outsourcing (offshoring)

OUTSOURCING

1 www.procexcellenz.com

• Spend Analysis• Strategic Sourcing• Managed Services

CORE Process

• Commodity-wise reshaped Sourcing Strategy with a 3 to 7 year outlook• Integrated solution to identify and develop Suppliers and Parts • End-to-end Program management & delivery

ENABLING / GOVERNING Processes

• Support infrastructure for Ongoing improvement and management of Supplier processes• Supplier conditioning to World-class standards of Excellence (or) to Client norms• Change and Issue management at Supplier facilities

Services Architecture


Suite of Solutions

Develop a 3 to 7 year Transformational

Road map

Develop a 3 to 7 year Transformational

Road map

6 Sigma rigour applied to addressing

the Client’s CCRs

6 Sigma rigour applied to addressing

the Client’s CCRs

Plain components re-sourcing from

Source A to Source B

Plain components re-sourcing from

Source A to Source B

Project Managementrigour in

implementation

Project Managementrigour in

implementation

Support Enabling & Governing processesSupport Enabling &

Governing processes

On-the-ground support to drive

Supplier Excellence initiatives

On-the-ground support to drive

Supplier Excellence initiatives

Complete Outsourcingof the Purchasing &

Supply Chain functions

Complete Outsourcingof the Purchasing &

Supply Chain functions

End-to-end Purchasing support for the India

Supply Base

End-to-end Purchasing support for the India

Supply Base

Manage Time, Cost & Resource challenges

for the Client’s Supplierfocussed initiatives

Manage Time, Cost & Resource challenges

for the Client’s Supplierfocussed initiatives

On-site support to drive Program

completion

On-site support to drive Program

completion

Provide IT solutions forreal-time Customer

and Supplier collaboration

communication & reporting

Provide IT solutions forreal-time Customer

and Supplier collaboration

communication & reporting

Supplier Training, 6 Sigma & Lean VST

Supplier Training, 6 Sigma & Lean VST


India Team


Manufacturing & Sourcing in 2020

• Study involving 152 respondents in 8 countries• Sector spread of the study

• General Manufacturing (40%)• Automotive, Aerospace & Defense (16%)• High Tech (20%)• Industrials : Chemicals, Steel, Medical Devices (24%)

• Geographical spread of the study• US (18%) & UK (18%)• Germany (17%)• France (13%)• Sweden (12%)• Netherlands (11%)• India (8%) & China (3%)

• Dimensions of the study• Engineering and R&D• Manufacturing• Supply Chain & Logistics


Engineering and R&D

Supplier Collaboration• 50% predict higher collaboration with Suppliers• More collaboration required when Outsourcing is involved


Engineering and R&D

Product Lifecycle Management• 25 to 50% levels of product lifecycle shrinkage expected• Shrinking lifecycles will put inevitable strain on Supply Chains• Supply Chains must be Lean, Responsive and Flexible


Manufacturing

Globalization• Manufacturing will be for Global markets. A shift from manufacturing in one country to multiple countries expected • Proximity to raw materials and consumers, labor wage differentials, forex dynamics etc. will be key drivers


Manufacturing

Subcontracting• With 56%, the balance is tipped in favor of subcontractors to help develop products for the future• The standardized products will be subcontracted while specific products will be made internally• Regular visits or a Local Management Team will remain while IT based Management & Reporting Systems deployment will increase


Manufacturing

Low-Cost Labour• Manufacturing and Sourcing from cost-effective countries will increase despite partial erosion of the labor cost advantage• Logistics, distance, travel time, customs regulations, open market issues, accessibility, geopolitical stability and local expertise leadership could also be other determining factors• China and India will still continue to be preferred destinations


Supply Chain & Logistics

Overseas Suppliers• An increased reliance on Overseas Suppliers is expected in the future• 40% wish to involve and collaborate with Suppliers right from the Concept to the Development process• 60% of companies expect to be sourcing from more countries in the future than today• Closer relationship management envisaged . Co-location of Suppliers alongside Customers to increase. 11 www.procexcellenz.com


• General agreement exists that Cost uncertainties or escalations could drive increasing complexity into our Supply Base positioning• Given the picture, proactive action to normalize Cost risks will be imperative.

Cost of Commodities



• Deployment of more sophisticated and capable IT or Web based systems will be the global norm to improve real-time information visibility and communication• Acute Talent shortage foreseen in the area of Supply Chain management and IT integration• 70% predict the overwhelming use RFID technology as a key enabler

Coping with complex Supply Chains



• Global Supply chains will have a diverse set of attendant risks• Companies must be capable of managing Business Risks by recognizing, analyzing and preparing to manage the vulnerabilities• Multiple options to mitigate these risks exist. Foresight and relevant action is the key.

Supply Chain Disruptions


Thank You !!


outsourcing (offshoring)

Business

supply chains supply

manufacturing sourcing

supply chain disruptions14

issue management

supply base positioning

complex supply chains13

study general manufacturing

manufacturing subcontracting