Engineering firm offers 'two-tier' sourcing

UK-based precision engineering company has launched a 'two-tiered' international outsourcing facility, which will enable its customers to benefit from low cost production in the Far East.

Cambridgeshire, UK-based Shearline Precision Engineering has enhanced its 'Total Manufacturing Solution' offering with the launch of a 'two-tiered' international outsourcing facility, which will enable its customers to benefit from low cost production opportunities in the Far East.

Rising to the challenges of current market demands and to remain competitive with overseas pricing, the company has spent several months developing an innovative outsourcing approach, which will allow it to compete on the global stage.

Extensive market-research and potential partner screening was conducted in association with Cambridge consultancy, China Business Solutions, which led to a partnership agreement with a China based, and Hong Kong listed ISO9000 accredited manufacturing company, offering the same capabilities as Shearline's UK manufacturing facility.

"The world has changed and will continue to change - UK manufacturers cannot afford to ignore the global issues many customers face in their markets", commented David Lonsdale, Shearline's sales and marketing manager.

"Of course, with globalisation there is pressure to be wholly price and volume driven.

However, we didn't want to become just an import-export house, we wanted to continue to develop as a manufacturer, utilising the strength of our UK facilities whilst adding a low cost region capability, hence the development of a 'two-tiered' approach to outsourcing." On one level Shearline can meet the outsourcing needs of those customers where price is the single overriding issue and maintain essential levels of control and security for relatively simple, high volume parts or assemblies to a proven design in the Far East.

The second level involves Shearline retaining its role in front end design for manufacture, working with clients, which could be anything from a start-up to an established international company, to get from drawing board to finished product including design, prototype and first batch manufacture of a market ready product.

From that point, when the product is further into its life cycle and competitors start to appear, Shearline will be able to migrate parts of the design to the Far East and control cost.

"Whilst there are products that are ideally suited to low cost manufacture in the Far East", added Lonsdale, "Many factors have to be right such as volumes, design stability, physical size, supply and logistics requirements etc and therefore some products are simply unsuitable.

Our outsourcing approach, however, provides the optimum solution for both situations and will ensure the company remains in a robust position in an ever increasingly competitive market." Having established the feasibility of its two tier approach, Shearline has already had product samples approved, first orders placed, customer cost benefits obtained, and will shortly be appointing an outsourcing manager who will be based in Shanghai and will act as the company's link man between the UK and China operations, as well as being involved in the sales and tendering process.

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