Company Profile
A global leader in integrated mail and document management systems, services, and solutions, with annual revenues of $5.2 Billion.
Manufacturing Migration Study
Global Manufacturer
Key Highlights at a Glance
15
% reduction
in overall landed cost for outsourced goods
Realized substantial cost efficiencies
Mitigated risks by relocating production to alternative manufacturing sites
Designed and executed bold, structured implementation strategies
Obstacle
Facing escalating expenses, the client sought to establish an offshore manufacturing and sourcing initiative. They selected KGM to assist in reducing costs and entering new markets.
Assessment
The client required direct assistance during the relocation of products to a new manufacturing site while ensuring a seamless transition to their newly appointed outsourcing partner. We opted to utilize our Supply Chain Outsourcing Analysis alongside our Procurement, Manufacturing, and Logistics frameworks to strategize and execute the program.
Methodology
KGM collected comprehensive supply chain data related to the targeted products and manufacturing processes for outsourcing. The team provided recommendations for a forward-looking strategy to outsource manufacturing in Asia, identifying potential outsourcing partners and evaluating them based on required capabilities and cost considerations. We negotiated with top candidates, finalized the selection, and developed detailed plans to support a robust implementation strategy.
Outcomes
In addition to substantial savings, our client successfully diversified risk by relocating production to multiple manufacturing locations. We facilitated the selection of a highly qualified outsourcing partner, achieving a 22% reduction in total landed cost for outsourced items. Furthermore, we designed and implemented rigorous plans outlining detailed activities, timelines, and resource allocation.
