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Safeguarding the Promise of Production Outsourcing
Today's product companies (original equipment manufacturers, or OEMs) increasingly outsource production, especially when the activities are asset intensive or require process technologies characterized by rapid innovation. When such an OEM also outsources the procurement of the required materials, especially to the party providing the production services, the OEM risks unpleasant surprises, such as unauthorized part or supplier substitutions, overbilling, mistreatment of the supply base, anddoi:10.1287/inte.1060.0210 fatcat:puymqnmvnzgifl7h3yiv3ku7xu