Growing Pains For Manufacturers: Outsource Or Expand?

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Growing Pains For Manufacturers: Outsource Or Expand?
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Rhonda Dibachi is the CEO of HeyScottie, an AI-enabled automatic pricing engine for outsourced finishing services. Read Rhonda Dibachi's full executive profile here.

No manufacturer can do everything. But the question of bringing new capabilities in-house versus outsourcing them can be tricky.

A simple change of finish color, for example, could send you on a long and painful learning curve. For starters, you need to provide pricing so your customer can make a go/no-go decision. It may take you some time to find a shop that can handle the order. How do you know what to outsource and when to in-source? How can you have your cake and eat it too? How can you offer your customers tons of customizations with your plethora of capabilities but not inherit the full share of the headaches?

Bottom line: You shouldn’t commit to an increase in OpEx or CapEx without an anticipated increase in revenues.The single most important quality of a vendor is their on-time delivery.

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