¶ … Services and Capabilities: Global Outsourcing
Global outsourcing has become a common trend in the last few decades. Organisations, especially multinationals, have increasingly taken advantage of globalisation, technological advancements, and worldwide political and economic integration to outsource business processes and manufacturing operations to off-shore entities. Indeed, outsourcing is no longer a mere temporary or short-term solution to cost minimisation -- it is now part of business and corporate strategy (Oshri, Kotlarsky & Willcocks, 2015). Today, organisations in diverse sectors and industries rely on global outsourcing to keep up with consumer demand and competition while at the same time maximising operating margins. Nonetheless, global outsourcing presents its own fair share of challenges. This paper explains the pros and cons of global outsourcing and provides examples of firms that have successfully adopted supply chain globalisation.
A major advantage of global outsourcing is cost reduction. Generally, outsourcing is motivated by the need to produce goods and services in the most cost-effective way against the backdrop of resource constraints (Barrar & Gervais, 2006). Countries like India and China provide low-cost labour, making them ideal outsourcing destinations for Western multinationals. In fact, owing to the high cost of labour in developed countries, most American and European firms have increasingly taken advantage of Asian manufacturers to remain cost-effective in the ever more competitive global marketplace. With low-cost manufacturing in Asia, Western multinationals are able to maximise their profit margins. The cost advantage further stems from the reduced need to invest in infrastructure and manpower as the outsourcing provider takes responsibility for outsourced...
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
Supply Chain Management Purchasing and Supply Management: A Key to Competitive Advantage Purchasing and supply management is an essential function of any business. Regardless of the size of the business, or the product are service that they offer, every business depends on some type of supply in order to produce goods or services. If supplies do not arrive on time, the business could be it a standstill. This not only means lost
Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes
Second, greater education about the values and benefit of this approach to managing projects needs to be completed (Brady, Maylor, 2010). Third, the inertia and lack of motivation to change needs to be quantified and shown to managers to see how their lack of commitment and urgency are hurting their businesses. All of these factors center on the value of time and its precious nature as a resource (Brady,
This shift in responsibility that a payoff can force over time needs to be dealt with from a business process management and change management standpoint over the long-term (Jacobs, Chase, 2010). By concentrating on the unique requirements and needs of the internal stakeholders, payoff analysis can be profitable and productive over the long-term. References: Juan Alberto Aragon-Correa, & Enrique a Rubio-Lopez. (2007). Proactive Corporate Environmental Strategies: Myths and Misunderstandings. Long-Range Planning,
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