Understanding The FM "Monster"

IPG: Chuck, what about costs? An outsourcing operation must make a profit. So, how can Lanier save a company money?

LeClercq: Let me give you an example: If Ray's equipment is running only one shift, we could take that workload and put it on equipment that's running three shifts. Now you've got no additional overhead costs, no depreciation on the equipment and your costs go down the more you use it. So that is one of the best ways I know of to fully utilize all of your equipment. Not that we can necessarily do it any cheaper or quicker than they are, but it's just that your overhead costs are reduced, therefore giving us a profit margin.