
400 Principles of Supply Chain Management
6. In outsourcing, explicitly evaluate the risk of intellectual property: There is little risk
of losing intellectual property in outsourcing pencils; there is considerable risk
in outsourcing airplanes. Manufacturing is not a generic; it requires continu-
ous innovation.
7. Replace the goal of maximizing shareholder value with the goal of continuously creat-
ing value for customers: The new world of manufacturing will require a radi-
cally different management from the hierarchical bureaucracy now prevalent.
“It will require a different goal (adding value for customers), a different role
for managers ( ...