by: Sarah Joson
Tuesday, May 28, 2013 | Outsourcing News |
In the past, sourcing strategies were mainly focused on cutting costs. But as economies worldwide continue to struggle and business environments remain uncertain, decision-makers in the field of manufacturing should re-evaluate their sourcing strategies to get appropriate and satisfactory results.
A post at info.ISG-One.com shares five ways manufacturing executives can re-assess their sourcing strategies.
1) Strongly consider the cloud technology. Cloud technology is still considered taboo in the manufacturing industry, but it is slowly gaining traction through bundled software-as-a-service (SaaS) offerings - used by both manufacturing service providers and clients.
2) Will managed services work for you? Manufacturing is still the leading market in the outsourcing sector. More and more manufacturing companies are seen making use of managed services to better control their outsourcing operations and minimize the usage of multiple service providers. The packages offered by managed providers can be customized according to the requirements of the client.
3) Do you need to change the ratio of your outsourced vs. insource operations? To achieve the correct balance between the skills needed and number of available candidates locally, companies can re-appoint which business unit will take on which role to get the best results.
4) Design a no-frills multi-sourcing strategy.You’ll never know when you’ll need a multi-sourcing strategy so it is advisable to create one just in case. It will enable you to access the best of the best providers. It will also prevent delays should business owners decide to make use of multiple providers, and it will streamline all processes while reducing risk.
5) Division of budget. More and more businesses are seen banking on innovation rather than the current operations. They do this to pave the way for growth across all departments. For instance, some businesses reposition funds from marketing operations and re-allocate them to upgrade IT-related processes such as a better inventory system to make the flow of production and delivery easier.