According to a study conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and E2Open, the majority (84%) of organizations surveyed outsourced their manufacturing production to some extent. Among those companies that do outsource, one in four subcontractors outsource more than half of their manufacturing processesⁱ.
Would you let your outsourced production resource set your price of the service they provide without checking the market or quoting their service? Think about why you would allow a scrap vendor to manage that important aspect of your manufacturing. It makes sense for companies to outsource for efficiencies such as transportation, accounting and many other functions. Have you considered contracting out a critical facility service where the cost of that service is paid for by the additional earning generated by having a company of scrap experts who aren’t scrap dealers?