Outsourcing Inventory Management

Discussion:

How has outsourcing impacted inventory management at OEM manufacturers? Are direct shipments a good practice to save lead-time? (Direct shipments refers to a supplier shipping product to another supplier for processing, instead of the OEM manufacturer to be received and inspected).

Solution Preview

There has been recognizable level of cost reduction. Through the outsourcing program, the firm has heavily reduced the amount of money it spends on transportation and distribution of goods. Secondly, the they has become more focused on its core areas of operations. This is because, the…

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