What is advantages and disadvantages of outsourcing for manufacturing company?

Answer 1

Outsourcing allows the company to manufacture an item without the added costs associated with equipment. If a company purchases a company that makes an aerosol but they specialize in lotions, they generally outsource the work. Also they don't have to deal with labor which is a major expense with health care skyrocketing. One disadvantage is that a company that outsources has no control over the quality. If a company outsources a product and the product that is sent to them isn't up to their customer's standards, they could eventually lose the contract.

Answer 2

there is no advantage if you have the machinery in place and decide not to use it. You still need to pay someone for the service. Where I worked they done this with test tensils and the quality and delivery were both bad . We lost customers because of this decision, most never to return as they found other suppliers. At the least you create an anxious workforce which is not good for the bottom line either. Everything has a cost .

Answer 3

The advantage gives them a cheaper labour force , saving them cash, because they don't have to pay unemployment, over time, unions,social security, health insurance, retirement, paid holidays, and usually bypass government restrictions. They also don't have to worry about safety concerns for those employee as they are not company employees but work for the contactor furnish them. (often the company itself owns the company or a part of it and saves millions in salary, and benefits doing this.

The disadvantage is the former employees lose all of their benefits such as retirement, health, paid holidays, overtime,
salaries, live hood, often this causes them to have to lose their homes,go on welfare, government assistance, retire early and work at low paid jobs to earn enough to get by on. It also increase divorces, breaks up fa miles, cause many people to have to relocate or stop working.
Another factor is that this leaves the companies with fewer people who can buy their products as the company has Killied their jobs.
The final situation is that this leads to other companies folowing suit and using outsourcing. than they all must result tolooking of reven cheaper labour as the competetion gets tough due to this practice with everyone inon it.
This results in lost of quality in service and products.

Answer 4

the main captivating income of outsourcing is the decrease priced factor. Human source and IT amenities interior the united states or Europe at the instant are not precisely decrease priced. enable's steer away from complicated corporation jargon and say that outsourcing is in certainty an determination that provides those amenities at a a lot, a lot decrease fee i.e., a inexpensive yet quite effective mass artwork rigidity.

Answer 5

advantages:

1. cheaper
2. faster
3. better

disadvantages:

NONE

any questions ?