The strategic benefits that would be provided to a company by employing the outsourcing strategy pertain to the ability provided to the company to focus on their core activities, in this case the core production lines that are effective and profitable for Bridgestone Industries. Similarly outsourcing can also provide the company with cost efficiencies and savings as depicted above.
The overheads associated with manufacturing the outsource production line can be significantly reduced leading towards lean operations and reduced costs of operations. Additionally outsourcing can also provide the Bridgestone Industries with operational control as the poor management of the manifold production line which was increasing the costs and overheads for operation for the company can be eliminated. The Bridgestone Industries would also be able to take advantage of the staffing flexibilities available by employing the best possible staff for the currently active production lines. Moreover the company would also be able to ensure that their manifold production line is managed and manufactured by the experts in the filled with specialized skills.
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