Localization

With intense competition in the Asian market Western manufacturers are recognizing the need to localize their production. The quality gap between local manufacturers and Western companies is closing rapidly and thus it is getting more difficult to charge a high premium fee. Although turnover figures are still increasing in Asia, foreign companies might lose market share and for many of them the danger is existential.

Identifying, developing and implementing local suppliers will help to significantly decrease material costs and to increase competitiveness. Beside the savings effect of 10% – 20% in material costs companies will become more flexible in lead time and improve their warehouse situation as the inventory level can be reduced. Whenever NxtAsia Consulting runs a localization project we give special attention to the topic intellectual property. We handle specifications, technical drawings and company related information with utmost care. NxtAsia also understands that the majority of our client’s products are regarded as of high-quality and we will keep the tradition.

 

NxtAsia Consulting is carrying out localization projects in close collaboration with the procurement, technical, and quality departments on site of our client’s Asian production as well as with the respective contact points at headquarters. Every step will be documented and reported and NxtAsia will follow the client’s internal supplier approval process. Effective interface and efficient project management are important skills we bring into each assignment.