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Vested Outsourcing – Part 2

October 10, 2011

Innovators Interview with Scott R. Schroeder

This is Part 2 of our discussion of Vested Outsourcing with Scott Schroeder, president and CEO of Mega Tech of Oregon. In Part 1 Scott told us how and why he got interested in Vested Outsourcing and its basic principles.

In Part 2 he talks about who should consider using Vested Outsourcing and why it’s different. Scott is not alone in his praise of this new approach between companies and their suppliers.

“Vested Outsourcing is a game-changing approach that will quickly become the new gold standard for advanced outsourcing relationships. It is a critical enabler for Outsourcing 2.0.” Frank Casale – CEO, Outsourcing Institute

“Applying Vested Outsourcing’s Five Rules has the power to change the game of outsourcing.” Tim McBride Chief Procurement Officer, Microsoft

Vested Outsourcing with Scott Schroeder

In Part 2 we discuss:

  •  00:12 – Who should consider Vested Outsourcing
  • 04:00 – The Vested Outsourcing quadrant
  • 05:13 – Choosing a vested provider
  • 08:00 – Concurrent engineering collaboration
  • 09:10 – Seeking the Win/Win
  • 10:19 – Why Vested Outsourcing is different
  • 12:57 – Examples of where Vested Outsourcing is working

Was Adam Smith Wrong?

A Beautiful Mind is a biopic of the famed mathematician John Nash and his lifelong struggles with his mental health. Nash enrolled as a graduate student at Princeton in 1948 and almost immediately stood out as an odd duck. He devoted himself to finding something unique, a mathematical theorem that would be completely original. Details on IMDB…

Why Adam Smith may have got it wrong…

Hamilton Champion of American Manufacturing

Portrait by Caroline L. Ormes Ransom after John Trumbull

Manufacturing has played an important role in the rise of the United States as the world’s leading industrial and military power since 1790, when Alexander Hamilton presented his Report on Manufactures to congress. Hamilton belief in the importance of manufacturing was significantly influenced by Adam Smith’s seminal work  The Wealth of Nations

With the rise of the Four Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan) in the 1960’s and the recent growing industrial prowess of India and China,  U.S. manufacturers have been losing global market share to hungry, low-cost, global competitors.

The importance of manufacturing to U.S. economic health and job creation is now widely recognized. Over the last few years industry trends have been reversing. Sometimes known as “Reshoring” many American companies are looking to bring their production operations back, closer to home.

Whether its producing in-house or outsourcing to a U.S. contract manufacturer there are good reasons to have the work done by a trusted vendor who may not be the low-cost bidder.  This is where “Vested Outsourcing” comes in, it provides a new model of working with suppliers to get more value from the contribution of the supplier over the mere cost savings.

The  Beautiful Mind of John Forbes Nash

The Essential John Nash, Edited by Harold W. Kuhn & Sylvia Nasar

Vested Outsourcing extends Adam Smith’s notion of the invisible hand of economic relations based on self interest and “individual ambition serves the common good,”  to a broader more inclusive view that self interest and outcome based on the good of the group was a better model for decision making. This view was proposed in 1950 by Princeton mathematician John Forbes Nash in his Nash Equilibrium which is a part of the larger field of Game Theory.

See: Vested OutsourcingPart 1…

Related links…

Vested Outsourcing website

Vested Outsourcing book

Vested Outsourcing videos


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