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The Outsourcing Option: Growth Opportunity or Survival Strategy?
Since 1997, The number of monochrome printers in the top 75 percent of the U.S. installed printer base has grown 114 percent, from 35 in 1997 to 75 in 2003, according to Lyra Research (Recharger Magazine, September 2003). This has paralleled the growth of the industry and the proliferation of cartridge SKUs. But it has also raised some questions for those remanufacturers that are trying to offer a variety of cartridges to their customers without sacrificing quality or profit margins. Based on this, it’s plausible that many cartridge remanufacturers will, at some point, need to consider seeking assistance, especially if the company is planning to increase its production or expand its product offerings (as 65 percent of remanufacturers indicated in Recharger Magazine’s Business Development Survey on page 67). For those companies feeling the pinch, outsourcing is an option to alleviate “tension” as well as an opportunity for growth. Others view outsourcing not as an option, but rather a necessity that is quickly becoming a survival tactic.
“It’s clear in my mind that in the next few years, more than 50 percent of rechargers’ business will be done through outsourcing. It will be a necessity if they want to survive because of the number of SKUs that are coming out; it will become unmanageable,” said Alain Lachambre, vice president of sales at Teckn-O-Laser, one of the industry’s largest outsourcing partners.
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