Manufacturing Outsourcing: Seven Common Pitfalls to Avoid
posted by Glen Stidolph in Outsourcing, Best Practices, Blog |
Metagrobolize was started to hopefully provide a ‘tool’ for anyone involved in outsourcing to either gain or share knowledge on best practices in what can be a very complex subject.
As the CEO of an outsource ‘Provider’ Metagrobolize is a great way for me to share my own thoughts as well as the thoughts, research and experience of other eminent personalities within the industry. Occasionally in the quest for more information and knowledge, I stumble across real gems of information, or in this case ‘insights into best practice’
I would recommend that Original equipment manufacturers (OEMs), primarily small or mid-size, who wish to become more competitive through manufacturing outsourcing or who wish to gain greater control of their current manufacturing outsourcing efforts read this white paper outlining the most common pitfalls to avoid.
www.arenaplm.com/forms/media_outsourcingpitfalls_07q3
READ MORE: Despite the significant benefits that come with manufacturing outsourcing, there are also risks that, unmitigated, can have a significant impact on a company’s financial performance and long-term success. To be successful, this commonly used supply chain strategy requires careful consideration of a variety of issues that are often overlooked. Outsourcing that’s not established on the right processes or infrastructure can lead to a loss of control, offsetting the benefits by introducing new costs and risks. Implementing solutions to these most common mistakes is not trivial, cannot be rushed and must be pursued with a strategy in mind. In the end, manufacturing outsourcing can be successful if companies have the right strategy, processes, people and tools to maintain control of their business.
In the whitepaper, the authors offer insight into — and recommendations for how to address — the seven most common pitfalls of manufacturing outsourcing:
1. Selecting the wrong contract manufacturer
2. Quote-and-go approach
3. Negotiating a weak contract — or no contract at all
4. Poor NPI project management
5. Inadequate change management processes and infrastructure
6. Broken environmental compliance management
7. Ignoring the hidden costs of going off shore
The authors:
Mr Bijan Dastmalchi, co-founder and president of Symphony Consulting.
Mr Richard Vermeij, senior director of product marketing at Arena Solutions.
