Management increasingly looks to the Engineering department for contributions that improve business results by streamlining production. This expectation must be balanced with the realities of manufacturing. OEM production with tight tolerances is complex. There are many issues: multi-site integration, equipment and human assets obstacles, advanced technology or new machinery may be required, government regulations, and of course, cost. Outsourcing has been a profitable solution for successful companies. Make S.O. Sales your partner. We have decades of experience and understand the issues to help drive down your costs while maintaining quality integrity.
Sourcing Opportunities Understands the Issues
The Main Benefits and Issues with Outsourcing:
- Cost Savings. This is the major reason to outsource. Savings come from reducing manufacturing scope and output time, improving quality, re-pricing products, and lower labor costs.
- Core Business Focus. Efficiency often improves when a company focuses in house manufacturing on areas that best match capabilities and long-term goals. Successful companies outsource processes that are outside of their core business focus.
- Quality Assurance. There is no compromise on quality. It can be almost impossible to get reliable data on the quality history of an overseas provider. S.O. Sales has an extensive network of overseas and USA contacts maintained over four decades. You can be assured of a manufacturer’s quality and then set up QA systems to monitor quality cost-effectively.
- Expertise. Operational expertise comes with focus and specialization. As a partner, S.O. Sales provides expertise in support to your companies main focus. This helps save money as they can be beyond the level cost-effectively maintain in-house.
- Improved Quality. Companies often worry that outsourcing could compromise quality. However, because of the specialized expertise, shifting manufacturing to a partner with appropriate capabilities and verified reliability can result in higher quality than in-house at comparable cost.
- Capacity Management & Scalability. In an unstable economy, you need to maintain a high capacity in case business turns sharply upwards, but if that capacity goes unused, it is a wasted expense. Appropriate arrangements with a partner can shift the risk of excess capacity, giving you the needed volume flexibility without the cost.
- Reduce Time to Market. New product time to market is critical in obtaining market share and a positive return on the R&D investment. Well-chosen suppliers can provide capability for rapid ramp-up that would be impossible to achieve in-house, potentially making the difference between profit and loss when new products hit the market.
- Cost Restructuring. Outsourcing non-core manufacturing improves a company’s cost structure by moving from fixed to variable costs as well as making those variable costs more predictable.
″ SO Sales has been supplying quality products on time for the last 30 years to Kidde Fenwal, now a division of United Technology. As a strategic sourcing manager, I have visited their factories in China and Taiwan and was extremely pleased with their process control and technical capabilities. There are very few global sourcing agents in the U.S. that can assist companies source overseas. I recommend them highly and you will be able to see for yourself. ″Donald J. Pacheco
Supply Chain Manager United Technologies
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