Latest News  

Outsourcing can take the risk out of the productivity puzzle

Tony Hague explains why outsourcing could hold the answer to increased productivity.

2015-12-07 16:10:44

There have been numerous solutions put forward when discussing the productivity puzzle, but few have involved more firms focusing on their core competences, writes Tony Hague for bqlive.co.uk.

As chairman of the unique Midlands Assembly Network, I get a firsthand insight into the operations of hundreds of manufacturers every year and one trend is clearly developing…more management teams are choosing to outsource some of their production capabilities in a bid to reduce costs, improve efficiencies and open up capacity.

We have already benefitted to the tune of £3m of new projects secured in the last twelve months, with a number of members working together to deliver added value and new production solutions for clients in automotive, aerospace, oil and gas and renewables.

There are another six opportunities currently in the MAN pipeline as more businesses look at new ways of boosting their productivity.

High profile topic

The ‘puzzle' is probably the industry topic of the year and a lot has already been written about how to solve it…investment in automation, investment in skills, investment in systems.

These are all very valid. However, there has been little discussion about outsourcing, where you source a supplier to deliver your non-core manufacturing operations.

As long as the right strategic partner is chosen, this offers numerous benefits; less unnecessary stock and reduction in work in progress, better cash flow and significantly reduced lead times. It also gives you greater flexibility for volatile volume requirements.

The strength of MAN is that we have expertise across all engineering and manufacturing disciplines and our nine companies are financially strong and invest in world class processes. It's no surprise we are seeing existing and new customers outsource more of their non-core operations to us. It makes perfect sense.

After all this positivity, it's important to note that outsourcing shouldn't be entered into lightly and the merits of any partnership should be explored fully, long before any agreement is signed.

All organisations need to share a similar business philosophy and understand each other's role. There also has to be a period of transition where the necessary learning can take place so the process become transparent and starts delivering the goods.

Whisper it quietly, outsourcing could well be the secret answer to the productivity puzzle.
Tony Hague is chairman of the Midlands Assembly Network and MD of PP Electrical Systems,


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Recruitment, retention and professional development of employees in the context of major changes in outsourcing

The Business Service Leaders Association (ABSL) organizes on May 24, 2018, at Ramada Hotel in Iasi, the conference "How HR Practices evolve in a period of major changes in outsourcing Industry". The third editi

 Read Full article »
Comdata acquires CCA International, deal should be finalized in June

After the acquisition, mid-2017, and the successful integration of B2S (now Comdata France), the Comdata group signed, yesterday, an agreement on the acquisition of CCA International, the company says.

 Read Full article »
ABSL Romania is offering 30 scholarships every year for postgraduate studies

Business Service Leaders Association Romania (ABSL) annually offers 30 scholarships in the Business Services Master program for young people wishing to pursue a career in the outsourcing industry. As a result o

 Read Full article »
Portland Trust and Ares Management LP have sold the suburban office park, Oregon Park, to Lion's Head Investments

Lion's Head Investments makes its first steps into the Romanian real-estate market and announces the acquisition of Portland Trust's and Ares Management's Oregon Park project, which consists of three class A Of

 Read Full article »
Amazon creates more than 650 new permanent jobs in Bucharest

Amazon and Amazon Web Services (AWS) today officially opened a new Corporate Office and Technology Development Centre in Bucharest and announced the creation of more than 650 permanent, technology-focused and c

 Read Full article »
Portland Trust's Oregon Park in Bucharest wins CEEQA's "Overall Building of the Year SEE"

Portland Trust, a commercial real estate developer and asset manager headquartered in Prague, announcesd that Building B at its Oregon Park office complex in the Romanian capital of Bucharest won the 2018 CEEQA

 Read Full article »
US Kellogg's opens new division at Bucharest

The US-based multinational food producer company, Kellogg's announced that it will create 50 jobs at its Bucharest centre by the end of 2018, by opening a new division at the Bucharest centre. The new positions

 Read Full article »
Techsylvania 2018 lines up powerful tech specialists at Cluj-Napoca between June 9-12

Techsylvania is the leading technology event in Eastern Europe, built to revitalize the local tech community through high-quality information delivered by worldwide experts in the IT&C industry. Engineers, deve

 Read Full article »
Accenture names Gianrodolfo Tonielli in the position of Country Managing Director in Romania

Starting May 2018, Gianrodolfo Tonielli takes over the position Country Managing Director of Accenture Romania, the company announced.

 Read Full article »
Atos and Google Cloud form a global partnership to deliver secure hybrid Cloud, machine learning and collaboration solutions to the enterprise

Atos, a global leader in digital transformation, has entered into a global agreement with Google Cloud to address the digital transformation needs of enterprise customers. This agreement will see the creation o

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» DTZ: Office demand outside Bucharest t...
» Capgemini to open new office at Suceav...
» Molson Coors started to grow its busin...
» Romania, Europe's third and world's 13...
» Committed to growth
» Romanian software group expands to Bul...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Genpact's COO: Staying ahead of the cu...
 
EDITOR CHOICE
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
The Outsourcing industry announces its winners at Romanian Outsourcing and Shared Services Awards, 2018 edition

Last night, Outsourcing Today and the Diplomat-Bucharest awarded the performance and excellence in business at the 4th edition of Romanian Outsourcing and Shared Services Awards ceremony, organized at Radisson

 Read Full article »
Ciprian Dan, Wipro BPS: The industry needs to take a more sophisticated turn

According to Ciprian Dan, Location Head at Wipro BPS, the language skills have not ceased to remain one of the competitive advantages for our market but to relate to this advantage as the sole plus is risky on

 Read Full article »
Olga Botusan, Stefanini: There is a huge need to develop particular skills for specific areas

Stefanini is a company strongly involved in the business shared industry not only for creating the demand for workforce and hiring but also for the programs developed in order to specialize the needed professio

 Read Full article »
Romanian Outsourcing & Shared Services Summit: In the search of the best strategy to stay relevant

Currently, according to companies operating in outsourcing and business shared services in Romania, there is an intense discussion regarding the availability of prepared workforce in the industry. Even if the c

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events