Thanks to the sickly global economy and the resulting corporate deleveraging and pressures to reduce costs, many companies have increasingly turned to locating new sourcing opportunities overseas. The decision to either outsource production or seek new suppliers is a strategic one. But very often it is not given the strategic importance that it requires. Before anyone begins to outsource, they should have a clear outsourcing strategy.
We have often been asked by clients whether we had any good advice as to how they should effectively implement a sourcing strategy. What follows is a brief guide that outlines a process we employ and that we encourage our clients to follow when seeking new manufacturing sources for their products. It is not all encompassing and is not intended to be a failsafe recipe for effective sourcing. The key, as with most initiatives, is in the implementation. However, it will provide a basic process that, when followed, will significantly improve your chances of having a successful sourcing experience.