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Strategic Supply Management by Robert Trent

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OUTSOURCING FOR COMPETITIVE ADVANTAGE

To hear the “experts” explain it, a firm that does not outsource just about everything where it does not add unique value is destined to fail. Furthermore, companies should outsource way more than they currently outsource. If there ever was a topic where we should step back, take a deep breath, and approach it methodically, outsourcing may be that topic. While many companies have used outsourcing to gain competitive advantage, the process is not without serious risks. Consider the following, which is one manager’s account of how a poorly executed outsourcing decision caused his company’s demise:1

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