Why OEMs are Reaching Out to Outsourcing Companies
In case you missed it earlier this month, follow the link below to see an article from The Manufacturer by our MD, Tony Hague, where he explains why an increasing number of OEMs are choosing to outsource some of their operations and also some of the potential pitfalls.
The benefits of outsourcing can be significant but the cost of getting it wrong can be damaging. It is critical to choose the right process to outsource as well as the right partner to outsource to.
Ian Knight, Chief Information Officer at PP Control & Automation (PP C&A) challenges the prevailing, often vague narrative around AI adoption and reframes the conversation around a more practical starting point: operational constraints.
Artificial intelligence is no longer a distant concept for manufacturers. It is already being explored across quotation, production planning, engineering, quality, supply chain and customer service functions. Yet, for many organisations, the gap between experimentation and meaningful operational impact remains difficult to close.
On paper, defined discipline-specific suppliers can look organised. However, every additional supplier introduces another handoff, and every handoff creates another point where time, quality, communication and accountability can be lost.
Very rarely does growth not surface because an OEM lacks ambition. Shortcomings arise because operating models built to support such ambition don’t evolve quickly enough.