OM 11 Outsourcing
Outsourcing is not a new concept, but it does add complexity and risk to the supply chain.
Outsourcing is contributing to both lower cost and more specialization.
The classic make-or-buy decision, concerning which products to make and which to buy, is the basis of outsourcing.
Loss of control over quality and processes is a major risk of outsourcing
When firms such as Apple find that their core competency is in creativity, innovation, and product design, they may want to outsource manufacturing.
