Distorted outsourcing decisions: Product redesign, not manufacturing outsourcing

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

Scans the top 400 management publications in the world to identify the most topical issues and latest concepts. These are presented in an easy‐to‐digest briefing of no more than 1,500 words.

Findings

The outsourcing of manufacturing to has become a major issue for manufacturers, especially in the USA and the UK. However, a few voices are now questioning the presumed logic of lower‐cost manufacturing in Asia and China, pointing out that perhaps this lemming‐like exodus has not been fully examined from a cost perspective. Business analysts such as Boston Consulting Group and Aberdeen Group are uncovering both the risks of outsourcing and the limited view most manufacturers have about what it costs them to produce their products. Adding to this argument, a new study now attacks longstanding assumptions about product cost, claiming that in many cases product redesign, not outsourcing to Asia, holds the real cost advantage for manufacturers.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

Citation

(2005), "Distorted outsourcing decisions: Product redesign, not manufacturing outsourcing", Strategic Direction, Vol. 21 No. 3, pp. 35-37. https://doi.org/10.1108/02580540510584184