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Factory Relocation to the Far East

The client

A £30 million first tier automotive supplier

Highly competitive market

Rapid cost reductions sought by moving major elements of manufacturing to low cost economies

The challenge

Client was unable to manage a project of this complexity

Workforce steeped in tradition, resistant to change and concerned over future of UK operation

Few documented processes

Many products over-engineered to after market requirements

The solution

Working closely with the client we established programmes for the identification of products to be moved and the processes, skills, training, capital equipment and tooling that would need to be re-located to support this.

Using our extensive knowledge and experience of the region, we advised on the refurbishment of old equipment in order that it would be accepted by the Chinese authorities. We also guided the client in the establishment of the legal entity in China.

We developed formal written procedures for recording and transferring key information and developed stock build programmes to ensure supply continuity during the transition. In parallel, we led a programme to identify all components that could potentially be sourced in China and assisted in establishing a complete new vendor base that would both support the Chinese factory and on-going supply back into the UK.

The project quickly moved ahead of schedule and was completed in timescales that were previously considered impossible.

Benefits at a glance

  • 40% reduction in purchased parts cost
  • Approximately 30% reduction in manufacturing costs of transferred product
  • Complete new vendor base established in China
  • New Chinese factory able to expand into new ranges - A £6 million annual sales opportunity
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