1993-10-01

Outsorcing Of An Engine Plant. 931650

SUMMARY

The object of this study is to describe the experience obtained in the partnership for outsourcing an engine plant. The high costs turns companies vulnerable in competitive markets and the search for solutions is the best way out for companies.
Commit to a supplier party the production of enginess which equip it’s machines, was the strategy chosen by Caterpillar Brazil in order to reduce costs and to attend it’s market in a more convenient form. To find the ideal partner, which could offer it security, costs and quality was an imperative task. Iochpe-Maxion, manufacturer of diesel engines, market leader among independent manufacturers, was the company selected in order to realize this idea, which promised a new course for Caterpillar Brazil.
Before speaking of the practical experience to which we refer, let’s discourse concerning the outsourcing concepts in general, so that we can equal our understanding of the subject.

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