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Outsourcing offers significant potential to CPG and private label companies, enabling them to quickly adapt to changing market needs and keep a flexible and low cost structure, but it also poses risks. While outsourced product development and manufacturing processes can increase the throughput of new products, it can also make compliance difficult and potentially slow time to market, for example. Another issue is the loss of control over the intellectual property around products and visibility into product costs. CPG companies could lose detailed understanding of their products and how they are manufactured, while the outsourcing partner could become positioned to develop competitive product clones. Product Lifecycle Management, among other critical business processes, is a vital enabler of outsourcing. Most importantly, PLM establishes a centralized repository containing product data and information created by various authoring entities and tools, which is easily accessible by all appropriate parties, including global supplier partners.
Outsourcing offers significant potential to CPG and private label companies, enabling them to quickly adapt to changing market needs and keep a flexible and low cost structure, but it also poses risks. While outsourced product development and manufacturing processes can increase the throughput of new products, another issue is the loss of control over the intellectual property around products and visibility into product costs. CPG companies could not lose detailed understanding of their products and how they are manufactured, while the outsourcing partner could be positioned to develop competitive product clones. Mostly, PLM establishes a centralized repository containing product data and information created by various authoring entities and tools , which is easily accessible by all app ropriate parties, including global supplier partners.