outsourcing

OUT SOURCING IN MANUFACTURING INDUSTRY

Outsourcing has become important now days .Market Competition has forced people to
adopt new strategies to lower cost of product .

Outsourcing could be done in various areas where manufacturers has agreement with third party to
perform specific on their behalf.

Advantages

No overhead cost( significant cost reduction)

No repair or maintenance&

No cost of equipments

No legal and other statutory obligation.
Partners could be changed any time

and could be re negotiated .

Could be done across the geography .

Few areas which have been
very successful through
outsourcing

Customer support services

Human resource services

Payroll and financial services

Production activity services

Procurement services

Companies should focus on the core activity
and outsource following activity to service
contractors

Security

Catering or canteen services

Hygiene

loading and unloading of material

Maintenance activity ( fire fighting ,ac units
uilities , telephone , computer maintenance)

Building repair

Courier jobs

pest control

Logistical support (3PL )