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Manufacturing companies involved in a merger may find that they have too many plants or plants in the wrong locations and look to outsourcing as a quick fix. However, outsourcing manufacturing as part of post-merger integration isn't always the best decision. Not only may it fail to deliver cost savings, but a poorly designed outsourcing model can also lead to organizational instability and loss of strategic advantage. In some cases, it may even risk the overall viability of the business.
Source: Industry Week, http://industryweek.com
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