What are Your Outsourcing New Years Resolutions? (Supply Chain Management Review)

Editor Sean Murphy covers Pace Harmon’s "Kicking Off the New Year with a Thorough Review of Contractual Obligations and Commitments" report in this article, and focuses on three primary areas: Cost, Productivity and Service Levels. Marc Tanowitz is quoted in this article. "Cost: No company that wishes to remain in business needs to be lectured on the importance of cost of services, but Tanowitz said managers owe it to their companies to review not just what services cost now, but what they might cost during and at the end of the outsourcing contract. For example, a firm looking to save labor costs by outsourcing to China must consider that the cost of living goes up there, just like it does in any other country. As a result, what is cheap today may not be so cheap tomorrow."