By Curtis Campbell
If you want to achieve optimal competitive advantage; your outsourcing strategy needs to align with your product realization challenges. This is never a one-size-fits-all equation. More typically, a single outsourcing strategy may fit the bulk of a company’s product lines, but there are usually outlier products that aren’t as well served. In some cases, the right answer is to squeeze the outliers into the best overall strategy, particularly when the overall outsourcing spend is low. In other cases, it may make sense to pursue a regional or product line specific sourcing strategy that distributes the total outsourcing spend over multiple facilities or suppliers. This can be especially true when there are different characteristics in different end markets. Given that supply chain consolidation reduces transaction costs, choosing a supplier whose business model allows for you to execute a range of strategies may be the lowest cost and easiest to manage option.
This whitepaper looks at five common outsourcing strategies and provides examples of ways SigmaTron International’s customers have utilized them to solve specific challenges and ultimately increase competitive advantage. These strategies are:
Outsource in close proximity to the OEM facility
Build in China for lowest total cost when selling to the China market
Nearshore in Mexico to reduce cost without adding an inventory pipeline
Capitalize on the resources of your EMS provider to fill gaps in your team and minimize
Achieve both savings and superior quality with a Vietnam strategy.