Client Background for Consulting
A global leader in integrated mail and document management systems, services, and solutions, generating $4.6 billion in annual revenue.
Study on Offshore Manufacturing Migration
Worldwide Manufacturer
Summary of Consulting Results
12
% decrease
in overall landed cost for outsourced products
Delivered substantial cost reductions
Mitigated risk through shifting products to multiple manufacturing sites
Created and executed bold, detailed implementation strategies
Problem
Facing increasing expenses, the client aimed to build an offshore production and sourcing strategy. They engaged LVP to cut costs and enter new markets.
Assessment
The client required hands-on assistance while shifting products to a new production site, all while maintaining a smooth transition to its new outsourcing partner. To manage and execute the plan, we applied our Supply Chain Outsourcing Analysis alongside our Procurement, Manufacturing, and Logistics frameworks.<br />
Method
LVP collected comprehensive supply chain data for the selected products and manufacturing workflows intended for outsourcing. The team developed strategic recommendations for shifting production to Asia, identified potential partners, and evaluated them based on capabilities and cost. We led negotiations with leading candidates, finalized a partner, and created in-depth plans to drive a rapid implementation.<br />
Outcomes
Along with achieving substantial cost savings, the client successfully reduced risk by moving production to multiple manufacturing sites. We identified and secured a top-tier outsourcing partner, which led to a 28% decrease in total landed costs for outsourced products. Additionally, we created and executed comprehensive implementation plans with clear actions, timelines, and resource allocations.
