8th Jan '24

Get Cost-Competitive Manufacturing

Achieving cost-competitive manufacturing targets naturally focuses buyers on getting the ‘best price’ from your subcontract manufacturing partner. But how do you assess whether you have the best subcontract manufacturing deal?

Because however tempting the lowest unit price may be, it may not include everything you need for successful outsourcing. Especially when you’re manufacturing in China; or even outsourcing to other offshore, nearshore or even onshore manufacturing facilities.

In CEL Group’s experience the best price is the one that gives your business ‘true value’. A cost-competitive manufacturing price sweet spot which minimises risk and delivers on quality, on time and sustainably. As well as a cost which still delivers the customer service you need to grow your business.

Here’s how it true value works…

Successful Low-Cost Manufacturing

Phillippa Coleman, Group Sales Director, explains, “Focusing on true value is the best way to achieve successful low-cost manufacturing in China or wherever you’re looking to manufacture.

“A subcontract manufacturer that offers you the lowest unit price is unlikely to be offering you the best deal. Make sure that you’re not comparing ‘apples and pears’ when it comes to comparing prices.

“For example, does the supplier price include the engineering investment to ensure your product is optimised for outsourced manufacture? How well does the subcontract manufacturer understand your industry standards and how the product contributes to you achieving your business goals?

“CEL Group has been delivering successful low-cost manufacturing in our directly controlled and audited facilities in China for 21 years. And now with assembly facilities in the UK too, we are strong advocates of how important engineering, logistics and business understanding is to successful supply chain partnerships.

“Our comprehensive but flexible subcontract manufacturing services enable us to deliver a price point focused on the true value concept. CEL Group’s primary focus is to give leading OEMs and manufacturing challenger brands the best experience of manufacturing in China and the UK.

“Take a look at our case studies for proof of the outstanding results we’re achieving every day for leading manufacturers, globally.”

The Cost-Competitive Manufacturing Sweet Spot

So, how do you find the price sweet spot which gives you the most cost-competitive manufacturing solution, without introducing outsourcing risks?

Richard Holland, Business Development Manager, adds, “The cheapest price is not well known for delivering on quality or supply assurance. It’s as true for business as it is in our personal lives.

“It’s a false economy to compromise on your product and industry standards. Sustainable quality sourcing is becoming an increasing priority for your customer loyalty and ultimately your business growth too. Also, what value do you put on having a responsive and knowledgeable customer service, especially when you need something to happen quickly?

“CEL Group is committed to understanding your business as well as your products. This helps us help you minimise production risks. We have systems in place to anticipate what you need next, as well as support your continuous improvement drive.”

Supply Chain Partners for Cost-Competitive Manufacturing

Simon Cartwright, Group Managing Director, concludes, “Mutually beneficial relationships make all the difference. Surely that’s the best foundation for any enduring and rewarding relationship?

“Price, value and partnership are inextricably linked. Strong supply chain partnerships can deliver exceptional results. In our experience, partnerships with our customers have grown in strength as our understanding has deepened.

“Our commitment to long-term partnerships has enabled us to add more competitive supply chain services over the years. As a result we’re now doing even more to help UK OEMs stay ahead. For example, with cashflow positive UK stockholding, flexible fulfilment and UK assembly.

“Our true value approach includes the capability to act as a seamless extension to our customers’ engineering, logistics and production teams, enabling them to scale competitively and more quickly with our support.”

Manufacturing Competitive Advantage in 2024

So, if you want to add new manufacturing capabilities or expand your production capacity in 2024 come and talk to us about manufacturing competitive advantage.

Heading into 2024 with supportive, proven and highly capable manufacturing partner can make a big difference to your competitive edge – not just for this year, but for the long-term. Especially, given the current choppy economic and geopolitical pressures.

CEL Group’s best price will offer true value. Meaning you can confidently respond effectively and quickly to changing market conditions and new market opportunities.