Globalization, emerging markets, shifting consumption patterns, competitive pressures and the promise of high cost savings has compelled many global manufacturers to look at alternative locations in Low-Cost Countries (LCCs) for setting up or expanding their manufacturing operations. Besides significant savings, LCCs such as Brazil, Russia, India and China are attractive in terms of market potential, primarily due to the fast economic growth witnessed in these regions, and a huge population. However, as most manufacturers have discovered, outsourcing manufacturing operations to LCCs is far more complex. This is especially more relevant to small and medium enterprises.
Compared to large multinationals that have a global manufacturing presence, fine tuned processes to move to low-cost countries, supported by the best of breed IT-enabled business solutions, most small and medium businesses (SMBs) have limited capabilities. Hence, these SMB’s face far more challenges in moving their manufacturing operations to LCCs, which in turn exposes them to a greater degree of risk and uncertainty.
There are also many manufacturers who are yet to take advantage of the concept of ‘Offshore Manufacturing’ due to apprehensions such as meeting customer expectations on quality and response times, disruptions due to transition, lack of familiarity with regulatory and legal environments, complex supply chains, lack of visibility and control, etc.
Based on our experience of partnering with numerous global manufacturers, we have compiled a comprehensive roadmap that enables organizations for moving their manufacturing operations to LCCs.
Read this booklet to understand the various factors manufacturers must consider before making the decision to offshore manufacturing to a LCC, and learn how an optimum combination of Assessment, Planning and Program Management initiatives can enable manufacturers to seamlessly move their manufacturing operations to LCCs.
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