Manufacturing structures have partly changed from high levels of vertical integration to outsourcing during the past twenty to thirty years. As a result, outsourcing has often become the preferred choice for labour intensive products. In Australia, many companies have increased their outsourcing of components and finished products to developing countries, particularly mainland China, primarily to take advantage of lower labour and other production costs. Thus decisions in outsourcing are fundamental to organisational restructuring. However, although outsourcing can achieve many significant benefits, it presents a variety of new risks and problems due to the extension of supply chains, and needs solutions