Our customer wished to transfer the production of its wireless handset designs from the USA to a low cost geographical region. However, the handsets were premium designs and product quality could not be compromised.
The customer sought a consultancy service through which candidate manufacturing facilities could be identified, analysed versus their needs and then negotiated to the lowest possible win-win manufacturing price for the production of its handsets.
We began by defining the key requirements and capabilities required to successfully manufacture the handset products at the desired level of quality. Then, based on our extensive experience and relationships with contract manufacturers worldwide, we identified a set of candidate manufacturers for further review.
To analyse the options we employed our proprietary manufacturing analysis tools which calculate representative unit costs for specific production facilities. The tools operate using their own wealth of best-in-class data, plus specific information for each candidate manufacturer; such as production line configurations, work shift patterns and detailed process considerations.
Our manufacturing consultancy service resulted in the sourcing of an optimum low cost production facility in Asia. In addition, by providing advice to the selected manufacturer regarding production line configuration and processes for the product, together with our cost projections, a highly competitive production unit cost was achieved. This resulted in an attractive win-win situation for both our client and the contract manufacturer.