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Source From Overseas

  • Are you too reliant on a small number of UK based suppliers?
  • Do your suppliers actually manufacture or do they import and distribute?
  • Would you like to take one or more links out of the supply chain and benefit from the cost savings?
  • What would it mean to your business to save 20% to 40% on sub-assembled components?

Copernicus – Guiding your business to cost saving success

Copernicus can work with you through our own international offices and our extensive network of affiliates to help you find the right products at the right price – from a source where you can achieve a cultural and commercial partnership that really can impact on your bottom line.

We have sourced components and finished products from Poland, Czech Republic, Turkey, China, India, Scandinavia and many more.

Sounds great. But it’s not that simple or everyone would be doing it, and you already know that. Overseas outsourcing/sourcing in manufacturing industry can be costly. The cost savings may not be as great as they seem. Recently, many UK manufacturers have transferred their production to low cost regions all over the world including Mexico, India, and China. Among the various motives for these international outsourcing/sourcing projects, seeking cost effectiveness is most frequently mentioned.

It has to be recognized however that although cheaper labour can be obtained, other extra expenses will also occur. These include:
 

  • Transportation, duty, insurance;
  • Cost entailed by inferior quality, such as additional quality inspection, rejection, rework, downtime, scrap, warranties, brand reputation degrading and loss of market share;
  • Cost resulting from longer lead time and poor delivery, such as increased inventory, obsolescence, expediting, premium transportation, downtime, loss of sales;
  • Overseas supplier training and engineering support expenditure;
  • Administrative cost of maintaining relationships with new suppliers;
  • Dealing with local government for special policies, constraints or even
    corruption;
  • Cost related with currency fluctuation risk;
  • Cost related with Intellectual Property (IP) protection.
     

This list is by no means exhaustive. Actually, the further the distance between the host location and the outsourcer, the more the uncertainties and risks are. These uncertainties and risks can lead to large unexpected costs which offset gains from cheaper labour, or even worse, result in enormous loss to the outsourcer. Therefore, in order to have a complete picture of all the potential costs of the offshore outsourcing projects, companies should adopt a total cost analysis.

It is therefore very important that if you want to explore the possibilities of sourcing overseas you have the help and guidance of someone who has been there before and bought the T shirt.

We work hand in hand with your buying department to build a profile of your ideal supply chain, and then works towards achieving it without taking your internal resources away from their everyday tasks

Copernicus – the cost effective solution to improving your business and guiding your business to success

Contact us today on info@copernicus-consulting.com for a free exploratory discussion

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