Why Outsourcing Projects Fail
The technical match is perfect. The partner seems to be perfect too. But it is difficult to proceed.
Learn from our experience why the projects sometimes fail.
1. ๐๐จ๐จ๐ซ ๐๐จ๐ฆ๐ฆ๐ฎ๐ง๐ข๐๐๐ญ๐ข๐จ๐ง and ๐ฅ๐๐๐ค ๐จ๐ ๐ญ๐ซ๐๐ง๐ฌ๐ฉ๐๐ซ๐๐ง๐๐ฒ
between the manufacturing company and the client leads to misunderstandings and delays. Endless moving of scheduled meetings and not offering a new date, changing project responsibility, missing answers, not picking up the phone. It often results in lack of trust and project failure.
2. ๐๐๐๐ค ๐จ๐ ๐๐จ๐ฆ๐ฆ๐ข๐ญ๐ฆ๐๐ง๐ญ, ๐จ๐๐ฃ๐๐๐ญ๐ข๐ฏ๐๐ฌ ๐๐ง๐ ๐๐ฅ๐๐๐ซ ๐ ๐จ๐๐ฅ๐ฌ.
Both companies may end up working towards different outcomes. Both sides lose their time and motivation to proceed. At the end the project fails.
3. ๐๐จ๐จ๐ซ ๐ช๐ฎ๐๐ฅ๐ข๐ญ๐ฒ ๐จ๐ ๐ฐ๐จ๐ซ๐ค.
An inexperienced partner may not deliver the aimed results. The samples are destroyed and you need to continue the search.
4. ๐๐ฎ๐ฅ๐ญ๐ฎ๐ซ๐๐ฅ ๐๐ข๐๐๐๐ซ๐๐ง๐๐๐ฌ.
Different communication styles, work ethics, business practice may lead to misunderstandings and impact the project's success.
5. ๐๐ก๐๐ง๐ ๐ข๐ง๐ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ฆ๐๐ง๐ญ๐ฌ.
Perfect match becomes impossible, if the initial work scope changes. It makes it difficult for the contract manufacturing partner to keep up. No clear goals? Estimated process and project costs are for the bin.
6. ๐๐ง๐ฌ๐ญ๐๐๐ฅ๐ & ๐ซ๐ข๐ฌ๐ข๐ง๐ ๐๐ง๐๐ซ๐ ๐ฒ ๐ฉ๐ซ๐ข๐๐๐ฌ.
Processing costs explode literally and destroy your business case.
7. ๐๐ฎ๐ซ๐๐๐ฎ๐๐ซ๐๐๐ฒ.
Especially in Europe our clients have to fight and accept (unfortunately) the bureaucracy and long approval process for new new productions processes and materials. Forget, if you wish your production started for โyesterdayโ. 3-6 months is the average waiting time.
We put a lot of effort into each of our projects and check carefully and very deeply the material requirements and project scope, before we organize a meeting with possible partners.
We have no magic formula that the collaboration will work.
Many factors are not in our hands.
How can you do it better?
๐ Check out our tips for a successful collaboration with a contract manufacturer in our previous blog article.
What would you add to the list of reasons why projects with external companies fail?