Outsourcing is faster and Flexible

I have worked for organizations that are hard core manufacturing organizations, the ones which are largely trading organizations and there are ones which are Research and Development organizations. I found that everywhere , I had to change my mind set and position supply chain differently though using fundamental principles of quality, cost and delivery in practice. Having said that I also find the organizations which have been largely trading and had some manufacturing abilities have been the smartest ones and lets examine Why ? 

Access to Global R&D : If you are a manufacturing or Research and Development organization or even manufacturing organizations you limit your know how to the human and capital assets you can acquire. Every innovation/ Experiment costs time, money and huge effort on part of organizations which is taken out from the existing resources which somewhere affects current business too . If on the other side you are sourcing, your energies are spent in finding right sources only and with Internet and social media at work and googling you can virtually reach anywhere very very fast. That creates unlimited leverage for an organizations and access to hundreds of organizations who individually are investing time, effort and money to create what you have been looking for.

Unlimited Capacity : As you can have multiple suppliers, multiple locations geographically and access to multiple wage rates etc etc.

This helps organizations not only have as much as they want and they pay for cost of purchase but also cost optimization and covering their risks of operating at a single state , single country . We are seeing upheaval worldwide which is disrupting life for various reasons, multiple locations and multiple choices does not only make it big but consistent.

What makes it better : Fair deal makes it better . Making your partners make money and making them comfortable in a relationship and giving them due respect so that they enjoy the company to make the relationship long lasting . Partnering key initiatives even with investment encourages innovations. Needless to mention that the relationships need to be bound by sound contracts which are fair to both parties not only in its text but the spirit and difficult times and issues are resolved as stated .

So, What’sbetter :  One can argue that a lot of R&D Companies top the list of top earners and we can think, may be Apple, Google and yes they are. So are manufacturing companies like Toyota’s and P&G and Levers. But you know what the new age revolution is created by Outsourcing Giants like Wall Mart , TESCO, UBER, OYO in India. So you see how fast the models have been scalable. The wiser companies have chosen a mix. So Focscon makes for Apple, LG etc. etc. are numerous examples of what can be done and thanks to China to show the world that they can do a lot of things to help you grow your business in your street, state and country