Manufacturing & Distribution
Contract manufacturing has long been a reality of global business. However, as global businesses face increased pressure from competitors, regulatory agencies, and resource scarcity; a whole new variety of sourcing relationships are emerging to help reduce costs, increase productivity and spur new creative approaches to product development, manufacturing and distribution.
For instance, Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) opportunities are now emerging to streamline the value chain in all areas of the manufacturing process:
- Outsourced research and development centers are now being co-located in closer proximity to manufacturing plants to facilitate the conversion of new ideas into new products.
- New manufacturing supply chains are being established in emerging European Union nations combining outsourcing labor arbitrage advantages with an economic system free of tariffs on intermediate goods traded across national boundaries.
- New logistical technologies, such as Radio Frequency Identification (RFID) are now being offered as components of comprehensive logistical BPO offerings from major outsourcing providers.
