CIMdata PLM Industry Summary Online Archive

12 July 2007

Company News

Download Free Arena Solutions/Symphony Consulting Whitepaper: Manufacturing Outsourcing: Seven Common Pitfalls to Avoid; Paper discusses the importance of putting in place the right strategy, processes, people, and tools

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.

How

Download immediately from: http://www.arenaplm.com/forms/media_outsourcingpitfalls_07q3

Cost

Free (11 pages)

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 http://www.symphonyconsult.com/workshops for more information.

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