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Better cost – Reducedoverhead of supplier management costs and absence of supplier margin mark-up help realize better cost advantages. Also, Service Providers’ cost model is based on the number of resources deployed and does not capture the need for innovation.
In the years I worked with both onshore and offshore sourcing teams for large corporations, including Applied Materials (2000-2004), Apple (2004-2007), Gap (2007-2011) and Fitbit (2011-2014), I experienced firsthand the complex sourcing challenges B2C and B2B companies face on an ongoing basis. Controlling Overhead Costs.
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