8/02/2010

Inexpensive Outsource Management

Management of your outsource manufacturing does not have to be an expensive proposition and companies can gain the competitve edge and avoid being out-manufactured without breaking the bank.

Large companies manage their outsourced manufacturing by having key people stationed strategically in Asia to manage their interests. Ideally, they should develop real-time working relationships with the subcontractors, and attend to daily hiccups and problems within the same day at the Subcontractors. Good approach, but a huge cash drain with all the extras thrown into the equation, costing $100’s of thousands of dollars per person each year.

Small companies cannot afford the large expense of foreign assignments or the time required finding local talent. In the mean time, they end up using in-house key resources that are pulled from critical projects to attend to the emergency problems and every day business. These people have to fly over to Asia to meet with the Subcons to solve problems, expedite your parts or negotiate with them face-to-face. This can take several weeks out of the year and can be very expensive. While this approach may solve one or two problems at a time, it is more of a fire-fighting approach. You are always working from behind, instead of proactively managing and improving your business.

SOMC is an inexpensive proposition for companies. Our business model was developed to keep manufacturing costs lean. This is why you came to Asia in the first place. How do we do this? Our overhead was designed to be an extremely low cost profile from inception and is primarily due to our efforts, not to carry the cost baggage normally associated with foreign assignments. This model gives our clients best cost possible based on local economies, but with seasoned senior executive level expertise and an acute understanding of the urgency of reacting to your requirements and business culture. Our business model truly sets SOMC apart and makes us unique, as you cannot find this high-level expertise, capable of adapting quickly, at a cost that does not put a drain on the bottom line.