Owing to the growing globalization of markets the pressure on organizations in the industrialized countries increases and forces them to critically assess and question their performance whether it would be more beneficial to procure some of them across borders.
● Labor costs benefits in foreign country
● Avoid high investment costs in home country
● Bypass legal requirements and regulations in home country
● Tax benefits in foreign country
● Improving quality and performance through process transfer to experts
● Focus on core competencies in home country
● Entering in new and strategic markets
Multinational enterprises have successfully shown in the past decades how to do it and more and more small and medium sizes companies are increasingly recognizing that it is a necessary step in order to remain competitive in the long term and to continue making profits.
However, due to increasing wages in the previously preferred production sites such as Eastern Europe and China alternative choices have to be found in order to achieve the desired added value of cost reductions for organizations. This development has in the meantime led to the situation that Thailand with its distinctive infrastructure and large supply of cost-effective manpower is now seen as a potential location to many companies.
In this connection, however, there are many risks associated with offshoring and increased reports in the news about a re-shoring trend by many companies to their home market has caused further uncertainty in the decision making process of small and medium sized companies.
● Expected cost-reductions are not achieved
● Poor quality and delivery delays by external companies
● Failure to comply with foreign laws due to unawareness
● Loss of process oriented knowledge and skills
● Theft of sensitive data or intellectual property
● Long-term commitment to contracts and investments
● Resistance among workforce, e.g. dissatisfaction and fluctuations
● Loss of image for the company due to negative reporting
Thanks to our expertise and long-time experience in Thailand's manufacturing sector we are able to assist you in finding a competent and reliable offshore partner for your organization.
Following the successful implementation of the project our consultants would also be able to provide further support through regular supplier audits to ensure that potential risks are effectively managed and relevant quality requirement or other capabilities necessary for the product provision are consistently met.
Our offshore manufacturing consulting services include but are not limited to:
● OFFSHORE RISK ASSESSMENT
● SITE SELECTION ANALYSIS
● OPERATIONAL DUE DILIGENCE
● MANUFACTURING PROCESS AUDITING
● SUPPLIER DEVELOPMENT