Regionalized outsourcing strategies continue to grow in popularity. Gone are the days of shifting outsourcing to the lowest cost emerging market location. Today, most companies base sourcing strategies on a complex equation of factors driving total cost. When all these factors are considered, locating manufacturing within regions close to each end market often results in the greatest degree of responsiveness to market demand and lowest total cost. The underlying logic behind any regionalization strategy is that proximity to the end market reduces logistics costs and complexity; reduces raw material and finished goods shipping time; decreases finished goods safety stock requirements; and contributes to superior quality by minimizing unnecessary handling, transport and inspections. The question becomes: can the contract manufacturer your company selects enable your company to leverage the benefits of a regionalization strategy in your chosen end markets?
In this whitepaper, Forefront Medical Technology, a specialty contract manufacturer with a focus in disposable diagnostic, drug delivery systems and medical device systems highlights several areas to evaluate in determining whether or not a supplier’s capabilities are likely to deliver lowest total cost of ownership (TCO). Read the full paper here.