Ignatov & Company Group - Engineering & Technology Consulting - Outsourcing & Transfer of production sites consultingTransfer of manufacturing capacities to low-cost areas is a conventional trend; however before you start to receive extra profit (due to lower Opex) you have to invest Capex to transfer process.

Outsourcing is another accepted-with-everyone trend – and emerging markets play more and more significant role there, and not only in IT outsourcing. But what’s about quality provided with outsourcer? What’s about technological reciprocation between the producer and its outsourcers? These and many other questions usually rise at transition to outsourcing – and most of them refer to technological area.

We have excellent experience in resolving such kind of problems. Read the case study below to better understand our approach in Outsourcing & Production sites transfer consulting.

Case study

Challenge

Global automotive producer intending to launch a production site in Russia met localization requirements in particular the necessity to use locally produced parts and components. Being the recognized leader in quality of its vehicles a client wanted to a) identify if there were part and component local suppliers with appropriate quality and b) analyze the future location for its Russian site from a point of view of part and component supply logistics.

Approach

Starting with technology compatibility research (client’s quality requirements vs. Russian national and industry standards) we continued with impartial analysis of quality provided with local suppliers; 14 companies were selected from 122 suppliers to be evaluated for conformity with client’s requirements.

Client’s planned location in Russia was analyzed and recommendations were provided towards improvement of logistic schemas for part and component supply. 

Value

Three suppliers were selected for immediate deliveries of their parts and components, and 7 firms received improvement recommendations and became suppliers later – with our control over how they followed recommendations.