Lowering Productions Costs by Outsourcing
I am employed by the power tool division of the Black and Decker Company. Black & Decker is a global manufacturer and marketer of quality power tools and accessories, hardware and home improvement products, and technology-based fastening systems. Our products and services are marketed in more than 100 countries, and we have manufacturing operations in eleven countries.
One of Black & Decker's objectives is to establish itself as the preeminent global manufacturer and marketer of power tools and accessories, hardware and home improvement products, and technology-based fastening systems. Black and Decker is best known for the manufacture of power tools. The company's small appliance and housewares products are also well known in the marketplace. Black and Decker manufacturers several power tools that appeal to different market segments. For example, some units are cordless and tend to appeal the professional tradesmen as well as serious do-it-yourself homeowners. Black and Decker also manufactures low end products for consumers that are not as powerful or as reliable as its industrial products.
The Power Tools and Accessories segment manufactures and markets consumer power tools, accessories, electric lawn and garden tools, and electric cleaning and lighting products. The Hardware and Home Improvement segment manufactures and markets security hardware products under the Kwikset, Baldwin and Weiser brands; along with general hardware, decorative hardware and other home improvement products under the Baldwin brand; and plumbing products under the Price Pfister brand. The Fastening and Assembly Systems segment applies advanced technology to the business of product assembly.
Black and Decker is at a crossroads. Most of its manufacturing is done in the United States. The manufacturing facilities owned by the company have two serious problems. The first problem is that the p...