In this tough economy, companies are facing changing marketplaces and business conditions as well as overseas competition. As a result, firms are re-thinking their corporate strategies and business models in order to reduce existing costs and identify new revenue opportunities.
Toward this effort, companies are engaging East West to assess their business and determine those cost-reduction and revenue generation opportunities which would be created by leveraging an Asian strategy.
The types of companies desiring an Asian Assessment include:
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Companies currently operating in Asia who want to identify additional opportunities to improve their competitiveness and those changes which need to be made to their existing business model
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Companies not operating in Asia who need to re-think their corporate strategies and identify opportunities beyond their existing business model, specifically new opportunities to reduce costs and generate new revenue streams
Since East West members have held positions responsible for developing and implementing China/Asian strategies for their companies and held numerous positions in subsequent Asian operations, our experience allows our team to conduct impartial Assessments and make specific recommendations for change to the US company.
We conduct the Asian Assessment by determining the financial and operational benefits of leveraging an Asian strategy. The Assessment focuses on 4 primary items:
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Margin Optimization
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Speed to Market
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Lead Time
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Quality
Applying our Asian and US operational experience, we detail the effects of leveraging an Asian strategy in these 4 areas as well as the resulting financial implications.
The Margin Optimization assessment focuses on understanding the products, how they perform, respective margins for each product, production costs - fixed and variable, Bill of Materials, and shipping costs. Applying this standard, we break down the costs of each item into individual costs and determine whether these costs can be reduced or maximized by leveraging an Asian strategy. For example, after itemizing the Bill of Material costs into shipping, logistics, duty/quotas, raw materials and performance standards, East West would determine whether these costs can be reduced in Asia and document projected cost savings or generated revenue.
Speed to Market is defined as the period of time from development of the idea to providing the product to the customer. This Product Development Life-cycle includes product design, prototyping, raw material selection, sourcing methods, pricing and costing.
The Lead Time is defined as the period of time from receiving the purchase order to product shipment. Quality represents the numerous quality standards and methodologies, speed, enforcement and testing.
To conduct the Assessment, East West visits the operation and meets with the senior executives on-site. We examine the primary divisions, including product development, manufacturing, production, sales & marketing, laboratory, quality assurance, logistics, supply chain procurement and customer service. Additionally, we also meet with the finance manager, general manger, human resources manager, technical team and administrative support.
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