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Management article
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Reference no. P0602B
Published by: Harvard Business Publishing
Published in: "Supply Chain Strategy", 2006

Abstract

Companies entering into relationships with contract manufacturers know they''re vulnerable to these vendors. And, too often, contractors have become adept at taking advantage of companies desperately seeking to pare supply chain costs through outsourcing. But just as you don''t want a contractor to get the upper hand, you also don''t want the contractor to suffer; the aim is to structure a relationship in which both parties thrive. To that end, supply chain managers and chief executives alike can take steps to ensure that partnerships with contract manufacturers are successful and prevent their companies from falling prey to one-sided deals. Read this article to learn about the steps a company can take to ensure a successful partnership with a contract manufacturer.

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Abstract

Companies entering into relationships with contract manufacturers know they''re vulnerable to these vendors. And, too often, contractors have become adept at taking advantage of companies desperately seeking to pare supply chain costs through outsourcing. But just as you don''t want a contractor to get the upper hand, you also don''t want the contractor to suffer; the aim is to structure a relationship in which both parties thrive. To that end, supply chain managers and chief executives alike can take steps to ensure that partnerships with contract manufacturers are successful and prevent their companies from falling prey to one-sided deals. Read this article to learn about the steps a company can take to ensure a successful partnership with a contract manufacturer.

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