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Himanshugupta
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Re:
Himanshugupta   12/25/2012 8:58:34 AM
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Douglas, outsourcing is the theme of the season. As more and more companies are announcing to pull in manufacturing back so there are many theories on the probable reason. The most logical being financial. Most of the factors to decide on local manufacturing are easy as shipping, material cost, tax benefit, labour cost but how one calculate factors such as customer preference, technology transfer, knowledge transfer etc.

TaimoorZ
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Re:
TaimoorZ   12/25/2012 2:25:53 PM
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@Himanshugupta: I agree. There are lots of factors which may influence the company's decision to outsource but unfortunately most of them are unknown and only time will tell how they turn out to be. Companies can only make their decisions on the basis of speculated outcomes.



prabhakar_deosthali
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prabhakar_deosthali   12/26/2012 11:37:49 PM
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One of the most important aspect to study before deciding on the outsourcing is to know the local culture of the people at the location of outsourcing. Understanding the local people and their culture is very important because they are going to be your work force at the outsourced destination. Effective rapport with them will go a long way in establishing your manufacturing base. Else the local management may take you for a ride.

This is over and above the bare cost calculations which you may do to see the profitability of doing manufacturing overseas.

 

Himanshugupta
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Himanshugupta   12/27/2012 10:45:24 AM
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@Prabhakar, i think that the knowledge of local cuture is nice but not necessary. Company can hire cross-cultural manager for that. But knowing how to keep employee happy and keeping the cost low is for sure tricky. Also knowing how to get things done from people and politician is something more important.

Mr. Roques
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Re:
Mr. Roques   12/28/2012 8:43:48 AM
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How important is it to have similar industries close? Would it be the same to move to China than to some other country (when costs are the same)?

_hm
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Need better quality
_hm   12/28/2012 12:37:37 PM
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It is difficult to find products made in USA, Japan, Germany or like. I try to find similar products and purchase them immediately. e.g. Braun Shaving machine, Braun tooth brush, few Mytag appliances and some garments. Keeping production locally can also have more customers and good profitibility.

 

pocharle
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pocharle   12/29/2012 2:03:14 PM
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Now that I think about 'outsourcing' more, is it possible that these companies will bring the manufacturing back on shore but outsource the other operations?

Sort of a logistcal flip to meet the PR hype going on in the US now.

hash.era
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Stock Keeper
Re:
hash.era   12/30/2012 11:20:37 AM
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Mr.Roques: I feel moving to the sub continent would be much more profitable. Especially to a country like India would be ideal if allowed.

TaimoorZ
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Re: Need better quality
TaimoorZ   12/30/2012 3:55:16 PM
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@_hm: High quality products are in demand but unfortunately there's only a small portion of people who are willing to pay a premium price for the high quality. The bulk of the consumers go for low price products which may not offer the best quality. This has been the trend with almost all electronic products lately. So I don't think a high cost, high quality strategy will be very profitable.

FLYINGSCOT
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hidden cost
FLYINGSCOT   1/1/2013 8:02:20 AM
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How can one put a cost on the political and social economic benefits of manufacturing locally.  Much pressure is being exerted "morally" on companies to do the right thing for their country and not always chase the cheapest solution.  How is a cost assigned to this?

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