Gartner Research

Build Organizational Strength to Optimize Joint Value of External Manufacturing Partnerships

Published: 11 October 2022

Summary

Outdated approaches and talent deficiencies limit companies’ ability to optimize external manufacturing. Manufacturing operations leaders must align with strategic objectives and develop the capabilities, governance and organization structure needed to maximize value from external partnerships.

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Overview

Key Findings
  • Organizational governance continues to support tactical approaches to managing external manufacturing partnerships, curbing progress toward achieving strategic business objectives.

  • Organizations lack the internal talent and competencies required to support complex manufacturing engagements, limiting their ability to promote and accelerate joint value creation.

  • Leaders undertaking organizational redesign efforts struggle to find the appropriate mix of organizational centralization and decentralization, sacrificing opportunities for developing long-term competitive advantage.

Recommendations

To build a strong external manufacturing management organization and governance, manufacturing operations leaders should:

  • Align external manufacturing management with strategic business objectives by using a gap analysis to determine organizational strengths and deficiencies.

  • Build the internal

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Analysts:

Sam New Fareen Mehrzai

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