Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – May 6, 2013
As the result of the recent collapse of a garment factory in Bangladesh, many companies in North America have been scrambling to figure out what to do next. It’s unfortunate that it takes a tragedy like this one to make the outsourcing strategy decision front and centre. Companies are looking at their business partners with more scrutiny and many may decide to bring the making of their products closer to home.
 
But this tragedy doesn’t mean that companies shouldn’t be outsourcing. It only shines a brighter light on the practices that organizations should be following when they do outsource. Here are some tactics to consider:
  • Visit the country and the facility that will be making your product to ensure it meets your standards and ensure that the laws of the country can be enforced appropriately.
  • Plan for regular oversight and even random site visits to ensure that quality is maintained.
  • Have someone you trust on the ground to oversee the operation, whether a local manager, ex-pat or in a local business partner.
  • From the outset, establish principles for the basis of the working relationshipso you set expectations on what is to be delivered and how.
  • Ensure that the decision to outsource will provide significantly more value than producing locally or even in house. That value should be considered not only financially.

“This is a terrible turn of events and it doesn’t help the reputation of some of the companies associated with this tragedy,” says Andrew Miller, president of ACM Consulting. “It reminds us of how important it is to ensure not only the right standard of product quality, but also the right standard of quality of life for those who make it.” 

To request an interview or more information, please contact:
 
Andrew Miller
416-480-1336
 
Follow me on Twitter @AndrewMillerACM
© Andrew Miller. All rights reserved. 2013.


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