Contract Manufacturing: The Value of a Network

12

12

CONTRACT MANUFACTURING: THE VALUE OF A NETWORK BASED APPROACH | 2024

In this research, 67% of the respondents were brand owners. In Figure 6, the industry rates itself as fixed, inside-out, reactive, controlled, and cautious. The greater the volume of outsourcing, the greater the reactivity. Brand-Owner Perspective

Figure 6. Industry Descriptors for Brand Owners

Fixed

3.2

Agile

2.8

8%

19%

27%

35%

11%

11%

35%

27%

19%

8%

Inside-Out

3.5

Outside-in

2.5

5

3

41%

41%

11%

11%

41%

41%

3 5

Reactive

3.5

Proactive

2.5

5

22% 16%

32%

24%

24%

32%

16%

22%

5

Cautious

3.5

Risk-taking

2.5

11%

35%

43%

11%

11%

43%

35%

11%

Uncontrollable

2.8

Controlled

3.2

14%

19%

49%

16% 3

3 16%

49%

19%

14%

Independent Silos

3.1

Aligned

2.9

11%

22%

22%

35%

11%

11%

35%

22%

22%

11%

Insular

2.8

Responsive

3.2

16%

16%

38%

27%

3

3

27%

38%

16% 16%

Room for Improvement

3.6

Working Well

2.4

3 16% 14%

49%

19%

19%

49%

14% 16% 3

Fragile

3.0

Resilient

3.0

14% 19%

27%

38%

3

3

38%

27%

19% 14%

1

2

3

4

5

Source: Supply Chain Insights 2024 Q11. Which set of descriptors best describes your supply chain currently?

In this study, as shown in Figure 7, we studied the trust, accuracy, and importance of nine process flows for brand owners. Companies have the highest trust in purchase orders, but this flow is not the most important. Information on shipments, available capacity, materials on hand, and manufacturing schedule changes are more important to the brand owner.

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