THE EFFECT OF INSOURCING/OUTSOURCING DECISION ON THE PRODUCTIVITY OF AN ORGANIZATION ( A CASE STUDY OF PZ, CALABAR) – PURCHASING AND SUPPLY Project Topics – Complete project material

[ad_1]

The Concept of Insourcing and Outsourcing According to Hassan (2010), the insourcing or outsourcing decision is a sourcing policy decision which addresses the question faced by the Purchasing Manager, whether to produce to consume or to buy from outside suppliers (i.e. insourcing or outsourcing), and while most organizations make what they consume, not all can. And the decision to outsource or insource is generally a sort of sourcing policy decision (p. 107). Therefore, a trade off must be made between what the organization can make internally and what it had to obtain from external sources, since they (business) are not compete in all areas; and even when the business is good in all respects, it may not be of advantage in terms of costs. Lysons and Gillingham (2003) concur with Hassan when he observed that insourcing or outsourcing decision compares the cost of producing a component or providing a service internally with the cost of purchasing the component or service from an external supplier. They therefore, identify three levels of insourcing or outsourcing decisions.

Criteria for Selecting Suppliers for Outsourcing Contracts When outsourcing large numbers of parts were formerly produced in-house, purchasing must first upgrade its supplier control systems, such as supplier selection and qualification, performance measurement, and supply-base optimization processes. Once the firm has committed to outsourcing a key subsystem, it should also attempt to develop or enhance its competence in other critical subsystems, particularly if the technology is relatively new or not readily available outside the firm (Monczka, Trent and Handfield, 2002, p. 218, 219). Hassan (2010) on his part stated that deciding to outsource is one thing, getting the right suppliers or contractors to outsource too is entirely another. He gave seven (7) criteria that managers should assess before outsourcing. These include among others:

  1. Knowledge and skills that suppliers possess which the buyer values.
  2. Breadth and depth of experience of supplier.
  3. The skills and experience of the suppliers personnel and their unique service capabilities.
  4. Financial solvency, to ensure that the supplier can provide the desired service over the length of the outsourcing relationship.
  5. Good reputation, including the willingness to offer customer references and performance guarantees.
  6. Commitment to working with the buyer to help the relationship to succeed.
  7. Commitment to technological innovation quality improvement and customer satisfaction (p. 111).

The Outsourcing Process According to Van Weele (2005), the outsourcing process can be structured around different elements. Three distinctive phases can be identified. A strategic phase (why outsource, what to outsource and to whom to outsource), a transition phase (how to outsource), and an operation phase (how to manage the outsourcing relationship) (p. 124). Monczka, Trent and Handfield (2002) identified the outsourcing process in terms of steps namely: Assess Technology and Demand Trends, Access Strategic Alignment and Core Competencies, content total cost analysis of all insourcing/outsourcing alternatives, and finally consider non-factors and reaching consensus on the decisions (p. 201-11).

[ad_2]


Purchase Detail

Hello, we’re glad you stopped by, you can download the complete project materials to this project with Abstract, Chapters 1 – 5, References and Appendix (Questionaire, Charts, etc) for N5000 ($15) only,
Please call 08111770269 or +2348059541956 to place an order or use the whatsapp button below to chat us up.
Bank details are stated below.

Bank: UBA
Account No: 1021412898
Account Name: Starnet Innovations Limited

The Blazingprojects Mobile App



Download and install the Blazingprojects Mobile App from Google Play to enjoy over 50,000 project topics and materials from 73 departments, completely offline (no internet needed) with the project topics updated Monthly, click here to install.

0/5 (0 Reviews)
Read Previous

NEGOTIATION AS A COST REDUCING TECHNIQUE IN MATERIAL PROCUREMENT IN NIGERIA BREWERIES ENUGU PLANT – PURCHASING AND SUPPLY Project Topics – Complete project material

Read Next

THE ROLE OF INSPECTION IN PRODUCT QUALITY MANAGEMENT DRIVE IN AN ORGANIZATION – PURCHASING AND SUPPLY Project Topics – Complete project material

Need Help? Chat with us