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Foster City, Calif., Jul 12 - Date July 12, 2007 Title Manufacturing Outsourcing: Seven Common Pitfalls to Avoid For 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. Authors Bijan Dastmalchi, co-founder and president of...

Date
July 12, 2007

Title
Manufacturing Outsourcing: Seven Common Pitfalls to Avoid

For
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.

Authors

  • Bijan Dastmalchi, co-founder and president of Symphony Consulting, Inc., a Silicon Valley consulting firm specializing in manufacturing outsourcing and supply chain management.
  • Richard Vermeij, senior director of product marketing at Arena Solutions, the leading provider of on-demand product lifecycle management (PLM) software.

 

Details
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

 

Symphony Consulting and Arena Solutions host various best practice-oriented events, from webinars to full-day workshops. Please visit www.symphonyconsult.com/ for more information.

About Symphony Consulting
Symphony Consulting is a Silicon Valley-based company that provides strategic supply chain and manufacturing outsourcing expertise to help high technology companies reach their financial and operational goals. Symphony's strategic consulting services and in-depth workshops on advanced supply chain methodologies show companies how to enhance revenue potential, increase profitability and reduce inventory liability. Contact Symphony Consulting at (650) 968-1930 or visit www.symphonyconsult.com.

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