Cost management is often the key driver for companies considering partnering with an OEM supplier such as SIGMA OEM. The most critical factors in the cost management equation are the soft costs, which are by definition unpredictable and prone to fluctuations. For this reason, many of our OEM customers find SIGMA OEM’s Risk Mitigation proposition compelling. SIGMA OEM and our suppliers assume and manage the many variables in the sourcing and manufacturing process, essentially insulating the customer from routine fluctuations that can affect costs.
According to research among our customer base, the potential risks that keep people awake at night are as follows:
- Quality concerns
- Currency volatility
- Cost of raw materials
- Trans-ocean freight and import challenges
- Management of remote supplier relationships and communications
When looking to select a global OEM partner, customers are advised to understand the top three reasons why an OEM enterprise can fail …