When we meet new clients who are considering switching to a new contract manufacturing services company, the reason they are looking typically falls into one of three buckets. Of course there are more than three reasons, but on the surface these are the most frequent motives why they are considering to switch manufacturers:
- Cut Cost!
Your competition is dropping their price and in your industry the amount charged is a key driver, so you are forced to find ways to keep your costs in line. Costs are up and your boss wants you to keep costs down. Maybe you are incentivized to drive them down? Perhaps during the long relationship with your current supplier the cost has become too expensive? No matter how good the reason is to justify the expense, you simply must find concessions within your supply chain. How do you do it? You start with the most expensive spend category and work your way toward the lowest.
- Poor Quality
The quality of the products your contract manufacturer ships to you has dropped. You are starting to see your products failing in the field a little bit more, or the returns are climbing. This incremental creep in poor quality is going to have a long-term effect on the health of your company if your brand is tarnished along the way. You simply cannot afford a quality issue, and the time to act is now if your contract manufacturer is not taking action to resolve the continued quality issues.
- Sub-Par Service
Like many relationships, they always start with stellar service. In the dating world you open the door, use your manners, and write notes; lots of positive affirmation. Over time the niceties run the risk of becoming stale. Do not linger in a relationship with a contract manufacturer whose once great customer service now has you feeling like just another face in the crowd. Your product and your business can be adversely affected. You simply cannot serve your customers if your strategic supplier is not serving you. Period.
Do quality issues, poor service, or rising costs have you contemplating a supplier change? Here's another quick read to help you during that process: Looking for the Right Contract Manufacturer?