GECON IDP5 - Out Sourcing 1 Out Sourcing Christopher Barnes...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Out Sourcing 1 Out Sourcing Christopher Barnes Global Managerial Economics ECON310-1503A-05 Colorado Technical University August 10, 2015
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Out Sourcing 2 With the presentation of the idea of out sourcing as a possible solution for labor costs and material, I feel it is only natural to weigh the advantages and disadvantages before starting this process. This will help us gain insight into the possible to not only the good, but bad within the prospect of outsourcing. Which will help us decide if out sourcing for cheaper labor costs and material is right for us. There are several advantages for out sourcing on both labor and material costs. One huge advantage is the huge overall cost savings. If we outsource the menial tasks that are not only labor intensive and less effective for our company to make and move those tasks only to another company and or a subsidiary company that can produce those same items more effectively and at a cheaper cost. We would then bring all the pieces back to the main facility where the final product would be assembled into the final product and inspected for the highest quality that we pride ourselves on. With the menial tasks being diminished and or eliminated altogether, that would allow us to then cut cost on not only labor. But not only labor, other costs to include the medical care that we have been paying for the repeated motion injuries which in the first two quarters alone was seventy five. This causing us to bring in temporary staffing in order to keep up with order demands. This would then also allow us to bring down the staffing levels across the board, and or keep the current level of staffing and increase the current output and or streamlining of our current facility while cutting the overtime in order just to meet orders. Thus bringing the morale of all employees up and creating a better quality of life due to fewer weekends now having to be worked. This will also allow us to focus more on our core activities and business process, increase our marketing strategies.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern