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Supplier Risk Assessment
CMC has created a framework and process for identifying and evaluating the likelihood of supply disruption risks at contract manufacturers and their sub-tier component suppliers. The scope of this work typically includes analysis of available manufacturing capacities, operating performance, management systems, financial condition, business interest alignment and other factors relative to meeting the projected needs of our client.

Because of our years of industry experience, we can quickly focus our assessment work on those key risks that we have found to have greatest likelihood of occurrence and most serious impact.
 

Example Engagement

Before a company awarded a major new supply contract to its China ODM, it asked CMC to quickly assess this supplier’s risk. On the basis of CMC findings of high risk, the client qualified a contingency supplier and was able to rapidly transfer when the ODM suddenly ceased support later in the year.


Escrow Plan for IP Protection
Escrow account plan includes all the necessary documentation to allow for self-sustaining support of product design and production. CMC can help create escrow accounts that are well organized, easy to navigate and have favorable release conditions. Proactive financial measures proven to be best predictors of insolvency are used as part of the escrow release conditions.
 
Ramp-Up Risk Plan
Many transition problems stem from over-estimating the contract manufacturer’s capabilities and available resources, or under-estimating the complexity of transition. Experience, staffing and good coordination are key to successful ramp-up.

CMC outsourcing risk mitigation strategy focuses on risks most likely to occur, not on creating “laundry lists” of prioritized check-off items. We have years of industry experience and up-close observation of transition pitfalls, both from an operational and business perspective. We understand the specific problems most likely to occur and the key practical actions needed to avoid them.
 
   
 
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