10 Questions To Consider Before Deciding Whether To Move Your Production
In times of supply chain instability, accurate and current data are more crucial than ever. At QIMA, with over 20 years’ experience serving numerous clients, we believe trade always finds a way. Always.
However, recent turbulence has exposed the inadequacies of outmoded datasets and traditional methods.
Decisions about moving production are being made hastily, lacking the insights needed to maintain your integrity and reputation. Key factors like industry type, existing contracts, market capabilities, and the feasibility of quickly ramping up production in new regions play critical roles in this process.
To guide you through this complex decision-making process, we’ve compiled 10 essential questions to consider. These questions will help you leverage the right data for a resilient and optimized supply chain:
10 essential questions to answer before moving your production:
1. What are the quality and compliance requirements in your proposed new market, and do they meet your standards?
Ensure that the proposed market's Testing, Inspection, and Certification (TIC) infrastructure can support your volume requirements without compromising quality or timelines. Evaluate their regulatory standards and embed quality and compliance in your contracts to address penalties or replacement guarantees if standards are not met.
2. What are the product defect rates for your category in this market, especially during peak demand periods?
Investigate historical data on defect rates in the region to anticipate potential quality issues and develop mitigation strategies.
3. How transparent and visible is the supply chain in the new location?
Assess the level of supply chain visibility, including the ability to monitor suppliers and sub-suppliers, using digital tools for risk assessment and compliance tracking.
4. Are robust quality control protocols in place to ensure product quality?
Review existing quality control measures such as AQL sampling methods, and consider adding inline inspections during production to maintain product quality.
5. What is the regulatory landscape like?
Understand local regulations, required certifications, and compliance standards to avoid legal pitfalls and ensure smooth operations. Conduct technical audits to verify supplier compliance and scalability.
6. How does the cost of quality compare?
Analyze the total cost implications, considering potential rework, returns, and risks to brand reputation from quality issues. Verify that suppliers can meet demand and scale operations effectively.
7. Is there sufficient skilled labor available?
Evaluate the availability and expertise of the workforce to maintain production quality and efficiency.
8. What is the political and economic stability of the region?
Assess risks related to political unrest, economic volatility, or policy changes that could disrupt production. Using tools such as QIMA's country risk assessments to make informed decisions.
9. How does the logistics infrastructure support your supply chain needs?
Examine the transportation networks, port facilities, and customs processes to ensure timely delivery and distribution of your products.
10. Can technology enhance supply chain management in the new location?
Explore the availability of digital tools and platforms that provide real-time data, analytics, and insights to manage your supply chain effectively. Partner with a third party provider like QIMA to book inspections with a single click and receive same-day reports for quicker decision-making.By addressing these questions, brands can make strategic decisions that enhance resilience, uphold quality, and optimize supply chains in the face of global trade challenges.
Bonus: An 11th Question for Competitive Edge
11. What is stopping you from signing up for one of the remaining one-to-one ‘war room’ sessions?
In these sessions, our experts can showcase our #DataEveryDay dashboards to give you an advantage over competitors. Register your interest here
Meanwhile, check out our 4 Steps to Limit Risk with New Suppliers Checklist, an actionable guide to help businesses assess and mitigate potential challenges when moving to new markets or scaling operations.
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