Business Management - Insourcing

Try Insourcing
August 1, 1998

It's nice to have a captive customer base, isn't it? You just keep your rates low, turn work around quickly and watch your customers keep coming back—provided your service is good. But this same "guaranteed" base of customers can also limit your growth opportunities: How can you continually increase your business and justify equipment upgrades when your customer base never grows? In response to this dilemma, several in-plants have found a way to bolster their clientele lists by taking in work from external customers. By insourcing, they can use up extra equipment capacity and generate income. Insourcing does have its difficulties, though: Your