OUT SOURCING IN MANUFACTURING INDUSTRY

Outsourcing has become important now days .Market Competition has forced people to
adopt new strategies to lower cost of product .

Outsourcing could be done in various  areas where  manufacturers has agreement with third party to
perform specific on their behalf.


Advantages

  • No overhead cost( significant cost reduction)

  • No repair or maintenance&
No  cost of equipments

  • No legal and other statutory obligation.
  • Partners could be changed any time
and could be re negotiated .

  • Could be done across the geography .



Few areas which have  beenvery successful throughoutsourcing

  • Customer support services

  • Human resource  services


  • Payroll and financial services


  • Production activity services


  • Procurement  services




Companies should focus on  the core activity
and outsource following activity  to service
contractors

  • Security

  • Catering or canteen services

  • Hygiene

  • loading and unloading of material

  • Maintenance  activity ( fire fighting ,ac units
  • uilities , telephone , computer maintenance)


  • Building repair

  • Courier jobs

  • pest control

  • Logistical support  (3PL )







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