Outsourcing Manufacturing

Strategy and Innovation

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Anurag Pandey
Student (University), United Kingdom

Outsourcing Manufacturing

Some US manufacturing firms still find it advantageous to source their manufacturing from China and other Asian countries.
How are the strategies of these firms different from those who decide to locate in Guadalajara?

  LUK CC
 

Key Factors to Outsource Manufacturing

My research results indicates that below factors are key in outsourcing manufacturing or the term OEM we always using:
1) Level of technology (what is the product)
2) Level of integration (price / quality advantage)
3) Scale (can Apple find another OEM partner?)
4) Match-pair factor for client and OEM factory (small new start-up brand cannot find the best OEM factory as their NRE and MOQ are very high)
Therefore, outsourcing can be everywhere if above factors can be met.

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