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Why would a company choose to outsource materials or services rather than produce it themselves?

To a great extent, purchasing and materials management are becoming strategic business functions. Explain why this is true. Consider the following when forming your initial post:

How does a company’s approach to purchasing affect its profitability?
Why would a company choose to outsource materials or services rather than produce it themselves?
Can you think of a company that does materials management well? Why do you think so?

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