Reasons to consider Offshore Manufacturing:

Gain Access To World Class Capabilities
By the very nature of their specialization, offshore outsourcing providers like Oracle Manufacturing bring extensive world-class knowledge and resources to meet the needs of their customers. Partnering with an offshore outsourcing organization with world-class capabilities can offer access to first class, proven offshore manufacturing services in China.

Reduce or Control Operating Costs
The single most important tactical reason for offshore outsourcing is to reduce manufacturing costs of high volume or labor intensive manufacturing and assembly operations. In a recent survey, companies reported that on average they realized a 20-30% reduction in manufacturing costs by offshore outsourcing .

Generating Money for more R&D and a Greater Sales Effort
Aggressive companies know higher profit margins can only be realized through greater cost efficiencies and better utilization of time and money. By using offshore manufacturing services in China you will generate large savings that can be redirected to finance a much higher level of R&D and/or the development of improved sales techniques.

Dominating your Market
Many companies are famous for using the cost advantages they realize from offshore outsourcing to cut the price of their products which in turn leads to an increase of their market share and eventually enables them to dominate their market.

Improve Business Focus
Offshore outsourcing of all appropriate product allows companies to put their main focus on broader business and sales issues while Oracle Manufacturing deals with operational details of sourcing their product in China. For many companies, the single most compelling reason for manufacturing outsourcing is to eliminate production line issues that siphon off huge amounts of resources and attention from management.

Eliminating Production Upgrades
Offshore outsourcing reduces the need to invest capital funds in non-core business functions such as facility upgrades. Consequently, more capital funds are available for your core business Additionally, manufacturing outsourcing can also improve certain financial measurements by eliminating the need to show return on equity from capital investments in non-core areas.

Putting together a comprehensive offshore outsourcing program is not easy. This is why most companies use the services of an experienced sourcing company for guidance. Contact Oracle Manufacturing at 585.225.4150 to make an initial inquiry or click here to contact us by email . It may turn out to be the most profitable business contact you’ve ever made.

Global sourcing using Oracle Manufacturing's proven system enables us to provide clients with the highest quality product, at the most competitive prices, with state-of-the-art program management.

Sophisticated companies use our global supply chain management services for manufacturing in China rather than sourcing product directly because we save them money. How do we do it:

Competitive Bidding: We have a network of 15 world-class manufacturers in the most strategic low cost regions of China, and an office in Zhejiang. This enables us to get the most competitive pricing for almost any product manufactured globally. This strategy saves our clients an additional 10-15% in manufacturing costs.

Guaranteed Quality: We are ISO-9002 and QS-9000 compliant and stand behind the quality of the products we manufacture. If the product doesn’t meet the standards of the pre-production samples we deliver – it is our responsibility to reconcile the matter. We take the worry out of quality control.

No Liability Issues: By working with a U.S. company, you will not incur the legal liability of working with a foreign company. We also eliminate all currency issues.

Product Confidentiality: Oracle Manufacturing has partnership agreements with a dedicated group of 15 manufacturers. Our partnerships have the strictest provisions for intellectual property as well as business information confidentiality. And our agreements extend all the way down to the subsidiaries employees. We have never had a product confidentiality breach on any program.

Local Servicing of our Clients: “Source globally, Service locally.” We believe strongly in servicing our clients at the local level through dedicated Project Management and Engineering representatives.

Global Supply Chain Management Software: GSCM provides a centralized environment for managing product, project and production data, making it easy to collaborate in real time around a single set of information—regardless of geographic location or IT infrastructure. OEM's, Contract Manufacturers and remote Team Members need a secure way to share continually changing product, project and production data, and GSCM is the solution.
Does Global Sourcing make Sense for You?

The debate over whether it is healthy for American companies to shift manufacturing offshore is over. According to John McCarthy, Forrester Research Group Director, “This is going to be one of the biggest macroeconomic shifts in the overall U.S. economy in the next 10 years.” (1)

Gartner Research forecasts that some 80% of American corporations will have at least considered offshore manufacturing by the end of next year.(2) The reason – aggressive companies know higher profit margins can only be realized through greater cost efficiencies and better utilization of time and money.

Outsourcing manufacturing is critical to maximizing productivity. The real question is, “How long will your company remain competitive if it fails to use this proven business concept?”

Global sourcing will have as positive an effect on American business supremacy as Henry Ford’s innovative concept of the assembly line. It generates the necessary funds for increased R & D. This enables companies to remain on the forefront of their industry in the increasingly competitive global economy. The concept of “creative destruction” or being willing to constantly adapt to maximize productivity is the genius of American entrepreneurship.

Many of today’s most sophisticated companies have chosen to almost exclusively concentrate on R&D and sales, outsourcing the vast majority of their high volume and/or labor intensive assembly operations - thereby eliminating problems of production, staffing and continuing plant modernization.

Others like Wal*Mart are famous for outsourcing the manufacturing of entire product lines to cut prices, raise market share, and dominate their industry.

Finally, many firms choose to produce their higher margin, patented and/or more sensitive components in house and outsource their less critical or non-technologically sensitive items.

The following are questions all companies must ask themselves on a continuing basis:

• Would cutting production costs 30-60% breathe new life into a marginal product line?
• Is lack of plant space preventing an expansion into new markets?
• Is customer demand outstripping production capability?
• Are increased costs of component parts threatening a major product line?
• Is it becoming more difficult to staff second or third shift operations?
• Is production problem solving taking up too much of managements time?

Let us show you how offshore manufacturing via Oracle Manufacturings state-of-the-art processes can dramatically reduce your production costs and overhead. Start now by contacting the Industries Leading Customer Centric Global Manufacturer.

1 Barron’s Online, June 26
2 Gartner Research Group, Outsourcing across vertical markets

How to begin a successful outsourcing program.

The key to setting up a successful global manufacturing service is to do it in a way that limits risks and makes any transition as seamless as possible. These are the steps we suggest you take to start manufacturing globally as quickly, and efficiently as is possible.

1. Select one of your existing products that has a long cycle time and requires the most labor, assembly work and/or packaging costs. Remember, commodity prices (for plastic resin, metal, etc.) are similar around the world. Therefore, the best items for offshore manufacturing are those that require the most cycle time, labor or require multiple steps to produce.

2. Send us an RFQ for a partial run of that product (Due to spam please replace the at with @) sales at oraclemanufacturing.com. Include with it, electronic drawings and 1-2 samples of the product so we can gauge the exact quality standards and requirements you expect. Also include the yearly volume figures you will be ordering once the initial test runs prove successful.

3. Next, we will set-up a GSCM account for you and upload the electronic drawings and pictures within our system so the collaborative quotation process can begin. A key Oracle Manufacturing differentiator is that we also send the samples to the factory so they will know the exact quality standards required. This process typically takes ~two weeks.

4. Once the quote is generated, we will review it with you and will assist in calculating the return on investment to move to an offshore model. Nearly all companies decide that they want to proceed.

5. If production and/or prototype tooling is required, a 50% deposit is required. You will find that global tooling prices are extremely competitive.

6. Once the first article samples are approved, the balance owed on the tooling is collected and we begin a limited first run of the product.

7. Upon successful delivery of the limited first run product, you can begin increasing the runs of your product until it is completely made through offshore manufacturing, thereby maximizing your cost savings.

8. Once we are successfully manufacturing one of your products, we will begin assessment of other potential products for global sourcing. We will advise you on which products make the most sense to outsource with our supply chain, and will provide detailed ROI calculations to easily justify this movement.

By using this strategy, you keep your risks to an absolute minimum. You also avoid disturbing your production schedule, as you will initially only be making a portion of the product you use each year, with a gradual ramp-up to full global production.

Oracle Manufacturing Centers of Outsourcing Excellence include:

Plastic Injection Molding | Die Casting | Electronic Assembly
Sheet Metal | Rapid Prototyping
| Tooling | Manufacturing Quality

If you are ready to think differently about how to design and manufacture your products, we can help. View some of our recent success stories, and start putting our experience to work for you. Begin now by calling 585.225.4150, or visiting our contacts page for more details.


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