By Robert L. Carman, Principal
Outsourcing has become commonplace and in many cases required in order to keep the financial burden of staying near the cutting edge of so many associated technologies, both product and manufacturing process based. The problems with outsourcing are frequently tied to the management and implementation techniques and processes. We forget that in the old vertically integrated company, most of these capabilities were the source of our competitive advantage, and we don’t establish the proper relationships to allow the new multi-company enterprise to retain many of those competitive advantages. Dr. Scott Elliott wisely suggested that we treat key suppliers as family, but what does this entail?