SR
ENExample situation: Outsource Manufacturing
A decision that comes up in manufacturing more often than people think.
Question
“We could reduce manufacturing costs by approximately 22% by moving production to an external partner in another country. Financially it looks attractive, but we would lose some direct control. Should we outsource production?”
What to question
What happens to quality and lead times once direct control is lost? Does the 22% saving hold once logistics, customs, and the risk of depending on one partner are factored in? What's the fallback if the partner doesn't deliver as agreed?
How the depth changes
Focused → broader → deepest
Four perspectives quickly separate the headline saving from the real trade-off: what the 22% actually nets out to once logistics and minimum order…
Five additional perspectives challenge the assumption that a lower unit cost equals a better outcome, model a downside where the partner fails to…
Six further perspectives stress-test the capital tied up in inventory buffers needed to cover longer lead times, negotiating tactics for a phased or…
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