Outsourcing is increasingly being embraced by high-tech manufacturers. Yet brand owners such as original equipment manufacturers (OEMs) and semiconductor companies face additional and often unexpected challenges when they engage in distributed manufacturing. In many cases, these operations can compromise visibility and quality control, which in turn erodes execution, management effectiveness, and profitability, and leads to high costs.

To optimize the value of outsourcing within a distributed manufacturing environment, brand owners must deploy business systems and procedures that create a collaborative, transparent information environment for manufacturing. This white paper describes the impact on electronics brand owners of increased outsourcing and reviews process improvement opportunities available to companies conducting distributed manufacturing operations. The paper also discusses these companies’ primary visibility and collaboration needs and presents solutions available from SAP to address them.