The Outsourcing Shuffle

Studies: ERPS – European Center for Research in Purchasing and Supply

The Outsourcing Shuffle

Every product has a life cycle. There are hot new gadgets, mature goods, and end-oflife commodities. If your product is no longer the hottest thing out there, it may be time to adjust your business model. To help our clients better understand their own outsourcing decisions, we examined the long-term performance of companies that had oursourced major components of their operations. We scrutinized companies and industries to find out what they did right and wrong, as well as to evaluate their long-term results. Our findings point to a clear relationship between a company's product portfolio and its outsourcing decisions. In fact, we learned that when manufacturers tie their oursourcing strategies to a product's life span, the results can be intriguing.

About ERPS

The European Center for Research in Purchasing and Supply – ERPS – was founded 1997 by the European Purchasing Associations in cooperation with the global organisation IFPMM (International Federation of Purchasing and Materials Management) and the American research institute CAPS (Center for Advanced Purchasing Studies). ERPS is established in Vienna, Austria as a non profit association according Austrian law.