..AMI Consultants..

 

AMI Consultants for relocation or sub-contracting

Relocation or subcontracting :

The delocalization and/or subcontracting make it possible to reduce the costs. It is the solution which adopt more and more European companies. Insofar as the standing fixed overheads of such a step (search of a foreign site, a partner or a local supplier, installation of communication systems, investments necessary, etc...) are significant, this technique to lower the production costs is used by averages or large companies (of more than 150, approximately) and relates to rather large series of production.
Moreover this strategy relates to products not requiring too fast or short delivery times.

AMI Consultants can help you in your research. Contact us

Which companies relocate or under treat?

It would be false to believe that the companies of luxury do not turn to the relocation or subcontracting. Quite to the contrary, their products seem particularly adapted because the top-of-the-range markets are still organized according to a very slow rate of two large collections per annum. These top-of-the-range products which require for their development a significant labour, expensive in Europe, are particularly adapted to the delocalization or subcontracting. The production cost falls making it possible the company to lower its prices, to become competitive or then to use the benefit carried out in publicity, promotion, also crucial part to make known itself compared to competition.
The delocalization and subcontracting are practised for example already for the linen room in China and in Morocco, the travel goods in Morocco, the traditional costumes in Slovak Republic and the impermeable ones in Hong-Kong.

Why do the European companies delocalize? With which subcontractors?

In fact, they find an answer adapted to the fight against the importation. Instead of using protectionist measurements, they become more daring on the foreign markets.

The strategies of very fast answer, with less than one week between the new commands and the deliveries constitute a durable force for the manufacturers and subcontractors of the European Convention country as well as the maghrebins countries, specifically Morocco. These companies see their regrouping facilitated by the equipment in system EDI (information processing system of transmission of information). More and more of Morroco factories are equipped with it, the duration of transport takes only one day additional compared to a company based in France or in the European Union, the suppression of the customs duties facilitates the fluidity of transport. This type of production and organization makes it possible to answer a changing request of the offer and to follow the short-term tendencies of the markets.

Various forms of delocalization

• Delocalization with capital contributions, i.e. creation of subsidiary company or fusion-acquisition. The company acquires a factory which it will use to ensure whole or part of its production.

• Delocalization without capital contributions:utilisation of the grant of licence or subcontracting.

The delocalization with capital contributions is riskiest by far, this is why the delocalization without capital contributions by the means of subcontracting is the most widespread form. In this AMI Consultants proposes you under treating contacts, based in Morocco or in China.

Where to delocalize or under treating?

For Europe and the Maghreb, AMI Consultants can advise you.

For the countries of the Caribbean (Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica) and Mexico, AMI Consultants do not have, for the moment, contacts.

For the Popular China Republic, which currently accomodates the most significant amounts of investments, AMI Consultants has a network of contact by the means of a partner. (All Asia)

Consequences of the general tendency to delocalization:

The companies which will remain in the race will be those which will have known to specialize in top-of-the-range product, strongly creative, technically difficult to realize or in the products of famous trademark. It is certain that the developed countries are placed best. Controlling the market trends, they control the creativity and the trademarks. The competitiveness of the companies depends above all on themselves, their leaders, their employees and of their capacity to answer to the requests of the consumers. Actually, the globalisation of the markets, therefore imperfect is it, constitutes a factor of progress. The companies of the developed countries have assets: European prestige, their domination on the top-of-the-range one, control of the famous trademarks. Contact AMI Consultants who could be your additional asset in the marked tendency of the globalisation.

Conclusion:

The evolutions in progress lead to a new sharing: Europe and the United States preserve their activities at strong added value: creation, marketing, quality control, licences, markets of the top-of-the-range one; whereas the countries in the process of development, by the means of a true partnership, reserve little by little the industrial production with less strong added value, there finding the means of occupying a plethoric labour. If you wish to benefit from this trend, contact us