Steve,
While all the reponses have tremendous validity another key is control of
costs with out sourcing which translates into risk reduction. As with most
operations, the lower the risk, the lower the potential return. So bottom
line becomes an organization's balance or comfort level between risk and
financial return.
Regards,
Bruce Misner
> ----------
> From: Stephen R. Gregory[SMTP:[log in to unmask]]
> Reply To: TechNet E-Mail Forum.;[log in to unmask]
> Sent: Monday, April 23, 2001 8:25 PM
> To: [log in to unmask]
> Subject: [TN] Loaded question...outsourcing vs. in-house
> manufacturing...
>
> Hi All!
>
> I've was asked by one of our sales people if I could give some information
> on
> why it makes sense for an OEM to outsource assembly vs. starting your own
> manufacturing capabilities. Obviously, this deals with printed circuits...
>
> I've done a lot of searching, and have some good info, but I thought I
> would
> ask you all for your opinions to add to the mix...
>
> Generally, the reasons I've found come down to dollars, and core
> compentcies.
> That is, a company may be very good in designing products, but lack the
> facilities to produce the products they design efficiently. Where is the
> line
> that you decide to invest the capital in automation, or doing the
> manufacturing yourself to produce what you've designed, or just simply
> outsource it?
>
> I know this is a very ambiguous question, a lot depends on product volume,
> complexity of assembly, and a million other factors...
>
> One of the big examples I've found on the NET is Compaq computers, once a
> OEM
> making everything themselves, practically everything is outsourced
> now...they
> shut-down a beautiful manufacturing facility in Texas...but, they went
> from
> almost falling behind Dell, to surging ahead to #1 in PC suppliers and
> turning a profit...
>
> Just interested in your thoughts...
>
> -Steve Gregory-
>
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