MARKET RESEARCH

Comprehensive outsourcing program requires preliminary market research and risk management evaluation. Whether the sourcing program is aimed at raising competitiveness of your products, or you are looking for solution that will help your goods remain competitive in the market – it is important to be sure that you will find competitive solution in terms of price and quality and to get a guarantee that the found solution will keep its advantages in the long run.

For each project of manufacturing outsourcing in China we carry out market research that gives us the following information:

• quality and market cost price of the sourced product
• level of costs and income for each supplier
• customer’s risks connected with the sourcing project management.

We start with the cost analysis of the item to be sourced in China. The cost of the item is divided into several functional groups – purchasing, assembling, testing, packing, and of course the cost of parts and components, consumables, setup and tooling etc. After that we find suppliers for each of the above groups. In such a way we can find out the market level of production costs for the contract manufacturer. We also get clear idea about the prices for their services.

At the same time we investigate risk management for each of the cost groups – from spare parts to manufacturing. It is necessary to evaluate risks connected with the manufacturing transfer, risks of receiving defected or inconsistent products, transport and financial risks for each transaction.

Market research allows us to offer several sourcing schemes, which differ in the extent of purchaser’s involvement into the process of manufacturing management and control, as well as in price and quality of the sourced product.