Overseas Procurement Optimization Production Base Relocation Practical Framework
Is the premise that it's cheaper to produce overseas still valid? Re-evaluate sourcing based on total cost and lead time.
We provide a practical framework for manufacturers of toys, sports goods, furniture, and stationery to reassess their production bases and procurement sources not only based on product unit prices but also on total costs and lead times, including near-sourcing. In response to the changing procurement environment due to rising labor costs, yen depreciation, soaring maritime freight rates, and the Red Sea detour issue, we will build a flexible and resilient procurement system starting from the visualization of total costs by item. We welcome inquiries for current situation assessments, so please feel free to contact us.
basic information
【Specifications】 - A four-layer framework for the relocation of production bases and procurement sources (visualization of total costs, site portfolio, transfer initiation, monitoring review) - A roadmap for executing the relocation of production bases and procurement sources (three steps: visualization, trial, full transfer) - A comparison framework between conventional overseas procurement and the desired future state - Overseas procurement self-diagnosis checklist - Current status diagnosis (free consultation) provided
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Applications/Examples of results
- Calculation of total costs including product unit prices by item, ocean freight, inventory storage costs, and out-of-stock losses, and identification of review priorities. - Design of the optimal combination of overseas, neighboring countries, and domestic bases according to the magnitude of demand fluctuations and product characteristics. - Comparative evaluation and trial production based on total costs, lead times, quality, and risks of neighboring countries and domestic candidate bases. - Development of a phased transfer plan that includes the relocation plan for molds and jigs and the establishment of quality standards at the new base. - Optimization of inventory and reduction of out-of-stock situations through small orders for seasonal and trendy products and supply from multiple bases. - Establishment of a monitoring system to continuously grasp costs and transportation conditions and regularly review base configurations.
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