One of the most challenging aspects companies struggle with when they outsource, is maintaining the consistency of their manufacturing supply chain. When a product is manufactured half a world away there are additional details a company must consider vs. manufacturing domestically. Working with a solid supply chain manager who understands the intricacies of culture, global logistics, and political situations, helps ensure companies enjoy the most consistent outsourced manufacturing supply. Read on to learn about strategic outsourcing methods to best guarantee consistency and business success.
Successful Product Supply Chain Management
A consistent supply network is essential for business success. Unfortunately, a company can’t just connect with a factory in another country, place an order, and wait for their perfectly manufactured goods to arrive on time. To maximize success, strategic sourcing is key. Strategic sourcing empowers businesses to:
1. Adopt a Dynamic Strategy Based on Demand, Knowledge and Real-Time Insight
When supply networks become global, various factors can have an impact or interrupt manufacturing operations. For example, companies that work with Chinese suppliers use strategic sourcing to avoid interruptions during the many holidays China celebrates. Likewise, a liaison that leverages strategic sourcing can help companies overcome challenges that economic or political conditions may present.
Additionally, supply chain management makes it easier to respond swiftly to ever-changing market conditions, consumer demand, or opportunities for improvement in a product’s design. By understanding where, how, and when management creates products for supply networks, they can make necessary changes quicker and more efficiently.
If a company is using an OEM contract manufacturer with staff “on the ground” in China, the better and more forthcoming the company is with the OEM the more effective the OEM can be for the customer. This includes engaging the OEM as soon as possible when an issue is developing rather than waiting until it’s a full, 4-alarm emergency.
2. Cultivate Deeper Relationships with Suppliers
Solid relationships with factories, suppliers, and manufacturers pave the way for effective and communication and changes and modifications to certain situations than could happen normally. Strategic sourcing helps ensure that a business enjoys positive, lasting relationships with its suppliers through:
- Identifying the most appropriate suppliers for a particular product supply network.
Negotiating favorable terms to reduce costs and/or acquire specialized or unique materials.
- Developing a more thorough understanding of how to navigate cultural differences in a business setting.
3. Emphasize Sustainable Supply Chain Operations
Sustainability is an important aspect of both business and customer relationships. Many customers nowadays want to see that a company is invested in doing what’s right for the planet in addition to making a profit. Strategic sourcing helps deliver sustainable supply chain operations through improved visibility and helping to spot problems or unsustainable processes before they have a chance to interrupt production.
ITI Leverages Strategic Sourcing for Business Success
Keeping the product supply chain consistent is important for ensuring business success. Although there are various challenges when it comes to navigating a global supply, ITI Manufacturing has solutions. As an experienced OEM offshore contract manufacturer, we use strategic sourcing methods that greatly enhance the predictability. Our methods also enhance the reliability of our customer’s supply network. We emphasize a straightforward approach to communication as well as pre-emptive problem resolution.
ITI Manufacturing partners with U.S. companies to help identify the most viable outsourced manufacturing strategies in Asia. We don’t just source a factory, we source the right factory.