering:
- Capability – Can your supplier combine different and complimentary engineering and production disciplines in order to offer an added value solution?
- Security – consider financial standing, ownership and succession planning of your supplier
- Size – Is you supplier well matched to meet you growing needs? Too often outsourcing partners are initially chosen due to locality and first build , then you could quickly start to outgrow them
- Risk – Does your supplier manage risk well? What percentage of their business is with you? If it is too high, this could be potentially damaging to you both.
- Supply chain management – Can your supplier take a proactive approach to supply chain management, or are you having to do this costly exercise? Handling lots of free issue parts is a big hidden cost.
- Cost leverage – Can your supplier offer you increased capability in reducing material costs through combined purchasing strength?
- Technical innovation – Can your supplier offer you innovative solutions, learnt over many years through working in diverse industries?
- Quality – Can your supplier offer you state of the art automation that is guaranteed to improve quality and reduce machine downtime and costly warranty failures?
- Location – UK, Europe, Asia? Consider location, look at total cost of acquisition, not just direct or landed costs. The trend for re-shoring is growing as many OEMs begin to realise the true cost associated with managing complex supply chains that are situated in supposed low cost regions.
There are many more considerations that are pertinent to each and every business.
Download the Outsourcing Brochure
If you would like a no obligation meeting to discuss your particular needs, please call us on +44(0) 1922 419109
or email us via email@example.com