How could manufacturing outsourcing improve the internal performance of a Purchasers company? How could OEM help a Purchaser start a reorganization process within their company?
Putting in-house Suppliers at risk of losing production to a manufacturing service provider by instigating the offer/bid process has been utilized in the past to instigate enhanced effectiveness among the internal production staff. By outsourcing the manufacturing function (a traditionally significant part of a company’s employee and asset base), a company is more easily able to instigate change in the organization toward the more appropriate size and shape because of the increased flexibility resulting from the paring down of the organization’s excess employee and asset bases.
