Greater benefits from fewer manufacturing assets
A communication provider and component manufacturer was interested in outsourcing parts of its manufacturing process. It asked Bain to analyze its supply chain and recommend an outsourcing strategy. Bain identified a process for outsourcing select products with minimal pain and maximum benefit. Manufacturing assets were reduced by more than $150 million.
WireCom is a global communication provider and component manufacturer interested in outsourcing parts of its manufacturing process.
Given the range of possible supply chain strategies, WireCom wanted to fully understand which aspects of its production it should outsource. While reducing manufacturing assets would be one outcome of outsourcing, WireCom was especially interested in the strategic benefits of such an approach.
WireCom asked Bain to analyze WireCom's supply chain and recommend an outsourcing strategy.
To identify opportunities for outsourcing vs. insourcing, Bain developed a framework to evaluate each manufacturing process by strategic value and capability.
For each WireCom region, Bain identified a four-phase process of introducing outsourcing with minimal pain and maximum benefit.
WireCom was able to dramatically reduce manufacturing assets while achieving the strategic benefits it was seeking.
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