What is referred to as organizations and individuals involved in the process of making a product or service available?
Distribution Channel. An organization or individual involved in the process of making a product or service available to an organization.
What refers to a system in which the vendor retains ownership of products until they are issued to production?
Vendor-Managed Inventory. A system in which the vendor determines the quantities needed for purchase and retains ownership of products until they are issued to production.
What is referred to as obtaining the right product from the right source for the right price in the right amount at the right time?
What is referred to as obtaining the right product from the right source, for the right price, in the right amount, at the right time? Primary purchasing objectives. What concept refers to suitability for intended use? Quality.
What refers to the factors used to compare an actual product or service with a desired product or service?
Quality Standards. The factors that are used to compare an actual product or service with the desired product or service.
What refers to an agreement to the exact details of the offer?
Acceptance (Contract) An agreement to the exact details of an offer.
What is the single most important factor in the make or buy decision?
The production cost and quality problems are the major triggers of a make-or-buy decision. Other factors are managerial decisions and a company’s long-term business strategy that dictate the current operations pattern.
What is make buy decision explain with examples?
Examples of the qualitative factors in make-or-buy decision are: control over quality of the component, reliability of suppliers, impact of the decision on suppliers and customers, etc. The quantitative factors are actually the incremental costs resulting from making or buying the component.
What are make or buy decisions?
A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier. Make-or-buy decisions, like outsourcing decisions, speak to a comparison of the costs and advantages of producing in-house versus buying it elsewhere.
When we should choose make or buy decision?
The make or buy decision involves whether to manufacture a product in-house or to purchase it from a third party. The outcome of this analysis should be a decision that maximizes the long-term financial outcome for a company.
Which cost is taken into consideration for make or buy decision?
Make or buy decision is the production decision made by the company i.e whether to buy the product or to manufacture the product. The cost of buying and manufacturing are both taking into consideration while making the decision. Hence, the cost of production is considered for ‘make or buy’ decision.
Why might a company make a product in house rather than buy it?
Why might a company make a product in-house rather than buy it? A firm may buy a product to lessen risk exposure. Not having operations abroad eliminates the direct risk to a company’s physical facilities, equipment, and employees.
What are the advantages of making a product in-house?
Key benefits of in-house manufacturing
- Easier communication.
- Agility and the ability to react to market quickly.
- Cost-effectiveness and no minimums.
- Rapid testing and new iterations of prototypes.
- Easy customization.
- IP and physical property protection.
Why are products suitable for home production?
There are several reasons to manufacture in-house instead of outsourcing production. It gives your company a lot flexibility to alter the product as you produce it. In-house production ensures higher quality control. With production in-house, you can keep your overhead low by avoiding foreign managers.
What is inhouse manufacturing?
In-house refers to conducting an activity or operation within a company, instead of relying on outsourcing. This occurs when a firm uses its own employees and time to keep a division or business activity, such as financing or brokering, in-house.
What are the advantages of manufacturing?
7 Benefits of Manufacturing in the United States
- More Jobs for Americans. Choosing U.S.-based manufacturing means creating jobs here at home for Americans.
- Reduced Cost for Deliveries.
- Shorter Lead Times.
- Environmentally Friendly.
- A Higher Standard of Safety & Quality Control.
- Homegrown Customer Service.
- U.S. Manufacturers Pay U.S. Taxes.
- Learn More.
What does insourcing mean?
Insourcing is the assignment of a project to a person or department within a company rather than to a third party. Insourcing is the opposite of outsourcing.
What is the difference between insourcing and outsourcing?
Outsourcing enlists the help of outside organizations not affiliated with the company to complete specific tasks. Insourcing generally places new operations and processes on-site within the organization, while outsourcing involves an outside organization that is separate from the primary organization’s operations.
Which is an example of insourcing?
Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. An example is the use of in-house engineers to write technical manuals for equipment they have designed, rather than sending the work to an outside technical writing firm.
What are the advantages and disadvantage of outsourcing?
The benefits of outsourcing can be substantial – from cost savings and efficiency gains to greater competitive advantage. On the other hand, loss of control over the outsourced function is often a potential business risk.
What are examples of outsourcing?
Some common outsourcing activities include: human resource management, facilities management, supply chain management, accounting, customer support and service, marketing, computer aided design, research, design, content writing, engineering, diagnostic services, and legal documentation.”
What is the best example of outsourcing?
An example of outsourcing is an American company opening a factory in China and hiring Chinese workers.
What are the features of outsourcing?
Outsourcing benefits and costs
- lower costs (due to economies of scale or lower labor rates)
- increased efficiency.
- variable capacity.
- increased focus on strategy/core competencies.
- access to skills or resources.
- increased flexibility to meet changing business and commercial conditions.
- accelerated time to market.
What is the process of outsourcing?
Business process outsourcing (BPO) is the practice of contracting a specific work process or processes to an external service provider. BPO is often divided into two main types of services: back office and front office. Back-office services include internal business processes, such as billing or purchasing.
What are the reasons of outsourcing?
Top 10 Reasons for Outsourcing that you may have overlooked all this while
- Access to Latest/Niche Technology.
- Access to Specialized Resources.
- Drive Flexibility & Speed.
- Leverage Professional & Well-established Procedures.
- Nullify Recruitment Hassles.
- Free-up Internal Resources.
- Improve Risk management.
- Focus on Core Business.
What are outsourcing services?
Outsourcing is the practice of passing individual tasks, subareas, or business processes over to a third-party and thereby receiving the results from outside of your own company. Services that your company was responsible for fulfilling will now be provided by a specialized service provider.
What are the HR issues in outsourcing?
Challenges of outsourcing HR
- Disconnection with staff. The word “human” isn’t part of the title “human resources” for nothing.
- Reduced flexibility.
- Problems taking longer to fix.
- Fewer choices.
- Security issues.
What is meant by HR outsourcing?
HR outsourcing is a contractual agreement between an employer and an external third-party provider whereby the employer transfers the management of, and responsibility for, certain HR functions to the external provider. Many types of HR outsourcing options are available to employers.
What are the pros and cons of outsourcing HR functions?
Outsourcing Human Resources Functions: Pros & Cons
| Pros | Cons |
|---|---|
| A logical, financially sound investment | Perceived loss of control over your business |
| Expansive capabilities | Expense |
| Comprehensive benefits offerings | Lack of access and availability to your HR rep |
| The latest HR technology |
Why HR outsourcing is important?
Outsourcing HR services helps streamline significant HR activities such as compliance, payroll and employee administration. When companies outsource HR services, they definitely get more time to focus on profits and other core business activities.