US Manufacturing Co Sourcing From China (USM)
Before:
USM invested a lot of time and cash investigating sources of components from China.
Contracts were set with vendors in a number of cities, a China office was set up to manage these activities, initially with expatriot managers.
Product quality on arrival in the US was too frequently damaged by non conforming poor quality packaging.
Costs to manage the packaging escalated with inconsistent results.
After:
IPS now manages USM's China packaging specifications and deliveries to multiple site.
Product damage is all but eliminated. Sea-container utilization increased and consistent packaging is delivered to each China vendor.
Result:
- USM eliminated the 4% product damage rate using IPS.
- USM can implement packaging standardization improvements in China.
- USM has one point of contact for all China packaging issues.
Next:
USM wishes to explore IPS sourcing and delivering packaging into their US plants.