AB8RU
12-28-2005, 04:47 AM
I just read some info. that a company just decided to terminate its contract reason cited was OT payouts overcharging etc..
It will probably pop up in the Biz mags sometime soon ! stay tuned to your local Businessweek mag at the place you can read it for free.
KF0RT
12-28-2005, 04:51 AM
Huh? Say wha....?
Can you post a link?
Outsourcing contracts are terminated all the time, for less reason than OT overcharges.
73, Rob
AB8RU
12-28-2005, 05:10 AM
Sorry I don't have any official link of that one I just read a document someplace thought it was interesting 2 share. if one come public I'll try to supply it !
WB2WIK
12-28-2005, 06:04 PM
I don't know which company you're discussing here, but "reverse outsourcing" is quite popular. We did that years ago, when we discovered a big drawback to outsourcing manufacturing to Asia is that they copy everything well and quickly and before you know it, you've just created your own competitors. Patents, copyrights and other "protections" mean very little "over there."
One reason giant retailers like Wal-Mart continue to buy stuff from Asia is the great terms they get. Payments are made almost "net never," and the manufacturers just keep supplying them with stuff, anyway. It's a great deal...for Wal-Mart. The lingering hope of a big payment "some day" keeps them filling the pipeline.
Meanwhile, some reputable manufacturers have canceled contracts with Wal-Mart and vowed to never sell anything to them again. My own company is one of these. We can do far better without them than with them, and the bottom line is what counts, not payment promises.
I think people are wising up to the "famous brand name" balogna, too -- finally. There's a big following in Asian markets: Everybody looks for the "famous brand name." Emphasis on "famous," although they're using the word improperly (doesn't translate well). In reality, the famous brand names are usually just that: Names. They don't actually design or make anything. Like "Sharper Image," here in the States. They neither design nor manufacture any product. What they do is find cheap Asian products that look like they might be marketable, and put their name on them to sell them over here. The stuff's still the same crap it was on shelves in Shanghai, but now it has a "famous brand name." Aren't people silly?
It'll all work out in the end. I just feel sorry for Americans who were "outsourced," as most of them did nothing wrong, they were just in the wrong place at the wrong time.
WB2WIK/6