E2open - January 2016 (SCMR)

"Outsourcing Manufacturing: a 20/20 view"

Outsourcing manufacturing is becoming a well-established approach for companies that want to strategically manage materials in today’s fast-paced business environment. 

In return, manufacturers see various benefits from outsourcing to reliable manufacturing and logistics partners, including cost and asset reductions, access to skilled labor, third-party design, and manufacturing expertise, along with the ability to quickly scale production up or down. An outsourcing strategy also allows brand owners to focus on their core competencies of design, brand management, and sales, while relying on partners to manage manufacturing and distribution.

But has the promise of outsourcing truly been fulfilled over the past two decades? 

To find out, Peerless Research Group (PRG), on behalf of Supply Chain Management Review and E2open, conducted a survey of 94 top supply chain executives in companies with US$250 million or more in annual revenues. The survey was commissioned to assess the current state and future plans for outsourcing manufacturing.

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