It is recognised that the cost of wages in China is still relatively low, but on the rise. The Chinese currency is also becoming more expensive. In addition, companies are increasingly experiencing difficulties with logistics and the quality of the products made in China. Then the extra cost of transport…
OEM and supply reliability; difficult to combine
And there’s more: an OEM is tied to an extensive fixed machine park by definition. When the demand increases, such a company will soon reach its limits. Initially, expanding shift times may help a little, but soon limits are reached. And that is the positive scenario…
Practice shows that things can be different. Whoever depends on one supplier, being an OEM-business, is automatically dependent on its existing business situation. A fire, a strike or, for instance, bankruptcy, has immediate consequences for continuity in terms of delivery. This may sound like a worst case scenario, but many of our buyers have experienced similar situations and are aware that this could be a possible reality. The most common complaint of buyers in relation to OEM-businesses is not about the price nor the quality, but indeed the supply reliability. Menzing is aware of that. Even more: it owes an important share of its success to this.
For many of Menzing’s relations, the machine we’re discussing is not the core business. Menzing’s relations often need a machine to market their core product. OEM delivers the means to generate revenue. Particularly in these instances supply reliability is essential. If machines cannot be delivered, the revenue of consumer goods will not be achieved.
Think about this in terms of your own situation. If supply reliability is more important than the risk of loss on sales of machines, it is even more essential to get to know Menzing.
After all Menzing thinks differently. Supply reliability for them has a leading role and they always seek the right partners within their network. Several for each module. And that works.