From finding & evaluating overseas suppliers to calculating what their bid really means; from understanding the business culture and its impact on negotiations to managing the risks associated with moving your supply base—there's a lot to consider in offshoring.
In general, overall satisfaction with offshoring has gone down.
Highlighted below are just some of the reasons “onshoring” truly has competitive advantages to offshoring.
No Hassle Communication & Control.
Companies offshoring are facing language and cultural differences, time zone disconnects and unforeseen costs encountered with communication breakdowns. This is causing not only project costs to surge but compromising the entire project itself.
Successful outsourcing requires constant exchanges between customer and supplier, especially in the case of complex projects. The management & communication structure should be as simple as possible in order to maintain control over the various stages of a project.
Onshoring removes the time, distance and communication barriers allowing suppliers to better service their customers by solving problems faster and easier and adapting quicker to their changing needs.
No Hidden Costs.
Even if you factor in the unavoidable costs of doing business abroad, trying to determine the total landed cost of your products manufactured overseas usually involves a bit of trial & error. In addition, unaccounted management, quality control & communication defects can have more of a negative impact than initially anticipated.
Rising labor costs & inflation rates, changes in foreign exchanges and export policies amongst other factors, are also causing prices to rise in otherwise “low-cost” regions.
Cost-effective solutions are not always about the lowest price. Unstable or unknown labor, political and foreign policies can increase the management and pain associated with outsourcing.
A Supplier That Understands What’s Important to You.
Offshoring can be a gamble when it comes to labels, regulations and quality requirements your products must adhere to. It is sometimes hard to assess the real capabilities of offshore suppliers. In general, the farther away a supplier is, the farther that supplier is from meeting your rigorous standards. This usually leads to a difficult and lengthy setup or development process.
North American suppliers are already familiar with such regulations as UL, NEMA, RoHS etc. and operate their manufacturing environments accordingly. They understand the importance of quality and ISO 9001:2000 certified suppliers guarantee best-in-class quality manufacturing, removing any concerns for top quality product production.
Don’t Wait for Quicker Lead Times.
There are many problems that can arise with manufacturing offshore that directly affect your products’ lead times. From foreign policies on exporting to logistics constraints to shipping overseas, longer than expected lead times and increased costs will often occur.
Getting your products to market faster requires quick and reliable lead times. Local suppliers can offer quick lead times because of uncomplicated, reliable shipping at a reasonable cost and true Just-in-Time / pull production systems.
Be Confident in Our Confidentiality.
Some projects require a high level of confidentiality and/or are particularly sensitive to patent protection. Foreign companies do not always have the same policies on protecting your intellectual property or the security of your information.
Manufacturing “onshore” means putting your most important and valuable assets in the hands of trustworthy suppliers that not only follow the same policies by law but will protect your intellectual property as if it was their own.
Innovation Starts Here.
Continuous improvement and innovation is critical to surviving in highly competitive markets. The degree of innovation required to be successful implies collaborating closely with suppliers. The communication barriers often experienced with offshore suppliers become a major setback to a company’s critical competitive edge.
Only a local supplier can offer simple and effective collaboration with a similar approach and drive towards developing your new products.
At CMP We See Things Differently. We believe that onshoring is a creative, viable alternative to manufacturing offshore. Our lean manufacturing methods allow our Customers to realize competitive advantages right here in North America. We believe it is efficient and effective to re-design to reduce cost, not re-source. We believe that our Customers can and will benefit from local, skilled resources who can quickly adapt to changing needs. With state-of-the-art facilities in important regional locations in North America, CMP offers major time, flexibility, support and cost advantages that only a local supplier can consistently provide.
Contact us to discover what Competitive Onshoring® has in store for you.