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.
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
Companies should focus on the core activity
and outsource following activity to service
Catering or canteen services
loading and unloading of material
Maintenance activity ( fire fighting ,ac units
uilities , telephone , computer maintenance)
Logistical support (3PL )