There actually are many very positive aspects to factoring. See if any of these could help your business: Elimination of bad debt — a non-recourse factor will assume the risk of bad debt, thus eliminating this expense from your income statement.
George Washington University Type of paper: Essay This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. Put another way, costs versus benefits of the outsourcing venture can be effectively evaluated through adequate ERP measures and evaluations Soltan, et al.
DiGiTech, therefore, needs to employ ERP as a platform for measuring and evaluating its success factors in the business frontier. In essence, the use of ERP in gauging the impact of outsourcing on the business prospects of success will help the managers understand the true value that outsourcing brings to the firm Slack, et al.
Benefits of outsourcing Among the advantages that outsourcing brings to the firm is the liberation of the company from obligations that would otherwise take up much time and energy when executing Folinas,p.
As such, the company managers will find that they have more time at their disposal necessary for focusing on other important issues pertinent to the growth of the business.
The company can have time to expand its focus to market segments that it has not already tapped into as well as paying more attention to employees within the organization towards enhancing the performance of employees Hsiao,p. Notably, freeing up most of its obligations to external contractors, the company adopts a leaner more efficient framework that makes the company competitive through an objective focus on the core business activities.
For instance, the business can organize its staff to deal only in core business operations such as production and sales Broedner, et al. On the other hand, outsourcing can serve to facilitate other logistical functions such as transportation, bookkeeping, and inventory management. Consequently, DiGiTech can organize its human and financial resources in a manner that will assure it of sustainability and efficiency through a refocus on business core functions.
With employees free from many responsibilities, the company staff can focus on core competencies towards a specialization approach to enhancing individual performance DuarteI, et al. DiGiTech can explore advantages that come with outsourcing and management of its operations through the application and implementation of the ERP program to effectively keep its costs of operations as low as possible.
For instance, outsourcing clerical and human resource functions such as preparation and rollout of payroll have the implication of reducing the need for storage space needed for company files that are not directly linked to the production and sales process.
Through outsourcing, such services, the office space that would otherwise be utilized for storage of files and also for use by clerical officers would be left to the development product development process.
As such, the company can save millions of dollars in costs of maintaining storage space for data pertaining to logistical attributes of the supply chain and instead focus on production and sales of its merchandise. According to Folinasp.
Pros of outsourcing It is imperative to understand that a company that outsources will attract the best talent in the market in regards to outsourcing services in a given specialization.
Through the competitive bidding process, the company can also create value by choosing the most affordable yet efficient outsourcing service for the logistical supply of services. In the end, the company benefits from cost saving on recurrent expenditure owing to maintenance of space needed for recurrent operations not directly associated with production.
In addition, the company also creates high value given that the commodities develop of top notch quality based on the fact that the outsourced services were acquired through competitive bidding processes Nazeri, et al. Reorganizing the structure of the workforce is among the benefits of outsourcing that the company DiGiTech can immensely benefit.
In that esteem, the workforce at the company is organized into departments that prove a bit redundant. For instance, purchases and sales departments are tasked with different aspects of the business logistics that prove central to the successful operations of the business.
However, transport and inventory departments serve to duplicate operations of the sales and purchases departments respectively. Moreover, outsourcing inventory services will have the implication of reducing the responsibilities that the purchases department has or is taken to handle.
To that extent, the management at DiGiTech should opt to downsize the company staff by reducing redundant employees from the payroll. Through downsizing DIGiTech can reorganize its staff members to focus on the core functions of the business while other services that are not core functions such as the management of inventory, keeping books of accounts, and payment of salaries can be outsourced.
In the end, the reorganized workforce can efficiently meet the objectives of the organization Tsai, et al. Sentiments by Folinasp. Hence, outsourcing will only be used for services needed after which no extra payments shall be made to contractors for services not delivered. For instance, by deleting its transport department, DiGiTech will absolve itself of the obligation of having to maintain full-time staff designated as drivers, packaging staff, and mechanical maintenance teams.
As such, outsourcing transportation services will mean that the huge burden of maintaining vehicles and keeping salaried transport department staff on the payroll are eliminated.
Consequently, the company will only pay for transport when the need arises and hiring a service provider will have the implication of improving capital because lesser costs are incurred due to the reduction of expenditure.How Coca-Cola built a sugary empire, by outsourcing as much as possible A delivery man unloading cases of Coca-Cola from a truck, circa Photograph by Hulton Archive/Getty Images.
But Coke’s outsourcing strategy didn The history of Coca-Cola reveals that the firm demands a great deal Fortune may receive compensation for some links to.
COCA-COLA: International Business Strategy for Coca-Cola is not the dominate cola Coca-Cola in Morocco is believed to be the first brand to offer.
Mar 31, · This is nothing new. Coca-Cola made money for a very long time by sticking to this strategy of outsourcing, and there's no reason to think that it can't do this again in the future.
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service urbanagricultureinitiative.comally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain..
BPO is typically categorized into back office outsourcing, which.
Crowdsourcing is a sourcing model in which individuals or organizations obtain goods and urbanagricultureinitiative.com services include ideas and finances, from a large, relatively open and often rapidly-evolving group of internet users; it divides work between participants to achieve a cumulative result.
The word crowdsourcing itself is a portmanteau of crowd and outsourcing, and was coined in