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Kopek Industries

Riding the Outsource Wave

In the quest to achieve strategic focus, businesses worldwide are choosing to develop areas of core competence and shed operations that have become difficult to manage and are hampering growth. In the increasingly competitive engineering and electronics sectors, where pressure to grow shareholder value is high, a critical evaluation of asset utilisation often results in a decision to rationalise production capacity by outsourcing the manufacturing and packing operations.

As a result, the trend towards outsourcing is gaining momentum, driven by the formation of successful, long-term partnerships between the outsourcing provider and outsourcing end-user. KOPEK as a focused service provider can meet the requirements for high quality, cost-effective product supply, taking responsibility for the non-core functions off your company. The end-user is free to concentrate its energies on other areas of expertise, usually R&D and marketing, which are of more direct benefit to the business and the bottom line.

With the manufacturing function outsourced, investment in capital-intensive facilities is minimised. Cash flow is increased, and cash can be reinvested into strategic areas of core competence, which enhance long-term value creation. The benefits don't end there. Tapping into capabilities not available internally increases scheduling flexibility and resource availability, which usually results in reduced time to market.

Selecting the right partner

The outsourcing provider of choice should demonstrate proven competence in its field. Breadth of capabilities and resources should be balanced by a commitment to quality, delivery, integrity and innovation. Flexibility, efficiency, and cost-effective production are also important criteria. Overall, the provider should demonstrate a proactive and responsive management style that supports a customer-focused approach...and KOPEK is that partner

Partnering for competitive power

The key to the success of outsourcing is a well-managed relationship between the outsourcing provider and end-user. Commitment to a true partnership and the development of a shared vision will ultimately create the greatest sustainable value for both businesses. Joining forces with a focused service provider allows the end-user to boost revenue growth and market share while implementing improvements in customer service. Combined, these benefits translate into increased competitive power.

This level of partnership, where risks and rewards are shared, demands a long-term commitment in which relationship management is implemented as an ongoing process, involving senior management and operational staff in regular reporting sessions. Crucial to the process is the establishment of communication mechanisms that will facilitate clear decision-making based on transparent information. KOPEK already has a well established communication-mechanism in place serving our current customers.

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