25th Sep '24
Manufacturing Budget Planning for Success in 2025
Manufacturing Budget planning for 2025 is high on the agenda as we head into the autumn.
Simon Cartwright, Group Managing Director shares his budget boosting gems, drawing on a lifetime’s experience delivering successful subcontract manufacturing solutions to UK OEMs.
Unit price is only part of the jigsaw
Unit prices, while key measures, especially for the buyer, are only part of the jigsaw when you’re budget planning for the year ahead.
Don’t let internal politics mean you miss out on the cross-departmental competitive advantages of one subcontract manufacturing solution against another. Focusing on the gains of just one department, usually purchasing when the focus is unit price, can reduce the overall benefit of the deal unless purchasing considerations account for all the other costs – such as logistics administration, transport and customs costs.
CEL Group’s Manufacturing Competitive Advantage supply approach connects you to experienced China outsourcing expertise, full logistics and stock management, UK stockholding and supply cashflow advantages and many more benefits. So, when you’re looking at product prices you need to consider the impact of added value to ensure you’re comparing like for like on price. Also, don’t forget to challenge your departmental budgetary boundaries in order to optimise the value of any deal.
Low cost manufacturing and quality
Low cost manufacturing delivers more for less. And the pressure on manufacturers to reduce prices, while improving quality and sustainability standards is set to grow in 2025.
The good news is that CEL Group has a track record of delivering bottom-line improvements without compromising quality or sustainability standards, across multiple industries. However, successful ‘cost-competitive’ manufacturing is about getting the quality and price point balance right.
It’s worth checking whether your expectations on quality and support are rising significantly, while your price point is dipping below the potential commercial break-point. This is key to ensuring your low cost budget vision doesn’t undermine achieving your business growth plan.
The best experience of manufacturing in China and the UK
Manufacturing budget planning isn’t just about the numbers. Agreed, the numbers need to add up, but then so does the customer experience.
We help UK OEMs compete and grow by giving them the best experience of manufacturing in China and the UK.
Our customers value offshore manufacture in China, within their supply chain, but they need to access the benefits without the risks.
This is where we want your partnership with the CEL Group to make a big positive difference. We have a proven approach to outsource manufacturing where quality management, responsive, knowledgeable and friendly customer service support and supply assurance are all built-in.
In conclusion, if you’re planning for manufacturing growth in 2025 take time to understand the overall value and customer experience you need. Bake this into your budget approach and you’re more likely to achieve cost down initiatives which don’t limit growth.