Once you have made the decision to outsource a product or a component, you enter the next stage of the process that of managing the relationship. These perspectives are highly simplistic and ignore some critical issues. Following these two perspectives can plant the seeds of destruction into the resulting relationship. Two elements must be recognized on an ongoing basis as critical to a successful buyer-supplier relationship. These elements are velocity and visibility.
Velocity is speed.
It means moving from an anticipatory stance to a response-based system. A response-based system is one in which the supplier responds very quickly. The supplier now responds to an actual demand rather than to a forecast. Achieving velocity is not something that can be done by the supplier alone. It requires the implementation and mutual understanding of the proper integrated business model.