Blog

Offshore Resource Leveraging Decreases Costs and Keeps Good Quality

by | May 16, 2022 | Technology | 0 comments

What Is The Problem When It Comes To Leveraging Offshore Resources?

Offshore is something a lot of companies have had a bad experience with. So, at that point, they made a decision they will never go back again. But, there’s a big opportunity at stake and we wanna talk about it a little bit. The opportunity at stake here is a good cost model. This also includes scalability, which you can’t always get by staying in the U.S. with your production. Laborious manufacturing processes need low-cost labor input. It also needs semi-automation that is in sync with the low-cost labor input. This is not achievable in the United States. At least not under the conditions that it can design to be available offshore.

Once A Customer Overcomes Their Fear To Go Offshore, What Would They Expect Going Forward?

Offshore offers many, many benefits. In China, you have industrial zones with built-in supply chain partners. These fit into the supply need of the manufacturing entity. Manufacturing takes place right there. Things like nuts, bolts, gaskets, and many other crucial components take two to three weeks. These things are unfortunately not available in the US. Additionally, these manufacturing chain partners work 24/7. They are very skilled and scalable labor. Also, they are quite consistent in quality, once you have the right partners.

So, in summary, you have:

  • a geographical advantage,
  • access to supply chain partners, mission-critical for the execution of the product assembly
  • skilled labor available 24/7
  • automation or semi-automation on hand, whenever it needs to meet the output requirements.

Furthermore, I like to always give an example. Apple, for instance, goes to Asia for the very reason that we are talking to you about. They go to China because it has the lowest cost model. This provides the consistency and reliability that Apple expresses in all their products. China can often offer complex products with the intent to manufacture over there.

How Does iConn Leverage Cost, Quality, and Capacity, While Operating Offshore?

So, iConn’s advantage is having boots on the ground to leverage cost centers related to teams. These include sourcing, logistics, engineering, and manufacturing teams. iConn USA has resources to outsource critical components within the United States. These are often better priced or faster to get to complement all the sourcing activities in Asia. These components transform on weekly basis, to our consolidation center in Hong Kong. Then, they enter the territory of China, in the incoming inspection to plan for the production. iConn sources a vetted average which is 46.7% of everything that goes into an assembly. The U.S. actually sources a great percentage of those components. And, that also expresses the value that we bring to the table, which includes:

  • cutting down lead times,
  • maintaining good price models,
  • ensuring that the top-level assembly builds original components.

Of course, we are an engineered manufacturing solution provider. If you involve us at the DFM stage, we can bring engineering value to give alternates/equivalents. These change the cost model that you have been working with. It will benefit you and express our competitiveness and commitment to you. Thus, leading into that advantage position that you wanna have over your competition.

How iConn Supports

With iConn, iConn engineering will position itself as an extension of your engineering. Also, iConn customer service and logistics become an extension of your in-house departments. With such linkage, we can leverage available offshore prices, with 24/7 onshore input. All our efforts lead to strengthening manufacturing in the United States. We are not here to take away manufacturing from the United States and move it to low-cost reasons. Rather, we are here to identify intense labor assemblage that can be an offshore source. So, when they come back, they can go into your top-level assembly. This gives you the competitive advantage needed to succeed in the market.

For more information, click here!