How can manufacturing outsourcing actually improve the flexibility of my cost structure?
Purchases from an OEM Supplier will fluctuate depending on the number of transactions made – allowing the company to move from a fixed cost basis of production to a variable cost basis. Such a move allows a company to essentially “free-up” needed cash from what would traditionally be a fixed cost (property, plant and equipment) to a less demanding (and hopefully less expensive) variable cost (cost per unit sold by the OEM Supplier to the Purchaser).
