When companies make the decision to outsource production to a contract manufacturer, the need for effective manufacturing cost management shouldn’t be outsourced along with the product. In fact, if cost management principles aren’t a cornerstone of the business relationship, both parties could find themselves missing out on value creation opportunities or, even worse, wondering where their profits went. In this presentation I will provide strategies and practical steps companies can take to ensure production cost management is tracked, managed, and shared across a contract manufacturing partnership to both mitigate costs and unlock value.
- The role of continuous improvement systems in cost mitigation
- The importance of manufacturing execution systems and management models in the mitigation of manufacturing costs
- Contract structures that ensure mutual transparency and accountability for cost management