Importance of outsourcing pdf

This has turned out to be another major factor in the decision to outsource logistics. Improved efficiencies may also be achieved within an activity being outsourced. According to Trunick , other drivers of outsourcing are the availability of new technology and the versatility of 3PL. Companies are able to utilise technology developed by 3PL which would normally be too expensive to develop in-house.

Further, 3PL has the ability to make changes to the distribution system to keep abreast of changes in technology and the market. Another benefit of outsourcing is that it gives organisations access to a larger pool of qualified personnel and talent. By outsourcing, a company will have access to the resources required but at a lower cost. However, there are many difficulties and risks that are associated with outsourcing, as discussed next. Outsourcing can create employee insecurity as well as pose legal complications Ahearn, Burt et al.

Leaking information is also rife in such relationships Ghelfi, Capability loss represents the extent to which the organisation loses its ability to perform the activity that it was outsourcing Handley, Handley also found that the deeper the capability lost by the outsourcing organisation, the more challenging it appears to be for the organisation to build a committed and cooperative relationship with the new OSP. There is, however, little information available on the actual realisation of benefits achieved through outsourcing in general, although the literature has revealed that there are numerous claims to benefits having been derived from outsourcing.

Another gap noted is a lack of research on the alternatives available to companies should outsourcing fail. Does the company just insource again, or does it hire the services of 4PL to rectify the situation?

It is important to consider the significance and type of disparity in the performance of the activity. Some examples are that the organisation possesses an advantage due to the economies of scale developed over a period of time. Organisations in this position should keep the activity internal, in the event that the supply market in not able to meet the performance levels required. This quadrant can include many simple activities required by the organisation. In this quadrant, the most important factors are the ability of the market to supply the services required, and any limitations that may prevent an organisation from outsourcing.

The following key questions should be asked: Is there any potential to leverage capabilities from external suppliers? Are there any internal or external restraints on using an OSP? Will customers recognise the difference in an end product if an OSP is used? Should the organisation choose to outsource, it should assist the OSP to develop a strategy to achieve the service levels achieved by the organisation.

If executed properly, outsourcing can be a source of competitive advantage resulting in a leaner, flatter organisational structure Pearce and Robinson, The authors further stated that performance monitoring allows for the OSP to work out with others how to improve efficiency since problems exist amongst people, technology and processes. Kathawala et al.

However, there are no guarantees that the benefits will be achieved and there are risks involved when an activity is outsourced. This review has revealed that logistics outsourcing has far-reaching consequences, and hence should be carefully considered to avoid difficulties such as loss of control, employee insecurity and supplier dependence.

The decision to outsource is complex and often involves the use of conflicting criteria. A good logistics service will prove to be a source of competitive advantage and prove to be a key in delivering effective customer service. Armstrong and Associates, Bhatnager, R. Third party logistics services: A Singapore perspective. Bryne, P. A new road map for contract logistics. Trasnportation and Distribution, April, pp. Burns, G. Industry update: Transportation outsourcing survey. Burt, D. Supply Management.

International Edition ed. New York: McGraw Hill. Cheong, M. Chow, G. The growth and development of the US third party logistics industry. Council of Supply Chain Management Professionals , Council of Supply Chain Management Professionals. De Villiers, G. Strategic logistics management - A supply chain management approach.

Pretoria: Van Schaik Publishers. Elmuti, D. The preceived impact of outsourcing on organisational performance. American Journal of Business, 18 2. The effects of global outsourcing strategies on participants attitudes and organisational effectiveness.

International Journal of Manpower, 21 2 , pp. Foster, T. Third Parties: your passport to profits. Distribution, October, pp. Gattorna, J. Harlow: Pearson Education Limited. Ghelfi, D. Handley, S. The perlious effects of capability loss on outsourcing management and performance. Journal of Operations Management, 30 1 , pp. Hugo, W. Supply Chain Management: Logistics in Perspective.

In: Pretoria: Van Schaik. Ishizaka, A. The 18C's model for a successful long-term outsourcing arrangement. Industrial Marketing Management, p. Jones, G. Contemporary Management. New York: Mc- Graw Hill. Text format is preferred since it is supported by both applications and operating systems. If any numeric information is derived from Excel from an external application such as the mainframe system, it is always stored in text form. When stored in code, it is not possible to evaluate or modify the numeric value.

A standard data table can either be converted specifically into a text file or a predetermined width string can be generated in a different range of cells, ready to be duplicated or translated as a different step. You can save workbooks in Excel in a variety of formats, including text and comma values. Few advanced applications may also translate data to XML files and programs that can be written to export Excel data in this format.

The export of a particular set of cells or the target program may not be able to accept the XML format. It may later be useful to export a specific set of data from a worksheet to a text file. Data Entry Outsourcing Specialists are a dedicated team with a strong background in shortcut keys in Excel that saves time and optimizes the manual data entry phase by incorporating advanced skills.

Data or information relating to a number of elements of a business company, such as its origin, marketing processes, business strategy, operating procedures, and financial records, etc. This data helps us make sound strategic decisions that lead to results.

Storage of bulk data is challenging and difficult to find at the point of decision-making. The hard copy of the bulk data can be easily damaged and the organizations agreed to convert it to a digital format. The conversion of the text is based on such standards. The following are a few suggestions to make sure the records are able to be transformed.

To take a list of documents -Take a list of documents whether it is in a print form or digitized form. Check the files can be easily transferred to another device.

Sort documents -Categorize documents on the basis of their manufacturing process or form of documents for easier access. Quick access to documentation is possible by categorization. Configure the data as per requirement — The digitized data can be translated to any format as per the client's order.

Acceptance of the deadline — Bulk work should be converted within the time frame without any loss of quality. Data security regulations — Go for an outsourcing partner who will specifically adhere to data security and confidentiality.