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Brian Le Mon
Top 10% Outsourcing

Founder & CEO at

Member Since May 2013

Research, VIC, 3095

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Despite what most believe and practice, outsourcing is not primarily about cost!
It is about finding a service that can offer the most benefit to your business. This may be a service or skillset or it could be the opportunity to free up your time to focus on areas that generate more income for your business.
Get in touch for a chat if you want to discuss how outsourcing (done correctly) can help with your business.

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Top 10%
Outsourcing
Outsourcing

Why do Small Businesses get Outsourcing Wrong?

Outsourcing business tasks and services is often cheaper compared to hiring full-time employees. However, many companies adopt a mentality of outsourcing for rock bottom prices, which leads to problems down the line. The smarter approach is to outsource for quality that comes with reasonable prices.​   Having worked with outsourced suppliers and companies for most of my career, I felt I was ...

Outsourcing

A Wake Up call for Australian Manufacturing

Everyone knows that manufacturing in low cost countries has become very popular all over the world, and Australia is not an exception. But what is the reason behind choosing low cost countries versus domestic manufacturing? Is relatively lower cost the only factor behind it? Here are some of the most prominent reasons why low cost countries are preferred over domestic Australian manufacturing a...

Importing

Australian IP Security In Offshore Manufacturing

In recent years Near-shoring and Re-shoring have become popular buzz words in the manufacturing arena. The concept of returning manufacturing to a local or proximally close vendor has become popular with both the media and the general public. Near-Shoring Using the Wikipedia definition, Near-shoring is defined as: “The transfer of business or IT processes to companies in a nearby country, ofte...

Brian Le Mon answered this question

Ilga Horvat
Ilga Horvat, Operations Manager at Hornet Import and Export Group Pty Ltd

Asked this question - Importing

Is the growing trend of offshore manufacturing good or bad for Australian SMEs?

I think offshore manufacturing is a necessity in many industries.



We as consumers have been conditioned to expect the lowest price for items we buy while demanding the highest wage in the world. The ultimate outcome is that manufacturing suffers. We cannot afford to pay premium wages to our staff while being competitive with countries that pay less than 10% of our minimum wage to employees and have lower overheads and ongoing costs.



The Aussie dollar is not plummeting as per predictions earlier this year and has barely seen any time below 0.9 USD so there is no saving grace to be found there. In fact problems with the EURO actually threaten to push our dollar higher again.



We as business owners need to look at what our customers are demanding, not as a vocal outcry but what is actually happening with the purchasers of our products. If we are losing out to lower cost competition then time has come to make some hard choices and try to salvage some jobs and some degree of our company rather than go down with the sinking ship.



There is an opportunity to get lower cost quality products by offshore manufacturing but it is not a simple case of placing a purchase order and getting perfect products. There are many pitfalls and traps that you can encounter along the way.



GBOS specializes in helping companies make the correct decisions and getting your product established in reliable manufacture.



Contact me for more information.


Importing

Who is really to blame for your offshoring failures?

Offshore manufacturing has become the only option for many Australian industries competing in the global economy. But we often hear the horror stories of ventures into offshoring where it has all gone terribly wrong. Poor quality, delivery failures, packaging failures, production items nothing like the sample, the list of potential grievances is extensive.  We then tend to place blame on the v...

Outsourcing

Is outsourcing really offering you a competitive advantage?

I recently saw a topic post on LinkedIn promoting "Outsourcing as your competitive advantage" which got me questioning the validity of the statement. Before I proceed too far into this article let me offer a warning to those looking for a non-outsourcing solution to their problems or a lengthy rebuttal on the ineffectiveness of outsourcing. Sadly this article is not going to the the silver bulle...

Business Management

The Entrepreneurship Bug

Small business is an integral part of the Australian economy. Whether you are a 1 person micro-business or a medium sized enterprise, we all started at the same point. With a concept of an underserved section of the business or consumer community or an idea to improve on an existing offering. Not many of us get it right first time. part of the learning and evolution experience comes from having pr...

Brian Le Mon answered this question

Brian Le Mon
Brian Le Mon, Founder & CEO at

Asked this question - Customer Acquisition

Has anyone tried a paid referral system to get new customers?

Hi Guys,



 



Thanks for your comments. We decided to go with a referral bonus scheme to try to get more actual value out of our advertising dollar.



It makes sense for me to try to expand my business case beyond my network and to do so more rapidly by using paid referrals.



It will probably also help that we can offer a substantial referral bonus for successful referrals which hopefully will generate a bit of interest.



Thanks again.



Brian


Outsourcing

Why do Small Businesses get Outsourcing Wrong?

Outsourcing business tasks and services is often cheaper compared to hiring full-time employees. However, many companies adopt a mentality of outsourcing for rock bottom prices, which leads to problems down the line. The smarter approach is to outsource for quality that comes with reasonable prices.​   Having worked with outsourced suppliers and companies for most of my career, I felt I was ...

Outsourcing

A Wake Up call for Australian Manufacturing

Everyone knows that manufacturing in low cost countries has become very popular all over the world, and Australia is not an exception. But what is the reason behind choosing low cost countries versus domestic manufacturing? Is relatively lower cost the only factor behind it? Here are some of the most prominent reasons why low cost countries are preferred over domestic Australian manufacturing a...

Importing

Australian IP Security In Offshore Manufacturing

In recent years Near-shoring and Re-shoring have become popular buzz words in the manufacturing arena. The concept of returning manufacturing to a local or proximally close vendor has become popular with both the media and the general public. Near-Shoring Using the Wikipedia definition, Near-shoring is defined as: “The transfer of business or IT processes to companies in a nearby country, ofte...

Importing

Who is really to blame for your offshoring failures?

Offshore manufacturing has become the only option for many Australian industries competing in the global economy. But we often hear the horror stories of ventures into offshoring where it has all gone terribly wrong. Poor quality, delivery failures, packaging failures, production items nothing like the sample, the list of potential grievances is extensive.  We then tend to place blame on the v...

Outsourcing

Is outsourcing really offering you a competitive advantage?

I recently saw a topic post on LinkedIn promoting "Outsourcing as your competitive advantage" which got me questioning the validity of the statement. Before I proceed too far into this article let me offer a warning to those looking for a non-outsourcing solution to their problems or a lengthy rebuttal on the ineffectiveness of outsourcing. Sadly this article is not going to the the silver bulle...

Business Management

The Entrepreneurship Bug

Small business is an integral part of the Australian economy. Whether you are a 1 person micro-business or a medium sized enterprise, we all started at the same point. With a concept of an underserved section of the business or consumer community or an idea to improve on an existing offering. Not many of us get it right first time. part of the learning and evolution experience comes from having pr...

Risk Management

Are you being culturally aware or culturally manipulated?

It is no secret that one of the biggest hurdles to overcome when dealing with a company from a different country is the differences in culture and mannerisms. Everyday actions that may seem fairly innocent and innocuous in a Western Society can be interpreted as being extremely insulting or derogatory in a different culture. We have all heard people talking about "saving face" as being a major ...

Business Management

Gone baby gone!

In many of my meetings with Clients and Consultants, the question of a future dated manufacturing resurgence / renaissance often arises. We are currently experiencing the fallout from a high dollar, high cost of business and high wages resulting in many industries moving offshore to reduce costs and remain competitive in a global marketplace. The result is that many manufacturing companies an...

Startup

Small Business and Startups in economic uncertainty (part 2)

  The challenge of small business and start-ups in the current economic environment is definitely a multifaceted issue. I would not claim to be a guru in this arena, but I can offer advice from my experience in both working for small business and start-ups as well as being in a position where I have started and run businesses at several stages through my career (including my current venture). ...

Startup

Small Business and Startups in economic uncertainty (part 1)

Getting started in business is never an easy road. This is even more apparent in the current economic environment compounded with the need to be globally competitive in order to stack up against foreign imports. Typically we are entering our new endeavor on a shoestring budget or trying to get business running while continuing as an employee in another company to be sure there is enough money to...

Brian Le Mon answered this question

Ilga Horvat
Ilga Horvat, Operations Manager at Hornet Import and Export Group Pty Ltd

Asked this question - Importing

Is the growing trend of offshore manufacturing good or bad for Australian SMEs?

I think offshore manufacturing is a necessity in many industries.



We as consumers have been conditioned to expect the lowest price for items we buy while demanding the highest wage in the world. The ultimate outcome is that manufacturing suffers. We cannot afford to pay premium wages to our staff while being competitive with countries that pay less than 10% of our minimum wage to employees and have lower overheads and ongoing costs.



The Aussie dollar is not plummeting as per predictions earlier this year and has barely seen any time below 0.9 USD so there is no saving grace to be found there. In fact problems with the EURO actually threaten to push our dollar higher again.



We as business owners need to look at what our customers are demanding, not as a vocal outcry but what is actually happening with the purchasers of our products. If we are losing out to lower cost competition then time has come to make some hard choices and try to salvage some jobs and some degree of our company rather than go down with the sinking ship.



There is an opportunity to get lower cost quality products by offshore manufacturing but it is not a simple case of placing a purchase order and getting perfect products. There are many pitfalls and traps that you can encounter along the way.



GBOS specializes in helping companies make the correct decisions and getting your product established in reliable manufacture.



Contact me for more information.


Brian Le Mon answered this question

Brian Le Mon
Brian Le Mon, Founder & CEO at

Asked this question - Customer Acquisition

Has anyone tried a paid referral system to get new customers?

Hi Guys,



 



Thanks for your comments. We decided to go with a referral bonus scheme to try to get more actual value out of our advertising dollar.



It makes sense for me to try to expand my business case beyond my network and to do so more rapidly by using paid referrals.



It will probably also help that we can offer a substantial referral bonus for successful referrals which hopefully will generate a bit of interest.



Thanks again.



Brian


Brian Le Mon answered this question

John Belchamber
John Belchamber, Owner & Senior Consultant at Invoke Results

Asked this question - Business Coaching

Where have all the perts gone?

Hi John,



 



Typically I recommend to my clients / potential clients to sit down face to face and discuss the situation and to see first hand that I know what I am talking about and have the experience to be able to deliver on what they require.



Face to face meetings may not always be practical especially if they are from different cities / countries although you may be able to get a feeling for their level of expertise from a videoconference.



The basic idea is to remove the expert from the environment where they can potentially be prompted (or use Google etc..) to deliver answers to your questions and put them where they need to think on the spot. Most self-proclaimed experts will struggle for answers without their office cues or time to research the perfect answer so in a face to face meeting you can typically see if their "expertise" stems from actual experience or from reading books, blogs or Wikipedia.



 



Regards



Brian



 



Brian Le Mon MPH, BSc



Principal Consultant



GBOS



 



 


Brian Le Mon answered this question

Wendy Huang
Wendy Huang, Full Time Blogger and YouTuber at A Custom Blog in 4 Minutes

Asked this question - Business Management

What Are Ways To Combat The Rising Cost Of Business In Australia?

First and foremost - be smart.

Don't invest time resources and money into areas of your business that you are not world class (or at least exceptional) at performing. Find someone who is exceptional at this task and look at outsourcing the task to them (whether this be an onshore or offshore company). Focus on the value that your company can add, the items, services, products that your customers would be willing to pay the extra $$ to your company for the peace of mind, satisfaction in knowing that your are personally taking care of these aspects.

I once worked with a company that produced heavy industrial trailers. The company had been around for several decades and had not evolved their mentality beyond doing everything in house even plasma cutting flat metal parts. The option was to outsource these for laser cutting, unit price was reduced, precision was dramatically improved and the plasma cutter was free to spend more time working on those components that could not be laser cut and that made sense to be done in-house. The end result is higher output for a lower cost.

The flip side is time I have spent working with companies in South Korea - everything is outsourced. If you own a company that does PCB assembly, you ONLY do PCB assembly! Other functions are outsourced to another company who has the machinery and expertise to excel. In this way everyone shares and the environment becomes a lot more collaborative than adversarial. They all benefit and they are more cost effective in bidding for projects.

Secondly and following the above - don't get too attached.

You need to analyse your business model with a dispassionate eye. It is hard to do and sometimes the things you need to let go may be those that were closest to your heart upon starting. Remember as much as you love being removed from the cycle of interviews, hiring & firing by running your own business, poor choices can quickly remove you from the SME environment and put you back into employment statistics.


Thirdly - seek external advice if needed

But make sure the adivsor is focussed on helping your business grow, not on extending their contract / lining their pockets. Consultants pop up in many industries, some arrive through being unable to work with their existing skillset and being a good sales person, others come from an industry that has dissolved due to economic pressures or have reached the ceiling within their profession and want to have more from their career. Look for a consultant that has experience, not someone who is "painting by numbers". Those with life experince are more likely to be able to adapt the advice according to your individual situation. They are also more likely to work on an agreed contract price rather than an hourly / daily rate because they have sufficient experience in their work / consulting to be able to ascertain exactly what is required in your situation. Beware of those who work by the philosophy "If you can't be a part of the solution, there is good money to be made in extending the problem"

Fourth - Offshoring is not the "Devil" (reminiscent of Kathy Bates in "The Waterboy")


If you come to the decision that there is no economical way but to conduct certain parts of your business with offshore vendors, then don't feel guilty about it. It is a much better scenario to have a continuing business with a smaller staff contingency then to have a business that has lost it's competitiveness through high domestic costs and is now in Adminstration with NO STAFF. Sometimes you can't save everyone.
Having worked managing electronics assembly factories in Melbourne a decade ago (when there was still some viability in the industry) this is one of the hardest things I have had to come to terms with. Lining up 50% of your staff to advise them there is no work for them does not leave you with a nice warm afterglow, but having your staff turn up for work and finding chains on the gates and the adminstrators looting the facility for every last cent to pay off creditors would be a much worse feeling. All of this being said if you do look to offshoring, BE INFORMED. Do not jump on the China bandwagon because this has the highest prominence. Your product may not be suited to China and there may be other countries that are a much better fit in terms of IP security, stability, import / export BS and capability.

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