In-plants Face New Strategic Realities
As corporate comptrollers sharpen their scrutiny, in-plants turn to insourcing, marketing and ancillary services. Still, many hardships remain for in-plants. Here’s a candid look.
Most corporate financial officers understand the benefits of this contribution pricing. However, the in-house clients, after learning about the pricing disparity, almost always escalate their scheduling demands and their scrutiny of print quality. The screws get tightened.
Future of Outsourcing
While IPG surveys have shown full chargeback policy to be standard practice, corporate accounting allocation of overhead costs to the in-plant’s budget is becoming more conservative. Stated another way, several administrative service entities appear to be bearing a higher share of corporate overhead than ever before. This may be due to a philosophical accounting shift consistent with an underlying bent to outsourcing.
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