OCTOBER 2019 OUTSOURCING
Outsourcing
your processes
can help you
navigate these
turbulent times
companies, who had previously offshored, are
now looking to choose their outsourcing partner
a lot closer to home.
Chasing the low-cost manufacturing
environments of Eastern Europe and the Far
East hasn’t been as lucrative as first anticipated,
with inconsistent quality issues and long lead
times impacting on overall productivity and the
final ‘landed costs’ of parts.
The fall in the value of sterling has added
more strength to the argument, with the UK
now 30% more competitive than it was three
years ago, making purchasing decisions a lot
easier than they once were.
There are lots of benefits of having a strategic
supplier close to your own manufacturing
operation, not least clear visibility of stock and
the ability to manufacture just-in-time.
When the good times roll
History doesn’t lie. Looking back at previous
slowdowns, it is clear to see that companies that
continue to invest are usually the ones that come
out of the tougher times stronger and in a better
position to grow and take on new opportunities.
Those that choose to batten down the hatches
and cut off spending all together tend to be the
ones no longer here and their factories replaced
by supermarkets and housing estates.
Whilst strategic outsourcing is a great way
of mitigating risk, it shouldn’t be viewed as a
Sponsored by:
negative measure. In fact, it
is actually the opposite.
By managing your costs,
production capability and
retaining the skills you need, you
will create a platform that allows
you to immediately turn on the
tap when the good times return.
Increasing volumes can
be switched on quickly and
without massive outlay,
whilst new opportunities that
naturally emerge from an
upturn can be chased knowing
full well the production
capacity is in place.
In summary, it appears
that the uncertainty will get
worse before it gets better.
Mitigate the risk by exploring
how strategic outsourcing can
support your business both in
the difficult times and in the
good times.
www.ppcanada.com
Twitter: @ppcanda
tony.hague@ppcanda.com
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