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06-06-2013, 08:01 AM
I see the move having 2 benefits.
1. Closer contact to source. This will enable them to monitor the manufacturing process and monitor the quality of products. They may also provide inputs to the supplier to develop new products to meet the future demands.
2. Cutting down on middleman. This move will save them some cost and improve the profit margin, as long as the volume can justify the cost. Challenger must have grow big enough for them to take this step. Many other companies are doing so too.
1. Closer contact to source. This will enable them to monitor the manufacturing process and monitor the quality of products. They may also provide inputs to the supplier to develop new products to meet the future demands.
2. Cutting down on middleman. This move will save them some cost and improve the profit margin, as long as the volume can justify the cost. Challenger must have grow big enough for them to take this step. Many other companies are doing so too.