OUTSOURCING PRODUCTION WITHOUT LOSING CONTROL

Abstract

SUBTITLE: OUTSOURCING CARRIERS GREAT RISKS -- ESPECIALLY WHEN THE BALANCE OF POWER TILTS TO THE PROVIDER OF OUTSOURCED SERVICES. BY GIVING UP CONTROL TO ANOTHER PARTY, COMPANIES LEAVE THEMSELVES OPEN TO THE POSSIBILITY OF OPPORTUNISTIC BEHAVIOR AND ABUSE. IN THE FACE OF THIS RISK, SUPPLY CHAIN MANAGERS NEED TO THINK LIKE INVESTIGATORS AND EXAMINE ALL OUTSOURCING DECISIONS BASED ON MEANS, MOTIVE, AND OPPORTUNITY.