The Pin Factory

A number of blogs suggest outsourcing and offshoring may have run its course as a sourcing strategy. Outsourcing has been with us since the beginning of time, and offshoring although a new term has been with us since sailing ships began to move commerce. Offshoring is a strategy often relied upon when the business strategy for the category is overly simplistic and focused only on cost reduction. A GOOD business strategy is rarely so monochromatic, and requires a more comprehensive set of goals and objectives including sales, revenue, net income as well as cost. However, offshoring without a clear strategy can lead organizations to mixed results and potentially great harm. The bottom-line is that we need transformation to drive strategic sourcing especially in categories considering offshoring.