Benchmarking
Serving as a tool for performance measurement, benchmarking sets optimal, realistic standards within an industry.

Contract
In a contract arrangement, a specific product or group of products is the focus, often for high-volume production runs and in situations where per-piece pricing is crucial. The customer still controls the equipment, materials, technical knowledge and quality management. The offshore contractor has more control over the process and the manufacturing operation.

Core Competencies
Those aspects of a company's functionality or products/services that define its core abilities and focus.

Data Capture
Saving information to a digital or printed file for storage or processing.

Just-in-Time
A set of logistics and delivery techniques created by Toyota Motor Corporation of Japan, JIT boosts a company's bottom line by reducing inventory and associated storage costs with a fluid system of on-time fulfillment.

Joint Venture
The onshore and offshore companies cooperatively form a new, separate company for a specific purpose, such as a manufacturing startup. Joint ventures are generally a long-term solution and require capital investment.

Kanban
This Japanese term refers to the set of signals used to determine steps for JIT delivery from production to restocking of materials to shipment. The signal is often designated by the use of a card that includes details on the product.

Laborgistics®
Laborgistics is a proprietary IOS management system that supplants the traditional model of outsourcing, which historically has been based almost exclusively on rapid cost reduction and short-term tactics. Laborgistics, however, is a long-term, strategic solution for global business. It is a transformational model, allowing companies to strategically focus on the intellectual aspects of production — research, development and marketing — while turning to IOS as a singular resource for a scalable, quality-certified global workforce, distribution support and comprehensive supply chain management. See Laborgistics.com [link to site]

Logistics
Logistics is the broad-concept term for the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption to meet customer requirements.

Nearshore Outsourcing
As the term implies, nearshore outsourcing refers to obtaining services or having work done in neighboring countries. For example, the United States considers Mexico and Canada as nearshore.. The contiguous geography and more cost-effective work forces or specific services can make nearshoring a great option for businesses.

Offshore Outsourcing
When outsourcing occurs in a country other than your own or the surrounding countries, it is referred to as offshoring.

Onshore Outsourcing
Obtaining services from within one's own country but outside of the company is referred to as onshore or domestic outsourcing.

Outsourcing
A general practice referring to a company providing services to another company instead of doing it in-house.

RFI
Request for Information.

RFP
Request for Proposal.

RFQ
Request for Quote.

Shelters
An arrangement in which the customer supplies machinery and equipment and maintains control of the manufacturing process, materials, technical knowledge, quality systems and standards. The shelter provider maintains and manages the plant, labor, administration and the day-to-day production responsibilities. Costs are expressed on a negotiated fixed basis (i.e., hourly, weekly, etc.). Technically speaking, the shelter is an extension of the customer's onshore manufacturing operation — a satellite operation or department.

Strategic Alliance
These long-term agreements are usually employed to facilitate significant developments, such as the launch of a new manufacturing venture. The agreement defines the purpose and benefits for the onshore and offshore companies, how they will share risks, and what each will contribute, including capital, process, materials, systems, management, etc.

Supply Chain Management
An integrated process for managing the flow of products, services or information, a solid SCM system is the foundation for successful business.

Turnkey
This type of outsourcing arrangement becomes viable when working with offshore manufacturers who have existing capabilities, processes, materials sourcing, quality systems and technical expertise in place. In this case, the offshore provider offers comprehensive, start-to-finish solutions.

Vendor Managed Inventory
An efficient, demand-driven process of utilizing an outside source to monitor and control inventory.